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Let’s assume that we over reaching 10% of the global oil market, meaning that due to high demand we extended the supply by adding 10% expensive sources of oil.
by whatever1 4y ago
Let’s assume that we over reaching 10% of the global oil market, meaning that due to high demand we extended the supply by adding 10% expensive sources of oil.
To get the prices back to the original we need to bring down by 10% the *global* demand.
That means that the US needs to cut 50% their oil consumption (demand) if they are to act alone.
These are not realistic things.
- nightski 4y agoBy increasing rates on USD you can affect demand globally. We are not in isolation as you seem to be so convinced. Also I have no idea why you'd compare global supply to domestic demand. Again, reserve currency and petrodollar status.
- eru 4y ago> By increasing rates on USD you can affect demand globally. That's like saying that by pointing my fan to blow onto the road, I can move the cars. In theory and all else being equal, yes. In practice, cars have drivers that steer to stay on the road. Similarly, other countries around the globe have their own central banks that regulate their local money supply to achieve their own goals.