Article

2008-05-01 Home Front Economy

Oil drops as demand falls amid supply growth expectations

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Posted by Steve White 2008-05-01 00:00|| || Front Page|| [3 views ] Top

#1 Wow, so when prices go up, demand goes down and supply increases?

It's magic.

Posted by Bright Pebbles 2008-05-01 04:42|| 2008-05-01 04:42|| Front Page Top

#2 Demand isn't the culprit, I dont think. Speculators in the futures market, alarmist "analysts" and possibly hedge funds probably have driven the cost to what it is. Stocks of gas are busting at the seams right now, that doesn't account for $118/bbl. oil. The market is rigged from both ends now, supply (opec) and demand(commodities, futures). How can the consumer hope to get a square deal when both ends of the market are endemically corrupt?
A few thousand people have made hundreds of millions of dollars at the expense of the other 300 million of us. I'm all for free markets, but goddamn! When gas hits $5, or $8 a gallon, how are you going to feel about your "free market" then?

Posted by bigjim-ky 2008-05-01 08:24|| 2008-05-01 08:24|| Front Page Top

#3 I'm not addressing anyone directly by the way.

Posted by bigjim-ky 2008-05-01 08:39|| 2008-05-01 08:39|| Front Page Top

#4 Jim, I agree with you.

The problems with free market capitalism isn't theoretical it's human.

The question is how do you stop the greed heads on both ends? Does anyone have any ideas that don't involve government control of the markets? (raising certain taxes wouldn't equate to control)

Posted by AlanC 2008-05-01 09:16|| 2008-05-01 09:16|| Front Page Top

#5 Let's not forget in this discussion that your dollar is worth far less today than a year ago before the Fed started to compensate the 'credit market' with a few extra hundred billion dumping. Money is fungible like oil. In the credit/speculation market it just flows towards the next object to grace. When the government buys products or services [labor] it get something no matter how inflated in return. When government puts money into a market without getting something, that money has to tie to something.

Posted by Procopius2k 2008-05-01 09:23|| 2008-05-01 09:23|| Front Page Top

#6 Since the chinese yuan is pegged to the dollar it should be worth about half of what it was a couple of years ago too. But I haven't heard a peep out of china about rising fuel costs.

Posted by bigjim-ky 2008-05-01 13:23|| 2008-05-01 13:23|| Front Page Top

#7 I understand completely about falling dollar is reason for (some)of the gas prices, but that doesn't help the customer end of things; when gas gets to the point that it trumps other expenditures ( and there are already signs that is happening) the economy is gonna tank. people need other people to buy stuff to keep $$ in circulation, if you ain't working' there ain't no $$ for stuff. that tosses more people out of work, with less $$ to spend. Witness Starbucks today reported earning loss of 21% and Home Depot is closing 15 stores. these numbers come from a lack of $$$. gonna be a rough ride for the next little bit.

Posted by USN,Ret. 2008-05-01 14:45|| 2008-05-01 14:45|| Front Page Top

#8 There is no "free market" in oil. There hasn't been one since John D. Rockefellers's time. The oil market gets less free every day.
USN, Ret's concerns about the effect of high oil prices on the US economy are certainly valid. The USA has had since 1973 to do something substantial about that problem, and has elected (literally) to do as little as possible.

Posted by Anguper Hupomosing9418 2008-05-01 15:00|| 2008-05-01 15:00|| Front Page Top

#9 Witness Starbucks today reported earning loss of 21% and Home Depot is closing 15 stores.

Hmmm. Starbucks has been an overprice piece of less than acceptable snobbery, particularly when Consumer Reports ends up rating McD's premium coffee higher. As for HD, I go there, mainly because its 40 more miles to Lowes, that's 80 round trip and three gallons of gas. The place is understaffed and dirty compared to the competition. The one nearer the Lowes is at least better stocked as well. Its been that way for a while, put it on management not the economy.

Posted by Procopius2k 2008-05-01 18:48|| 2008-05-01 18:48|| Front Page Top

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