why is the price of oil dropping

11 replies
  • OFF TOPIC
  • |
I thought we were at peak oil. China and India have such
a high demand for oil.

I think there is more than enough oil to go around just like diamonds,
they just control the supply in order to make profits.

I know China has stopped importing oil because they have enough,
I know this because I have relatives in China.

oil scam

one way to profit from this is if you can crank out a current affairs book,
that section is very popular in bookstores and if you notice there are always
new books coming out in that section
  • Profile picture of the author lancasterjoeradio
    Hi Jeremy123, it's interesting how the "economy" which was booming a year and two years ago when oil prices escalated away out of proportion.

    I think that governments, corporations, and speculators all have a lot to do with greed. The fact that demand for oil increased multi-fold over the last 2 years, and oil speculators bid oil futures up from about $80/barrel to around $130, has a lot to do with a recent drive on inflation, due to huge increases on manufacturing and shipping costs, not to mention public transit cost & home heating increases.

    In the end, all these things have hurt the "average Joe". Finally enough people got hurt financially, causing short falls on mortgage or car payments, or any host of IOU's on these wonderful "zero-down 'no payment for 24 months'" crap. Finally the bubble has burst.

    Just to get a general feel on the effects of all this, gasoline here in Ontario, Canada which was hitting highs of $1.30 per liter is now 98¢ Hopefully the economy will get back on track in a short while, and not too many people will get hurt. But it all boils down to Government, Corporations, Speculators, Banks, all who get payed big-buck-salaries, perks and golf trips . . . . ! !

    November 23 '08 - Current Gas prices are now running 73.3¢! Oh and to back what I said about governments and corporations - The "Big-3" went to talk to US Feds begging for a $25-Billion handout. They "each" flew their own corporate jets from Detroit to Washington. No wonder we're all in trouble!
    {{ DiscussionBoard.errors[173032].message }}
    • Profile picture of the author Kay King
      Simple reason: Demand is down globally due to the increased cost. Faced with fuel they can't afford, most people are limiting their use and the miles they drive.

      A better question is why the price of oil is so closely following the ups and downs of wall street? If the price of oil/gas is not being manipulated, why would this be happening?

      kay
      Signature
      Saving one dog will not change the world - but the world changes forever for that one dog.
      ***
      Horses: Teaching you to remain calm in the face of certain injury or death because only one of you gets to freak out at a time and it's never your turn.

      {{ DiscussionBoard.errors[173064].message }}
  • Profile picture of the author KimW
    Everyone is missing the obvious...an election is coming up.
    Signature

    Read A Post.
    Subscribe to a Newsletter
    KimWinfrey.Com

    {{ DiscussionBoard.errors[173070].message }}
  • Profile picture of the author rani84jor
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[174419].message }}
    • Profile picture of the author Jeremy123
      be interesting to see if oil goes back up,

      buy oil now??
      {{ DiscussionBoard.errors[174531].message }}
  • We're winning the war in Iraq. Isn't it obvious? -.-
    {{ DiscussionBoard.errors[174734].message }}
  • Profile picture of the author radiohead
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[178422].message }}
    • Profile picture of the author KimW
      Originally Posted by radiohead View Post

      And after the election expect the price to go back through the roof...
      -------------------------------------------------------------------------
      Really? Back to $140? I doubt it. If you are that sure then buy oil stocks now or oil futures.
      I think he means for us,the end user. Gas has dropped a lot ,at least here in my area of the USA,but I/m willing to bet money after the election it goes right back up.
      Signature

      Read A Post.
      Subscribe to a Newsletter
      KimWinfrey.Com

      {{ DiscussionBoard.errors[179526].message }}
  • Profile picture of the author derekwong28
    This has changed

    The Associated Press: Credit crisis casts gloom over China's exporters

    Almost half of China's toy factories have closed and there are many more to follow. Domestic demand is threatened as well because their stockmarket has lost 70% of its value and there are fears that its massive property bubble is burst violently. I believe China could well be the epicenter of the next crisis, as it will be forced to repatriate some of its one trillion in reserves.

    Derek
    Signature

    Do not get between a wombat and a chocolate biscuit; you will regret it dearly!

    {{ DiscussionBoard.errors[178656].message }}
    • Profile picture of the author HeySal
      OPEC is falling apart, too. India or Indonesia (cant remember which - one of the Ind countries) dropped out and Saudia Arabia was threatening to walk, too - basically because production was being artificially slowed. There is also so much talk about the US drilling as well as turmoil over getting us new forms of energy -- doesn't look real good for OPEC's future if they don't find a humanitarian side to themselves real fast. People are dying over their freaking shenanigans.
      Signature

      Sal
      When the Roads and Paths end, learn to guide yourself through the wilderness
      Beyond the Path

      {{ DiscussionBoard.errors[178839].message }}
  • Profile picture of the author Mike Wright
    KFC is changing to Sushi'R'Us ????

    In the UK, Pizza Hut is changing to Pasta Hut because there
    are only a million other places you can get pizzas. Sad but true

    Plastics use is dropping inline with consumer spending
    and environmental considerations.

    Alternative energy is increasing.

    Vehicle usage is decreasing as are freight shipping levels.

    Unemployment is increasing so companies are at reduced
    levels of energy and other resource consumption.

    Gamblers, speculators, investors, hedge funds, traders
    are all cashing in their chips!!!

    It is cool to see BushCo getting bashed in the family fortune
    {{ DiscussionBoard.errors[179192].message }}
  • Profile picture of the author ahuddy
    Supposedly because of the increase in demand. Or maybe becuase a few speculators didn't want to completely give up their souls for greed and destroy the entire economy, so they began to say it would go down in price as they short oil now in the market.
    {{ DiscussionBoard.errors[179428].message }}
  • Profile picture of the author markaustin
    Yeah, the drop is pretty amazing. Our local Shell station has it at $2.59 gallon!

    Mark
    {{ DiscussionBoard.errors[182845].message }}

Trending Topics