This is why gas is so cheap

[big_bad_buff]

------------------------ SCENARIO ----------------------

The price of nails is through the roof because housing construction is booming.

But one day the banks stop trusting each other because they are going bankrupt - so bank X says that they will no longer wait until the end of the month to get paid by "timber industry bank" for all they're fuel expenses. Timber company pleads "but I can't run my trucks to the mill without fuel , and I've always paid you on time." BANK X says "sorry dude, pay as you go". The timber company did not budget for that.
-------------

One day a thousand house framers working on a hundred housing developments go to Home depot to get lumber, but there is no lumber. The contractors go nuts and scream "where is the lumber !!?"

Home depot calls the sawmill and says "where's our lumber?" sawmill says, "got no lumber, have no logs"

Mill calls Timber company "where's our logs?" Timber company says, "couldn't ship logs, the bank wouldn't front us our fuel expenses anymore"

sawmill asks "when will we get some timber?"

Timber company says : well, we couldn't pay our guys and make our truck payments and overhead without the money from the timber you were going to pay for - so we're out of business! Thanks to the bank!"

Meanwhile, sheeple say "isn't it great that the price of nails has been cut in half !! It must mean that good times are here !!

Little do they know that the housing development that they invested in has a big problem. Little do they know that the framer that occupies their rental just got laid off. Little do they know that their brothers hardware store is going out of business. Little do they see that the tax money coming from the developments will not be there and they are laying off 2 cops and 3 fireman.
on and on.........but the price of nails is great!

The only reason that the price of gas seems great is that all the other shit coming is still in the mail. But it'll be here soon.

 

[redsamurai]

no, gas is cheap because OPEC is openly fuckin with us. But soon they might have to cut back their own production to level out with reduced demand.........so gas will go on back up again. Hope y'all enjoy the little gas respite. Go out and rev up your V-8's one last time.

 

[Bigpimpin10]

haha definetly will go rev my engine one more time lol

 

[ortiz34]

It's down because OPEC read all your threads from the spring telling us gas would be $7 gallon by July



pwned

 

[Chrisco915]

Here I thought there was going to be a pic of very cheap protein powder............................and sopme fart jokes. Damn my 5th grade sense of humor.

 

[nimbus]

it's cheap cause it's fly
you ain't cause you not

 

[musclemom]

Your logic is flawed. You can't equate nails to gas. Nails only have one purpose: to attach things to wooden things. Oil is a multiuse product in demand by many industries. Nails can be made of numerous alloys. Nothing can be made into oil as cheaply as oil.

Oil is cheap because oil companies, OPEC the Luminati or who-the-fuck-ever wanted to find the sweet spot, i.e., how high can we push prices before sales fall off too dramatically? How low can it go that sales volume permits maximum profit?

 

[Bikini Mod]

Was there a moretorium declared on clothing, plastics and road paving that I didn't hear about?

 

[jaybois]

Opec just cut production so enjoy.

 

[juiceddreadlocks]

The ignorance which surrounds the energy industry is fucking amazing. If any more exploratory projects I'm supposed to be working on get cut or postponed, life will suck. So many rigs in CO and WY are getting stacked out for the winter, even more than usual.