Businessweek: High Oil Prices; It's All Speculation

Discussion in 'Economics' started by ByLoSellHi, Jun 27, 2008.

  1. That is in Minneapolis this year.
     
    #11     Jun 27, 2008
  2. My guess is the aggregate of the incremental increases of consumption caused by China and India (are they all can afford relatively high petrol prices?) would be far less than the aggregate of the incremental reductions of consumption caused by all other countries worldwide, during these few years of time period.

    Just a very primitive guess of mine!
     
    #12     Jun 27, 2008
  3. spidey

    spidey

    We're being screwed by the banks and hedge funds. And judging from the white house's response, there must be some of their friends who will benefit greatly by crushing the economy.
     
    #13     Jun 27, 2008
  4. definitely could be true. but not so far. Global consumption still growing at 1.1 million bpd, even with US consumption down (source: bp.com).

    i see china imploding soon however. not for this thread though. My personal guess. India will be fine (domestic consumption + education).
     
    #14     Jun 27, 2008
  5. The question is whether a net decrease of consumption/ demand would increase price (to justify keeping lesser production) , or a net increase of consumption/ demand would increase price!
     
    #15     Jun 27, 2008
  6. Arnie

    Arnie

    So, all we need to do is eliminate the speculators and oil will come down? Fat chance.

    Do you guys really think this is all due to speculation? China is adding 25,000 new cars on the road every day. You have 400 million peasants moving from farms to cities over the next 10 years. Thats just China. If oil was up mainly due to speculators, it wouldn't take much to crash the markets.
     
    #16     Jun 27, 2008
  7. S2007S

    S2007S


    Its speculation and greed....thats it. Supply and demand theory is thrown out the window when it comes to speculation and greed. Greed is very powerful and you have seen what it can do to in the last decade with the dot com cylce and housing boom, next up oil.
     
    #17     Jun 27, 2008
  8. Certainly oil is definitely more expensive than tulip! :D
     
    #18     Jun 27, 2008
  9. eagle

    eagle

    Many people wish for oil to have the same fate as tulip. :D

     
    #19     Jun 27, 2008
  10. RhinoGG

    RhinoGG Guest

    Source please. Can you provide a link to this?
     
    #20     Jun 27, 2008