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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: dvdw© who wrote (92165)7/4/2012 8:59:27 AM
From: elmatador  Read Replies (1) | Respond to of 217736
 
What happens when Oil goes down and what puts a floor under it.

Low price passed to customers who uses more of the stuff.

$775 billion Oil derivatives subsidies can be in place and people uses it a lot
Nigeria signs $4.5B deal to build 6 oil refineries
The deal comes six months after the Nigerian government tried to end a cherished fuel subsidy program that had kept Nigeria's largely imported fuel cheap for more than two decades.
thenorthwestern.com

washingtonpost.com

Carmakers seeing oil cheap persuade customer to go higher CC
Higher oil prices=less CC. Lower oil prices=higher CC
Back when gas prices were still reasonable, Americans were quite happy to drive big, V8-powered cars. Power and performance trumped everything, even with family wagons. But now, they're forced to turn to smaller, thriftier engines.
http://www.auto123.com/en/news/americans-falling-in-love-with-4-cylinder-engines?artid=144666

and that causes it to rise again

What it does happen is that speculators will not hold oil in the expectation that it skyrocket like mid last decade.