“If this is a bubble, are the speculative costs being passed proportionately down to the consumers? It obviously doesn’t feel that way if Exxon is pulling in a few straight quarters of record profits”
Oil is NOT a bubble.
-World production is flat and has been for 2+ years
-Exporting countries are using more of their oil internally thus exporting less.
-Even though there is a world economic slowdown demand is still higher than last year.
-Oil prices are very in-elastic
-The high quality oil is becoming harder to get and being replaced with lower quaility oil that is more expensive to refine.
-a 4% decline in the 70s and caused a 400% spike
-EIA put world demand down to 87 million bbl per day from 88 while production is still at 85ish.
-This trend will not stop with the exception of a serious recession/population reduction etc
All these so called analyists do a disservice by not explaining in more detail the supply/demand dynamic.
