No more "supply and demand" in oil business: a "bubble that will burst"

[Skybird]

On the question why oil prices are so high and no longer seem to be linked to the old law that supply and emand regulates prices in forseeable dimensions:

http://www.spiegel.de/international/business/0,1518,druck-538412,00.html

When close to the half of the oil business is held by speculators these days, what do you expect...?

[bookworm_020]

The fact that they are driving up the oil price is a good thing. It means people are looking at other options for power generation and ways to be more efficient!:yep:

When no one buys their product, they won't be able to afford a A380 personal jet anymore!;)

[Skybird]

Those two people who have bought the giant Airbus for their personal needs surely belong to a social group that must not care at all for oil prices.

They probably belong to those kids who produce the oil and/or make the prices.

Getting your general idea, I nevertheless think your shot falls too short. It is not only the pirvcate households getting affected. It is the national economy. It's import-export business. The profits it can make from selling in overseas. The number of jobs it is "outsourcing" to other countries, to compensate the losses from the terribly weak dollar. DAX-companies this year have annonced to ,kill over 200.000 more jobs - although they just have repported record winds for last year (again). But the low dollar and the high energy and oil prices have eaten them up. Economy in germany still is booming nevertheless, we have a record low in unemployment (lowest in 17 years), and a record-high in jobs (the highest since WWII). But the new jobs do not get created by the heavy weights, but by the middle class and small and medium sized companies. the stars of German economy - all are shifting their factories and kill jobs like crazy, BMW and Siemens, amongst many others.

Considering the decreasing purchasing power of wages and the galopping inflation (it is racing indeed, if only you look close enough), do their own part to make rising energy and pil costs or private households a threat that is not just about an eeducating effect anymore. The number of private household insolvences has climbed constantly and rapidly over the past 10 years, with last having hit the highest mark in german history. On this level at the latest - the oil prices projected in the future in that article cannot be compensated by energy saving light bulbs anymore, but simply are an existential thread for households and families. Child poverty and schoolkids dependency on free meals is in steep rise, btw, which is another symptom for the economic syndrom. for Berlin I know for sure the number to have been 20% of the kids being deopenbdant two and three years ago. Just some weeks ago a social office organizer on administrative level whom I know from earlier years told me it has reached 25% now - yes, in rich Germany. One is tempted not to believe it, but I know these people for sure, and you need to look beyond the surface of the the official appearance of numbers given by governmental sources (who verified the 20% value from 2, 3 years ago anyhow).

[Stealth Hunter]

The fact that they are driving up the oil price is a good thing. It means people are looking at other options for power generation and ways to be more efficient!:yep:

When no one buys their product, they won't be able to afford a A380 personal jet anymore!;)

Indeed.

The only reason why we haven't chosen another form of power/fuel is because all the money is in oil. There's nothing in biodiesel, solar energy, wind energy, etc. (nothing that will make you so damn wealthy it's ridiculous, anyway). It's all in the Texas T.