Venezuela’s Oil Minister Rafael Ramirez said in Vienna that his country could not afford to invest in major new oil exploration unless prices rise further. “We need a level of at least $70 [a barrel] to recuperate investment,” he said on Thursday. Muhammad-Ali Zainy, senior energy analyst at the Center for Global Energy Studies in London, says oil demand could increase quickly once the recession ends, especially as China has begun to build up its strategic oil reserves. “We think the price is going to go up gradually,” says Zainy. 

Oil prices are all about money. Gas prices have increased even though demand is down. The summer blends that are required in parts of the United States have always been a bit higher. Plus, summer has traditionally been driving season. So even though fewer people are really going out and take vacations, thy might take a road trip which requires gas. Also other countries need gasoline as well.

Consider if you are basing your projected expenses and budget on a certain amount of income you can survive. None of the oil producing countries were complaining when oi was selling for more than $145 a barrel. Now that the price is less than half of that, they can’t manage. Just like municipalities that were accustomed to using tax revenues for the budget and now have shortfalls because of unemployed people contributing less to the tax coffers, something has to happen. In the case of oil, production has slowed.

When demand increases for oil, OPEC countries are encouraged that the global recession is lessening.

What does luxury really mean? Are the luxury goods worth the high prices?

 According to the Luxury Institute’s survey of over 500+ high net worth consumers:  “Superior quality (82%), superior craftsmanship (78%) and superior customer service (60%) are the top three requirements of a luxury brand. Yet, more than one-third of consumers say luxury brands are worse today than in the recent past on delivering superior customer service and on failing to have salespeople who are experts in their products”

Quality and craftsmanship are important for lesser brands as well. Customer service is something that began to wane in recent years though it is on an upswing to regain brand or store loyalty. I went to buy something at an office supply store the other day, and was met at the door by a sales associate who had nothing to do. Not only did he help me find the product on the shelf but also asked about other items I needed. Customer service is moving to the forefront again because many people in retail want to keep their jobs and appear indispensable.

Buying a quality item which is well crafted could be purchased via the internet even with some of the luxury brands or from some of the luxury stores. There is just so much that can be done when making an online purchase.

Even wealthy consumers believe that the prices of luxury goods are too high – “64% of wealthy consumers believe luxury goods prices are too high relative to the value they deliver.”

Brands that may not be considered luxury brands but have exceptional customer service, high quality and well-crafted products are in demand, though all of these components would also signal to me, as a consumer as well as others that the items would be reparable, well made and long lasting.

Luxury. Now the word has become synonymous in some circles with waste. Luxury does not have to be wasteful. Though since more people are spending more time with friends at home, they are also spending more money on their home. Money Magazine listed several household items that you might want. All of the items cost less than five hundred dollars. Depending on where you live, $500 is a good chunk of change – like almost a mortgage payment or monthly utilities. 

The luxury items that are being showcased are ones that I could really do without – a heated towel rack or  a counter wine chiller. The other suggestions such as a hammock for my yard would be too small for my balcony, ditto for an orchard.

Household improvements that could be made for low or no cost could be selling books or dvds (or other media) that you no longer read or watch. Either way you will have more space in you home. 

Don’t scrimp or buy the cheapest gadgets or items that you know you will use. Any item that you like but will not use, start saving for it and revisit the idea of the purchase. You might just want to pass on by it. If you like cappuccino but drink it only occasionally, then walk on by that stove top cappuccino maker and just treat yourself to one when the mood arises. You will save space in your home and keep some extra cash.

What we consider necessities and luxuries has changed since the economic downturn, The Pew Research Center has indicated that from those surveyed there have been some changes in what people consider a necessity. Luxury and necessity are relative terms depending on who you are and your situation but thinking about a serious purchase before you make it would be a wise decision in any economy.

Consumer confidence increased last month. On this news, the stock market has soared.

Stocks are fickle. So are people. Just by saying that consumer confidence has increased, then people will definitely feel better about some things. Some people. Those who have more difficult paying their bills regardless of the economic situation they will have not feel as confident about their situation because they are less likely to consume things. 

Saturday, I as in a grocery store and I overheard more than one person complaining about the price of food. No matter what, food items are definitely what people need to purchase. Making your own meals at home, especially if you are preparing food for more than one person is more economical but it is important. Increases in food prices do not make consumers confident.

Proclaiming it in the headlines doesn’t make it so. If you are working and have a relatively secure job, this doesn’t mean that you are free from financial woes. Nor does it mean that you are an optimistic person in general. The Consumer Confidence Index is a survey of 5,000 homes, polling a few people to represent a group. If you polled an overly pessimistic group or an overly optimistic group, the numbers might be skewed.

If you have any money – 401k, investment, mutual fund, etc.  - in the market now, the increase is good for you. Even though it may not change your day to day living as much.

A couple who took out a loan from a bank in New Zealand were pleasantly surprised with a loan 100 times more than they asked for. Instead of alerting the bank to their error, the couple has now disappeared. Initially,  this was a loan for a gas station and for about $61,000 US dollars, instead the couple received the equivalent of $6.1 million US dollars.

The bank has recovered a little over a million dollars of the money but the couple is still on the run.

When you find a bank error in your favor, or an error in a store in your favor – what do you do?