re: Update, May crude oil futures now down to under $12

quote:

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Do you have any actual facts to dispute any of this?

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I’m not the poster you’re responding to, but I’ll take a crack at it.

1. The BLS numbers you cited are very limited in scope. The oil & gas industry supports millions of jobs when you account for midstream, transportation/logistics, and indirect economic activity. Not to mention the impact on the finance industry.

2. OPEC’s goal is not to keep the price of oil at sub-$20/bbl forever. They want to put their competition out of business to maintain market share. Despite your lack of concern for the US oil & gas industry, the shale explosion is the main reason oil isn’t $100/bbl anymore. If those producers go under and the Saudis gain market share, higher prices are inevitable. And a second reckoning in less than 10 years might be enough to scare investors away permanently.

3. The negative economic impacts of low oil prices are felt much faster than the positive impacts of low prices at the pump.

4. Oil demand is a strong indicator of the economy’s overall health. When oil prices bounce back, it likely means people are going back to work and the wheels are turning again.