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Originally Posted by Butterfly  Now if we believe bkka and friends, the speculators apologists, this means that demand for oil of China and India suddenly reversed overnight  |
No, its been well documented that a number of key Western users, most notably airlines, have made it quite clear that their business models do not work at current price levels. There reaction has been to ground flights, cut routes and thereby use less oil. These announcements have also been reported on this forum and have occurred quite recently. Together with the disasterous state of the US economy gives us an immediate reduction in demand causes price drop shock!
In respect of your theory, I haven't heard much in the way of similar actions in Chindia, save for a report about how transportation costs threatened the Chinese model of goods manufacture and shipment.