Funny how gas is cheap after 8years bush

[Drake]

1Bad65 is right about this. Global demand has fallen through the floor due to a GLOBAL recession. No conspiracy, no black helicopters, just the result of a massive decline due to global market failures.

[taai gihk yahn]

So gas went from $4 a gallon to $1.5 a gallon because of demand......

yes it did; even if the futures market was artificially inflating it (which I personally believe it was to a not insignificant extent), but it was the drop in demand that "popped" the bubble; and the drop in demand was fueled by 2 things: the inflated price (hitting a combination of consumers and business, the latter being able to "absorb" it more by raising prices, the former by not taking vacation road trips, leading to decreased demand from that sector) and the credit crunch (business mostly, which is where you really saw the demand drop esp. in CHina / India where new construction and the sort ground to a halt significantly decreasing fuel usage))

[BoulderDawg]

Yes. A drop in demand will result in a drop in price. Is this news to you?

It's called the Law of Supply and Demand.

If you believe it's that simple then what is there to say?

For the rest of us (ie-Those that don't get their opinions from Limbaugh) the problem is just a bit more complicated.

[BoulderDawg]

yes it did; even if the futures market was artificially inflating it (which I personally believe it was to a not insignificant extent), but it was the drop in demand that "popped" the bubble; and the drop in demand was fueled by 2 things: the inflated price (hitting a combination of consumers and business, the latter being able to "absorb" it more by raising prices, the former by not taking vacation road trips, leading to decreased demand from that sector) and the credit crunch (business mostly, which is where you really saw the demand drop esp. in CHina / India where new construction and the sort ground to a halt significantly decreasing fuel usage))

Do you have any stats to back up this drop in demand?

Also there are two sides to that equation. The other is supply. Those folks over at OPEC are not dummies. They simply aren't going to flood the market with oil when the demand is going down. Also, it's a non parishable commodity. It does not spoil therefore you cannot lose it if you don't sell it.

[golgo]

Iraq is an even better picture of this, wherein the previous administration blocked everyone from thr reconstruction in favour of strictly American contracting being done.

I'm not a fan of the Iraq war or Bush, but the reason they are favoring US contractors is because we are the ones paying the human and financial toll in the war. I think it's great that countries stood up for what they believed in and did not go to war with us. They shouldn't expect to reap any of the benefits without any of the risk.

"Hi, I'm W. Want to go to war with us?"
"No, but we will gladly profit off of it once you guys are done"
"Um... no thanks. We can take it from here."

[taai gihk yahn]

Do you have any stats to back up this drop in demand?

not specifically; but this is what was reported across the various media sources I utilize, which is a combination of BBC, Reuters, EuroNews and CNN International, as well as occasional forays into the French, German and Italian press when my wife is around to help translate; so if they are all in on the conspiracy together, then I guess I've been bamboozled...

Also there are two sides to that equation. The other is supply. Those folks over at OPEC are not dummies. They simply aren't going to flood the market with oil when the demand is going down.

which is why OPEC was resistant to raising output all summer and then cut back this fall...

Also, it's a non parishable commodity. It does not spoil therefore you cannot lose it if you don't sell it.

yes, but you still have to store it somewhere and the oil production industry is predicated on quick turnaround, not long-term storage;

[Drake]

Iraq is an even better picture of this, wherein the previous administration blocked everyone from thr reconstruction in favour of strictly American contracting being done.

you don't believe it's right to deprive any individual or other nation and yet this is exactly what is done, daily by american political policy, american military and american businesses.

WTF are you talking about. I met several Lebanese contractors while down there. In fact, Camp Victory is a huge hodgepodge of global contracting companies, including Iraqis. I've met workers from all over the globe there, working for different companies. I don't know where you are getting your info (or if you are just shooting from the hip), but mine is from first-hand experience.

[BoulderDawg]

not specifically; but this is what was reported across the various media sources I utilize, which is a combination of BBC, Reuters, EuroNews and CNN International, as well as occasional forays into the French, German and Italian press when my wife is around to help translate; so if they are all in on the conspiracy together, then I guess I've been bamboozled...



which is why OPEC was resistant to raising output all summer and then cut back this fall...


yes, but you still have to store it somewhere and the oil production industry is predicated on quick turnaround, not long-term storage;

Of course there is going to be a drop in demand...no doubt about that but there are several factors here: To start with there are very few substitutes of oil hence the price is highly inelastic. This would mean that the demand would decrease slowly as the price rose. Yet when the market adjusted the price went from around $4 to $1.5 literally overnight. No normal market factors could account for that. Also, under the so-called strict rules of supply and demand, the price would have never made it $4 a gallon before demand would have been affected.

Also, you made my argument for me, OPEC was cutting back...Hopefully we all know what happens when supply is cut.

Finally, "you still have to store it somewhere"....huh

Just how do you think they control supply? They leave the oil in the ground...it, sure as hell, isn't going anywhere.

[Yum Cha]

Yes. A drop in demand will result in a drop in price. Is this news to you?

It's called the Law of Supply and Demand.

Ok, so you know about supply and demand, congratulations. You qualify for your GED.

The question is why was there a change in demand?

Decrease in international industrial demand for power due to economic slowdown - check.

Decrease in consumer demand due to economic circumstances - check.

Fair enough, that's what you'd expect.

More critically, and characteristic of a manipulated market is the speculation, which some sources claim account for up to 60% of the cost of oil.

http://www.globalresearch.ca/index.p...xt=va&aid=8878

I seem to recall reading somewhere that every barrel of oil is traded 16 times before its ever delivered... Could just be folklore....

The issue is simply, manipulation of the free market.

You know what a free market is, right, its the chapter just before supply and demand.

[Shaolinlueb]

who cares about Europe and their 5 dollar a liter gasoline. good for them that they tax the crap out of it. good for them that they have a SMALLER COUNTRY and BETTER PUBLIC TRANSPORTATION then the USA.

when i first went to texas and florida i was amazed how spread out everything was and how there is a huge lack of public transporation. i am used to the crowded cities of boston and nyc that are the exact opposite.

seriously. Americas know its bad out there. we just don't care. i traveled abroad and stayed in ****ty hotels that didn't even have heat in 30 degree winters. there are people in America who cant afford to heat their homes. open your eyes David, not all America is like you think it is. There are a many americans who can't afford to heat their homes last winter and this year it got worse.

my only problem is that this country is being run by the big corporations and the big corporations forgot about a thing called "business ethics" and as we can see, has got us into some good stuff

[Shaolinlueb]

Ok, so you know about supply and demand, congratulations. You qualify for your GED.

The question is why was there a change in demand?

Decrease in international industrial demand for power due to economic slowdown - check.

Decrease in consumer demand due to economic circumstances - check.

Fair enough, that's what you'd expect.

More critically, and characteristic of a manipulated market is the speculation, which some sources claim account for up to 60% of the cost of oil.

http://www.globalresearch.ca/index.p...xt=va&aid=8878

I seem to recall reading somewhere that every barrel of oil is traded 16 times before its ever delivered... Could just be folklore....

The issue is simply, manipulation of the free market.

You know what a free market is, right, its the chapter just before supply and demand.

as far as i read, the demand for gas went up because of countries like india and china. but the price per barrel of gasoline didnt qualify for the prices of 5 dollars a gallon. i read somewhere they were "preparing for future shortages" its called economics and lobbying 101. "this president is going to let us get away with it, we might as well do it. out pockets will get bigger, screw the people of usa cause they are a car driven country."

[Kansuke]

being ignorant is not the same as being stupid.

And you manage to be both.

[MasterKiller]

1Bad65 is right about this. Global demand has fallen through the floor due to a GLOBAL recession. No conspiracy, no black helicopters, just the result of a massive decline due to global market failures.

Global demand is down 10%.

The price of a barrel of oil is down 200%.

http://www.youtube.com/watch?v=0-ii_Xo_vnI

http://www.youtube.com/watch?v=xFgKl...eature=related

[Kansuke]

man, you americans have no idea of what it's like in the rest of the world do you? lol

If all americans were to realize that, then it would rapidly become truly the most powerful nation on the planet and not just in a military or economic sense, but in the sense that the nation would be somewhat enlightened.



Travel! Do it while you can and don't do it through 5 star hotels either.

There is NO WAY to view comments like that as anything other than arrogant, ignorant, stupid, presumptuous bullshit.

[bakxierboxer]

The price of a barrel of oil is down 200%.

Is that an example of "the new math"?