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ASSOCIATED PRESS
Specialist Michael Pistillo, left, worked with traders at his post on the floor of the New York Stock Exchange today. Energy stocks are leading another sell-off on Wall Street as the price of oil continues to plunge.
NEW YORK » U.S. stocks recovered much of an early plunge, but the price of oil suffered its worst one-day drop since September.
Energy companies were pummeled as the latest fall in oil threatened more damage to an industry that has been stricken with bankruptcies, layoffs and other cutbacks.
Exxon Mobil fell 4 percent and Chevron fell 3 percent.
Crude fell below $27 a barrel, the lowest price since May 2003 and a far cry from the $100 a barrel it fetched in the summer of 2014.
The Dow Jones industrial average fell 249 points, or 1.6 percent, to 15,766. It was down as much as 565 earlier.
The Standard & Poor’s 500 index lost 22 points, or 1.2 percent, to 1,859. The Nasdaq composite slipped five points, or 1 percent, to 4,471.
Collapsing oil prices are great news for the middle class, who, for the most part part, were on the wrong side of the massive wealth transfer brought about by the easy money Federal Reserve policies of the past 8 years. The stock market soared into irrational exuberance territory, as did housing prices, and we know how all bubbles ultimately burst.
Please tell me when there was a bubble burst in Hawaii. We did have a dip in prices but never in the history of Hawaii real estate has there been a bubble. When do you think it will occur?
When the world wide, US Government sponsored, financial debacle hit, housing prices dropped like rocks, more in some areas, less in others. I remember using Google Maps, clicking on the “Real Estate” icon, and seeing the Ewa area look like orange shot gun blasts hit. Homes everywhere with an orange dot to identify them in the real estate process. Multiple homes on some streets, only a few in established neighborhoods.
If you had the money it was a great time to buy. It has happened before and will happen again. Just the way it is.
We can all Thank President Obama and Sec. Kerry for the Iran deal, lifting the sanctions on oil and watnots. If you have no 401k or type of saving plan that deals with the stock market should you really be worried right now? Be Happy we seeing cheap gas, finally us poor people who don’t have the xtra money don’t feel the pain that these richy rich do today
Anyone with a 401k plan and is still working should not panic. Back during the 2008 financial debacle, I maxed out my 401k contributions to include the max of “Catch Up” contributions. I bought shares at half price, a bargain. Some coworkers stopped contributing, others switched to bonds.
When the market recovered I made out very well with my half price shares now at the full price they were before the debacle. Truly Dollar Cost Averaging at its best.
Those who have retired should have adjusted some of their funds to more conservative investments for capital preservation. If you also have an emergency fund of one years expenses, tap this until the market recovers. Ideally in retirement you have no mortgage or other major monthly bills.
Soon the price of gasoline at the pump will decline to negative territory — the gas station will PAY YOU a dollar for every gallon you take off their hands.
Not on Maui… Regular gas price ranges from $3.03 to $3.59.. We are being ripped off!!!!
Fuel is the biggest expense for the airlines, why haven’t airfares dropped? Why doesHawaiian Airlines still have a fuel charge?
They are not interested in passenger satisfaction, they are only interested in paying out to their share holders….
Do we really need to keep oil companies on a huge profit margin? Nothing wrong with getting ahead in life while not having to worry about filling your car with expensive gas.. Gas stations used to try many gimmicks to get you to purchase their gasoline. I am enjoying cheap gas and waiting for the free offers and promotions from the gas stations to start up again to lure customers.
With diminishing oil supplies there will be the need to seek other sources of energy. Last month sold my oil stock at much loss but what heck, have missed my last 3 estimated tax payment anyway to the IRS the loss will off-set the miss payments. Had to get rid of some of my dogs in my portfolio. Still have some left.
Cool story bro…
back in 2005 when high gas prices was the topic all the petroleum experts from the UH and the industry laughed at the discussion and stated ” the days of cheap oil are gone”, never expect to see oil under a $100 again and expect prices to rise to $200. HAha so much for “experts”!
10 years ago we didn’t predict a full blown series of proxy wars between Saudi Arabia and Iran as well as the rise of shale oil and the mess that is Syria now. A huge amount of the price is directly related to politics and not engineering or supply and demand.
It’s all about supply and demand, the former increase from the U.S. shale oil revolution and the latter decline from a weaker Chinese economy. And it was predicted 10 years ago by non-partisan economists, meaning those without a political agenda.
North Dakota Oil Boom
You seem very unaware of why Saudi Arabia is choosing the choices it is making.
The interesting question for me is, if you remove all the politics and manipulation from price of oil, and you look only at the pure economic cost of oil production, is the true price of oil actually closer to the low prices we pay today?
Good question. Yes.
Yes, that is a good question. “Manipulation” though, has always been a factor as multi-national organizations such as OPEC (since 1949) have manipulated prices through controlling production and sale of oil. It would seem that the collective façade of the 13 OPEC nations (about 40% of world production and about 70% of world reserves at last estimate) has developed some cracks. This is very difficult to isolate or tease out from geopolitical considerations.
It is cheaper for me to drive my old Toyota truck than it is to catch the bus. I used this savings to buy more of my “A” stock, which is currently down 15%.
Thank you Mr. Obama! The economy is doing very well! Yeah right! The deal with Iran is causing the oil prices to drop, which in turn is putting US oil companies out of business or causing a slow down in production, which means people are losing jobs and cannot invest the money they now do not have. Simple supply and demand.
Oh puhleeze. Way to many mindless minions blame Obama for everything. Give it a break and learn how the real world works.
It’s funny how Obama is now getting blamed for low gas prices.
Seriously, these children will blame him for everything.
Stubbed their toe? Blame Obama.
Spilt milk? Blame Obama.
Put my shirt on backward? Blame Obama.
I don’t directly blame him for this but I remember when guys like you gave him most of the credit when stocks were rising. It seems like party loyalist blame others when things go bad and give him the credit when things are good.
Thanks, Obama!
Presidents have relatively little actual power over the economy. Foreign Policy has always been the area where the Executive Office can actually set policy.
Crank Yankers think that the President can somehow magically set oil prices, tell the stock market what to do and what the deficit will be.
My point, Ahi, is that Obama got blamed for high oil prices by his detractors and is getting blamed for low oil prices by the same people.
They have no problems blaming for for things they formerly wanted. What does that suggest? They don’t care about policy or outcomes. They PURELY want to blame him for everything.
Well one of the reasons that oil prices are heading down again is that sanctions against Iran have been lifted and they are free to sell oil on the open market, contributing to the supply glut that has weakened oil prices. Reuters reports that Iran has stored over 30 million barrels of oil on supertankers at sea pending the release of sanction. That oil is now on the market. Iran has state that it will increase production to 500,000 barrels per day after sanctions are lifted which should further contribute to the glut. The Iran nuke deal, like it or not, which was pursued by Obama is directly responsible for this new supply hitting the market so people who attribute the most recent slide in oil prices to Obama’s diplomacy may be in fact correct. Remember the numbers, 500,000 barrels per day, 30 million barrels at sea. That’s a lot of oil that is hitting the market.
It also means that every transportation firm just saw a big boost to their profits and every business that uses oil and oil products as feed stock just saw a big boost to their profits.
And the economy is doing well, enough so that the boosted tax revenues have made the deficit disappear from the news.
And why should Obama maintain actions that artificially keep prices high for the sake of a single industry at the expense of numerous other industries? You won’t answer that.
Maybe I can buy that V-8 powered Mustang now.
Market is down. Time to BUY, BUY BUY.
and those who panic……sell, sell, sell?
You like catching falling knives?
There is a time to buy, but now isn’t it.
Let us know when it is time to buy old wise one. Oil may just have bottomed today. There are so many shorts in the market that a giant short squeeze may be in order. Natural gas looking good. Got gold?
The fact that there are so many shorts tells you that the mentality is still to keep pushing down. So even if they are technically wrong, it’s still a bad idea to buy heavy on the way down. Wait for two or three spikes up before committing big. The real big question is lack of transparency in how hard of a landing China is going to have.
Be greedy when others are fearful. Right now, a lot of people are fearful.
ALLU, is that like picking up fish in the ebbing tsunami, while fearful ones run for their lives?