if this does happen, 70+ is going to happen, any hurricane comes into the factor and say hello to new record highs, 80+ is 100% guaranteed on the barrel. Gas is going to $4 a gallon if this does happen.
what does happen? Nothing happened ever. Not a single concern materialized All this market is just fear. Fear for nothing We have so much oil we even don't have storage to put it in Our problems are refineries not oil. All those concerns already added probably $30 to the oil price. oil at 80 or higher = guaranteed multiple rate hikes+resession+US is not wealthy country But corporations will be happy Will it be allowed?
Terrorist been trying to hit oil fields for years....nothing new.. US is not a wealthy country?????? We probably spend more on candy and popcorn than 80% of the world GDP..... I think both CA and TX would be in the top 25 countries by them selves.... Salaries paid to MLB, NBA and NFL players also exceeds majority of countries GDP... Need to get a little perspective.....oil at $100 would not cause Fed to increase??? It would lower rates..... SteveD
In 5 years our average salary decreased almost 2 times if count in Euros We support our current lifestyle only because of cheap chinese labour and illigal immigrants But in 5 years even cheap chinese labour will be expensive for us Consumer economy will be over by 2012 It's time to start over again. Stop free trade, stop outsourcing, stop buying oil from hostile countries,return factories back home, take people from Walmart back to factories, use public transportation for all needs
Do you even know what percentage of US oil comes from the middle east? Look it up, the number would shock you. Go google now!
Doesn't matter. Crude, like cash is fungible. Doesn't matter where it is or where it goes or who wants it or who has it...it's always the same price for everyone at all times.
Do you even know how much oil US consume? Can you imagine what will happen with oil prices if we cut consumtion by 15%? Is it possible to cut consumption by 15% in one day? Easy - tax energy like it's done in Europe. Gas must cost $8 per gallon
What would happen if the US cut consumption by 15%? Well, with all other things being equal, and given that the 5% of the world population in the US consumes approximately 25% of the world's production, then the obvious answer is that consumption would be reduced by 0.15*0.25, i.e. 3.75%. Unfortunately, all rational analysis seems to suggest that production cannot increase, and is likely to fall from here, and that demand from Asia is rising rapidly. Therefore I'd say a reasonable answer to your question would be that if the US cuts its demand by 15% very rapidly (months, not years), it will delay a further rise in the price of oil. For a little while.