Quote:
Originally Posted by OldManOnFire
As long as world demand remains greater than world supply the cost of oil will remain static or increase.
In the USA, the next 3-4 months are the peak driving times, therefore one can assume that demand will be even higher.
Of course no one knows precisely what the magic dollars-per-gallon number will cause most people to come to a complete halt, but eventually we will hit that number, lowering demand which will somewhat lower the prices.
Out of our control is the world demand and if China and India continue at their current pace, and if they are willing to pay the equivalent of $6-8 USD per gallon for gasoline, then the citizens of the US have no choice but to deal with the challenge this presents.
Last night on our news they asked a person in the street about gasoline over $4/gallon and their answer was 'I'll just drive less'. How naive I thought since this person has not yet equated high oil costs with higher costs of 'all' goods and services--inflation rates much higher than personal earning rates...
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Basically what CNBC was saying last night was along the lines of what you've posted here concerning the suppy and demand..They were saying that the demand vs supply is presently in the oil co's favor..What rattles my cage..(beside that fact the everything else goes up with the price of oil)..is the price of home heating oil..I have oil heat, and I got $600 and $700 oil bills this past winter about every 6 weeks..Im very concerened about next winter..The man on the street who says he will drive less, also isnt thinking that while you can drive less, you can only lower your thermostat so much in the winter months before he's freezing his behind off..A friend of mine is a dispatcher for a trucking co, and they are in the midst of a nightmare right now, between the customer not wanting to pay the higher freight price, and the trucking co not wanting to make a delivery for a $125 return, coupled by the fact that some accounts are paying their freight bills late