Discussion in 'Energy' started by Chris, Sep 2, 2008.
Oil prices drop on lower demand....
HamptonRoads.com | PilotOnline.com
Your myth posting continues
As stated SO many times... the demand for oil, the miles driven, etc was continually on the decline for over a YEAR prior to the gas price drop....
You simply REFUSE to understand that there are many more market influences in this WORLDWIDE market
we are 1 country out of all the countries in the world using oil, this is true...but we CONSUME 27% of the world's oil used, each and every year....the next CLOSET country's consumption to ours is around 7% of the world's oil supply and this is China.
THIS is why what we do in conservation, immediately hits market price...
And yes, our dollar has something to do with it...and the consumption of other countries has something to do with it...and our near recession has something to do with it etc...., but the USA'S demand being cut on the world's supply is what impacts the price of oil.. near instantly...due to our huge percentage of consumption on the world's market...
The price of oil has many causes, and yes, reduced use does tend to drive down the price of it, barring anything else changing at the same time.
Care... yet kirk contends conservation is the whole reason it went down in August... even though the trend and total picture does not show that since the downward mileage and usage trend would have driven the prices down for the entire previous year...
Yes... demand changes effect the price of oil... but our 'conservation' was not the only reason behind the price drop....
kirk refuses to deal with reality
Why do you lie? I NEVER said conservation was the whole reason for the drop in price. I said lower demand was the reason. Supply and demand sets the price of oil.
You forgot the elections are coming and the Oil Companies really prefer the GOP be in charge. That's another BIG reason why speculators aren't raping us at the pumps right now.
Put McCain into office and gas will be $5 a gallon next year. And the GOP will blame the Democrats.
Lower demand is not the reason. Not the REAL reason. It is the FEAR of lower long term demand than what was thought a year ago that has all the hedge funds doing what they did in housing, and what they did 10 years ago with tech stocks....bail, since the money making days are gone in oil for a while. It the wholesale flight from oil by Wall St firms fueled by a fear psychology of too much supply.
We never had a shortage, so the run up was ridiculous, a fear coupled with the ever present Lemming effect on Wall St. Likewise, there is no less long term future demand today than there was a year ago or at the peak of the run up.
And you can add the strengthening dollar to help exagerate the effect.
I've always said markets will turn when the MOOD changes, not the supply-demand-cost facts. And the mood fundamentally altered with oil hit $140 and gasoline in America hit $4.00. Once a mood is set in these days, hold on.
oil prices went down because barack hussein obama told us to inflate our tires and we all listened.
He's smarter than you are.
Separate names with a comma.