Quote:
Originally posted by smooth
I've written quite a bit, so I'd like to leave this question for the thread starter:
Whether you agree with my assessment or not, why would you expect to pay less money for gasoline granting the point that this war is about oil?
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I wouldn't expect to pay more. Now that I've done more reading both on and off TFP about the subject, it seems that gas prices will not be afected by oil supply unless there is a severe shortage. Your analysis is right on target. I would never expect a company to "pass on savings to the consumer." I also agree with Lebell's point that refining capability has remained the same with increased demand.
Another comment that I heard is that the younger generation in China is beginning to drive, and with them getting cars, their demand for oil is now higher, increasing the worldwide demand. I'll look to see if I can dig up any more info on this.
It has not gone unnoticed that this thread has stayed so civil for so long.