'No way' did oil demand plunge

Simmons & Company Chairman Matthew Simmons says the low price of crude is not reflective of a drastic demand decrease. Dec. 19, 2008, Fortune/CNN.

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News & Politics

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• peak oil
• Matt Simmons

[Weaseldog2001]

There's no concensus in this modern age on how to measure demand.

So pundits can make up any narrative they want, and say anything they want, and you can't prove them wrong.

Demand in the old days could be measured as a function of price acceleration. But that ruins the narrative that speculators completely control prices.

In economics the "Law of Supply and Demand", has price as a necessary component. If you remove price, the relationship falls apart.

[duhCider]

Oil is controlled by an ILLEGAL CARTEL. Free trade is a big lie. Supply and demand theory is a joke. The CARTEL sits there and squeezes the consumer until we're bled dry. Then they lower the price until we have some more cash that they can take.

[KrunchyJD]

@duhCider The only thing that can be done to reduce the power of oil cartels, is really to reduce demand. drive less, use less petrol (gasoline as you call it). Buy more efficient vehicles, and walk/ bicycle for your shorter trips. This would help health as well

[raffyluvstaffy]

It just seems there is a big media hype on the price of oil so it goes up.

No big conspiracy thats just how our little world works right now.

[drmodestoesq]

Well firstly, Mr. Duhcider, I don't know if you can find any American republican politicians who are in favour of stopping the 30 billion dollar a year agriculture subsidy. I think of conservatism in America today to be more of a cult of the rich rather than any ideological movement. But back to the subject at hand. I'm curious as to what are some of the plenty of things that can be done to destroy OPEC.

[duhCider]

There's only one thing you got right in your last screed: You are confused.

It's ironic, but only a dinosaur would defend the oil cartel.

All the right-wingers scream "FREE MARKETS FOREVER", but they conveniently ignore that notion when the oil and health insurance cartels are mentioned.

Plenty can be done about both cartels, but, alas, they own too many of our politicians. So, many people have to die needlessly to fill the big hole in the center of soulless men.

[drmodestoesq]

So Mr. duhCider, I'm confused. Are you proposing that no one in America buy OPEC oil or are you proposing that OPEC itself should be shut down. Bomb the Geneva headquarters or something like that. Also, America has its lobbies as well, look at the sugar industry. The ethanol industry has forced a 100% tariff on imported ethanol from Brazil. I don't recall any Brazilians flying planes into America's buildings. Big American tobacco forcing 3rd world countries to buy their lethal product.

[duhCider]

The excellent point is:

THEY'RE AN ILLEGAL CARTEL SELLING THEIR PRODUCT IN THE U.S.!!!!!!!!!!!

THEIR COMMERCE CAN AND SHOULD BE SHUT DOWN!!!!!

[drmodestoesq]

Excellent point about OPEC being an illegal cartel. Now exercise your option not to buy this illegally distributed oil.

[florgat91]

i think matt simmons has been drinking a lot with his brother richard ..

[peebeebaynut]

lulz

[cocacola443]

"There is no conspiracy."

Did I ever say there was?

"We are in the midst of a massive global recession/depression. This is the only thing that could have brought the price of oil down."

Combined with the fact that OPEC has not cut production sufficiently enough (though they may have, now). I now realize the "supply" side of the equation is inventories in storage tanks, not what's in the ground. Inventories continued to climb until just recently, because OPEC was still producing like mad.