Liberal Forum

Vegas » Yesterday, 6:41 pm » wrote: ↑

Yesterday, 6:41 pm

@LowIQTrash  you are knowledgeable about the stock market. Tell me your opinion about my theory.

It appears that the simple basic law of economics is being violated- supply and demand. 

Very simple law:

• Supply high - demand is low - prices are low

or the other direction

• Supply is low - demand is high - prices are high. 

Oil per barrel is down to $80/per barrel. But the supply is low , due to the Strait of Hormuz. It's been below 100 for two consecutive weeks. Now there is always a delay from crude oil prices to retail. Retail prices are the last in the chain to see the drop. Ok, fair enough. But on average it takes about a couple days delay. Sometimes a week. 

Since it has been 2 weeks, it should be moving like this:

• Oil supply is down - Demand is up- Oil per barrel is high.

But it's this:

• Oil supply is down- demand is up - oil per barrel is down. Way down. 

My theory: People in the government or people connected to the government, or both, are shorting the stock. On paper the oil per barrel is low. "They" are providing a window of opportunity to short it, before the supply/demand law can react.