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Do plummeting oil prices indicate a coming global recession?

Alaska Dispatch -- ANALYSIS: Are lower oil prices good news? Not really, if it means the world is sinking into recession.

We know from recent experience and common sense that high oil prices are a drag on oil importing economies, because more money spent on the same amount of oil leaves less to spend on discretionary goods and services. In addition, oil money sent to oil exporting countries is likely to be spent within those economies, rather than being reinvested in the oil importing country.

A rough calculation indicates that the combination of European Union countries, the United States and Japan spent a little over $1 trillion dollars in oil imports in 2011, roughly the same amount as in 2008. Governments have been running up huge deficits and have been keeping interest rates very low to cover up this

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Submitted Jul 11, 2012 By: angel4me

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honda0105 Champion Author Tallahassee Posts:18,632 Points:1,610,495 Joined:Nov 2008	Message Posted: Jul 15, 2012 7:57:11 AM Ignore honda0105 Report Abuse global recession? Oh yea, Alaska Dispatch. Takes a while to get news up there doesn't it?
goldrose1 Champion Author Cleveland Posts:10,944 Points:1,925,765 Joined:Feb 2005	Message Posted: Jul 12, 2012 3:27:19 PM Ignore goldrose1 Report Abuse Sure hope not. Current economy is mess enough.
sparky808 Champion Author Honolulu Posts:3,003 Points:598,710 Joined:Sep 2011	Message Posted: Jul 12, 2012 1:17:20 PM Ignore sparky808 Report Abuse Thank you for posting.
jrs4125 Champion Author Indiana Posts:2,763 Points:592,720 Joined:Sep 2011	Message Posted: Jul 12, 2012 6:37:30 AM Ignore jrs4125 Report Abuse The whole corrupt system will break soon. The 1% won't have to worry about it though.
justmedc Veteran Author Michigan Posts:382 Points:174,045 Joined:Mar 2012	Message Posted: Jul 12, 2012 1:31:46 AM Ignore justmedc Report Abuse wish the gas prices were lower in my area. it is higher than the michigan average consistantly
joel27nc Champion Author Raleigh Posts:10,542 Points:1,859,345 Joined:Mar 2008	Message Posted: Jul 12, 2012 12:22:47 AM Ignore joel27nc Report Abuse Whatever you say
DrLyon Champion Author Michigan Posts:6,650 Points:1,211,830 Joined:May 2006	Message Posted: Jul 12, 2012 12:13:24 AM Ignore DrLyon Report Abuse European Union stuff could be a drag man....
MadDogUSMC Champion Author Jacksonville Posts:20,307 Points:2,872,665 Joined:Apr 2005	Message Posted: Jul 12, 2012 12:08:25 AM Ignore MadDogUSMC Report Abuse PrinceLH.....I know that one exactly. I used to live in a luxurious apartment near the beach 4 yrs ago and had money to afford what I want. Now I rent a small place 25 miles from luxury and the only way I'm affording anything is from working OT. Prices have gone up but income has stayed the same. What gives? LOL
rollercoaster All-Star Author Hartford Posts:502 Points:567,660 Joined:Jul 2008	Message Posted: Jul 12, 2012 12:06:33 AM Ignore rollercoaster Report Abuse no
DandyDapple All-Star Author North Dakota Posts:715 Points:311,570 Joined:Sep 2008	Message Posted: Jul 12, 2012 12:06:31 AM Ignore DandyDapple Report Abuse Makes you wonder ...
PrinceLH Champion Author Ontario Posts:2,697 Points:539,020 Joined:Jun 2011	Message Posted: Jul 12, 2012 12:06:08 AM Ignore PrinceLH Report Abuse Ask many who never got back their standard of living, from 4 years ago?
umitb Champion Author Indianapolis Posts:3,681 Points:844,415 Joined:Apr 2010	Message Posted: Jul 12, 2012 12:05:25 AM Ignore umitb Report Abuse ok
NorthglennBill Champion Author Denver Posts:7,432 Points:1,473,145 Joined:Oct 2008	Message Posted: Jul 12, 2012 12:04:55 AM Ignore NorthglennBill Report Abuse And when did it happen that we got out of the last one? I thought we were already there.
1fulltank Champion Author Buffalo Posts:7,908 Points:1,545,285 Joined:Nov 2008	Message Posted: Jul 12, 2012 12:04:31 AM Ignore 1fulltank Report Abuse "...plummeting..."???
TheeRedRam Champion Author Hartford Posts:3,168 Points:673,610 Joined:Jun 2011	Message Posted: Jul 12, 2012 12:03:14 AM Ignore TheeRedRam Report Abuse .
feistyfella All-Star Author Georgia Posts:881 Points:194,595 Joined:Jun 2010	Message Posted: Jul 12, 2012 12:03:14 AM Ignore feistyfella Report Abuse Dispatch
Buffalo Joe Champion Author Alberta Posts:8,601 Points:2,509,850 Joined:Feb 2003	Message Posted: Jul 12, 2012 12:02:56 AM Ignore Buffalo Joe Report Abuse It is sinking fast.
flyfast Champion Author Kansas City Posts:9,258 Points:1,827,010 Joined:Jan 2008	Message Posted: Jul 12, 2012 12:01:03 AM Ignore flyfast Report Abuse IT NEVER LEFT
min_fuel Champion Author Philadelphia Posts:1,956 Points:722,545 Joined:Jan 2008	Message Posted: Jul 11, 2012 11:58:54 PM Ignore min_fuel Report Abuse Yes. We are there already.
MDTDriver Champion Author California Posts:9,729 Points:2,155,620 Joined:Jul 2006	Message Posted: Jul 11, 2012 11:56:03 PM Ignore MDTDriver Report Abuse Works for me.
BrucePen Champion Author Ontario Posts:6,606 Points:1,362,815 Joined:Sep 2008	Message Posted: Jul 11, 2012 11:55:32 PM Ignore BrucePen Report Abuse Gas has gone up 12 cents a liter in a week. Nothing but greed.
AnObserver Champion Author New Jersey Posts:8,364 Points:2,259,730 Joined:Sep 2005	Message Posted: Jul 11, 2012 11:55:10 PM Ignore AnObserver Report Abuse Not really - but the European banking crisis might
mgune9 All-Star Author Dallas Posts:914 Points:200,395 Joined:Feb 2012	Message Posted: Jul 11, 2012 11:53:51 PM Ignore mgune9 Report Abuse seriously doubt it - pump prices on the rise again here
Ayeghoti Champion Author Michigan Posts:2,440 Points:347,850 Joined:Aug 2007	Message Posted: Jul 11, 2012 11:51:46 PM Ignore Ayeghoti Report Abuse yeah right
suzmar Champion Author Texas Posts:2,212 Points:872,740 Joined:Jun 2006	Message Posted: Jul 11, 2012 11:49:12 PM Ignore suzmar Report Abuse Prices appear to be rebounding.
BurtB Champion Author Los Angeles Posts:5,172 Points:1,367,065 Joined:Jun 2006	Message Posted: Jul 11, 2012 11:44:06 PM Ignore BurtB Report Abuse plummeting oil prices indicate investors (or as some on this site call them, speculators) think a coming global recession? It is not a predictor, it is lagging indicator of public perception.
Tracer2008 All-Star Author Alberta Posts:540 Points:312,445 Joined:Sep 2008	Message Posted: Jul 11, 2012 11:43:34 PM Ignore Tracer2008 Report Abuse Prepare for the next cycle?
big_mac64 Champion Author Tennessee Posts:10,593 Points:1,485,690 Joined:May 2005	Message Posted: Jul 11, 2012 11:38:14 PM Ignore big_mac64 Report Abuse oil has been increasing for a little more than a week now...how old is this article, really?
mrbee Champion Author Little Rock Posts:3,759 Points:2,466,805 Joined:Oct 2005	Message Posted: Jul 11, 2012 11:35:44 PM Ignore mrbee Report Abuse No.
Barfood Champion Author St. Louis Posts:3,301 Points:1,017,680 Joined:Jun 2009	Message Posted: Jul 11, 2012 11:32:29 PM Ignore Barfood Report Abuse I suspect people just aren't buying as much, maybe because they can't afford it or they want to spend it on something else instead (like food :-)
Mowerman08 Champion Author Milwaukee Posts:4,760 Points:1,217,995 Joined:Aug 2008	Message Posted: Jul 11, 2012 11:32:07 PM Ignore Mowerman08 Report Abuse Just means the speculators aren't to sure of what to expect.
eye-spy Champion Author Quebec Posts:4,588 Points:2,417,845 Joined:Feb 2005	Message Posted: Jul 11, 2012 11:29:46 PM Ignore eye-spy Report Abuse Too bad that we can't go back to the 60's when NONE of this oil crap existed.
Jumpmaster82 All-Star Author South Carolina Posts:921 Points:850,200 Joined:Nov 2008	Message Posted: Jul 11, 2012 11:28:05 PM Ignore Jumpmaster82 Report Abuse yes!
letmathe Champion Author Chicago Posts:14,316 Points:3,133,295 Joined:May 2001	Message Posted: Jul 11, 2012 11:24:51 PM Ignore letmathe Report Abuse yuk!
a_lu_vasile Champion Author Maryland Posts:1,254 Points:776,200 Joined:Jul 2008	Message Posted: Jul 11, 2012 11:23:17 PM Ignore a_lu_vasile Report Abuse ok
mstearno Champion Author Dayton Posts:8,071 Points:1,732,210 Joined:Jan 2008	Message Posted: Jul 11, 2012 11:23:07 PM Ignore mstearno Report Abuse YES
unicornIL Veteran Author Chicago Posts:446 Points:386,295 Joined:Jan 2012	Message Posted: Jul 11, 2012 11:22:06 PM Ignore unicornIL Report Abuse where are they plummeting? Not here
wayoung56 Champion Author Alabama Posts:2,805 Points:819,310 Joined:Oct 2006	Message Posted: Jul 11, 2012 11:21:13 PM Ignore wayoung56 Report Abuse Interesting article...
serrog Champion Author Nova Scotia Posts:5,569 Points:1,513,105 Joined:Oct 2008	Message Posted: Jul 11, 2012 11:17:52 PM Ignore serrog Report Abuse Probably true
clermont40miles Champion Author Cincinnati Posts:10,576 Points:1,772,940 Joined:Apr 2008	Message Posted: Jul 11, 2012 11:17:41 PM Ignore clermont40miles Report Abuse Is it possible high oil prices CAUSE global recession? We cannot sustain these wildly high prices. A "roach coach" lunch wagon company in Columbus, OH went out of business last Thursday. 80 workers reporting for work were told they had no job. The owner had just enough money to pay their bills but would not if they did not shut down. People do not have expendable income to spend on any extras anywhere. It all goes to transportation costs. .
aggietim Champion Author Fort Worth Posts:1,756 Points:693,625 Joined:Oct 2008	Message Posted: Jul 11, 2012 11:17:05 PM Ignore aggietim Report Abuse ?
Is246 Champion Author Albuquerque Posts:1,014 Points:427,610 Joined:Apr 2011	Message Posted: Jul 11, 2012 11:16:20 PM Ignore Is246 Report Abuse Gas prices aren't plummeting.
kzrooster Champion Author Kalamazoo Posts:2,390 Points:517,725 Joined:Nov 2011	Message Posted: Jul 11, 2012 11:15:15 PM Ignore kzrooster Report Abuse Here in my hometown we still are deep into recession.
tessnlu Champion Author Missouri Posts:24,264 Points:1,107,240 Joined:Aug 2008	Message Posted: Jul 11, 2012 11:13:32 PM Ignore tessnlu Report Abuse Have we gotten out of the first one yet? Not in this area.
hcivic Champion Author Virginia Posts:3,854 Points:2,265,715 Joined:Aug 2005	Message Posted: Jul 11, 2012 11:12:11 PM Ignore hcivic Report Abuse we'll see
MotoDad Champion Author Phoenix Posts:1,106 Points:812,015 Joined:Sep 2006	Message Posted: Jul 11, 2012 11:11:31 PM Ignore MotoDad Report Abuse As long as obama is in office, don't see things getting better.
greentre All-Star Author Pensacola Posts:792 Points:276,135 Joined:Oct 2011	Message Posted: Jul 11, 2012 11:09:10 PM Ignore greentre Report Abuse It's the end of the world as we know it!
NemoIL Champion Author Illinois Posts:3,027 Points:1,314,135 Joined:Aug 2008	Message Posted: Jul 11, 2012 11:05:53 PM Ignore NemoIL Report Abuse Yes, the approaching economic melt down.
dancygreen Champion Author Twin Cities Posts:2,063 Points:485,760 Joined:Sep 2011	Message Posted: Jul 11, 2012 11:03:23 PM Ignore dancygreen Report Abuse its all bs
bobdec Champion Author Miami Posts:8,969 Points:1,770,795 Joined:May 2008	Message Posted: Jul 11, 2012 11:02:59 PM Ignore bobdec Report Abuse Wake up it is a world depressiion