More economic gloom

[godsoftandjoearedull]

No. Market forces mean shortage of supply for the burgeoning demand.

Interesting. So, you're right and George Soros' theories on the rising price of oil are completely flawed?

 

[joe-90]

No. Market forces mean shortage of supply for the burgeoning demand.

Interesting. So, you're right and George Soros' theories on the rising price of oil are completely flawed?

Yes.

 

[tim west]

What makes you think that supply can be increased?

they the oil producers said it not me.

 

[joe-90]

What makes you think that supply can be increased?

they the oil producers said it not me.

By a ludicrous amount.

 

[tim west]

What makes you think that supply can be increased?

they the oil producers said it not me.

By a ludicrous amount.

but it shows at the moment there is still oil to pump up and therefore the argument that the oil has run dry isnt an excuse for the producers to up the price.

 

[joe-90]

It's not the producers upping the price - that is the market rate. It's all about oil futures. Oil isn't sold in a market by men in robes and camels outside.

 

[tim west]

It's not the producers upping the price - that is the market rate. It's all about oil futures. Oil isn't sold in a market by men in robes and camels outside.

So it is speculation thats driving the price up then?

 

[joe-90]

It's not the producers upping the price - that is the market rate. It's all about oil futures. Oil isn't sold in a market by men in robes and camels outside.

So it is speculation thats driving the price up then?

No, the fact that that is what you must pay to obtain what you want.

It's like an auction. When there is a shortage - then the price will rise.

 

[tim west]

No, the fact that that is what you must pay to obtain what you want.

It's like an auction. When there is a shortage - then the price will rise.

So if there's a shortage then how have they kept up supplying the ever increasing world demand?

 

[joe-90]

No, the fact that that is what you must pay to obtain what you want.

It's like an auction. When there is a shortage - then the price will rise.

So if there's a shortage then how have they kept up supplying the ever increasing world demand?

There hasn't been a shortage - but demand has caught up. More cars, more industry = more buyers of a commodity that can't be increased.

 

[tim west]

There hasn't been a shortage - but demand has caught up. More cars, more industry = more buyers of a commodity that can't be increased.

I understand what you are saying joe but if that was the case then demand should have dried up the wells yesterday, i'm sure the wells have still got many years of production left in them if not then the arab nations should be panicking by now.

 

[joe-90]

Think of the oil as a garden tap. When it's at full flow it's at full flow. We can all share that full flow - but we can't increase it.

 

[tim west]

Think of the oil as a garden tap. When it's at full flow it's at full flow. We can all share that full flow - but we can't increase it.

I understand that but to use your garden tap analogy the flow would have stopped or slowed without the pressure and im not sure the production figures support that?

 

[godsoftandjoearedull]

No. Market forces mean shortage of supply for the burgeoning demand.

Interesting. So, you're right and George Soros' theories on the rising price of oil are completely flawed?

Yes.

So, there's no correlation between the increased price of oil and the increased activity in the oil futures market?

 

[joe-90]

No. Market forces mean shortage of supply for the burgeoning demand.

Interesting. So, you're right and George Soros' theories on the rising price of oil are completely flawed?

Yes.

So, there's no correlation between the increased price of oil and the increased activity in the oil futures market?

Yes of course there is but shortage is making price higher. Any shortage produces higher prices whether it be wheat, potatoes or oil.