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.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (100020)	8/22/2011 11:38:41 AM
From: tejek	Read Replies (1) \| Respond to of 149317

Peak oil is why supply won't increase over '05 levels. Supply/ demand drives the price. When economies are going well, they need oil, and bid the price up. Gets so high we have demand destruction. People use a lot less. US consumption fell 1.25M BPD in one week. Happened around the world. Less demand, supply starts to build, and the price falls. It will happen again and again and again. Explain to me how a 2% drop in demand leads to 75% haircut on the price of oil.