"Doug Kanter" wrote in message
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"Jack Goff" wrote in message
om...

"Doug Kanter" wrote in message
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"NOYB" wrote in message
link.net...

"Doug Kanter" wrote in message Prices
have
risen as investors bet refiners and producers will struggle to
meet winter demand in the fourth quarter.

Duh! Why do you think demand is increasing? (and it's not just a
one-time quarterly surge) Hint: Is it just US demand?


Duh? "As investors bet....". The key word is "bet". The price hike is
not
related to the REALITY OF THE PHYSICAL ASSETS THEMSELVES.


So you're saying that the rise in price has nothing to do with the
increase
in demand, and the fact that there is virtually no excess production
available to meet that demand? That if we were rocking along, no
increase
in demand, and plenty of excess production, that this big price increase
would still be happening? BS!!

They are able to pull off these big increases *BECAUSE* there is a huge
demand, and everyone wants all the crude they can get, but there's no
excess. If there were less demand, and excess production, there would
be
players in the market that would have excess and would be willing to
sell
it
at a lower price. The price hike is possible BECAUSE of the reality of
the
(limited) physical assets.

Supply and demand.

Supply and demand.

Supply and demand.

The supply has been relatively stable. China is the biggest reason for
the
increased demand.

Doug, maybe there's a community college around you somewhere that offers
an
Economics 101 class.



Your explanation is the reason so many other things have been sold to you
with little foundation beneath them.


*Your* referenced article provides all the proof I need. It states what I
did above, but you seem unable to grasp it.

"Oil prices hit a new record above $60 a barrel on Monday, driven by demand
growth resilience in the face of high fuel cost..."

"The market is testing higher to see what price levels this demand can
endure,"

"...with only a significant pull-back in demand from an economic slowdown
seen likely to tame prices."

"spare capacity is limited to small unused volumes in Saudi Arabia."

Your own article proves you wrong. You didn't read for content, you just
keyed in on part of one sentence. The article is making the case that the
oil prices are being raised because the market conditions of "demand growth"
and "tight supply" exist, thereby enabling the higher prices.

For the last time, where is this "demand growth" coming from?

Class is out.