echang

When Crude Drops, AMR Will Fly

well sliman could be partially right...

chinese oil refiners have always tried to purchase as little oil as they could because they sell gas at a loss. if the government increases prices, it might make sense for them to buy more crude oil because quite honestly, chinese consumers weren't getting enough gas at the old prices. oil shortages and lines at gas stations were quite common. Don't know if this still holds true at current prices, nytimes article seems to think it still does. Regardless, many economies seem to be slowing down. Many traditional gas users seem to be slowing down. The bearish story is still unfolding. Only time will tell if its correct

When Crude Drops, AMR Will Fly

absolutely agree with you Gilluly. Plus the very fact that airlines are beginning to cut capacity and flights will reduce gas consumption. The aggregate global airline industry uses approximately 5 million barrels a day. And to Sliman, can China grow forever. They are already beginning measures to slow down their economy, raising interest rates and increasing bank reserve ratios. Their stock market has already crashed, is their economy going to follow with a slowdown? Oil very well might keep going up from this point, but its bound to pullback because the supply/demand equation that existed is starting to disappear.