1 post tagged “profit”

This is from the Historian’s Vox blog: oil consumption has been dropping since 2004.

   By the typeface, I would guess this is from The Economist.
   So if oil consumption is going down, and the law of supply and demand holds, why are prices at an all-time high? The Historian gives some decent horse sense on this—and it should remind us that the oil companies have a vested interest (and the MSM are too dumb) to keep the panic going.
   According to this graph, which I haven’t looked further into: global demand on oil is decreasing. The US dollar is weak, so prices are high relative to that dollar—but high oil prices should have less of an effect on other countries who are converting their own currencies to US dollars to purchase crude. Let’s also not forget that OPEC is a cartel that sets its own prices, and the oil companies are setting their own prices, too, raking in multi-billion-dollar profits per annum.
   He also points out there is speculation—which means the bubble will burst at some stage.