Quote:
Originally Posted by GTripp0012
No. I think it's an insane idea to believe they'd be willing to sell at that much of a loss and not go out of business. But it's an implication that has to be made in order to credit the aura of Obama for the drop in gas prices.
The price of oil per barrel is hovering around $50 now. It was around $140 this summer. That's the reason: global demand is down 10% because there's no global economic growth.
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A 10% drop in demand causes a 65% drop in price? If Opec cuts production 10% ( and were able to enforce it) , will the price go back to $140? I still think there is a lot of speculation involved. Money chases money in both directions and there is no law that says the flow has to necessarily be rational. Especially when people's vision does not extend beyond the next five minutes.
Of course the idea that the oil companies have lowered the price as an homage to Obama is an idea just stupid enough for most Obama supporters to believe.