Now that oil prices has halved, can you truly contribute the price drop to lower demand?

Because oil was at $147.27 in July, that figure has been halved. During this time the American public was urging people to cut down on oil consumption in retaliation to the price drop and to save money. Do you believe that this contributed heavily to the price drop, and if so is this a good weapon to use against OPEC and other oil producing nations not part of OPEC as a grassroots level of economic sanction?





After all, capitalism is prevalent in our world and people want to make money. They certainly DON'T want to lose business.Now that oil prices has halved, can you truly contribute the price drop to lower demand?
I believe we are in a pickle because once the election roll over gas will trip and tax will definely increase on middle class family.. Why you ask? Gas is similiar to water.. it is needed in almost everyday life.. some said they can live without gas but the said truth is u cannot oil run the electricity, it run food production for the trailer.. it run the world....it is necessary until we find a major shift in energy source.. it is basically over before we know what hit our head!!!Now that oil prices has halved, can you truly contribute the price drop to lower demand?
Oil prices didnt halve, oil futures price halved. It's a derivative not directly linked to oil prices. i think the wild oscillation can be attributed to simple market volatility. money went out of stocks and into oil, created oil bubble, it had to peak and burst sometime, and whenever that happens there's a crash.





Our consumption went down some but i dont think it's that closely connected to supply and demand.



Demand is what lower prices, but it wasn't America's demand. China and India have both cut back on oil consumption because, in relation to the US's economy, they won't need/afford the oil anymore as they lose their biggest customer, the US.





This just insures the US economy is in danger.
Good question. I think that there was a small amount of demand increase but nothing to contribute to that kind of increase in price per barrel. Look into something called the Enron loop hole, not to confuse the subject. I think that the price of oil over shot on the high and will over shoot to the low.
I like your theory, but that's really not how it works. On Nov 1st OPEC has cut back on a million and half barrels a day. This will drive the demand up, and when demand is up prices go up. In Dec. OPEC's annual meeting will be about bringing a price of oil back to $100.00 a barrel.
Everybody knows that corporate America does all this, gas is down because the economy sucks, not because (yes, this was on the news) people are traveling less, in a local town near my house, gas is 1.89, this summer, 3.59
HaHa..60.52 is the oil price of now, OPEC have grassroots level of economic sanction but if oil price still getting down there will be a problem.


http://www.oilgold.cn/
I think it went down because of the election and i believe prices are going to shoot up after Nov 4..
When you are referring to these prices you aren't referring to the price of oil you are referring to the oil market prices called futures. The demand did cause this but it was demand for oil futures not oil. Although the futures do mature and you would get barrels of oil delivered to your door if you held them long enough, the demand you are talking about is very different. The demand for actual oil is very inelastic. The USA will always be consuming about the same amount of oil no matter the price. The TV people just don't clarify these terms when they speak, it makes eveything sound much simpler and intriguing.

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