[quote=donaldduckmoore]Demand destruction?! Will you explain and give more facts. Oil price came down from $150 to less than $90 in two months. Do we drive less? I don’t think so. I still see lots of cars on the freeway. It was a bubble.[/quote]
Well that was just brilliant in depth analysis. Sounds more like a faith based diagnosis. Please get familiar with the elasticity of oil. In July china decreased consumption by 10%.
There are very strong fundamental reasons for the movements in price. Though no doubt investment mechanism played a role in some amplification of prices but really the trend is important.
I’d even argue that our market has absolutely no way to put a price on the life blood of industrial civilization but that is another discussion all together.
