Gas $1.99/gallon this morning!!

I'm going to add another layer of tinfoil to my hat.

Tom

 

Oil is a world wide commodity. It really would not matter if the US reduced demand a significant amount as long other nations such as China and India increase demand.

I still see fairly constant numbers of mb/d consumption in the mid 80's with no significant departure. Where are the numbers showing the world demand dropping "off a cliff" as you stated before?

Conspiracy theory? Who said? Supply and demand surely is not driving the oil price equation to any significant degree as you imply. Of course, speculators and others can affect the price of oil, but if you for one moment believe that politicians (on BOTH sides of the aisle) are altruistic in their cause, and would not promote their own agendas using made up figures and hype (which become fact in the minds of many after time), well, then I have a tin foil hat for you...

Rick
#4 2006

 

I point out what is known. Things like oil is finite. That we have no control over the 60% that we import. That we spend billions of dollars each year outside of our country. I don't preach doom and gloom, and certainly didn't do it here. I'm just not such of a big fan of the path we have chosen to follow. If you are happy with the status quo, great! You have most of the population on your side.

You "suppose" that do you? Even when I've never said anything like it, nor implied it? Even when I've said the opposite many times right here in public?! Gotcha.

Where do you get this crap?

I guess if I hadn't lived so many years, I might be, yes.

 

Yes and no. Oil is a worldwide commodity but there are also multiple regional effects and differing types of oil. Persian Gulf crude isn't as valuable as West Texas Intermediate for example.

U.S. demand is typically about 1/4 of world demand. When ours falls off 5% it has an impact, especially when other developed nations are showing the same trend. Typical growth has been 1-2% per year for the world. So knocking off 5%*1/4 = 1.25% is a major decline that is not so easy to adjust for. Hence, the current (but out of date) estimate showing 0.3% growth for the year.

Keep in mind that includes growth in earlier quarters... I've watched as they brought the numbers down and they don't seem to be keeping up with the recession induced demand destruction. I've noted some internal inconsistencies with their values and what they are stating about them.

There is also a lot of lag. I've read plenty of reports about demand declining recently (past two months.) For example, it seems to be no accident that China's demand peaked in July and dropped in both August and September. China's September oil demand slips for second consecutive month& That corresponds neatly with declining oil prices. Yes, there was year over year growth, but it is coming down from its prior peak.

See the above.

You will have to look at the internals of their numbers and their releases about reduced demand. Sorry, I'm not going to go hunt all this down for you.

You implied it with your nonsense about speculators and politics. Why are you talking politics? I'm talking supply, demand, and the fundamental drivers of energy prices and you are worried about folks' politics?!?!

:flock::flock::flock:


Oh really? There has been effort to meet the former demand projections especially at the astronomical price levels reached this Summer. And what happened? Demand began to decline as a result of recession. Price followed. Nothing odd about it at all.

The highly inelastic nature of energy demand with regards to price is well known and was well illustrated once again in the past few years. I'm not sure when it was first noted but I know we became well aware of it in the 70's. It works both ways, both going up and coming down.

Are you seriously claiming that the well known inelasticity doesn't exist? If so, you really need that hat.

Have fun with your hat, I don't need one. I'm not paying much attention to politicians on these sorts of things, apparently you are. I'm paying more attention to oil use and the drivers for it.

 

Gas as low as $1.94/gallon in Houston metro area right now; and even then, that gas can be bought for $1.91/gallon with a Kroger card.

 

You're exactly right. Sorry Evan... was just trying to have some fun and then... well, never mind.

Gas sure is cheap! I'm going to start giving it out as gifts again.

 

My tinfoil hat prevents me from participating in Fred's House of Politics. The brain control waves can't get through.

Tom

 

I paid $2.15 in Central Austin yesterday! I'm envious of all you $1.93 and $1.89 folks.

Now, let this translate to DIESEL and ethanol prices, so FOOD PRICES can actually come down. Let's not forget about that!

 

Those that heat their homes with fuel oil can use all the relief they can get. Let's hope this has a positive impact on home heating oil prices

 

1.99?! cripes, i'll be thrilled if it's down to $2.50 when i fill up tomorrow.

 

Our local Holiday station was at $2.14 per gallon today. I don't know how long it will last, but we can enjoy it while we can!

 

New lows: $1.89/gallon in Houston, $1.76/gallon in some parts of Texas.

 

Read, "Peak Everything." Watch, "Crude Awakening." We are in peak everything the cost of oil will go up again. We all need to think and act long-term making maximum use of conservation and efficiency. I like gasoline at $10 gallon because it strongly helps people make good decisions.

 

Well, peak oil theorists basically say that big changes in oil prices over relatively short time frames are exactly a symptom of oil peak. Basically demand and supply are in search of equilibrium. Supply in long term drop, demand tries to catch up with paying more to get the oil, economy overheats due to enormous cost of oil and then breaks up, cooling itself, demand drops sharply offsetting supply and therefore oil prices drop. Then we go again in to loop of increased demand and we repeat that until economy either goes bankrupt or goes smart and switches to other energy sources.

 

I noticed it was $2.00/gallon at the local Walmart yesterday. It seems to go down every day here.

I also noticed more new SUVs and trucks in my area. How quickly they forget.

 

Oil is down to $64.18 a barrel in electronic trading on the New York Mercantile Exchange by midmorning in Singapore.


It’s 40cents a gal higher out here in the sticks compared to 50-60 miles away in the bigger cities. Last time I filled on the van, it took under $20. Bringing the kids in to see Great grandma tonight so will see what it is.

 

I think oil is going to drop too far for too long. Based on the past the US will lose its focus on conservation and alternatives. I hope I am wrong, but based on history..........

 

Would be unwise strategically to loose site of $200 oil. It's coming, not tomorrow, but after the economic shake out. We haven't (Globally) hit bottom.

 

so all the people who constantly said it was speculation that caused high oil prices and
they would go down eventually were proven correct. maybe i should dig up a few old threads
to feel vindicated when rabid "green" folks refused to listen to common sense about that
issue.

nah. i might get banned ;-)