Oil drops.....again
- Thread starter Polar742
- Start date
mjg407
Well-Known Member
The "threat" of drilling lowers the price of gas at the pump. Look what has happened over the past two weeks. A natural disaster has no effect on the availability of oil or refining for months, but the price skyrockets within hours. It will be decades before a renewable energy source is affordable and available for widespread use, until then our economy depends on the lowering the cost at the pump. The available alternate energy sources currently available (ethanol) aren't that practical, and now you are seeing a jump in the price of food because of the attempt to use corn to boost the production of ehthanol. Add to that, ethanol doesn't really do too well when you try and pipe it places.
I hate to say it, but that bimbo paris has a good point.
I hate to say it, but that bimbo paris has a good point.
kellwolf
Piece of Trash
The threat SUPPOSEDLY lowers the price of gas at the pump. There are no real numbers to back the theory up. Honestly, that lower price could easily be offset by reports that there wasn't as much oil as previously thought (whether true or not), construction delays or labor issues. Sure, we see a rise in oil when a cloud appears in the gulf and people start screaming "THE END IS NIGH. HURRICANES ARE COMIN'!" Same would happen if someone said "OH NO! THERE'S A STEEL SHORTAGE! THE RIGS MIGHT NOT GET BUILT IN TIME!!!"
AngelFuree
Well-Known Member
$114.60/barrel was a new low for the day at the NYMEX. Going down! 
tonyw
Well-Known Member
Baloney.
What's caused the price to drop over the past few weeks isn't the "threat" of drilling. That's laughable. You think speculators who bet on the price of oil next month give a crap about what might happen ten years down the road? Their options will have long expired.
What's caused the price of oil to drop over the past few weeks is the demand destruction we're seeing in the United States. They're talking up to a five percent reduction in the year to year consumption of oil. When you're talking about a country that uses about the same amount of oil as the next four countries combined, that makes a difference.
Another thing that caused the price of oil to go down was an unexpected increase in stockpiles of oil. Speculators expected a much smaller increase than what they saw. So they saw the supply wasn't going to be as tight.
Finally, the dollar is gaining against other currencies. That is also helping drive the price of oil down.
These are things that happen now and that speculators trade on. They don't trade on things that might happen ten years from now. Why would they, when their options are for next month?
bartman
Well-Known Member
An economic forecaster is like a cross-eyed javelin thrower: they don't win many accuracy contests, but they keep the crowd's attention.
