IEA Cuts World Oil-Demand Forecast

[jpak]

http://online.wsj.com/article/SB10001424052748703339304575239642225882012.html?mod=WSJ_business_whatsNews

LONDON—The International Energy Agency Wednesday lowered its 2010 world oil demand forecast, its first substantial cut in a year, on weaker-than-expected consumption in emerging markets and revisions to 2008 demand data.

In its monthly oil market report, the Paris-based agency said it expects total crude demand globally this year to average 86.38 million barrels a day, representing a 220,000 barrel-a-day downward revision from April and growth of 1.9%, or 1.6 million barrels a day, from 2009.

Iran and Malaysia have registered lower-than-expected oil demand in recent months, the IEA said, although China—the main driver of the growth in world oil consumption—was still seen logging robust demand.

The IEA, which acts as an energy watchdog for largely wealthy nations like the U.S., has been on the optimistic side about oil demand compared with other industry forecasters.

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[AndyA]

1. Remember this statement before you head off the Walmart next time.

although China—the main driver of the growth in world oil consumption—was still seen logging robust demand.

You may save money by buying cheap foreign crap, but you're driving up the price of gas by doing so, and you're shopping yourself out of a job as well.

Walmart is one of China's largest customers.

Supporting Walmart is not good for the environment or the American economy.

[Statistical]

2. That assumes the same Chinese crap at Walmart isn't...

at Sears, Home Depot, Lowes, Target, Kmart, BestBuy, Toys R Us, Amazon, etc.

Take for example this item:
Iron Man 2 Repulsor Power Iron Man



http://www.walmart.com/ip/Iron-Man-2-Repulsor-Power-Iron-Man-Mark-VI/13283151?povid=cat4172-env201155-module227709-rLink5

I don't know for sure but 99.9% sure it is made in China.
Now the same item is available in hundreds of stores. They don't make a China version and non China version.
Google shopping shows about 70 stores carrying the item in question all with about the same price.

http://www.google.com/products?q=%22Repulsor+Power+Iron+Man%22&hl=en&aq=f

Doesn't really matter where you buy it from it gets built in the same factory.

The sad thing is many people will buy the same Chinese crap in another store and then feel righteous because they didn't shop at Walmart.

[AndyA]

3. The difference is the other stores aren't so big they can force others out of business.

Walmart forces manufacturers to lower their prices so much they can't offer the same thing at the same price to other retailers, which means the others can't compete.

You really should read up on Walmart sometime. It's a really crappy company. Right up there with Enron, Exxon, and BP.

[Statistical]

4. Walmart is a crappy company but it is a cop out to pretend that Chinse crap is only at Walmart.

Also Walmart is big retailer but the retail market is even bigger.

http://money.cnn.com/2009/06/05/news/companies/wal-mart.shareholders.meeting.fortune/index.htm

Walmart makes up about 11.3% of retail sales in the United States. While that gives them massive buying power other companies could compete with it. Other retailers could try to differentiate themselves. They could offer American made goods, or higher quality products, or market that all toys are lead free.

They don't. Why not?

Money it is always about the money. CHEAP CHINESE SHIT has made ALL the retailers very profitable and they see no reason to change. Especially if the "informed consumer" doesn't shop at Walmart to avoid Chinese shit and they goes and picks up the exact same Chinese shit at their store for slightly higher margins. In retail that is a win-win!

[bemildred]

5. So once a year forecast demand declines, and we are supposed to think that demand is declining?

:rofl: