Suncor Energy Inc. T.SU

Oil Not Seeing Normal Recession-Related Declines: Sen

[MigraineCall]

https://www.bloomberg.com/news/videos/2022-07-29/oil-not-seeing-normal-recession-related-declines-sen

[Bigbear7405]

You have to understand the inflation number that are posted typically are not acurate.  Its genereally worse. So if everyone in the states just got hit with a 10% inflation. They just lost 10% of their purchasing power which is equvalent to 10% of the population loosing their jobs.   

[Oldnagger]

If inflation goes up another 10 % and oil goes up with it by 10 % , then free cash flow will probably go up by about 20 %. Even more if oil companies stop deleveraging and increase share buy backs !!

[Bigbear7405]

You do undestand that another 10% increase means average cheques people get are 20% low. A 20% paycut across the board would equal a depression. We are already seeing people adjust there spending to neccessites. Best buy spending slumps as they state: "As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has

[Oldnagger]

I was simply trying to illustrate the point that cash flow grows faster than pricing. I do not believe that the high recent inflation is caused solely or even mostly by oil priicing. Rather it is most likely a symptom of excessive money supply, coupled with sudden shifts in demand and of course all the post covid entanglements. I am not an economist, and I am too young to remember the Post WW 2