07-14-2008, 06:21 PM
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#52 (permalink)
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Grouper
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Quote:
Originally Posted by georoc01
Quote:
Originally Posted by aggie99
Quote:
Originally Posted by ReefHound
Quote:
Originally Posted by aggie99
I am only quoting a CNN article:
Experts say offshore oil drilling would not have an immediate impact on oil prices because oil exploration takes years.
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You know on it's face that is simply untrue. It takes six weeks for oil to travel from the oilfield to the refinery. The barrel price of oil changes daily, sometimes making huge swings like down $5 one day and up $9 the next. It isn't because six weeks ago production was off or demand was up. It's because the market price is moved by news. Any major development, for better or for worse, is going to have an immediate impact on price regardless of when the actual impact on supply/demand occurs. |
Honestly it is a reduction in oil prices rather than offshore drilling that scares me more. A year ago when gas prices rose in the summer the sales of large SUV's plummeted, as soon as gas prices went down slightly sales jumped right back up. Did American's really think the gas price hike was over?? I fear off shore drilling will cause the same issue and only postpone the inevitable which we have known for decades. |
Yeah sales went back up, but only after a major price adjustment with most larger suvs being discounted up to $15,000 from what they sold for a year ago.
Meanwhile cars like the Prius are selling at a premium over their asking price, most being sold out prior to delivery to the dealer.
Its a supply/demand issue. Discount the Big SUV enough, and you will find a buyer. And if people really want a Prius, they will pay a premium for them until the supply increases or alternatives hit the marketplace. |
And those SUV values have plummeted 30-40% in the last few months. |
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