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Get Ready for the Oil-Price Drop

Discussion in 'Political Debate & Discussion' started by Ps104_33, Jun 10, 2008.

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  1. Ps104_33

    Ps104_33 New Member

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    The price of crude oil has jumped as high as $135 lately, up from $87 in early February. The news encouraged some Wall Street analysts to suggest oil might approach $200 before long. In fact, that's quite impossible: The world economy can't handle current energy prices, much less a big increase.
    Which in turn means that oil prices will fall.
    Market analysts often claim oil prices are almost entirely determined by supply. Demand is said to be insensitive ("inelastic") to price. The standard example is that many Americans have to drive to work and most gas-guzzling SUVs will still be on the road even if the affluent few can trade theirs for a Prius. Whatever the price, we'll pay it.




    http://www.cato.org/pub_display.php?pub_id=9450
     
    #1 Ps104_33, Jun 10, 2008
  2. Ps104_33

    Ps104_33 New Member

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    "Nine out of 10 previous postwar recessions began shortly after a big spike in the price of oil. Yet those recessions always slashed oil prices dramatically. People who have been predicting both a nasty US recession and $200 oil prices are contradicting themselves."

    http://www.cato.org/pub_display.php?pub_id=9450
     
    #2 Ps104_33, Jun 10, 2008
  3. Dragoon68

    Dragoon68 Active Member

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    I'm hoping the present high price of crude oil will make it even more profitable for oil production. It would be great if the profit margin could get to a point at least as good as the manufacturing of operating systems and other software for personal computers, video games, and entertainment equipment!

    Maybe this would shift the balance a bit from imported oil to domestic oil enough to generate more demand for it here. Then they'd need more equipment to drill, transport, and refine the oil and that would mean work for a whole lot of people and related business.

    But to accomplish this we'd have to convince the smart people in goverment to let us drill for our own oil with our own people under our own control. But wait! Are there any "smart people" in government? Does the "enlightened one" understand this?
     
    #3 Dragoon68, Jun 10, 2008
    Last edited by a moderator: Jun 10, 2008
  4. Ed Edwards

    Ed Edwards <img src=/Ed.gif>

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    //The world economy can't handle current energy prices, much less a big increase.
    Which in turn means that oil prices will fall.//

    That is totally illogical.
    If oil prices keep going up, somebody will have to do with less.

    BTW, on Tuesday Morning in my town (the part over two miles from the Interstate) in Central Oklahoma the price of unleded regular was 3.76 $/Gallon, Monday evening it was 3.88 $/Gallon. That is down 12ยข - yes!
     
    #4 Ed Edwards, Jun 10, 2008
  5. poncho

    poncho Well-Known Member

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    Five dollars a gallon by the end of summer and then a decline in prices.
     
    #5 poncho, Jun 10, 2008
    Last edited by a moderator: Jun 10, 2008
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