Jump to content


Photo

Bush or Kerry


  • Please log in to reply
103 replies to this topic

#101 AdmiralGT

AdmiralGT

    title available

  • Members
  • 1,702 posts
  • Location:Bristol, UK
  • Projects:Petrolution

Posted 04 November 2004 - 10:07 AM

While supply and demand go hand in hand, the ratio between them does not. Demand for vastly unaffected by the price of oil. Its a primary good, its an essential in most secondary industries and hence people will pay any price to get it. Supply on the other hand is vastly effected by price. When price is low, supply is very small and the oil companies stockpile their oil. Because suuply has been artifically altered (by stockpiling) prices rise. Oil companies stop stockpiling and release oil to the market. If they want to reduce price they flood the market with excess oil (from stockpiles) and prices fall.

This means supply has a much larger effect on price than demand. This is why the main oil producing nations meet to determine how much they will stockpile. However, demand does have an effect on price but only on a local scale (within a city or state) but in the global market price is all down to supply.

#102 Mastermind

Mastermind

    Server Technician

  • Undead
  • 7,014 posts
  • Location:Cambridge, MA
  • Projects:MasterNews 3
  •  The Man Behind the Curtain

Posted 04 November 2004 - 10:13 PM

http://story.news.ya.../fit_fat_fliers
Here's the real reason for the increase in the price of oil
:p
Posted Image

Well, when it comes to writing an expository essay about counter-insurgent tactics, I'm of the old school. First you tell them how you're going to kill them. Then you kill them. Then you tell them how you just killed them.

Too cute! | Server Status: If you can read this, it's up |

#103 Hostile

Hostile

    Benefitting Humanity Simply by Showing Up!

  • Veterans
  • 9,551 posts
  • Location:Washington DC
  •  T3A Founder
  • Division:Revora
  • Job:Global Administrator
  • Donated
  • Association

Posted 04 November 2004 - 11:02 PM

MM: Hard to argue with that one! I'm 5'11" and 175lbs so it aint me!

AdmiralGT: Well thought out and well written. Makes alot of sense. Supply and stockpiling does makes sense. Makes more sense than too many vehicles driving in Iraq. :laugh:

#104 Banshee

Banshee

    One Vision, One Purpose!

  • Network Admins
  • 8,999 posts
  • Location:Rio De Janeiro, RJ, Brazil.
  • Projects:PPM, PPM: Final Dawn, OS SHP Builder, OS Palette Editor, OS W3D Viewer, VXLSE III, etc...
  •  Retired Network Leader
  • Division:Revora
  • Job:Maintenance Admin

Posted 05 November 2004 - 01:00 AM

There are other reasons for the raise of oil price like:

- Yukos (I think it's called that), the main Russian petrol extractor had some corruption problems and production problems. The owner of Yukos, the richest guy in Russia is in the jail.
- In Nigeria, their oil were being sabotaged by rebels. Or their workers went on strike... not sure.

But certainly the war increased a lot the price of the oil. I just want to remind you that in the beggining of 2003, the barrel of oil was being sold by $25 at New York. It recently reached $54, one year and a half later.
Project Perfect Mod

Command & Conquer Mods, Mods Support, Public Researchs, Map Archives, Tutorials, Tools, A Friendly Community and much more. Check it out now!

Posted Image




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users