Oh That Whacky Supply and Demand Stuff…..
That’s right folks!!!!
According to the Energy Information Administration, Light Sweet Crude supplies are UP and the price per barrel is DOWN………
From Yahoo News:
NEW YORK – Oil prices are tumbling, extending a massive sell-off the previous day, after of the government reported that U.S. crude supplies unexpectedly jumped last week.
Light, sweet crude for August delivery is down $6.44 at $132.30 a barrel in morning trading on the New York Mercantile Exchange.
The Energy Information Administration reported U.S. crude oil supplies jumped by 3 million barrels last week. That is the opposite of the 3 million barrel decline analysts surveyed by energy research firm Platts expected.
Gasoline supplies also jumped unexpectedly.
Sooooooo let me get this straight. If the supply goes up, the price goes down??? Man I sure wish they’d teach that in Econ…………
I wonder if Nancy Panderlosi knows about this????? Wouldn’t drilling for domestic oil increase the supply??? She told us the drilling thing is a HOAX.
Do you think she lied??????
UPDATE: Jimi over at the Prozak Playground, like myself, isn’t an economist or a congressman and I don’t even think he stayed at a Holiday Inn last night but he’s seemed to have figured out this Supply and Demand thingy:
I’m no economist. But, there are some basic things I understand. The above is clear evidence of what happens with futures markets. Of which oil is a part. It is also a world market taking in influence not just from the US, but from around the world. Yes, we’re the largest consumer of oil. But, we’re also one of the most volatile in terms of influence. Again, as evidenced above. Just the threat of inflation sent the market plunging.
Now, imagine what would happen if we decided to go after more oil right here in the US. Hmm. Speculation of increased supply at some time in the future, you wonder?
Wouldn’t it be nice if our elected officials could figure this out…….
jimi said,
July 16, 2008 @ 1:10 pm
If may be so bold as to reference my post on this.
Cindy said,
July 16, 2008 @ 2:03 pm
I just heard down 10% in the last two days. I wonder if they’ll blame conservatives for that, too.