Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Re: oil bubble/not-bubble,

Is the difference between supply- and demand-driven prices really $120/bl?

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Sat Jul 11th, 2009 at 09:59:58 AM EST
[ Parent ]
The best proxy I know for "supply and demand" in the oil market is spare capacity:
(source: my diary OPEC blames speculation from July 2nd, 2008)

Is it possible that oil demand is so inelastic to explain a factor of 4 from peak to trough? ($145 to $35/bbl)

Do people know where to find an up-to-date production capacity/output chart, and a good price series? Then we can see how much of the price variation is explained by spare capacity per capita...

The peak-to-trough part of the business cycle is an outlier. Carnot would have died laughing.

by Carrie (migeru at eurotrib dot com) on Sat Jul 11th, 2009 at 10:24:18 AM EST
[ Parent ]


Top Diaries

Occasional Series