Gasoline.

[whell]

This should also be an lesson to lefties about what the actual drivers are of oil prices. Has nothing to do with who is in the White House or which president has friends at "big oil." It always has been, and always will be, about supply and demand. Period. End of story.

http://www.cnbc.com/id/102084062

The abrupt acceleration of an over 26 percent slide in prices since June was triggered by three news items that epitomized the market's turn: a downgrade in global oil consumption forecasts; projections for another big boost in shale oil; and reluctance by OPEC members to cut output.

Oil is struggling to find a floor after Saudi Arabia made clear that it was focused on maintaining market share, not supporting prices with unilateral production cuts.

Other members appear to be taking a similar tack. A source familiar with oil policy in Iran, normally one of the first in OPEC to call for production cuts, followed Kuwait in saying there was no need to rein in supplies.

"I think it's just continued the rationalization that all signs continue to suggest that OPEC is not going to do much," said Dominick Chirichella, senior partner at the Energy Management Institute, New York.

...and its that part that I bolded above as one significant reason why OPEC doesn't want to cut production and the Saudis are saying they want to "maintain market share."

Originally Posted by Tom Joad

That's what I would do if I were dictator.

Frack, frack, frack, frack, frack, frack, frack.

Fixed it for you...

[d-ray657]

Originally Posted by whell

This should also be an lesson to lefties about what the actual drivers are of oil prices. Has nothing to do with who is in the White House or which president has friends at "big oil." It always has been, and always will be, about supply and demand. Period. End of story.

http://www.cnbc.com/id/102084062

The abrupt acceleration of an over 26 percent slide in prices since June was triggered by three news items that epitomized the market's turn: a downgrade in global oil consumption forecasts; projections for another big boost in shale oil; and reluctance by OPEC members to cut output.

Oil is struggling to find a floor after Saudi Arabia made clear that it was focused on maintaining market share, not supporting prices with unilateral production cuts.

Other members appear to be taking a similar tack. A source familiar with oil policy in Iran, normally one of the first in OPEC to call for production cuts, followed Kuwait in saying there was no need to rein in supplies.

"I think it's just continued the rationalization that all signs continue to suggest that OPEC is not going to do much," said Dominick Chirichella, senior partner at the Energy Management Institute, New York.

...and its that part that I bolded above as one significant reason why OPEC doesn't want to cut production and the Saudis are saying they want to "maintain market share."



Fixed it for you...

Are you ignoring the significant work that has been done on the demand side of the equation?

http://www.nytimes.com/2012/08/29/bu...ards.html?_r=0

http://www.caranddriver.com/features...cafe-standards

[Rajoo]

Originally Posted by d-ray657

Are you ignoring the significant work that has been done on the demand side of the equation?

http://www.nytimes.com/2012/08/29/bu...ards.html?_r=0

http://www.caranddriver.com/features...cafe-standards

It sounds far better if one believes that this was accomplished without any regulation and purely by market forces. There is a nasty acronym that some on the right are not very fond of, CAFE. Of course if OPEC drives down the price of oil to a level where shale oil and fracking are no longer profitable, it could get interesting.

Long term trend to EV's and electricity generation using natural gas can make the US closer to becoming energy independent.

[whell]

Originally Posted by d-ray657

Are you ignoring the significant work that has been done on the demand side of the equation?

http://www.nytimes.com/2012/08/29/bu...ards.html?_r=0

http://www.caranddriver.com/features...cafe-standards

The article I posted quoted the factors that the market analysts believe are impacting prices. Now, there's no question that demand is down, but the drivers for the reduction in demand that are impacting current pricing are apparently not, for example, pending CAFE standards. From the article:


Weak Europe weighs Brent

The IEA's supply forecast is "piling on'' already weak economic data from Europe, said analyst Phil Flynn of Prices Futures Group in Chicago. " Numbers out of Europe show deflationary pressures are extending even into the UK."

Germany's economy could shrink in the third quarter, but any recession, as defined by two or more consecutive quarters of declining output, should not last long, the chief economist of think tank ZEW said.

[finnbow]

Originally Posted by whell

The article I posted quoted the factors that the market analysts believe are impacting prices. Now, there's no question that demand is down, but the drivers for the reduction in demand that are impacting current pricing are apparently not, for example, pending CAFE standards. From the article:


Weak Europe weighs Brent

The IEA's supply forecast is "piling on'' already weak economic data from Europe, said analyst Phil Flynn of Prices Futures Group in Chicago. " Numbers out of Europe show deflationary pressures are extending even into the UK."

Germany's economy could shrink in the third quarter, but any recession, as defined by two or more consecutive quarters of declining output, should not last long, the chief economist of think tank ZEW said.

And the current economic downturn in Europe resulted from their "austerity" approach to recovery from the last downturn (the incorrect approach also supported by the GOP).

[merrylander]

Originally Posted by finnbow

And the current economic downturn in Europe resulted from their "austerity" approach to recovery from the last downturn (the incorrect approach also supported by the GOP).

Yep, stupid is as stupid does.

[Dondilion]

Originally Posted by finnbow

And the current economic downturn in Europe resulted from their "austerity" approach to recovery from the last downturn (the incorrect approach also supported by the GOP).

Europe is real smart...it imposes sanctions in time of recession.