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To: Perdogg

1. Fungibility of oil means market prices will be affected by supply and demand. Chinese and Indian demand will suck up any additional supply the US can generate. High oil prices will be around until the countries with a lot of cheap oil still in the ground (ME) produce more.

2. The nominal price of oil is irrelevant economically.

I don’t get the impression that you have a strong grasp of economics based on these comments. Please feel free to disabuse me.


28 posted on 05/05/2011 12:47:47 AM PDT by Einigkeit_Recht_Freiheit (Using profanity gives people who don't want information from you an excuse not to listen.)
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To: Einigkeit_Recht_Freiheit

Ah, a voice of sanity...I hope you’re wearing your finest asbestos suit; you may well need it.


29 posted on 05/05/2011 2:17:04 AM PDT by AnAmericanAbroad
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To: Einigkeit_Recht_Freiheit
>Fungibility of oil means market prices will be affected by supply and demand. Chinese and Indian demand will suck up any additional supply the US can generate.

LOL - yeah, just toss out the statement and ignore the half of it!
The part about supply - It doesn't matter who sucks what, it matters what the supply is, and every single thing that increases supply decreases the price.

High oil prices will be around until the countries with a lot of cheap oil still in the ground (ME) produce more.

Fixed it. - As if there is a great difference between sweet & heavy crude on the world price. Sheesh!

31 posted on 05/05/2011 5:43:25 AM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
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