Does reducing consumption work to knock down the price of oil?

Question

http://www.reuters.com/article/newsOne/idUST14048520080717

Answer 1

I believe reducing consumption is a good thing it can't hurt, however that will not lower prices, if we reduce consumption OPEC will reduce supply therefore the prices will remain high, it's all a game of political BS!

Answer 2

No! The two ideas seem unrelated to me. Remotely related at best!

If consumption were reduced immediately, that would "increase" the available supply due only to non-consumption. It would do nothing to assure increased production in the future.

Why would oil companies want to hold on to their product? The purpose is to sell product with the hope for earnings. This is the purpose of any supplier.

Answer 3

Yes. Reducing consumption means less demand. Less demand means more supply. More supply than demand means lower prices.

Answer 4

That was part of it, but more important was Bernake's testimony in front of congress.

http://www.reuters.com/article/ousivMolt...

Basically he said the US economy is f'ed for at least until early next year. (which of course will help keep demand down)

Answer 5

In this case I don't belive it will. We will reduce our

consumption but then Asia just increases theirs so the oil countries will keep their prices high to sell to Asia and we will have to buy the same rate. I think the only way we can get

out from under is simply find a/ an alternative to oil as

a fuel or b/ just stop using our cars.

Answer 6

less demand, lower price