Skip to comments.What has caused the recent drop in oil price/bbl(about $20/bbl; $0.60/gal at the pump)? (Vanity)
Posted on 05/30/2012 7:51:58 PM PDT by izzatzo
Actually, I know the answer to my own question. The answer is manyfold: Hussein has lifted the drilling moratorium; Hussein approved Keystone; Hussein has opened domestic exploration, drilling, and production; Hussein has opened the "strategic reserve"; Hussein didn't actually "invest" all those billions in Brazil's, etc. petroleum industries, he invested it our petroleum industry; Hussein Obama pees oil thereby increasing domestic supply driving the price down; isn't Obama wonderful? NOT
I'm not an industry economist so what did I miss? Don't tell me it's all because of Memorial Day and summer's arrival, that doesn't make sense.
This is not an excerpt.
Worldwide supply and demand (real and perceived).
The commodities markets are manipulated by hedge funds, sovereign banks, governments and indirectly world economic factors.
The oil exporting countries (mostly Muslim) want to keep taxing Americans to fund their war against this country. They know Obama wants to increase dependence on their oil and they have not yet learned they cant trust Romney so the price of gas will be less than $3.00 a gallon by election day..
Excess inventory. Possible demand drop due to China slowdown and the Eurozone blowing apart.
Europe’s stalled economy
No, it is fundamentals of microeconomics. There is a surplus of crude at American refineries. This shifts the supply curve to the right meaning less price per unit of product. Increased efficiency in cars and behavior changes favoring less driving is overcoming the typical increase in demand associated with summer driving. All things considered, this leads to a surplus which creates a new market equilibrium at a lower price. Next question?
The ruling council has decided that over the next two years we have a brief window of opportunity to impoverish and weaken them by driving down the price of oil. Iraq and Iran need to produce and sell their oil at well over one hundred dollars a barrel. In the next twenty four months, we will gradually increase our production with the objective of breaking the price of crude down to sixty dollars a barrel.
Gas still way over $4/gal here in CA. Thanks, Obutthead.
We are heading for a depression. The 10-year note is at an all-time high, mortgage rates at an all-time low, Europe is headed for chaos, and China’s economy is collapsing.
And, to think, I traded my gas-guzzler in.
90 % of “ - - - Worldwide supply - - - “ is controlled directly by foreign governments, or indirectly by State-owned oil companies.
The price is where the demand rises up to meet the supply. When demand goes down the price follows. Less demand means less economic productivity is being predicted.
With the price of feeder stock (=crude oil) headed South, a slowdown in the economy is indicated. Good for the gasoline consumer, bad for those who already have jobs and those that are looking for jobs.
When the price of feeder stock goes up, the gasoline consumer will pay more to travel to his pace of work, and there will be more jobs, jobs, jobs.
Supply and Demand plus “the invisible hand” equals the time-honored FREE MARKET!
Oil Prices Are Rising Despite Lowest Demand Since 1997
By Pat Garofalo on Feb 15, 2012 at 11:50 am
Rising Gas Prices: Not Demand Driven
By Matthew Philips
May 30, 2012 11:15 PM EDT
Gas prices are off to a fast start in 2012. The national average for a gallon of regular gasoline is up more than 8 percent since the end of 2011, rising from $3.25 per gallon to $3.52, according to new data released by the U.S. Energy Information Administration.
Prices shot up during the Libyan war, but production is probably back to near normal by now.
Not long ago, I was paying about $3.85 for unleaded, I bought it today for $3.27—not $0.60, but close to it; and, Texas is hot, but not necessarily exotic, at least where I am.
That and consumption is down.
I filled up this AM for $3.28
And that’s still to high!
It doesn't do either Obama or the Middle East any good when prices are high because the calls for increased drilling here then become very loud. If the US develops its resources the US prospers to the Middle East's detriment, something Zero and his masters don't want.
Up to $4.07 where I live.
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