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Funny how this works ...
Posted by: McQ on Thursday, July 17, 2008

Supply and demand?
Crude oil futures fell more than $4 a barrel in New York after a surprise increase in U.S. inventories [supply] and as a slowing U.S. economy sapped demand for energy.
And then?
New York stocks sharply rebounded Wednesday as a drop in oil prices eased concern about inflation.
Can you imagine the effect that an announcement opening up drilling in ANWR and the OCS would have?
 
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Previous Comments to this Post 

Comments
Exactly.
And so disappears the argument that opening up the shelf and ANWR to drilling would have only a small effect on prices. Here we have only one link in the chain of events that needs to occur to get driling started, saying ’go’... and prices drop in a way they have not on 20 years or so. 14 dollars the first day, nearly 6 the next.

 
Written By: Bithead
URL: http://bitsblog.florack.us
But, but, but, but.... We can’t drill our way out of this crisis.

You see, the supply of oil does not affect the demand, therefore, ipso facto and quid pro quo, increasing supply will not decrease demand and therefore....uhhhh.... drilling won’t affect the demand and therefore...uhhh.... increased drilling won’t help.


It’s so funny watching people, both media nitwits and politicians, saying over and over how increased supply will not affect the price. It’s as if Adam Smith never lived, the Soviet Union never fell and Joanie never loved Chachi.
 
Written By: Veeshir
URL: http://
Joanie never loved Chachi
Take it back.
 
Written By: Is
URL: http://
Of course the media has been playing any waver in oil prices as bad news. When prices were in a continuous climb: bad news. The past couple of days, oil prices steeply declined: bad news. Maybe when St. Obama gets elected they will be able to find some good news to disseminate.
 
Written By: the wolf
URL: http://
If you think that pulled price down, just think what this will do...
 
Written By: Scott Jacobs
URL: http://
The problem is that the price didn’t drop until the annoucement got out. If current supply and demand was the only thing acting, the price would have changed without the annoucement.

There is a chuck that is speculation. How much of that is speculation based on valid future estimates of supply and demand and how much is speculation based on essentially future speculation propped up by short-term inelastic demand, idk.
 
Written By: jpm100
URL: http://
The problem is that the price didn’t drop until the annoucement got out. If current supply and demand was the only thing acting, the price would have changed without the annoucement.


Consider the word ’futures’.
Such prices are not focused on current supply. I will point out again that when this little rocket ride started, we had more in the way of both crude and distalates on hand, than we’d had at any time n the 15 years previous. This has never been a supply issue, but rather a perception of supply and demand in the coming months and years. Thereby, since the perception was that we were unwilling to drill, and so the perception of the future supply situation, was a less than thrilling one. On the idea that there might actually be some motion in our governmen to allow oil companies to do what they do again, the prices fall like a stone.


 
Written By: Bithead
URL: http://bitsblog.florack.us
If you think that pulled price down, just think what this will do...
Start now before the next administration designates everything a national wildlife refuge.
 
Written By: Is
URL: http://
Consider the word ’futures’.
Hence my 2nd paragraph.

The problem is that is it really only future demand. Or is it partly because there is knowledge that short-term demand will bare even higher prices than justified long-term.

That type of speculation will eventually collapse. When they do, prices will fall below where they should be. This will lead to volitility and uncertainty for consumers.

So short term we may be over-priced and have an uncertainty factor leading to consumer hesitation and a slowdown to the economy we don’t need right now.
 
Written By: jpm100
URL: http://
Well, we can all be "hopeful" that should Obama be elected President, he will rescind the law of supply and demand, and we can all ride unicorns to work.
 
Written By: Keith_Indy
URL: http://asecondhandconjecture.com
When its actually allowed to drill, the price will have already factored it in. Then the enviros will claim its didn’t lower the price.
 
Written By: Harun
URL: http://
Hell, Harun they’re already claiming that it was Bernake’speech, not Bush’s call that lowered the prices.

 
Written By: Bithead
URL: http://bitsblog.florack.us
Well, we can all be "hopeful" that should Obama be elected President, he will rescind the law of supply and demand, and we can all ride unicorns to work.
Except for bottom-loading unicorns.
 
Written By: Is
URL: http://
Well, we can all be "hopeful" that should Obama be elected President, he will rescind the law of supply and demand, and we can all ride unicorns to work.

Except for bottom-loading unicorns.
Are you being homo-phobic?
 
Written By: Joe
URL: http://
Except for bottom-loading unicorns.
Yeah, ’cus that would make them machine-incorns. And we all know those are "dangerous and unusual."
 
Written By: MichaelW
URL: http://qando.net
Have ever seen the HORN of a unicorn? Those things are dangerous, and need to be outlawed...and their bite, nothing to be sneezed at either.

My sister was bitten by a unicorn.
 
Written By: Joe
URL: http://
My sister was bitten by a unicorn.
Was she on her way to her condo on Jupiter...
 
Written By: Keith_Indy
URL: http://asecondhandconjecture.com
No she was with my Brother-in-Law Sven.....
 
Written By: Joe
URL: http://
She was carving her intials into the unicorn with Sven, Sven’s a dentist, from Oslo...
 
Written By: Joe
URL: http://
My sister was bitten by a unicorn.
Mynd you, unicorn bites Kan be pretty nasti...
 
Written By: Bithead
URL: http://bitsblog.florack.us
Wi nøt trei a høliday in Amerika this yer?

See the løveli lakes

The wonderful telephøne system

And mani interesting furry animals

including the top løading unicørn
 
Written By: looker
URL: http://
This is going to leave a mark on Pelosi et al
The US federal government on Wednesday said it would open 3.9m acres of land in a designated petroleum reserve in Alaska for drilling as a means to help curb rising petrol prices.
This ought to have Pelosi breathing fire.

And the NYT ..
The Interior Department on Wednesday made 2.6 million acres of potentially oil-rich territory in northern Alaska available for energy exploration. At the same time, it deferred for a decade any decision to open 600,000 acres of land north of Teshekpuk Lake that is the summer home of thousands of migrating caribou and millions of waterfowl.

... expected the first oil production to begin in the easternmost part of the reserve, west of the Colville River, from 2010 to 2012. A fully developed oil complex exists on state lands on the eastern banks of the river.
So much for Obama’s 7 year claim .. now it’s 2 to 4 years.
 
Written By: Neo
URL: http://
Supply and Demand . . . the law "liberals" keep trying to repeal.
 
Written By: Bilwick
URL: http://

 
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