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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (14668)	4/27/2005 3:59:49 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Re: gasoline demand is up, but not up 40% I was referring to the prices.

To: Sam Citron who wrote (14668)	4/27/2005 8:49:27 PM
From: BelowTheCrowd	Read Replies (2) \| Respond to of 25522

Keep in mind that pricing is determined at the margins of supply and demand. It is not a straight-line relationship. If there's only a 1% "shortage" it can be catastrophic, because the question becomes, "how much are people willing to pay in order to not be in the 1% who are squeezed out?" That little 1% shortfall can move markets in a huge way. Also, as has been noted here, while there aren't 40% more drivers IN THE US, the oil market is a global one and demand from China and India continues to grow in the double-digit range. -btc