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seriously, oil?
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| diesel_tron3000 |
| since when does this deserve to be so inexpensive?:whip: |
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| Krypton |
| quote: | Originally posted by diesel_tron3000
since when does this deserve to be so inexpensive?:whip: |
Since demand demanded a lower price to buy. |
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| Lebezniatnikov |
| Since you started posting pointless threads. |
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| jerZ07002 |
| quote: | Originally posted by Krypton
Since demand demanded a lower price to buy. |
Didn't you say:
| quote: | Originally posted by Krypton
People are not choosing to pay $3.50 a gallon for gasoline. They don't have a choice but to pay $3.50. Capitalism dictates a choice for the consumer between competitors who compete for market share. Do you see energy companies competing? HELL NO. I see cartel behavior going on, even so far as to illegally drive up prices. This is not capitalism my friend...
Here is just one example, and there are many...
http://www.msnbc.msn.com/id/20388297/
Much of the price of gas is not a result of supply and demand. A good percentage of the oil price is something called the "risk premium". It ranges 20-30% by most analyst estimations. This is a result of increased levels of violence, terrorism, and war in the Middle East and other oil producing countries like Nigeria. Another factor in the oil price is something I call the "speculator's premium" which is the rise in oil prices due to speculative buyers by financial traders. This premium is in the range of 30-40%. Also take note, that the risk and speculative premiums partially overlap at times, such as a unrest in Nigeria convincing traders to buy more oil futures contracts, thus driving up oil prices. Also take note that none of this has anything to due with the supply or demand of oil commodities themselves or OPEC. It is all wicked psychology.
http://www.msnbc.msn.com/id/4962032/
http://www.latimes.com/news/opinion...inion-rightrail
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In my opinion, OPEC's current production quota is in line with the demand of the world. It is the risk and speculation premiums being set by the oil industry with speculative traders adding their own flair. There is little, if any, competition among major oil companies, but instead cartel behavior is the precedent. The oil prices are not based on supply or demand but instead on factors outside of production/demand. This unjustified pricing is robbery to the consumer who does not have a choice but to buy fuel at the prevailing price (currently $3.60). As I explained, most of the USA does not have an adequate public transit system, and so most of the country relies on private transit.
Also, there is a stigma in many regions, especially those who don't have New York City type public transit, that using the bus (the most common form of public transit) is for poor, dirty, or "undesirable" people. I myself have this stigma because frankly, a lot of the people I see on the bus, at least in Tampa or Louisville have been people who just weirded me out. Definitely a negative for many people. This stigma has to change. But it will not change as long as we continue to spend relatively little on improving our public transit systems. Europe being the most prominent example of a successful public transit system should be our example... |
http://www.tranceaddict.com/forums/...ight=demand+oil
which aspects of risk and speculation have fundamentally changed in the last few months that has driven down the cost of oil by more than $100? |
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| otec |
| Yeah totally support thread starter. Russia needs expensive oil !!! |
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| jerZ07002 |
| quote: | Originally posted by otec
Russia needs expensive oil !!! |
so the citizens can have the false sense of importance |
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| Krypton |
Guess I was wrong. Consumers did have a choice... ...bubbles can make you think weird stuff. |
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| jerZ07002 |
| quote: | Originally posted by Krypton
Guess I was wrong. Consumers did have a choice......bubbles can make you think weird stuff. |
sorry man, but when i saw that comment I had to bring your previous statements. we went back and forth about the application of supply and demand to oil pricing in a few threads. |
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| DJ Damerchi |
opec fails this time around
lalalalallalalalhkalalalalalah expensive oil!
the way Dubai pays government workers with all their rideoffs on everything (car, rent, home leave tickects, education for kids) leaves them with a fat tax free salary to pretty much invest in their real estate or pump into their consumer economy... may have to stop.
even though dubai is technically 90 percent oil independent it is still reliant on a thriving neighbouring oil sector.
now they are crying to Abu Dhabi for help(nope, the papers here dont report it in detail-mad censorship)
ive always felt this could be a very fragile economy that could collapse like a house of cards |
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| otec |
| quote: | Originally posted by jerZ07002
so the citizens can have the false sense of importance |
who cares? at least they have sexy girls, not fatties eating out at McD :eyes: :eyes: :eyes: :eyes: |
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| Krypton |
| quote: | Originally posted by jerZ07002
sorry man, but when i saw that comment I had to bring your previous statements. we went back and forth about the application of supply and demand to oil pricing in a few threads. |
Well, people technically still don't have much of a choice. But that does not mean they don't have different options. Such as buying less fuel. Economizing whatever fuel they do have. Not buying a truck/SUV. Using public transportation if it's adequate enough (which in America is laughable). Energy demand is down big time for a reason. I wonder what the main reason would be. |
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