Who would have EVER imagined this would happen?

Socrtease

Socrtease

Verified User
Wow check it out:

The U.S. Transportation Department said Monday that U.S. drivers logged 9.6 billion fewer vehicle miles in May — or 3.7 percent — compared to the same period last year, the biggest drop ever for the historically busy summer driving month

and what happens on Tuesday?

NEW YORK - Oil prices tumbled to their lowest level in seven weeks Tuesday as a stronger dollar and beliefs that record prices are eroding the world's thirst for energy sparked another dramatic sell-off.

http://news.yahoo.com/s/ap/20080729/ap_on_bi_ge/oil_prices

IMAGINE my shock and seeing that as demand drops the price per barrel drops! We should have name for this, something about supply prices being affected by demand. I bet if we put a bunch of government economist on it they could come up with a name for it.
 
yeah well the oil companies knew before Monday, but the speculators did not.

supply and demand should have dropped the price before tuesday. But we have too may parasitic layers making money off of oil now.
 
uscitizen said:
yeah well the oil companies knew before Monday, but the speculators did not.
Click to expand...
Well that is the way business works. You don't know about profits or losses or shorts in demand or supply until the end of the month when bean counters tell you about it. Do you want the oil companies to report daily what their profits and losses are?
 
supply and demand should have dropped the price before tuesday. But we have too may parasitic layers making money off of oil now.
 
Socrtease said:
Wow check it out:

The U.S. Transportation Department said Monday that U.S. drivers logged 9.6 billion fewer vehicle miles in May — or 3.7 percent — compared to the same period last year, the biggest drop ever for the historically busy summer driving month

and what happens on Tuesday?

NEW YORK - Oil prices tumbled to their lowest level in seven weeks Tuesday as a stronger dollar and beliefs that record prices are eroding the world's thirst for energy sparked another dramatic sell-off.

http://news.yahoo.com/s/ap/20080729/ap_on_bi_ge/oil_prices

IMAGINE my shock and seeing that as demand drops the price per barrel drops! We should have name for this, something about supply prices being affected by demand. I bet if we put a bunch of government economist on it they could come up with a name for it.
Click to expand...

ROFLMAO....

Nah... they would end up calling it the 'Kennedy/Liebermann/Reid/Pelosi theoretical changes in the consumption of goods as pertains to the price effects of said goods without regards to anything other than said price except for when Clinton cant define one of these words" principle.
 
Dungheap said:
Anyone have a chart overlaying demand with price over the past five years?
Click to expand...

You would not be able to tell much from such a chart as the decline in the value of the dollar has had a far greater impact on the price of oil.

It is the combo of demand dropping and the dollar strengthening that has led the rally in oil prices. Add to that the speculators are turning positions at this point and bam.... oil is $25 cheaper in a couple weeks.
 
Socrtease said:
Wow check it out:

The U.S. Transportation Department said Monday that U.S. drivers logged 9.6 billion fewer vehicle miles in May — or 3.7 percent — compared to the same period last year, the biggest drop ever for the historically busy summer driving month

and what happens on Tuesday?

NEW YORK - Oil prices tumbled to their lowest level in seven weeks Tuesday as a stronger dollar and beliefs that record prices are eroding the world's thirst for energy sparked another dramatic sell-off.

http://news.yahoo.com/s/ap/20080729/ap_on_bi_ge/oil_prices

IMAGINE my shock and seeing that as demand drops the price per barrel drops! We should have name for this, something about supply prices being affected by demand. I bet if we put a bunch of government economist on it they could come up with a name for it.
Click to expand...

Oil is an inelastic good. Prices went up three hundred percentage points before usage went down three percentage points. Certainly you don't think this is a free market.
 
Libertarians obviously don't know shit about the free market. They pretend that things like inelastic goods and natural monopolies don't exist whenever there are thousands of obvious examples. They don't live in reality. They live by philosophy, which sounds nice but which doesn't work in the real world.
 
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