I cannot really say that prices "spiked" over $3 here. They went to over $3 from only slightly below and stayed there (when considering not just the price of Regular). Regular was under $3 for a while, but now is back over $3.
This: "The demand for oil is falling because the 12 refineries are shut down." raised an eyebrow.
People were asked to conserve and, lo and behold, they seemed to follow the request. Was it a measure of our capacity to follow instructions? [We like sheep, but not always commandable sheep.] Can the conserving continue for the longer term as we ask neighbours to abandon every other house to reduce heating costs (and increase neighborliness --get cosy people!)? Is the President setting an example by riding his bicycle (Bicycle One)?
In the short term it looks like scoring/gouging on marketing Uncertainty to me.
"The AP report is incorrect. The price of oil is falling because the demand for oil is falling. The demand for oil is falling because the 12 refineries are shut down."
This makes sense, but one thing I don't get (based on the above statement):
If refinery capacity was relatively constant (before Katrina), and refineries were operating at near-capacity (in other words, refinery demand is constant), shouldn't the price of oil have been fairly constant (rather than increasing drastically from $40 to $60+)?
If refinery capacity was relatively constant (before Katrina), and refineries were operating at near-capacity (in other words, refinery demand is constant), shouldn't the price of oil have been fairly constant (rather than increasing drastically from $40 to $60+)?
We aren't the only consumer of oil on the globe... ie China.
My speculation is that while the impact of $3+ gas is in good measure fundamental (i.e. people being squeezed at the margin), it's also psychological. The currency unit does have a significance, and it does make a difference whether you see a 2 or a 3 in front of the decimal point, beyond the actual differential in price. Similar effect as prices of the type of $2.99, $3.99, etc.
You should be charging us to read these posts; this particular effort is truly excellent.
Joshua, thanks for the nice comment! And the price is about to double.
Best Regards.
I cannot really say that prices "spiked" over $3 here. They went to over $3 from only slightly below and stayed there (when considering not just the price of Regular). Regular was under $3 for a while, but now is back over $3.
This: "The demand for oil is falling because the 12 refineries are shut down." raised an eyebrow.
People were asked to conserve and, lo and behold, they seemed to follow the request. Was it a measure of our capacity to follow instructions? [We like sheep, but not always commandable sheep.] Can the conserving continue for the longer term as we ask neighbours to abandon every other house to reduce heating costs (and increase neighborliness --get cosy people!)? Is the President setting an example by riding his bicycle (Bicycle One)?
In the short term it looks like scoring/gouging on marketing Uncertainty to me.
"The AP report is incorrect. The price of oil is falling because the demand for oil is falling. The demand for oil is falling because the 12 refineries are shut down."
This makes sense, but one thing I don't get (based on the above statement):
If refinery capacity was relatively constant (before Katrina), and refineries were operating at near-capacity (in other words, refinery demand is constant), shouldn't the price of oil have been fairly constant (rather than increasing drastically from $40 to $60+)?
If refinery capacity was relatively constant (before Katrina), and refineries were operating at near-capacity (in other words, refinery demand is constant), shouldn't the price of oil have been fairly constant (rather than increasing drastically from $40 to $60+)?
We aren't the only consumer of oil on the globe... ie China.
My speculation is that while the impact of $3+ gas is in good measure fundamental (i.e. people being squeezed at the margin), it's also psychological. The currency unit does have a significance, and it does make a difference whether you see a 2 or a 3 in front of the decimal point, beyond the actual differential in price. Similar effect as prices of the type of $2.99, $3.99, etc.
Looks nice, keep working! armadi rack asma medicina unione rugby capitolina