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To: MeneMeneTekelUpharsin

Nope, it is just another bubble. The real economic value of oil, adjusted for inflation, is closer to $40. I don’t think they will rise after the elections. I think they still have a lot further to fall actually. China, India, production, etc doesn’t matter. If you look at global supply and global demand as a hole, it has been virtually unchanged since 2002, yet the price tripled. So China and India’s gains were someone else’s loss. Demand is a zero sum game. There have certainly been short term supply shocks, but the price of oil has never recovered since Hurricane Katrina aside from a few months during the 2008 financial crisis.


44 posted on 10/30/2014 6:04:23 AM PDT by wolfman23601
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To: wolfman23601
If you look at global supply and global demand as a hole, it has been virtually unchanged since 2002

20% increase in the amount of oil produced/consumed daily, not to mention 400 billion barrels consumed between now and then.

http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=50&pid=53&aid=1&cid=ww,&syid=2002&eyid=2014&freq=Q&unit=TBPD

New oil replacements to maintain that growing production are not cheap like back then.

49 posted on 10/30/2014 6:14:11 AM PDT by thackney (life is fragile, handle with prayer.)
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