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Lehman Bros. Report: Oil Bust in the Cards

Discussion in '2008 Archive' started by I Am Blessed 24, May 10, 2008.

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  1. I Am Blessed 24

    I Am Blessed 24 Active Member

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    Is $120 oil even real? Not if you ask the Saudis, or even Lehman Bros.

    The investment bank’s oil expert said this week that the oil boom is due to bust. Economic growth across the globe will slow just as new refineries kick in, raising supply.

    Recession or not, a U.S. slowdown will slacken demand sharply, right as new oil hits the market. "Supply is outpacing demand growth,” said Michael Waldron, Lehman’s oil strategist.

    "Inventories have been building since the beginning of the year. We have pretty significant projects starting soon in Saudi Arabia, and large off-shore fields in Nigeria,” he said.

    THE REST OF THE STORY
     
    #1 I Am Blessed 24, May 10, 2008
  2. billwald

    billwald New Member

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    What we pay depends upon supply and demand at the gas pump, not supply and demand at the oil well.

    Gas stations make money on the beer and ciggybutts, not the gas. If a station lowers its gas price will more people come in and buy beer (increase net profit)? If not, then there is no incentive to cut the pump price.
     
    #2 billwald, May 10, 2008
  3. I Am Blessed 24

    I Am Blessed 24 Active Member

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    People will buy their beer and cigarettes wherever gas is cheapest.
     
    #3 I Am Blessed 24, May 10, 2008
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