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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 220.66+1.6%Nov 21 9:30 AM EST
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To: GST who wrote (108226)9/10/2000 9:36:14 PM
From: Sarmad Y. Hermiz  Read Replies (1) of 164684
 
GST,

Two items do not seem to be reconciled.
1- oil price is high. I suppose that is because there is more demand than ready supply.

2- you claim refineries are operating at capacity. Therefore the next statement has to be that they have no use for more oil. An extra barrel of oil is not worth even 5c to them. So if someone miraculously can increase Mexico's output a little, or Canada's or the UK or Norway, the the oil price will collapse again.

But the oil price will not collapse even if output is increased by 1 million brl/day. And the reason is that refineries can in fact process it, and that is why they will pay $30 or $27 or whatever price settles at.

You keep telling me and Eric that we are not understanding your point. I do read what you say, but there is a contradiction between the two claims.

There is another issue which is that stock prices do not behave as might be dictated by logic. Otherwise Amazon would have been in the low single digits by now.

But the main point that the apocalypse crowd misses is that the US is occupying and ruling the largest oil producing countries, and holding hostage the second largest oil reserve in the world. Payments made to Saudi Arabia, Kuwait, UAE, and Iraq are just ledger entries in New York banks. And if those people make noises about getting something for their deposits, the US ships them some obsolete military trinkets and charges them billions. That is why your doom and gloom scenario is so unlikely.
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