Oil Jumps on Stimulus Plan Agreement

[Johnboy60]

NEW YORK - Oil futures jumped more than $2 a barrel Thursday after the Bush administration and Congressional leaders agreed to an economic stimulus plan that will give most Americans tax rebates of $600 to $1,200, or even more if they have kids.

Prices were already higher after the government reported a drop in heating oil supplies and as investors anticipated a stimulus plan. But futures took off on word that an agreement had been reached.

http://home.peoplepc.com/psp/newsst...080124/47981b50_3ca6_1552620080124-2054959496

 

[billwald]

Stupid Americans will probably use the 300 bucks to lease new SUVs.

 

[Ave Maria]

So this means higher gas prices I'm assuming?

 

[wpiman2]

Well, the government is broke- but is giving away money anyways- so the dollar goes down. Oil didn't really "go up".

I hear after $75,000- the amount of money you get goes down until you reach $150,000. Then you get NOTHING. What the heck? All the people who do all the work and pay the most taxes will get zilch.

This country is going down the tubes.
We will be a populist nation soon and our economy will rival that of Mexico.

 

[HumbleMan]

Well, the government is broke- but is giving away money anyways- so the dollar goes down. Oil didn't really "go up".

I hear after $75,000- the amount of money you get goes down until you reach $150,000. Then you get NOTHING. What the heck? All the people who do all the work and pay the most taxes will get zilch.

This country is going down the tubes.
We will be a populist nation soon and our economy will rival that of Mexico.

Eh, we're already knocking on the Second World Country door.

I'll use my rebate to pay my heating bill, and maybe have enough left over to fill up my gas tank.

That'll sure help jump start the economy

 

[ElizabethVu]

I'ld just like to know when are we going to publically hang all these future's speculators for the damage they done thus far.

 

[wpiman2]

I'ld just like to know when are we going to publically hang all these future's speculators for the damage they done thus far.

Actually, I think you can thank those speculators. Those speculators have been buying up oil within the past couple of years, driving the price up.

They foresaw a day when supply did not meet demand. They bought futures, and the price went up.

This price increase has been driving people to bring more oil out of the ground and invest in news wells. Oil is now being processed where it was economically unfeasible before.

All this prevents an "oil shock" where demand far exceeds supply. If that happened, it would last a while since it takes a long time to discover, drill and process new oil. Oil would be FAR higher in that period than it is today. The financial markets have been doing their job.