Actually your article disproves your argument, and I quote: "The reason is people adjusted accordingly meaning small cars, small buses, efficient machines less consumption but more traveling done with less gas." Turkish people were able to adjust due to the higher economic output in their economy and an overall increase in purchasing power. One should not extrapolate this scenario to the US situation and expect that we will similarly adapt when unemployment still remains high, real income is decreased by recent oil spike, food stamp usage is at all-times highs, housing is still depressed and states face large deficits. In the short term, an oil spike is inelastic which causes an immediate reduction in real income. Add the fact that the US economy is still struggling I strongly doubt it that this so called "adjustment" will occur wih the same effectiveness that you anticipate.
No recession? DRYS has been falling for three months and is in two year low territory. Socialism is collapsing all over the world, there is evidence of a worldwide contraction reflected in the cost of shipping container usage... and now an oil shock!! Obama is going the way of Carter actually, funny how that works...
You would want to fade it. Last time we got to $145 ish, the first couple DOE reports showed that demand fell like a meteor from the heavens - in a matter of several months we were trading at $35. The producers know all too well that demand is EXTREMELY price sensitive. Demand is not a constant by any means. When we were at $145, the Summer driving season was non-existent, and refineries were not taking any supply - it was purely a speculative bubble. Rest assured that the producers were selling hard into the last big price spike.
Nut, the only demand I refer to is 'real' demand as it relates to DOE weekly supply and demand inventory reports. They collect real PADD data.
I am not sure what you are trying to say All I am saying is; Americans will get used to small cars less traveling less energy spending Because they will not have a choice just like in Turkey People making $1/hour but gas is close to $10/gal so people ADJUST accordingly.
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