The effects of oil prices are more far-reaching than most people realize.
That's because petroleum permeates nearly every corner of our economy.
For example, just recently it was revealed that low oil prices were going to hurt elderly Americans in particular. Last week, the federal government announced it will not increase the cost of living adjustment (COLA) for fiscal 2016 due to low gas prices.
Here are four other less-considered ways the price of oil impacts our lives...
The effects of oil prices are more far-reaching than most people realize.
That's because petroleum permeates nearly every corner of our economy.
For example, just recently it was revealed that low oil prices were going to hurt elderly Americans in particular. Last week, the federal government announced it will not increase the cost of living adjustment (COLA) for fiscal 2016 due to low gas prices.
Here are four other less-considered ways the price of oil impacts our lives...
It's getting to be crunch time in the negotiations between the West and Iran over Tehran's nuclear program.
Despite an ill-advised attempt by U.S. senators to scuttle the talks, it's clear the negotiations in Geneva will continue.
Now, TV pundits have taken to the airwaves suggesting that an agreement would flood the market with Iranian oil.
Combined with production surpluses in the United States and elsewhere, the "instant" prognosticators are pushing their Armageddon pricing scenario again, putting additional pressure on oil prices.
Meanwhile, those playing the new "Iranian card" are shorting oil even further.
It's just the latest example of a self-fulfilling prophecy.
It works like this...
Chicken Little of "The Sky is Falling Brokerage" hits the airwaves warning of a collapse in prices, only to earn huge off-camera profits based on what he just said.
Meanwhile, average investors are left holding the bag as share prices fall.
The prospect for oil prices in the near future looks significantly more positive. By the end of the second quarter or shortly thereafter, we believe oil prices will rise.
This is despite the recent monthly report released by the International Energy Agency (IEA) that projects a more prolonged oil glut than initially forecast.
Here is what the IEA got wrong...
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