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

[SsupernovaE]

Holy crap! One station around here is down to $1.57.

Supply and demand? Not likely.

 

[Genx87]

Originally posted by: 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.

Right this slide started after a jump in supply in July. If Supply and Demand have nothing to do with it. Then why arent the hedgefunds driving the price to 200 instead of 50?

 

[miketheidiot]

Originally posted by: Genx87

Originally posted by: 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.

Right this slide started after a jump in supply in July. If Supply and Demand have nothing to do with it. Then why arent the hedgefunds driving the price to 200 instead of 50?

because the bubble ran out of steam and investors bailed.

 

[charrison]

Originally posted by: 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.

Demand is down, and they are moving supply down to match the new demand.


But tell me this, iron ore is a commodity that does not have future trading also spiked sparply due to demand. Was that due to those funds as well. Those funds played a part, but the root was tight supply due to global demand on commodities.

 

[RU482]

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

sounds like funny math to me

 

[alien42]

Originally posted by: miketheidiot
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.

Originally posted by: LegendKiller
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.

these are the truth

 

[DealMonkey]

Originally posted by: LegendKiller
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.

D'oh! And the supply/demand weenies go down ... watch now as OPEC cuts supply trying desperately to drive the price/barrel back up.

 

[alien42]

Originally posted by: Genx87

Originally posted by: 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.

Right this slide started after a jump in supply in July. If Supply and Demand have nothing to do with it. Then why arent the hedgefunds driving the price to 200 instead of 50?

hedgefunds and investors make profits both ways, you better believe the best were short oil over $140 and made money on the way down.

 

[charrison]

Originally posted by: DealMonkey

Originally posted by: LegendKiller
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.

D'oh! And the supply/demand weenies go down ... watch now as OPEC cuts supply trying desperately to drive the price/barrel back up.

If there was no demand destruction, why are they are they cutting supply....

 

[DealMonkey]

Originally posted by: charrison

Originally posted by: DealMonkey

Originally posted by: LegendKiller
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.

D'oh! And the supply/demand weenies go down ... watch now as OPEC cuts supply trying desperately to drive the price/barrel back up.

If there was no demand destruction, why are they are they cutting supply....

An attempt at artificial price manipulation. OPEC themselves admitted there was no supply problem. Or are you content to ignore their own admissions?

http://www.gulfnews.com/BUSINE..._and_Gas/10223272.html

Algiers: Oil producers cannot pump more without demand for extra oil supply, and at the moment that demand does not exist, Opec President Chakib Khelil said on Monday.

Oh noes!

 

[charrison]

Originally posted by: DealMonkey

Originally posted by: charrison

Originally posted by: DealMonkey

Originally posted by: LegendKiller
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.

D'oh! And the supply/demand weenies go down ... watch now as OPEC cuts supply trying desperately to drive the price/barrel back up.

If there was no demand destruction, why are they are they cutting supply....

An attempt at artificial price manipulation. OPEC themselves admitted there was no supply problem. Or are you content to ignore their own admissions?

http://www.gulfnews.com/BUSINE..._and_Gas/10223272.html

Algiers: Oil producers cannot pump more without demand for extra oil supply, and at the moment that demand does not exist, Opec President Chakib Khelil said on Monday.

Oh noes!

I never said there was not too much cash chasing oil, but the oil bubble had its roots in tight supply. Once supply/demand came back into balance, the bubble quickly deflated.

 

[dmcowen674]

Originally posted by: charrison

Demand is down, and they are moving supply down to match the new demand.

I pity all those that actually still belive the Supply & Demand bullshit.

They are just not capable of thinking

 

[Vic]

Originally posted by: OUCaptain
Oil prices are a based on a speculative market. They "speculate" the demand and "speculate" the supply. They speculated wrong.

This is the correct answer.

 

[dmcowen674]

Originally posted by: charrison

Originally posted by: DealMonkey

Originally posted by: LegendKiller
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.

D'oh! And the supply/demand weenies go down ... watch now as OPEC cuts supply trying desperately to drive the price/barrel back up.

If there was no demand destruction, why are they are they cutting supply....

No one is saying there wasn't a small change due to the high prices but people still have to go to work, at least those that still have jobs.

Some took to the trains but they are going back to the car now:

11-19-2008 But there were signs that plummeting gas prices have begun to bring American motorists back to the pump

MasterCard SpendingPulse reported Tuesday that even though consumption of gas for the weekend ended Friday was down 2.8 percent from a year ago, it was the smallest year-over-year decline in more than two months. Americans used about 100,000 more barrels per day of gas for the week than they did the previous week.

"Demand destruction has definitely subsided significantly," said Michael McNamara, a vice president at MasterCard SpendingPulse.

 

[First]

Originally posted by: dmcowen674

Originally posted by: charrison

Demand is down, and they are moving supply down to match the new demand.

I pity all those that actually still belive the Supply & Demand bullshit.

They are just not capable of thinking

Says the troll reject.

 

[Vic]

Who really gives a flying fuck what McMoron thinks?

 

[miketheidiot]

Originally posted by: Vic
Who really gives a flying fuck what McMoron thinks?

i do, but only for the lulz

kinda like how i care what winnar111 or dewulon or budmanton or jpeyton or any of the other tards think.

 

[Colt45]

collusion, voodoo and taxes.

 

[StageLeft]

Excess speculation caused it to blow up, just as it did with tech and housing. Clearly not exactly the same, but the psychology behind it is the same in any speculative bubble; find a bit of meaning or merit and completely overreact to it. So, an increase in demand is seen in a completely unrealistic light and everybody jumps on board with the hysteria.

 

[Atreus21]

I don't understand why demand should be down. I mean, I didn't suddenly decide I didn't feel like fueling my car anymore because of the economic downturn.

 

[Sheik Yerbouti]

And cue us Americans to get complacent, forget what it was like to have gas above $4/gal, and think that fossil fuels are a never ending magical supply of energy. This is the perfect time to push even harder for alternative energy and hydro/electric/? powered cars/trucks etc.

 

[StageLeft]

Originally posted by: Atreus21
I don't understand why demand should be down. I mean, I didn't suddenly decide I didn't feel like fueling my car anymore because of the economic downturn.

Others have, demand is down. When gas was $4 I was driving a tiny bit less and now that it's up, honestly, I am driving more because it's less of an impact. I used to calculate how much gas a particular trip would cost and it can add up.

 

[Atreus21]

Originally posted by: Skoorb

Originally posted by: Atreus21
I don't understand why demand should be down. I mean, I didn't suddenly decide I didn't feel like fueling my car anymore because of the economic downturn.

Others have, demand is down. When gas was $4 I was driving a tiny bit less and now that it's up, honestly, I am driving more because it's less of an impact. I used to calculate how much gas a particular trip would cost and it can add up.

I guess I was more careless. I always drive with a light foot to save gas, but I haven't changed my driving habits in the slightest since the price plummet.

And even if everyone did, it's hard to imagine that demand would fall so precipitously as to cause the price to fall by over $2 a gallon, at least here in New Orleans. There're places on Claiborne with under $1.69. I don't think it's been that low since possibly before the new millenium. I remember coming home from the Liberty Bowl in '98, and seeing $0.72. It took 10 years for gas to climb by over $3, and 2 months to fall by $2.

Of course, demand may have fallen for other oil products besides auto-related stuff.

 

[Atreus21]

DP.

 

[Xavier434]

Originally posted by: miketheidiot

Originally posted by: Genx87

Originally posted by: miketheidiot
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.

Right this slide started after a jump in supply in July. If Supply and Demand have nothing to do with it. Then why arent the hedgefunds driving the price to 200 instead of 50?

because the bubble ran out of steam and investors bailed.

I think it is a combination of the bubble and deflation across the global economy personally. Supply and Demand probably plays a role as well, but I don't think it is as large of a role as many are making it out to be.