This article discusses how oil prices have risen, but the US crude demand has fallen. The EIA (Energy Information Administration) also reported that the US crude supplies have increased by 300,000 barrels since last week. The European bank, Barclays Capital, says in a report, "There is striking discrepancy between indicators of U.S. oil demand and indicators of the U.S. economic backdrop. Our economists anticipate that the growth in overall activity to gently accelerate through the remainder of this year, which stands in stark contrast to recent oil demand readings from the U.S. The problem with judging the global pace of oil demand growth is that the epicenter of that growth has most definitely moved away from the U.S. to Asia, and China in particular. "And this should in turn help uplift oil prices.
I do not think that the 300,000 figure is not really saying much because it is not a percentage change and therefore the magnitude of change cannot be determined. I also think another factor the article does not mention is this the unusually warm winter, and thus a decreased use of heaters across the US. I do however agree with the quote about how the oil demand has globally shifted away from the US and towards China. This is because of all the production (China's GDP growth is about 9% a year) This goes back to the outsourcing of different international (mostly US) companies in China. Oil is a natural resource that is a necessity in today's world due to modernization and technological advances in different countries. This is definitely a sociological problem not only because of the labor situations, but also from an environmental and economical point of view. Destroying our resources (air/water pollution, extinct species, etc.) in order for economic profit (which is probably not going to be distributed equally among the population within a country) has many side effects for our society.
http://abcnews.go.com/International/wireStory/oil-hovers-97-traders-eye-us-supplies-15538702#.TzVmylxSR2A
I do not think that the 300,000 figure is not really saying much because it is not a percentage change and therefore the magnitude of change cannot be determined. I also think another factor the article does not mention is this the unusually warm winter, and thus a decreased use of heaters across the US. I do however agree with the quote about how the oil demand has globally shifted away from the US and towards China. This is because of all the production (China's GDP growth is about 9% a year) This goes back to the outsourcing of different international (mostly US) companies in China. Oil is a natural resource that is a necessity in today's world due to modernization and technological advances in different countries. This is definitely a sociological problem not only because of the labor situations, but also from an environmental and economical point of view. Destroying our resources (air/water pollution, extinct species, etc.) in order for economic profit (which is probably not going to be distributed equally among the population within a country) has many side effects for our society.
http://abcnews.go.com/International/wireStory/oil-hovers-97-traders-eye-us-supplies-15538702#.TzVmylxSR2A
No comments:
Post a Comment