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View Diary: BREAKING: New Gulf Oil Spill (98 comments)

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  •  I'm sorry you are not getting this. (1+ / 0-)
    Recommended by:
    Puddytat

    Also, clarify this, maybe with a link to an economics professor because you don't seem to understand that the game is rigged.

    Your link makes the common mistake of assuming that small disruptions in supply can not be responsible for relatively large swings in price.
    Supply and demand account for the micro fluctuations. The upward trend (and I think the fact that demand being under 2011 while prices are higher proves this) is caused by market speculation.  

    Lo que separa la civilizacion de la anarquia son solo siete comidas.

    by psilocynic on Thu Apr 12, 2012 at 08:31:59 AM PDT

    [ Parent ]

    •  you haven't made a reasonable argument (2+ / 0-)
      Recommended by:
      Roadbed Guy, noladerf

      to support your point.

      Again, you confuse US demand (slightly down) with global demand (rising). Global demand is what drives price. US demand is basically irrelevant re price, except for what it contributes to the global number. What is happening is that (s-l-o-w-l-y) the US and other OECD countries are using less, and the rest of the world more. Rising price makes this transition happen.

      Here's what President Obama said last month in Nashua (correct imo):

      But here’s the thing — the amount of oil we drill at home doesn’t set the price of gas on its own. That’s because oil is bought and sold in a world market. And just like last year, the biggest thing that’s causing the price of oil to rise right now is instability in the Middle East — this time in Iran. When uncertainty increases, speculation on Wall Street can drive up prices even more. So there are short-term factors at work here.

      But over the long-term, the biggest reason oil prices will rise is growing demand in countries like China, India, and Brazil. Just think — in five years, the number of cars on the road in China more than tripled. Nearly 10 million were added in 2010 alone. Ten million cars in one year — think about how much oil that requires. And those numbers will only get bigger over time.

      An ambulance can only go so fast - Neil Young

      by mightymouse on Thu Apr 12, 2012 at 08:44:38 AM PDT

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      •  Where are you getting this info from (0+ / 0-)

        Global oil demand is down and it's been forecasted down for 2013 as well.

        Lo que separa la civilizacion de la anarquia son solo siete comidas.

        by psilocynic on Thu Apr 12, 2012 at 09:27:48 AM PDT

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        •  that's demand GROWTH, not demand (0+ / 0-)

          come on.

          An ambulance can only go so fast - Neil Young

          by mightymouse on Thu Apr 12, 2012 at 09:29:46 AM PDT

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        •  your link says global demand is up!! (1+ / 0-)
          Recommended by:
          wu ming
          The revision by EIA puts year-on-year oil demand growth in 2012 at 890,000 million b/d.
          come on.

          An ambulance can only go so fast - Neil Young

          by mightymouse on Thu Apr 12, 2012 at 09:31:39 AM PDT

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          •  But supply is up as well (0+ / 0-)

            If demand is up over last year by volume, which is what I think you are arguing, but supply is up more (an example) how is it that prices are rising 400% over last year for some months? If it's only supply and demand that is driving the increase in gas prices they should be dropping right now. Because supply is up higher than demand.

            Lo que separa la civilizacion de la anarquia son solo siete comidas.

            by psilocynic on Thu Apr 12, 2012 at 09:37:19 AM PDT

            [ Parent ]

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