Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: NKP_Vet

I agree with the points presented here. Little else makes sense in these oil price drops other than lack of demand, which is being concealed by the Ministry of ‘Information’. Our economy is in shambles; the final straw has just not been laid on its back yet.


6 posted on 12/20/2014 8:11:21 PM PST by fwdude (The last time the GOP ran an "extremist," Reagan won 44 states.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: fwdude
Little else makes sense in these oil price drops other than lack of demand

I don't think so.

Oil / fuel demand hasn't dropped. What's changed, is the supply of crude oil. There's simply a LOT more of it on the market, due to the American revolution in fracking.

Because there's more oil available, and the Mideast oil producing nations have refused to lower their production, the end point price for fuel is dropping at the pump.

There's nothing more mysterious here than the law of supply and demand.

This is geo-economics at work.

The Saudis (and the other oil producing nations in the middle east) have so much wealth, that they can afford to absorb the hit from low oil prices in the short term. They're betting that they can drive the price down so low, that it will become too costly for us to extract our own oil through fracking - which will then send us right back to them as a prime customer.

26 posted on 12/20/2014 9:54:58 PM PST by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
[ Post Reply | Private Reply | To 6 | View Replies ]

To: fwdude

Overproduction


43 posted on 12/21/2014 1:33:38 AM PST by piasa (Attitude adjustments offered here free of charge)
[ Post Reply | Private Reply | To 6 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson