So I was just reading an article at CNN.com about the stock market slumping after oil prices dipped below $50 a barrel. I'm still asking myself why we are paying $2.40 a gallon here in good ol' Buffalo, NY when the national average is well below that, but I digress. Anyway, the article included this text:
"Crude briefly dipped to $49.91 in electronic trading on the New York Mercantile Exchange Thursday before settling just above $50. The industry fears the economic slowdown will drastically curb demand for oil."
OK, WTF? When I was paying $4.30 for gas this past summer, everyone was hot under the collar saying we needed to curb our usage and cut back. Remember the warnings that the people in the US were using too much, we were too dependent, we needed smaller cars. Yet now that it's down to $50 a barrell you fear the economic climate will "curb" demand. Isn't that what they WANTED?
Make up minds people, make up minds!!!!!!!!!
On a side note, why am I still paying the same fuel surcharge ($4.95) to have the waterman bring the water to my house when he's paying roughly 1/2 of what he used to for gas. Hmm? Hmm?? Answer that waterman!!!!!
In any case, I hope you now understand why I stick to reading entertainment news at MSNBC, I don't get nearly as worked up. Owait, I forgot about Brad and Angelina. I take it back. I just have to stop reading.
1 comment:
I think that when they say:
"The industry fears the economic slowdown will drastically curb demand for oil."
They are talking about the oil and energy sectors of the economy. As bad as things are, the stock market would be in absolute total meltdown and there would be riots in the streets if the oil sector wasn't the last man standing.
It is easier for them to make high profits when the crude oil is priced high, because who cares if you pay $4.50 or $4.52 at the pump, as opposed to paying $0.98 instead of $1.00.
In the first example, they ( The oil industry ) can pocket the whole 2 cents, while the price expressed as a ratio is only less than 1/2 of a percent more.
In the second example, the price would be more than a two-percent difference, and people would take notice, so the oil guys prefer the price be high.
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