Quote:
Originally Posted by Jim in CT
Worldwide demand for oil (if the chart I posted is accurate) is higher than it's ever been, yet the price has plummeted in recent weeks. That tells me that the recent price drop probably isn't due to an absolute decrease in demand, because there is no drop in demand. Demand is up (though not up by as much as it might be, thanks to insanely expensive yet fuel efficient cars), yet prices are down.
Which is why some economists believe th edrop is due to supply. Some believe that OPEC is keeping supply insanely high, in order to drop th eprice down, to levels so that frakking becomes un-profitable.
There is no absolute drop in worldwide demand to explain th eprice drop. So it's more likely due to increased supply. Does Obama deserve credit for th esurplus in supply? I can't see how...
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I've already said he doesn't deserve the credit for the increase in supply but he deserves some credit for the decrease in demand as a result of his policies being put into place. Pricing is based on 000s of different things. Anything that changes makes a difference. Supply and demand are not monolithic??? they both have many components.