Originally posted by Palynka1) The relevant demand for oil is world demand, not just US demand.
1) The relevant demand for oil is world demand, not just US demand.
2) The relevant measure for supply in evaluating prices is NOT reserves, but extracted oil and extraction capacity.
3) It confuses consumption with demand. The price of oil has been going up dramatically and still world consumption has increased. How is that compatible with demand goin ...[text shortened]... ncluding the Euro which has appreciated dramatically. It just means it's worse for the US.
2) The relevant measure for supply in evaluating prices is NOT reserves, but extracted oil and extraction capacity.
Ronald Bailey of Reason Online has pointed out that worldwide production of oil has risen 2.5% in the first quarter, while worldwide demand has grown by only 2%. Production is expected to increase by 3.3% in the second quarter, and by as much as 4.1% by the third quarter
3) It confuses consumption with demand. The price of oil has been going up dramatically and still world consumption has increased. How is that compatible with demand going down?
like it says above...SUPPLY has outstripped demand!!
4) The dollar fall isn't enough to explain much, because the price per barrel has been increasing quite fast in other currencies, including the Euro which has appreciated dramatically. It just means it's worse for the US
the article actually denounces the falling dollar as a reason...can't you read?
Even better, the article explains that gasoline prices have increased even though the demand for gasoline has decreaed because oil companies have cut back on the amount of gasoline their refineries produce in order to DECREASE the supply of gasoline available which stops gas prices from going down.
maybe you should re-read the article
Originally posted by uzlessSupply has not "outstripped" demand. Production has grown more than consumption. Not more than demand.
1) The relevant demand for oil is world demand, not just US demand.
2) The relevant measure for supply in evaluating prices is NOT reserves, but extracted oil and extraction capacity.
[i] Ronald Bailey of Reason Online has pointed out that worldwide production of oil has risen 2.5% in the first quarter, while worldwide demand has grown by only 2%. Product ...[text shortened]... ine available which stops gas prices from going down.
maybe you should re-read the article
If demand had stayed the same and prices increased, then consumption would have gone down. Consumption didn't go down, it went up. There's no 2 ways about this. Demand has increased.
the article actually denounces the falling dollar as a reason...can't you read?
Maybe you should read what I'm saying. The dollar fall cannot explain the worldwide growth of prices in other currency denominations. It's a minor point.
Even better, the article explains that gasoline prices have increased even though the demand for gasoline has decreaed because oil companies have cut back on the amount of gasoline their refineries produce in order to DECREASE the supply of gasoline available which stops gas prices from going down.
Here's the data for gasoline refining in the US.
http://tonto.eia.doe.gov/dnav/pet/hist/mttrius1m.htm
Where's the supposed slowdown that is so dramatically hurting prices?
Maybe you should question opinions from someone working in an US refinery and presenting as a solution (surprise, surprise) taxes on foreign competitors.
May 29, 2008 02:07 PM
THE ASSOCIATED PRESS
NEW YORK – Oil prices fell sharply today after the U.S. Energy Department reported unexpected declines in crude oil and gasoline supplies last week, but said the drop in crude inventories was due to temporary delays in unloading oil tankers along the Gulf Coast. A stronger dollar and concerns about gas demand also weighed on prices.
Retail gas prices in the United States, meanwhile, rose to a new record above US$3.95 a gallon.
Light, sweet crude for July delivery fell $4.23 to US$126.80 a barrel on the New York Mercantile Exchange, their lowest level since early last week. Prices were more than $2 lower in morning trading before the EIA report was issued, but shot up by more than $2 a barrel immediately after the report's release before turning lower again.
The initial ambivalent reaction to the inventory report partly reflects a deeper battle between investors who believe prices have risen far beyond levels that can be justified by underlying supply and demand fundamentals, and those who believe speculative money will continue flowing into oil futures, sending prices higher regardless of the market's fundamentals.
"You're seeing some big funds in there throwing money around on both sides of the market," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill
Originally posted by uzless😵 We're talking long-run trends here and you come up with a recent fall in prices?
May 29, 2008 02:07 PM
THE ASSOCIATED PRESS
NEW YORK – Oil prices fell sharply today after the U.S. Energy Department reported unexpected declines in crude oil and gasoline supplies last week, but said the drop in crude inventories was due to temporary delays in unloading oil tankers along the Gulf Coast. A stronger dollar and concerns about gas demand al f the market," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill
Take a look at it this way. Distance from the source varies directly with the price of the gas. Distance in this case would be relevant to transportation methods possible as well. For example, the average price of gas in The Netherlands is $9.52 a gallon give or take. In Saudi Arabia, it is $0.52 a gallon. I still think we should compain about our $4.00 gas though, because that is outrageous. 10 years ago my mother could fill up her tank in the Tri-State area for $10. Now that barely buys a gallon in The Netherlands...deeply disturbing.
Originally posted by Palynkauh no. We're talking about why the price of oil has gone up to 130 bux per barrel and why it has increased 46% in just the last few months.
😵 We're talking long-run trends here and you come up with a recent fall in prices?
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I'm surprised you keep pushing this demand theory to explain the whole rise. A small partial rise perhaps but not way up to 130 bux.
Is it any surprise goldman sachs predicts 200 bux/barrel when they hold the biggest oil futures fund, while many other investment houses are predicting oil to go down to 70-80 bux per barrel?
Originally posted by uzlessI didn't give any credence to those GS reports. I don't know why you think I believe him.
uh no. We're talking about why the price of oil has gone up to 130 bux per barrel and why it has increased 46% in just the last few months.
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I'm surprised you keep pushing this demand theory to explain the whole rise. A small partial rise perhaps but not way up to 130 bux.
Is it any surprise goldman sachs predicts 2 ...[text shortened]... und, while many other investment houses are predicting oil to go down to 70-80 bux per barrel?
If you read what I've posted, then you know I said that there is more than likely to be some overshooting going on. So these recent downwards corrections don't come as a surprise even if I also expect the market to continue relatively volatile because of the sheer amount of contradictory information coming out in the press.
So now you agree that global demand is going up? Not so long ago you were saying demand was down. I guess we're getting somewhere, after all.