Consumer behaviour brings some sanity to oil market

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Thursday, August 21, 2008 9:42:12 PM

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Consumer behaviour brings some sanity to oil market Friday, August 08, 2008
The Globe And Mail -- Oil bear market. A few months ago, it would have seemed preposterous to utter those three words together. Oil, after all, was in a bull market to end all bull markets, its price rising inexorably higher, even as the pundits warned that any relationship between the cost of a barrel of crude and the underlying supply and demand fundamentals had been rendered moot by the speculative fervour gripping the market. What mattered was China. And India. And Hubbert's Peak. Global oil output was cresting just as demand was set to soar. Sure, supplies of oil were still plentiful – Iran hadn't cut off the Strait of Hormuz yet – but how long would that last? Before long, oil would be zooming to $150 (U.S.) a barrel, then $180, then $200 and who knows where it would stop.
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JT Moderator	Message Posted: 8/8/2008 10:47:27 AM	Ignore JT Report Abuse
	Friday, August 08, 2008 The Globe And Mail -- Oil bear market. A few months ago, it would have seemed preposterous to utter those three words together. Oil, after all, was in a bull market to end all bull markets, its price rising inexorably higher, even as the pundits warned that any relationship between the cost of a barrel of crude and the underlying supply and demand fundamentals had been rendered moot by the speculative fervour gripping the market. What mattered was China. And India. And Hubbert's Peak. Global oil output was cresting just as demand was set to soar. Sure, supplies of oil were still plentiful – Iran hadn't cut off the Strait of Hormuz yet – but how long would that last? Before long, oil would be zooming to $150 (U.S.) a barrel, then $180, then $200 and who knows where it would stop. Visit The Globe And Mail for full article

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RogerB Champion Author Indianapolis Posts:6,893 Points:923,715 Joined:Dec 2005	Message Posted: 8/12/2008 2:01:03 PM	Ignore RogerB Report Abuse
	Buy less gas, support drilling wherever possible, encourage alternative fuels (other than corn ethanol), and use rechargeable electric cars. Keep it up, the price will come down.
gas_too_high Veteran Author Columbus Posts:336 Points:309,960 Joined:Aug 2005	Message Posted: 8/9/2008 11:40:19 AM	Ignore gas_too_high Report Abuse
	Good article. Let's bring more sanity to the market. Drill!
reb4 Champion Author Chicago Posts:1,023 Points:108,310 Joined:Sep 2004	Message Posted: 8/9/2008 11:09:07 AM	Ignore reb4 Report Abuse
	I believe the trend will continue it's downward spiral for the next month or so. We do need to continue to conserve, since that is the only action we as consumers can take, and of course when we do buy frequent the stations offering the best price! As for the resolution, 1. need alternatives to be developed 2. need to drill and produce more oil in the us. 3. need to stop or re-structure tax breaks to oil (all?) companies that are producing record profits! 4. need to put tighter controls on speculation of futures to prevent the price of oil being run up to record prices. Just only allow investors that can actually take posession of the oil. Also have more equity involved in the actual purchase of futures (40 - 60%).
t4204life Champion Author Ohio Posts:3,882 Points:773,985 Joined:Jun 2006	Message Posted: 8/9/2008 11:07:34 AM	Ignore t4204life Report Abuse
	Legalize Hemp,make products made from oil,to cut our dependency on foriegn oil!
GaryG7 Champion Author New Jersey Posts:5,073 Points:999,800 Joined:Aug 2005	Message Posted: 8/9/2008 11:04:38 AM	Ignore GaryG7 Report Abuse
	Sanity is in short supply too.
copperhead8 Champion Author Boston Posts:4,747 Points:1,116,120 Joined:Dec 2004	Message Posted: 8/9/2008 10:57:33 AM	Ignore copperhead8 Report Abuse
	Definitely need alternatives so the price keeps dropping at the pump.
Don20 Champion Author Oklahoma City Posts:1,090 Points:925,240 Joined:Mar 2005	Message Posted: 8/9/2008 10:57:25 AM	Ignore Don20 Report Abuse
	Oil has not been on base of supply and demand for the last two years.. Mostly political and speculation, future buyers.
Nannabug Rookie Author Georgia Posts:55 Points:18,765 Joined:Jul 2008	Message Posted: 8/9/2008 10:57:12 AM	Ignore Nannabug Report Abuse
	Let's hope people keep cutting back, even after they think they can afford to buy more gas and drive more.
RWPTraveller Veteran Author Virginia Posts:485 Points:294,225 Joined:May 2007	Message Posted: 8/9/2008 10:56:55 AM	Ignore RWPTraveller Report Abuse
	Nice drop yesterday.
Bungee Veteran Author Twin Cities Posts:429 Points:308,510 Joined:Oct 2002	Message Posted: 8/9/2008 10:54:56 AM	Ignore Bungee Report Abuse
	What dougrusty says below.
02SilverStroke All-Star Author Dallas Posts:844 Points:432,405 Joined:Aug 2005	Message Posted: 8/9/2008 10:52:15 AM	Ignore 02SilverStroke Report Abuse
	Even if oil gets back to $60-$70 per barrel, the alternative fuel research should not stop. The oil market will always have its ups and downs.
no1doc Sophomore Author Milwaukee Posts:190 Points:75,720 Joined:Oct 2007	Message Posted: 8/9/2008 10:51:29 AM	Ignore no1doc Report Abuse
	That's supply and demand
bowler48226 All-Star Author Detroit Posts:835 Points:250,645 Joined:Sep 2007	Message Posted: 8/9/2008 10:48:29 AM	Ignore bowler48226 Report Abuse
	I hope it doesn't either.
BANANAMAN22 Rookie Author Houston Posts:85 Points:18,175 Joined:Aug 2008	Message Posted: 8/9/2008 10:48:17 AM	Ignore BANANAMAN22 Report Abuse
	SOUNDS LIKE ALL OUR PROBLEMS ARE SOLVED
dougrusty Rookie Author Illinois Posts:62 Points:55,315 Joined:Mar 2008	Message Posted: 8/9/2008 10:47:19 AM	Ignore dougrusty Report Abuse
	I hope the dropping price does not dampen the search for alternative fuels
Gassie1 Champion Author Akron Posts:3,940 Points:476,335 Joined:Apr 2007	Message Posted: 8/9/2008 10:46:37 AM	Ignore Gassie1 Report Abuse
	If we keep using less, who knows what the price will be a year from now.
momoffourfl Rookie Author Tallahassee Posts:4 Points:805 Joined:Aug 2008	Message Posted: 8/9/2008 10:46:32 AM	Ignore momoffourfl Report Abuse
	I"m predicting gasoline to zoom back up to $130 since this recent Georgia vs. Russia conflict. Georgia is an oil producer for the U.s. and anytime there is any conflict speculatives jump the gun and raise prices.
brutus Champion Author Alberta Posts:1,302 Points:847,305 Joined:Feb 2003	Message Posted: 8/9/2008 10:45:13 AM	Ignore brutus Report Abuse
	ok
hangupanddrive Veteran Author Michigan Posts:404 Points:856,440 Joined:Aug 2005	Message Posted: 8/9/2008 10:41:22 AM	Ignore hangupanddrive Report Abuse
	ok
laddyboy62 Champion Author Riverside Posts:1,125 Points:904,310 Joined:Mar 2005	Message Posted: 8/9/2008 10:41:10 AM	Ignore laddyboy62 Report Abuse
	like the way the barrel is going..115$ close friday...
Parif Veteran Author Virginia Posts:398 Points:70,740 Joined:May 2008	Message Posted: 8/9/2008 10:40:29 AM	Ignore Parif Report Abuse
	lets hope so
willisc1 All-Star Author Louisville Posts:661 Points:325,210 Joined:Mar 2005	Message Posted: 8/9/2008 10:37:58 AM	Ignore willisc1 Report Abuse
	Everybody knew the economy was bad LAST year or before. But they kept the pressure on anyways! Now thanks to $4 gas things are alot worse than what they would have been. It could be a stunt to take pressure off the GOP and hopefully (for big oil) get MC Cain into office. In the eyes of the oil industry he aint GW Bush but having Obama in would likely deflate their profits like never before! Thankfully my job pays for my travel expense. But I'd still like prices to tank.
fromdarange All-Star Author Minnesota Posts:768 Points:187,435 Joined:Aug 2007	Message Posted: 8/9/2008 10:36:26 AM	Ignore fromdarange Report Abuse
	Sanity?
kenya32 Sophomore Author Pennsylvania Posts:177 Points:109,610 Joined:Mar 2008	Message Posted: 8/9/2008 10:35:54 AM	Ignore kenya32 Report Abuse
	we the the people need to continue to be smart. As recent weeks have shown we can dictate what happens in the market by our usage. More then anything it is those of us who prayed and asked God to work. God is soveriegn and wants to come to Him and ask and if we ask He will show mercy
YLHandyman All-Star Author Orange County Posts:865 Points:139,365 Joined:Feb 2008	Message Posted: 8/9/2008 10:33:08 AM	Ignore YLHandyman Report Abuse
	Sanity in the oil market. How is that possible...
bdrviper All-Star Author Grand Rapids Posts:566 Points:627,280 Joined:May 2006	Message Posted: 8/9/2008 10:31:28 AM	Ignore bdrviper Report Abuse
	interesting
tomok Champion Author Portland Posts:7,821 Points:629,085 Joined:Aug 2006	Message Posted: 8/9/2008 10:31:00 AM	Ignore tomok Report Abuse
	sanity??? WHAT SANITY! there is no sanity in the oil market..................
PizzaMon Sophomore Author Philadelphia Posts:125 Points:288,500 Joined:Jun 2006	Message Posted: 8/9/2008 10:24:19 AM	Ignore PizzaMon Report Abuse
	Just think of all the BS that's been shoveled our way these past months. All to make money on the consumer.
Mr.Dirt Champion Author Albany Posts:1,548 Points:1,187,705 Joined:Mar 2004	Message Posted: 8/9/2008 10:19:55 AM	Ignore Mr.Dirt Report Abuse
	ok
kevski All-Star Author Oregon Posts:838 Points:114,805 Joined:Feb 2008	Message Posted: 8/9/2008 10:16:06 AM	Ignore kevski Report Abuse
	I haven't seen much sanity
greyhound2 Rookie Author Grand Rapids Posts:9 Points:117,105 Joined:Jul 2007	Message Posted: 8/9/2008 10:11:24 AM	Ignore greyhound2 Report Abuse
	Our gas just jumpted 14 cents last night. Going down?
rockinrog Veteran Author Ontario Posts:479 Points:596,100 Joined:May 2006	Message Posted: 8/9/2008 10:09:57 AM	Ignore rockinrog Report Abuse
	is this drop short lived....do stay tuned!
Outie All-Star Author New Brunswick Posts:723 Points:448,175 Joined:Oct 2005	Message Posted: 8/9/2008 10:09:45 AM	Ignore Outie Report Abuse
	Let's not lose it now, stay real. Let's focus on our needs not wants.
kingdick Champion Author Minnesota Posts:17,910 Points:1,437,870 Joined:Aug 2004	Message Posted: 8/9/2008 10:08:53 AM	Ignore kingdick Report Abuse
	----------------------------------- McCain, gas prices and the Enron loophole A Countdown Special Report on how John McCain’s chief economic advisor and others in his campaign helped create and defend legislation that enabled speculators to run up gas prices. McCain and the Enron loophole -----------------------------------
ladyjj All-Star Author Tennessee Posts:699 Points:69,910 Joined:Apr 2008	Message Posted: 8/9/2008 10:08:51 AM	Ignore ladyjj Report Abuse
	Yeah well we know someone or a heck of a lot of someone's were making a killing of this mess at our expense!
rbrowdersr All-Star Author Detroit Posts:509 Points:382,005 Joined:Aug 2006	Message Posted: 8/9/2008 10:08:16 AM	Ignore rbrowdersr Report Abuse
	Sanity?? I think not.
cantonbill Veteran Author Atlanta Posts:320 Points:93,800 Joined:Mar 2008	Message Posted: 8/9/2008 10:07:07 AM	Ignore cantonbill Report Abuse
	The best thing we can do is not rely anymore on the middle eastern nut cases and become energy independent. It used to be an economic and environmental issue, but it is a national security issue as well. The less money we send over there, the better we'll be. That being said, the oil market was just like any other, housing and internet stocks come immediately to mind. People look for the best place to put their money, a stampede ensues, but sooner or later the market corrects.
DAM5 Sophomore Author Long Island Posts:184 Points:58,960 Joined:May 2008	Message Posted: 8/9/2008 10:06:04 AM	Ignore DAM5 Report Abuse
	wow
Dipstick1 Champion Author Texas Posts:1,278 Points:739,210 Joined:Jan 2006	Message Posted: 8/9/2008 10:03:19 AM	Ignore Dipstick1 Report Abuse
	It is still insane
bug27 Champion Author Kentucky Posts:1,513 Points:1,084,375 Joined:Apr 2005	Message Posted: 8/9/2008 10:00:44 AM	Ignore bug27 Report Abuse
	Ok.
dopster Veteran Author Toledo Posts:374 Points:807,805 Joined:Aug 2004	Message Posted: 8/9/2008 10:00:23 AM	Ignore dopster Report Abuse
	Could we say that the oil market was "exuberantly optimistic"???
StevieB Veteran Author New Jersey Posts:498 Points:796,875 Joined:Sep 2005	Message Posted: 8/9/2008 9:57:17 AM	Ignore StevieB Report Abuse
	WoW
kypeanuts Veteran Author Louisville Posts:263 Points:57,330 Joined:May 2008	Message Posted: 8/9/2008 9:55:50 AM	Ignore kypeanuts Report Abuse
	yesterday's news
rtw777 Veteran Author Florida Posts:368 Points:126,760 Joined:Jan 2008	Message Posted: 8/9/2008 9:55:26 AM	Ignore rtw777 Report Abuse
	Oil will be near $100 soon after Labor day.
AuburnTim All-Star Author Indiana Posts:939 Points:285,140 Joined:May 2005	Message Posted: 8/9/2008 9:52:30 AM	Ignore AuburnTim Report Abuse
	Things like this happen when the only thing that speaks is money. That must be why I am speechless and never heard
Road_Fever Champion Author West Virginia Posts:4,130 Points:727,095 Joined:Jul 2006	Message Posted: 8/9/2008 9:51:04 AM	Ignore Road_Fever Report Abuse
	We've always had situations like that in the world, but our prices didn't skyrocket so dramatically and fall so modestly afterward; never regaining what was lost.
BBopp All-Star Author Dayton Posts:851 Points:469,395 Joined:Dec 2006	Message Posted: 8/9/2008 9:50:18 AM	Ignore BBopp Report Abuse
	The title should read "Consumer behaviour brings a drop in the bucket of sanity to oil market".
cableman31 Veteran Author New York Posts:317 Points:339,910 Joined:May 2004	Message Posted: 8/9/2008 9:48:38 AM	Ignore cableman31 Report Abuse
	Now they say there are loopholes in the commodity market regs. Lets see how long it takes to close them. Republicians = sloooo. Democrates = somewhat faster. We will see after November.
Rick52 Champion Author Milwaukee Posts:1,219 Points:22,900 Joined:Mar 2005	Message Posted: 8/9/2008 9:48:06 AM	Ignore Rick52 Report Abuse
	We cut demand ..Suppliers cut supply..Catch 22...We can't WIN....
napermike79 Veteran Author Twin Cities Posts:351 Points:305,545 Joined:May 2001	Message Posted: 8/9/2008 9:47:14 AM	Ignore napermike79 Report Abuse
	it will be a bumpy ride