Why/How did Gasoline drop so fast to LESS than $2 per gallon.. COME ON.. LOL

[dahunan]

http://www.coloradogasprices.com/

WHAT THE F...

Running out of oil.. right..

What were all the excuses before?

 

[BrunoPuntzJones]

$238 a barrel next summer

Bookmark this post!

 

[dahunan]

Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

 

[charrison]

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

 

[Tab]

That and it appears there isn't going to a war over in Middle East any time soon...

 

[glenn1]

Don't worry, if gas continues to go down that will bring out the calls to impose a several dollar gas tax to bring it back up to $5.

 

[miketheidiot]

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

yeah lets forget the billions of dollars that hedgefunds put into the market.

stockpiles of oil and gas both increased as the price increased, this was never about supply and demand.

 

[charrison]

Originally posted by: Tab
That and it appears there isn't going to a war over in Middle East any time soon...

And iraq is pumping about 2.4MBD now as well.

 

[CycloWizard]

Obviously someone hasn't been paying attention to the precipitous drop in demand. LOLLERSKATES!!!!1!

 

[WHAMPOM]

Does not compute......
Does not compute......
Supply drops.......
And price drops......
Does not compute.......
Does not compute.......

 

[dahunan]

Demand dropped 65% .. wow..

 

[mugs]

Originally posted by: dahunan
Running out of oil.. right..

You're naive if you think this means oil will continue to be plentiful for decades in the future. The price of oil depends on supply, and supply is dictated by human beings who often sacrifice the long term for the short term.

 

[miketheidiot]

Originally posted by: CycloWizard
Obviously someone hasn't been paying attention to the precipitous drop in demand. LOLLERSKATES!!!!1!

price was still rising while global demand was falling.

Its really funny, right as money starts pouring out of mortgage securities, it starts pouring into commodity contracts particularly oil, and oil prices spike in spite of increasing global security, increasing global supply and a decrease in demand, and all this happened in an economy that had already started rapidly decelerating in late 2007, right as the bubble was starting.

Looking at the last 18 months and coming to the conclusion that it was pure 'supply and demand' for the products themselves is ridiculous. There was much more going on than the simple econ 101 explanation that laymen seem to like so much.

 

[Insomniator]

People always claimed gas would never come down from 4 dollars because "the market has adjusted to it"

Well I guess competition took care of that theory eh?

 

[Capt Caveman]

Where's Dave to explain what happened to us simpletons?

 

[SigArms08]

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

Did you get this line from the news? Much like a parrot, you're just repeating the garbage that you heard on the news. "Must be true..."

 

[CycloWizard]

Originally posted by: dahunan
Demand dropped 65% .. wow..

Please explain why price and demand must be linearly correlated with a unit slope.

 

[charrison]

Originally posted by: SigArms08

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

Did you get this line from the news? Much like a parrot, you're just repeating the garbage that you heard on the news. "Must be true..."

Well the data backs it up.


What theory do you propose?

 

[LegendKiller]

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

LOL. And global deleveraging with hedge funds facing $100BN in redemptions within 3 months, forcing them to massively sell out of oil futures position more than halving the amount of oil futures outstanding.

I've said all along that this had nothing to do with supply/demand. As mike said above, it's always been about investment gains to make up for the mortgage debacle.

 

[LumbergTech]

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

do you happen to know how much demand is down?

NVM someone said 65%?

 

[charrison]

Originally posted by: LegendKiller

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

LOL. And global deleveraging with hedge funds facing $100BN in redemptions within 3 months, forcing them to massively sell out of oil futures position more than halving the amount of oil futures outstanding.

I've said all along that this had nothing to do with supply/demand. As mike said above, it's always been about investment gains to make up for the mortgage debacle.

That no doubt played a part as well. But supply was tight, which did help set this commodities bubble.

 

[charrison]

Originally posted by: LumbergTech

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

do you happen to know how much demand is down?

NVM someone said 65%?

It is down 800,000M day in the US alone. The eurozone and Japan are officially in recessionm, so I would assume their oil consumption is down quite a bit as well.

Demand has fell below what can be supplied at this point.

 

[LegendKiller]

Originally posted by: charrison

Originally posted by: LegendKiller

Originally posted by: charrison

Originally posted by: dahunan
Remember this was all about Peak Oil and running out of oil etc.. right? .. lol

now they are giving it away..l

Supply and demand was tight. Prices got high which caused demand destruction and new sources to come online. Add inthe world economy is going in the tank, which demand for oil is down...

LOL. And global deleveraging with hedge funds facing $100BN in redemptions within 3 months, forcing them to massively sell out of oil futures position more than halving the amount of oil futures outstanding.

I've said all along that this had nothing to do with supply/demand. As mike said above, it's always been about investment gains to make up for the mortgage debacle.

That no doubt played a part as well. But supply was tight, which did help set this commodities bubble.

Supply wasn't "tight", no more "tight" than it has been at any other point in the last 10 years. It's laughable you think that this had anything to do with supply/demand in the face of the actual amount of oil futures outstanding down by 53%. Meanwhile, OPEC is cutting "supply" as fast as prudently possible to keep prices up.

This whole thing was driven by hedge funds, I am saying this as a person who works on Wall St. and reads Hedge Fund Report every week.

 

[OUCaptain]

Oil prices are a based on a speculative market. They "speculate" the demand and "speculate" the supply. They speculated wrong.

 

[Gunslinger08]

The price of oil has much less to do with actual supply and demand than most people believe. I'm just hoping this continues for another 5+ years so we don't rape our economy waiting for cheap renewable energy sources.