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Old July 23rd, 2008, 06:50 PM
godoftrading godoftrading is offline
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Quote:
Originally Posted by sreeja
The oil price reaches the most height.What we can do to reduce this?If the government is ready to reduce the taxes there will be a large decrease.

i disagree. its all about supply and demand.

example.... if Americans are willing to pay $4.00/gallon without demanding dropping, the gov't cutting prices down to $3.50/gallon will add a short term drop. but prices will slowly move back up to $4.00 again to kill demand.

its basic supply and demand. there is give or take 85 m barrels produced everyday. the world wants 87 m. somethings gotta give. and thats price. its gonna go up until that number reaches 85 m demand.

its the basics of economics
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