Anyone else find it strange that oil prices are coming down so timely? Don't you think the demand for oil turned off rather abruptly? Before we were told it was about demand that prices rose so high. What's going on?Anyone think it strange the supply and demand for oil?
Several factors can be contributed to the decline in oil prices. Bush had been putting most of the oil in the oil reserves, now the oil reserves are completely full. Corporation begun an aggressive campaign for alternative energy, I do not think oil companies like that idea. Also, when the price of oil was high. People began to use mass transit, car pooling and riding their bikes to work. Which most continue to do today, so I think all of the fore mentioned contributed to the price of oil dropping rapidly.Anyone think it strange the supply and demand for oil?
It is hard to imagine, but oil prices are one of the only products that are priced based on what the manufacturers ANTICIPATE the future supply/demand to be.
That way they can price oil accordingly to compensate for future losses. It is somewhat smart, but it really screws the American people.
It doesn't make any sense at all, and there is pretty much no reason for it. But that is the way it is.
The oil companies figured that in the future the demand would rise, but more importantly, that supply would be down. It didn't really have much to do with the economy. It moreso caused the economic decline. And a recession and economics decline is a very ideal situation, or EXCUSE rather, for the oil companies to raise prices.
Hope that helps,
CaptainFeigh
recession hit.
people driving lesser
so demand drops
supply increase
price drops
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