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To: Einigkeit_Recht_Freiheit
>Fungibility of oil means market prices will be affected by supply and demand. Chinese and Indian demand will suck up any additional supply the US can generate.

LOL - yeah, just toss out the statement and ignore the half of it!
The part about supply - It doesn't matter who sucks what, it matters what the supply is, and every single thing that increases supply decreases the price.

High oil prices will be around until the countries with a lot of cheap oil still in the ground (ME) produce more.

Fixed it. - As if there is a great difference between sweet & heavy crude on the world price. Sheesh!

31 posted on 05/05/2011 5:43:25 AM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
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To: bill1952

So Bill, Pal...

Obviously you are quite a brilliant fellow. Would you be so kind as to explain to me how Saudi Crude which costs less than 3$ a barrel to extract is perhaps a bit different from the deep sea or tar sands type that is only viable about $50 or $60 a barrel?

Unless you have taken more than a high school course in economics, perhaps you want to go buy a textbook or something befor engaging in a conversation of this nature.

The reason oil is so expensive is because of the market power of the ME producers. It is not a lack of oil, but rather the ogliopoly of OPEC, led by the Saudis. It is kind of like they have their hands on a special part of our manhood and can twist it at will.


32 posted on 05/05/2011 11:42:45 AM PDT by Einigkeit_Recht_Freiheit (Using profanity gives people who don't want information from you an excuse not to listen.)
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