[Bytesmiths]

$this->bbcode_second_pass_quote('pstarr', 'G')DP rises but people starve.

[shortonoil]

JohnDenver said:

$this->bbcode_second_pass_quote('', 'O')ops! Shot me dead on that one, pardner. The fact remains, though: The global economy continues to grow briskly, despite virtually no growth in oil production since 2004.

[Bytesmiths]

$this->bbcode_second_pass_quote('pstarr', 'M')y only question is this: why do we have to wait for that tragic moment to stop digging ourselves deeper?

[skeptik]

$this->bbcode_second_pass_quote('Bytesmiths', '')$this->bbcode_second_pass_quote('pstarr', 'G')DP rises but people starve.

[JohnDenver]

$this->bbcode_second_pass_quote('shortonoil', '[')b]JohnDenver said:

$this->bbcode_second_pass_quote('', 'O')ops! Shot me dead on that one, pardner. The fact remains, though: The global economy continues to grow briskly, despite virtually no growth in oil production since 2004.

[yesplease]

For the most part, economic growth drives oil consumption. To a lesser extent, oil drives economic growth, but this is only for the ~10-25% of supply that's needed for commercial transportation/plastics/etc compared to the rest for private automobiles.

[JohnDenver]

$this->bbcode_second_pass_quote('shortonoil', '[')b]JohnDenver said:

$this->bbcode_second_pass_quote('', 'O')ops! Shot me dead on that one, pardner. The fact remains, though: The global economy continues to grow briskly, despite virtually no growth in oil production since 2004.

[shortonoil]

JohnDenver said:

$this->bbcode_second_pass_quote('', '')$this->bbcode_second_pass_quote('', 's')hortonoil wrote:
$this->bbcode_second_pass_quote('', '[')b]JohnDenver said:

Quote:
Oops! Shot me dead on that one, pardner. The fact remains, though: The global economy continues to grow briskly, despite virtually no growth in oil production since 2004.

The Global money supply continues to grow briskly.

[TheDude]

Getting back to speculation, if these high prices are purely artificial, why aren't inventories increasing like mad? If these high prices are preventing purchases from customers through whatever agency that oil has to go somewhere, and we have ample evidence of demand destruction going on. You could say DD or shut-in production is keeping exact pace with the rise in oil price to keep inventories stable, but that seems more than a bit too neat a coincidence, like an oil producing nation adding to its reserves the exact amount it produced each year for two decades or something...I mean, get real!

[DantesPeak]

$this->bbcode_second_pass_quote('TheDude', 'G')etting back to speculation, if these high prices are purely artificial, why aren't inventories increasing like mad? If these high prices are preventing purchases from customers through whatever agency that oil has to go somewhere, and we have ample evidence of demand destruction going on. You could say DD or shut-in production is keeping exact pace with the rise in oil price to keep inventories stable, but that seems more than a bit too neat a coincidence, like an oil producing nation adding to its reserves the exact amount it produced each year for two decades or something...I mean, get real!

[TheDude]

$this->bbcode_second_pass_quote('DantesPeak', '')$this->bbcode_second_pass_quote('TheDude', 'G')etting back to speculation, if these high prices are purely artificial, why aren't inventories increasing like mad? If these high prices are preventing purchases from customers through whatever agency that oil has to go somewhere, and we have ample evidence of demand destruction going on. You could say DD or shut-in production is keeping exact pace with the rise in oil price to keep inventories stable, but that seems more than a bit too neat a coincidence, like an oil producing nation adding to its reserves the exact amount it produced each year for two decades or something...I mean, get real!

[JohnDenver]

$this->bbcode_second_pass_quote('DantesPeak', 'M')ostly that relates to the US, where demand has outstripped supply thoughout 2008 by 200,000 bpd on average.

[JohnDenver]

$this->bbcode_second_pass_quote('TheDude', 'G')etting back to speculation, if these high prices are purely artificial, why aren't inventories increasing like mad?

[JohnDenver]

$this->bbcode_second_pass_quote('TheDude', 'A')nd Iraq is Non-OPEC now.

[shortonoil]

JohnDenver said:

$this->bbcode_second_pass_quote('', 'T')hat's interesting. What's your source for that?

[TheDude]

$this->bbcode_second_pass_quote('', 'A')s reported by the New York Times on September 30, 2006 Goldman Sachs significantly readjusted in August of that year the GSCI's gasoline weighting. Index products tracking the GSCI, and representing an estimated $60 billion in institutional investor funds, were forced to rebalance their portfolios resulting in an unwinding of positions. Originally, unleaded gasoline made up 8.75 percent of the GSCI as of 6/30/2006 , but this was changed to just 2.3 percent, representing a sell-off of more than $6 billion in futures contracts.

As a result, gasoline fell 82 cent in the wholesale market over a four-week period, an unprecedented move; and crude oil, which in July 2006 traded over $79 per barrel for August delivery—at the time an all-time record—subsequently fell to around $56 by January 2007.

[DantesPeak]

$this->bbcode_second_pass_quote('TheDude', '
')To list just four examples, India, Pakistan, Abu Dhabi, Saudi Arabia are all dealing with fuel shortages. KSA being unable to meet domestic demand seems just absurd, like being unable to find an ear of corn in Iowa. Where did that diesel go?