Quote from: K-Dog on Aug 04, 2024, 10:04 PMIf you take the speaker at his word he understands that capitalism will price oil $1.00 above the price that would cause a recession.  Priced at this level oil produces the most profit.

Higher oil prices cause recessions, they reduce profit margins and increase costs to the end consumer.  Oil sellers respond to recessions by lowering their prices as much as they can and still make a profit in the attempt tp keep selling the oil.  If their production costs are above what the oil is selling for, they have to shut down production.

This is in fact exactly what is happening now, as I predicted.  Oil has been dropping from the $80 target price since the beginning of July, and dropped to a fresh low of $72 today.  If they get down to the $60s, the expensive tight oil plays aren't profitable.  As a result, they are already shutting down production.

U.S. Oil and Gas Drilling Activity Slows Amidst Price Plunge

The recession signs are all flashing RED now and we''ll almost certainly be in full blown recession by the end of the year.  Main question is whether they can keep it papered over until after the election.

RE