Why search for conspiracy when facts explain everything? The US put 4 MIILION extra barrels of oil a day on the market. Prices then dropped. Simple.
That was kinda stupid then wasnât it.
Maybe dumb luck but weâll soon have a change in management anyway. As far as Kerry, I understand he was kept waiting for three hours at the Kremlin before they would see him so donât think he was negotiating from strength. I hope he had knee pads to save his pants when sobbing âpleaseâ. A real man/woman would have left the building 2 1/2 hours before that. Just IMHO of course.
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No more âstupidâ than farmers having a bumper crop and seeing prices drop.
Saudi Arabia has long been the âswing producerâ regulating its output to manage a balance that kept prices high. It currently produces 12 million barrels per day, compared to 3 million in 1985 when there was a real glut. They purposely increased production lately to try to get the market price below the fracking cost but it does not seem to be working. US fracking costs are also dropping and only misguided US environmentalists can stop fracking through political pressure.
Agree that the increase in US production plays a role in keeping prices down, but the Saudis could easily cut 4 million barrels per day if they wanted to. They have ben playing this role long before fracking was even thought of.
In the meanwhile enjoy the low process although countries like Venezuela, Nigeria, Mexico and others are really suffering due to their over-dependence on oil.
Actually no. You never know when your going to get a bumper crop. Mother Nature is the wild card here. Drilling for and pumping oil is strictly man made. Again just plain dumb.
Nonsense. When oil was $100/bbl it would have been dumb NOT to drill, just as when prices are high for a crop farmers do what they can to grow more. Nobody saw the price collapse coming.
âmisguided . . .â
Fairly strong language there
At least youâre not using the terms âstupidâ or âbrainwashedâ
Your the one who said the the cause of the price drop was the US pumping an extra 4 million barrels. So which is it?
?? We drilled a lot, increasing production by 4 million a day.
I guess everyone has forgotten the protests when gas hit $2 per gallon.
Letâs look at your complete quote.
âThe US put 4 MIILION extra barrels of oil a day on the market. Prices then dropped. Simple.â
I have no idea what point youâre trying to make.
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You say no one saw the prices drop. You also said the 4 million extra barrels a day caused the drop.
Supply and demand is a very basic economic concept. You increase supply the the price drops.
? Thatâs exactly what Iâm saying. While prices were high, people drilled wells. Companies didnât expect prices to drop because of the skyrocketing demand in China, India, and many oil producing countries. Once that demand growth cooled, inventories grew and prices dropped.
How could they NOT expect prices to drop.