Were on our way to oil freedom, looks like in the next couple years at most we will be down to a 1/3rd of what we once used with a 1/3rd more population. This all happened within a few years of the news media or government not even telling us.
Conspiracies are all around us; large ones, small ones - some profoundly evil and others relatively innocuous.
Unless supply has dried up, a decrease in demand should be followed by decreased prices. Econ 001. That has not happened. At the moment the price of oil is completely decoupled from those of silver and gold. The FRN, while losing purchasing power, has by some mechanism been successfully propped up - given what should be happening in the wake of the printing of trillions of dollars. Because the FRN is the financial lingua franca of the petroleum world, the price of its products should still behave more or less as one would expect, again barring a significant shortage of supply that outstrips the decrease in demand. That has not been reported and therefore one need almost necessarily infer something funny going on.
All else equal, were the oil companies in the game solely to provide product at the best possibly price in freely competitive markets, we should see the prices fall. This indicates to me that the oil companies are not in the game just for the presumed reasons. Something more is going on. Collusion? Conspiracy. Social engineering. Conspiracy. Politics. Conspiracy. No matter how you slice this pie, the serious consideration of possible conspiracy of one sort or another should be undertaken. If it looks like a duck...
ignominia et contemptum tyrannis
Habeo excelsum artem; afflixerim cum crudelitate illis qui laedas me
The affairs of gold-laden Gyges do not interest me.
Zealousy of the gods has never seized me nor anger
at their deeds. But I have no love for great tyranny
for its deeds are very far from my eyes. -Archilochus
Not necessarily, osan. Heading to bed right now, but I am fairly sure that worldwide demand has picked back up since the slump of 07-08. Oil is a global commodity, and its price is based on the margins like everything else. Although the supply may be going up the cost of extraction is likewise going up for these more marginal barrels. Though local demand for oil may be dropping, it is increasing elsewhere. Of course there is more than just the Oil factor in gasoline, given the whole winter/summer blend thing, and refineries switching and such.
Russia showed the power of owning natural resources a few years ago when they decided to halt distribution of natural gas to Europe over a price dispute with Ukraine in the middle of winter.There is no replacement for oil and the oil masters know it.Everything is dependent on oil.
Last edited by Demigod; 02-25-2013 at 07:25 AM.
I am @ $3.70 today on gas , ten days ago $3.90 , twelve days ago $3.50.Remember winter gas is the cheap gas, summer blend coming later.
Oil @ $93.36 , Brent crude $114.10 with the one year forecast on oil @ $107.