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Originally Posted by SnakeInTheGrass
I am no expert, however it appears to be a mix of 12 months of over speculation followed by a reduction in consumption here in the US, and China's consumption not continuing to grow at a crazy rate.
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I'm not an expert either, but I do deal with these things on a daily basis (and get paid to do it so am I a professional?). I don't trade energy products, but I can tell you that the price of oil, and from oil gas, is so much more broad and complicated than you guys make it seem. Keep in mind that everytime someone buys a crude oil future: someone has to sell it to them. The price of crude oil was driven by a terrifically weak dollar, anticipations of crazy inflation, a shit economy compared to the rest of the world, and a realization that we simply aren't prepared to live without oil.
What has happened since then:
The dollar has gotten apeshit strong. Inflation worries are
gone. The central banks are now worried about deflation! The US economy might be relatively stronger than the UK and Europe, while at the same time being dogshit. All of which mean the dollar price of oil has to decline.
Quote:
Originally Posted by SnakeInTheGrass
I don't hate on the arabs for cutting production to raise prices, its a free market...they can try to use supply side econ to force the price higher, we will pay it or change to a different fuel source. When we get tired of paying so much for gas some entrepreneur will step in and make a buck with some new way of getting around.
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What you are describing is certainly not a free market. OPEC is a cartel and under US law would be illegal. They prevent the market from being efficient...
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Originally Posted by Beebs
Theres been a decline in demand and a return to more normal pricing after a bit of panic and idiocy caused a bubble.
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Not idiocy. The dollar being where it was, US economy being as weak as it was, inflation being priced in where it was, and the fact that someday oil really will run out; all led to oil being priced where it was.