Oil prices started to rise sharply in the spring of 2004 when the Iraq insurgency was at its fiercest and it was clear it would be sustained. That continued until the "surge" brought reported violence in Iraq under control...that's just a fact. Certainly inventory surpluses helped but that's not nearly THE reason for lower oil pricing as it's a commodity traded on the futures market.
When you say "futures trader, or speculators, created the artificial price" you're right but WHAT THE IN THE WORLD do you think their speculation was based on Einstein if but predicted disruption due to the war in Iraq???? You apparently don't understand anything about trading on futures.
To suggest oil pricing went from the mid $30s to a high of in the mid $140s and back down based on supply and demand elasticity is UTTERLY naive and ignorant IMO.
To the degree higher prices affected economies...what do you think is going to happen when consumers spend nearly a four fold increase in gas prices?? They won't be spending that money on other shit. The end result, the oil industry enjoys record profits and businesses in other industries go out of business or lay people off. Is it really that difficult to figure out??
Demand is down?? Wowww, what a prodigious observation when you consider fewer people work now and have less money or need for gasoline.
I won't call You Einstein, that would be insulting to his memory.
You are so unconnected to the world, think you got some sharp mind, and miss just about all the clues that you're not too sharp.
World demand has more to do with oil prices, as prices reflect ...the future. Futures? Get why they are called that?
The spot market might have a million barrels of oil available from Iran, not committed by contract (a future), and the price will be $*** depending on what future demand China, Germany, etc might have.
Not how much oil is right now available/not available in Iraq. The House of Saud could make up in a week any lost Iraq oil supply to the West, as does Mexico, Venezuela, Kuwait, etc.
When the prices speculated so high, demand stopped and prices went down for future oil, possibly in a tanker on it's way to Southern European ports...because there was plenty of it for months to come, as well as gasoline. Otherwise the price would have been awfully high no matter what.
A great deal of available supply is already contracted in one form or another to one Mega Oil company or another; where do you get your experience with the price of oil and futures?
Make it up, or read on Google a really old speculative article and run post here about Iraq and GW causing the high gas prices?:rofl: