Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Sweet Ol who wrote (113721)	11/18/2008 5:42:25 PM
From: chowder	Respond to of 206180

>>> Probably as good as most of my theories<ggg> <<< And probably better than most on Wall Street!

To: Sweet Ol who wrote (113721)	11/18/2008 6:20:39 PM
From: Dennis Roth	Respond to of 206180

>> I have a feeling that gasoline prices are about to bottom out. << Your hunch may be right. The MasterCard Survey finally is showing demand up week-on-week. Rising demand may soon halt the free-fall in gasoline prices. US gasoline demand up week-on-week -Mastercard reuters.com On the Platts oilblog The Barrel John Kingston put this spin on it. US drivers getting back on the road again The significant decline in US gasoline consumption by the middle of this year ended any latent suggestion that there is zero elasticity of demand relative to the price of gasoline. And now, it is being proved again by the falling price of the fuel. The latest report by the MasterCard Advisors shows an increase in demand over the last five to six weeks that can't be easily dismissed as a statistical anomaly, not when considered against the background of retail gasoline prices that have fallen to less than $2/gallon in much of the country. The latest report, for the week ended November 14, showed the daily average consumption in the US rose to 9.031 million b/d. This is still well below the peak weekly summer figure of 9.651 million b/d, but it still marks a significant increase from the 8.625 million b/d recorded just six weeks ago. More importantly, the four-week moving average has climbed to a weekly total of 62.72 million barrels from 61.724 million barrels. just a few weeks ago. Obviously, in this poor economy, total demand is down year-on-year. But it's interesting to note the average rate of decline in the four-week average the last few weeks, compared to 2007's corresponding average: 8%, 6.6%, 5.3% and 4.3%. In a poor economy with falling gasoline prices, driving is cheap entertainment. No amount of finger-wagging will change that. As Barack Obama economic advisor Austan Goolsbee wrote in Slate a few years ago: "One of the oldest lessons economists have for thinking about what changes consumer demand is that moral exhortation doesn't change people's behavior. Prices do. Except that for a commodity like gasoline, even prices don't do an impressive job." That latter statement has been somewhat disproven. The decline in consumption that began even before the economy imploded was impressive. Given that economic implosion, the signs of a return to driving might be considered equally as impressive. In a matter of weeks, the gasoline demand story rapidly went from collapsing to "hold on a minute," though it is still evolving. Posted by John Kingston on November 18, 2008 ---- My thanks to any_old_email over on the IV CWEI board for bringing these articles to my attention.