It goes both ways
That it does. Both sides use the specious argument because lemmings on both sides respond to it.
In our integrated world, no president controls gas prices.
Fox News: bias anyone? (gas prices and the presidency)
by gubberningbody 40 Replies latest jw friends
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BizzyBee
Not sure about your cause-and-effect conclusion:
On July 15, 2008, a sell-off began after remarks by Chairman of the Federal Reserve, Ben Bernanke, indicated significant demand destruction within the US because of high prices. Bernanke's statement precipitated an $8 drop, the biggest since the first US-Iraq war. [ 40 ] [ 41 ] By the end of the week, crude oil fell 11% to $128, also affected by easing of tensions between the US and Iran. [ 42 ] By August 13, prices had fallen to $113 a barrel. [ 43 ] By the middle of September, oil price fell below $100 for the first time in over six months, [ 44 ] falling below $92 in the aftermath of the Lehman Brothers bankruptcy. [ 45 ]
A stronger US dollar and a likely decline in European demand were suggested to be among the causes of the decline. [ 46 ] By October 24, the price of crude dropped to $64.15, [ 47 ] and closed at $60.77 on November 6. [ 10 ]
And doesn't the price of gasoline always peak in the summer?
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botchtowersociety
Not sure about your cause-and-effect conclusion:
Oil prices are multifactorial. Are you seriously claiming that lifting a ban and creating an expectation of increased future supply had nothing to do with it?
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wha happened?
it's speculators. We have more reserves than last year. They use the Iran hype to move it up. I invest in commodities and my friend from way back is my broker. We talk about this almost on a daily basis.
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botchtowersociety
Oil demand is highly inelastic, and oil prices, as with everything else, are set at the margins.
http://www.theoildrum.com/node/8998
The world is presently sharing a limited supply of oil. When oil prices rise, oil production doesn’t rise very much, if at all.
On that link above is a very interesting chart:
Notice the price of natural gas. I don't remember the exact number, but in terms of energy content, natural gas in the US is the equivlent of $40-$50 for a barrel of oil.
We should be working to transition at least part of our transportation infrastructure towards natural gas. It is cheap, and we have lots of it. Plus, it is far more clean burning than petroleum.
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wha happened?
Botch I like this graph. I love how it shows supply as steady, but prices all over the map. Speculators
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botchtowersociety
Botch I like this graph. I love how it shows supply as steady, but prices all over the map. Speculators
Like I said, prices are set at the margins. That graph does not show demand or excess unused capacity.
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BizzyBee
>>>>>>Oil prices are multifactorial. Are you seriously claiming that lifting a ban and creating an expectation of increased future supply had nothing to do >>>>>>with it?
Just so you aren't seriously claiming it had everything to do with it.
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Berengaria
The Bush administration also made some grand proclamation that the Iraq war would pay for itself with lower oil prices at home.
Actually, considering that instability in the Middle East can cause prices to go up, and GWB brought hella instability to Iraq, I think a good argument could be made for that administration being responsible for the increase.
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Berengaria
Oil prices are multifactorial. Are you seriously claiming that lifting a ban and creating an expectation of increased future supply had nothing to do with it?
Are you seriously claiming that actually realizing that increase in supply has somehow had the opposite effect?
