Supply and Demand Economics? HA!

[03blklightning]

So I was just reading the MSN news page, just trying to keep up with world events. I come across an article that reports that the jobless rate has hit 8.9%. Further down in the article there was a report about the price of oil still going up.

Now as I learned in college, price is driven by demand for a product and if a company can supply enough of that product. The article states we have a record supply of oil and demand for that oil is at an all time low. But because there MAY be a jump in demand, the price is going up.

Speculative buying is one of the reasons that we are in this whole economic downturn. They don't remember when gas was 4.50 a gallon, people stop going places, stop spending money because they had to save to put money in there cars.

I guess not, there is only so many times you can screw the American People till they have had enough. And that time is near.

 

[dirty_canadian]

so lets start a civil war?! lol, im at my girls parents house in sugarland for the weekend since i finished my finals yesterday, gas is damn expensive here but back in Beaumont it was still 1.75+/-

 

[03blklightning]

so lets start a civil war?! lol, im at my girls parents house in sugarland for the weekend since i finished my finals yesterday, gas is damn expensive here but back in Beaumont it was still 1.75+/-

Why not, it's time to reconstruct the entire government! It's coming. Next 50 or 100 years I am guessing.

 

[CobraMarkVIII]

So I was just reading the MSN news page, just trying to keep up with world events. I come across an article that reports that the jobless rate has hit 8.9%. Further down in the article there was a report about the price of oil still going up.
Now as I learned in college, price is driven by demand for a product and if a company can supply enough of that product. The article states we have a record supply of oil and demand for that oil is at an all time low. But because there MAY be a jump in demand, the price is going up.
Speculative buying is one of the reasons that we are in this whole economic downturn. They don't remember when gas was 4.50 a gallon, people stop going places, stop spending money because they had to save to put money in there cars.
I guess not, there is only so many times you can screw the American People till they have had enough. And that time is near.

No pun intended, but I need to make this point.
If you are hurt financially to a point where you want to start war over an increase in gas prices... then you must be living outside of your means.

I never understood why people would go nuts over the price of fossil fuels. I have to heat my home, feed my cars, and even help out my friend from time to time, but it doesnt break the bank because I am living well within reason with my income/financial situation. These are hard times for everyone... I suggest buying a cheap domestic eco car (03 focus), to help things out. Works for me.

 

[Fast Freddy]

oil is not the reason we are in a recession. the sub-prime melt down is the match that lit the wildfire that led to other sectors melting down.

supply and demand is the #1 factor in the price of oil. when oil was as at $100 barrel this time a year ago it was because of supply and demand. when it ran up to $147 a barrel that was speculation. i just bought $25,000 worth of oil stock when it was $40 a barrel 2 months ago and i just bought another $40,000 worth of oil today at $57 a barrel.

when oil goes back to $100 a barrel next year or whenever i will have doubled my $$$. when oil goes to $147 a barrel again due to speculation i will have tripled my $$$.

 

[SnkBtn99]

Fuel going up at $.50 a gallon overnight as it has done here locally is only going to hurt the economy even more.

 

[moddestmike]

I'm not understanding why people are whining over a self-fulfilling prophecy that they are perpetuating. Its too expensive? Use less, carpool, buy an eco-friendly vehicle, change your ways. I love how everyone on here is "conservative" but are complaining because free-market capitalism is working like it should. My 401k and stock investments and my employment depend on oil and LNG prices staying at a reasonable rate or increasing, you wont see me complaining, ever. Received the largest bonus check since I've been employed last year thanks to oil prices being as they were, so I went out and bought a Tahoe for my DD so I could guzzle up some more gas and send that price further north. LOL.

 

[97WHITEVENOM]

With the amount of credit flying around in the U.S., supply and demand doesnt quite work like in the txt books.

 

[MassCobra]

I'm not understanding why people are whining over a self-fulfilling prophecy that they are perpetuating. Its too expensive? Use less, carpool, buy an eco-friendly vehicle, change your ways. I love how everyone on here is "conservative" but are complaining because free-market capitalism is working like it should. My 401k and stock investments and my employment depend on oil and LNG prices staying at a reasonable rate or increasing, you wont see me complaining, ever. Received the largest bonus check since I've been employed last year thanks to oil prices being as they were, so I went out and bought a Tahoe for my DD so I could guzzle up some more gas and send that price further north. LOL.

This is exactly what people are doing, using less. Inventories are the highest they have been in 2 decades and demand is low. What you should not understand is with those statistics how the price has been skyrocketing again.

 

[moddestmike]

This is exactly what people are doing, using less. Inventories are the highest they have been in 2 decades and demand is low. What you should not understand is with those statistics how the price has been skyrocketing again.

In anticipation of large summer long consumption, people traveling more thus using more. What you are missing now with inventories is he result of a few months ago when consumption actually was lower. You may not understand how the delivery of fuel actually works, what you see on the market today is usually a result of consumption and prices 2-3 months ago. So again, I ask why is it such a big deal, you need it you pay for it. Don't like it? Don't use it or start your own oil empire/exploration company.

 

[MassCobra]

Don't like it? Don't use it or start your own oil empire/exploration company.

Will you back me financially? ;-)

 

[Fast Freddy]

i also invested in some more .41 magnum and .44 magnum ammunition today too

 

[Robert Francis]

"Supply and demand" economics are not the sole driver in any economy. Oil prices are one of those. It can and frequently has been manipulated by oil speculaters. And there's no reason it won't continue to be so.