end of 2011. - Beginning of the second wave of the crisis - page 16
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Going back in history, in 1998, when oil prices plummeted to $9-10 a barrel
Dear teacher at the stock exchange academy, 1998 was 13 years ago. During those 13 years, the cost of oil (like all goods and services) rose several times due to inflation. It (oil) wasn't sold cheaper than the production cost then and won't be sold now. It is not necessary to have an economic education and study price charts to understand this simple postulate.
Oil will be sold at any exchange price because there is no other way out.
A simple example: You bought a car at a showroom for $50,000. As soon as you drive it out of the dealership, the car's value immediately decreases,
i.e. if you want to sell it at cost, no one will buy it from you, only at a discount, i.e. you have to sell it at the market price.
Oil will be sold at any exchange price because there is no other way out.
A simple example: You bought a car at a showroom for $50,000. As soon as you drive it out of the dealership, the car's value immediately decreases,
i.e. if you want to sell it at cost, no one will buy it from you, only at a discount, i.e. you have to sell it at the market price.
Oil coming out of the well or the reservoir will only increase in value. No one will haul it for free or pay extra for it.
Moreover, it is easier for the producer to stop production if the producer will pay extra to sell it.
And in general, your comparison is not correct. If a car has a production cost of 60,000, no one will sell it for 50,000. There are no crazy people. Well, except for some individuals....)))
Oil coming out of the well or out of the oil storage tank will only increase in value. No one will transport it for free or pay extra for it.
Moreover, it is easier for the producer to stop extraction if the producer will pay extra to sell it.
And in general, your comparison is flawed. If a car has a production cost of 60,000, no one will sell it for 50,000. There are no crazy people. Well, except for some individuals....)))
OK, another example:
Current interest rate in the US = 0.25%. Official inflation in the US = 1%.
Current interest rate in Europe = 1.25%. The official inflation rate in Europe is around 2%.
However, banks in Europe and the U.S. do lend. So it turns out that at a loss to themselves?
The current interest rate in the US = 0.25%. Official inflation in the US = 1%
Current interest rate in Europe = 1.25%. Official inflation in Europe is around 2%.
Nevertheless, banks in Europe and the USA are lending. It turns out that at a loss to themselves.
There is no need to confuse the flies with the cutlets. The flies are separate, the cutlets are separate.
In this context, oil is not paper (money) and paper is not oil. I should also point out that oil is not a car and a car is not oil.
So, oil is separate, money is separate, and cars are also separate.
Otherwise we will have to eat cutlets with flies, because following your logic flies are also meat ))))
OK, another example:
Current US interest rate = 0.25%. Official inflation in the USA = 1%.
Current interest rate in Europe = 1.25%. Official inflation in Europe is around 2%.
However, banks in Europe and the U.S. do lend. So it is at a loss?
You are thinking about it the wrong way round.
Is the rate you quoted the rate at which the bank will give you a loan?
There is no need to confuse flies with cutlets. Flies are separate, cutlets are separate.
In this regard, oil is not paper (money) and paper is not day. Also, oil is not a machine, and a machine is not oil.
Therefore, oil is separate, money is separate, and machines are also separate.
Otherwise we will have to eat cutlets with flies, because following your logic flies are also meat ))))
Whether or not to sell oil at $12-15 a barrel is a secondary issue.
This issue will be raised when the price already comes into this range.
Oil will be sold at any exchange price because there is no other way out.
A simple example: You bought a car at a showroom for $50,000. As soon as you drive it out of the dealership, the car's value immediately decreases,
i.e. if you want to sell it at cost, no one will buy it from you, only at a discount, i.e. you have to sell it at market price.
The comparison is as delusional as any prediction.
Whether or not to sell oil at $12-15 a barrel is a secondary issue.
This issue will be raised when the price is already in this range.
It will never come. Therefore, the secondary issue will not come.
It will never come. Therefore the secondary issue will not come.
never say never, we will live and see.
The current quote for the Euro is 1.42. Many do not believe the Euro will rise to 1.52 any time soon,
and by the autumn of 2011 it will be at 1.72...