Re: How to force petrol prices down
Oil is a comoddity... Just like iron, copper, cotton, diamonds, etc.<br /><br />It has to do with that 'Supply and Demand' nonsense we've always heard about.<br /><br />The only reason is costs what it does is because people (as a whole) will buy it at that price.<br /><br />...<br /><br />Do you know why gasoline doesn't cost $5,000 a gallon? <br /><br />Its because nobody wants it bad enough to pay that much, in relation to the people who have it will sell it for.<br /><br /><br />Just like diamonds, or electricity, or steel.....<br /><br />Those who have it, sell it for (more or less) what they can get. Those who want it, will only pay so much at one particular point in history for those who have that particular comodity to sell.<br /><br />And the market levels itself..<br /><br />For example:<br /><br />When gas goes up--- people waste and drive less. They are less inclined to crank up a 4,000 pound truck and drive 5 miles to get 1 pack of cigarettes---every day.<br /><br />When jet fuel goes up--- people fly jets less.<br /><br />When diamonds go up--- people buy less of them.<br /><br />When electricity goes up--- less and less people who live in Texas or Nevada leave their thermostat on '55' while they are on vacation for 2 weeks during our Summer.<br /> <br />etc. etc.... etc... <br /><br />Hench,, demand goes down as (high priced) supply remains constant.<br /><br /><br />If you're selling gas, jet fuel, or any other commodity,,,,, the less people buy in relation to how much of it you have-- you lower your price.<br /><br />The more they buy--- you creep it up as high as the market will bear...<br /><br />If you or I will do that with what we have to sell,,,,<br /> <br />How can, or why should anyone expect BP, EXON, Shell Petroleum, the Saudis, OPEC members, the Dutch Diamond merchants, Ford Motor Company, Bethlem Steel, you- doing what you do, or even the kid mowing your yard be any different?<br /><br />////////////////////////////////////////////<br /><br />If you want the price of gasoline to come down---<br /><br />There is only one way to do it---<br /><br /><br />You, me, the govt. and everyone else that uses it-------- needs to buy and consume less in relation to what is being produced.<br /><br /><br />//////////<br /><br />Think of it this way--<br />If nobody needed, or bought gasoline,,,, <br />and it was being produced in the volume it is today, ,,, how much would it would it cost per gallon? <br /><br />Another example:<br />If you had a 1.5 carrot perfect diamond you think is worth $10,000, and nobody wanted it,,,, how much could you sell it for? <br />All of a sudden, it isn't worth $10,000 any more is it?<br /><br />In a nutshell: oil, and everything else works the same way. <br /><br /><br />......................<br /><br />This is another time I wish I was a better wordsmith than what I am.<br /><br />But; I hope I have conveyed my point.<br /><br />Ed.
