Was it simply due to supply and demand or there is a hidden conspiracy?What causes the phenomenon of high oil price from 50 odd per barrel to over USD146 in just a year?
Demand hasn't doubled in a year. Supplies are about the same as last year.. I don't know what other options there are...What causes the phenomenon of high oil price from 50 odd per barrel to over USD146 in just a year?
Supply and demand was probably what started it, but the reason it climbed so high so fast is because of the weak dollar. That means that the dollar can't buy as much as it used to, so you need more dollars to buy the same stuff, like oil. As oil gets more expensive, almost everything else gets more expensive because it costs more to ship it. When prices go up, that's inflation, which makes the dollar even weaker, and the cycle continues. This positive feedback loop is the biggest cause. If it were evil speculators driving up the price, why didn't the price go up earlier?
As long as the Commodities Futures Modernization Act (Enron loophole) goes unchanged nothing anyone does will matter. You can drill your little hearts out and completely destroy the environment, but nothing will change as long as speculators are allowed to run amok.
Simply adding the words ';and energy'; to the Commodities Futures Modernization Act would bring gas prices down overnight.
80% of all known oil off the continental shelf of the United States have already been granted permits to drill, but those that would do the drilling are sitting on those permits. Ask yourself why.
Common sense will tell you it's not supply and demand. The numbers just ain't there.
Conspiracy? Not really. It's actually called ';greed';. They can get it, why shouldn't they? Why should they produce more? There's no reason for it. Increasing supply only reduces their profits and that doesn't make sense even to a conservative.
They pushed the market as far as they could to see just how much they could get. It's pretty simple after you peel back all the lies and rhetoric.
They can get $140/barrel right now. Why would they be stupid enough to produce more (work more) to lower the price? I guess you can call that a conspiracy.
It's greed, pure and simple.
I really don't think it's got much to do with supply and demand, as they claim. Over the last couple months, I have noticed a difference in the traffic flow, parking lots are empty, there are fewer cars on the highway, there's an abundance of large vehicles for sale along the roads, and this has not been reflected at the pump.
Most people can put 2+2 together. Bush has been a long-time oil man. His buddies are heavily invested in oil. Bush continues to stockpile supplies. He keeps telling us we're addicted to the stuff, while he skips around the globe at our expense, to visit Europe, and China. See the common denominator.
It has nothing to do with supply and demand and everything to do with speculation. There is a loophole that allows oil to be purchased on speculation without actually taking possession and only putting down a small percentage of the price.
This is leftover from the Enron scandal.
I think the wars and such gave them an excuse to raise prices, and when they realized people would pay, they just kept pushing the envelope. There isn't a shortage, so it is an illusion of supply and demand. There is a monopoly by Opec, and that is what is raising the prices.
because it can, US economy falling apart, high demand in other quickly growing parts of the world, like China.
Lots happened at the same time, ultimately you could link it to the greed that cause the housing crisis.
Disruption of supply coupled with increased demand. Get Israel and Iran to play nice, teach the Iraqis to share, and put the Nigerian militias on Ritalin, and everything will work out.
Deregulation and sweetheart deals for the oil companies, complements of the two oilmen we put in the White House. Now they can control oil futures, that is, the price per barrel of oil. Much like letting the fox watch the henhouse.
Its all a part of the Democrats plan to reduce consumption by increasing the price. Don't you remember that Pelosi said they had a plan and just after they took over in congress the oil prices started going up.
Yes, the main cause of the price increases is supply and demand.
wars, pirates and natural disasters create an illusion of short supply, causing an inflation in gas prices.
i am not aware of any hidden conspiracy or atleast ( we ) the general public were are kept in some secret therefore i would say supply and demand
I don't know, the Democrats claim we went into Iraq for oil. They have to be wrong on this don't you think. It's not working!!!!
PNAC.
Friday, December 18, 2009
How long do you think the oil price run ups will last?
It appears that Iraq is going to start producing a lot of oil due to its newly installed government and the over all war effort of the U.S. and talks on how Iraq can improve itself through increased oil commerce. Iraq has enough oil reserves to supply the U.S. with a good 70 years of oil, but as we all know the gap between oil supplied and oil used is what greatly determines oil prices and this gap can easily be covered, and covered in excess, by Iraq. As such, how long do you think oil prices will continue to remain high?How long do you think the oil price run ups will last?
The high price of oil has nothing to do with the Arabs. The Bush Administration let go a loop hole in the law that formerly prohibited commodities brokers from dealing in oil.
So these Americans moved their operations to England and bought oil. They created a new demand for oil and as a result, the price went up. They made money and they bought more and the price have kept going up.
They don't care what they do to the economy, they are getting rich.
The loophole is the same one that permitted Mr. Bush's friends at Enron to make billions with power bids in California.
This insanity will only end if congress takes action. They are talking about it now, but that is only talk.
The level of production increase by the Saudis and by Iraq and other members of OPEC will only produce more profits from the commodities traders.
When congress acts and puts an end to this loophole in the law that prohibits this kind of transaction, oil prices will fall by half. When that will be is anybody's guess. We all hope, the world hopes it is sometime soon. The blame for this lies with the Bush administration.
Mr. Bush and Mr. Cheney are both ';oilmen'; and their friends are getting filthy rich.How long do you think the oil price run ups will last?
Edison, why it it that Bush was too stupid to know that Iraq did not have WMD's, but was smart enough to organize an oil scheme to drive up the price of oil beyond what anyone else thought was possible.
The oil prices could come down due to aggressive action against speculators, or by the oil states producing more oil. Who know when. But don't expect oil to go back to the good old days. The likelihood of a cap and trade system for carbon credits will double the price of oil within a few years of its passage.
Terrible problems in Iraq ability to pump oil. aging equipment and some oil even extracted and then put back in ground. very harmful.
Since this the reason we went to war I hope they get it working.
Good Question!
there is a very bright side to this. American companies are leaving the cheap labor countries and returning to the USA. We may even revive our steel industry. So next time you are at the pump remember that you are helping to get industry back here.
I dont mean to sound sarcastic, but honestly, the high prices I believe will last forever, just for the fact of who's running the show.......the IMF and Worldbank.
Gasoline prices are right in line with the increases of almost everything we buy. It's just inflation.
The USA needs to build more refineries. Quickly.
The high price of oil has nothing to do with the Arabs. The Bush Administration let go a loop hole in the law that formerly prohibited commodities brokers from dealing in oil.
So these Americans moved their operations to England and bought oil. They created a new demand for oil and as a result, the price went up. They made money and they bought more and the price have kept going up.
They don't care what they do to the economy, they are getting rich.
The loophole is the same one that permitted Mr. Bush's friends at Enron to make billions with power bids in California.
This insanity will only end if congress takes action. They are talking about it now, but that is only talk.
The level of production increase by the Saudis and by Iraq and other members of OPEC will only produce more profits from the commodities traders.
When congress acts and puts an end to this loophole in the law that prohibits this kind of transaction, oil prices will fall by half. When that will be is anybody's guess. We all hope, the world hopes it is sometime soon. The blame for this lies with the Bush administration.
Mr. Bush and Mr. Cheney are both ';oilmen'; and their friends are getting filthy rich.How long do you think the oil price run ups will last?
Edison, why it it that Bush was too stupid to know that Iraq did not have WMD's, but was smart enough to organize an oil scheme to drive up the price of oil beyond what anyone else thought was possible.
The oil prices could come down due to aggressive action against speculators, or by the oil states producing more oil. Who know when. But don't expect oil to go back to the good old days. The likelihood of a cap and trade system for carbon credits will double the price of oil within a few years of its passage.
Terrible problems in Iraq ability to pump oil. aging equipment and some oil even extracted and then put back in ground. very harmful.
Since this the reason we went to war I hope they get it working.
Good Question!
there is a very bright side to this. American companies are leaving the cheap labor countries and returning to the USA. We may even revive our steel industry. So next time you are at the pump remember that you are helping to get industry back here.
I dont mean to sound sarcastic, but honestly, the high prices I believe will last forever, just for the fact of who's running the show.......the IMF and Worldbank.
Gasoline prices are right in line with the increases of almost everything we buy. It's just inflation.
The USA needs to build more refineries. Quickly.
The world oil price increase is good or bad for Thailand?
Thailand is oil import country. The stock exchange should be down or up?The world oil price increase is good or bad for Thailand?
If the price of oil goes up and you are an 'oil dependent' country, then an increase in the price of oil would be a bad thing. Bad because you will recognize the increase at the pump. But there are some good things that will come of it.
In Thailand, as I'm sure is true in many other far eastern countries, mopeds, scooters and vespas are a preferred method of travel. Well I'll bet that sales of non-gas powered 2 wheel vehicles have consistently risen with the increases in gas prices.
High gas prices also give businesses and individuals the incentive to adjust their behavior, finding non-powered transportation as mentioned above, and pushing the desire to find alternative fuels in general - both a good thingThe world oil price increase is good or bad for Thailand?
Obviously bad, it increase cost for all production. Plus the national oil company of Thailand is run by incompetent idiots so you can be rest assured you're basically screwed.
If the price of oil goes up and you are an 'oil dependent' country, then an increase in the price of oil would be a bad thing. Bad because you will recognize the increase at the pump. But there are some good things that will come of it.
In Thailand, as I'm sure is true in many other far eastern countries, mopeds, scooters and vespas are a preferred method of travel. Well I'll bet that sales of non-gas powered 2 wheel vehicles have consistently risen with the increases in gas prices.
High gas prices also give businesses and individuals the incentive to adjust their behavior, finding non-powered transportation as mentioned above, and pushing the desire to find alternative fuels in general - both a good thingThe world oil price increase is good or bad for Thailand?
Obviously bad, it increase cost for all production. Plus the national oil company of Thailand is run by incompetent idiots so you can be rest assured you're basically screwed.
How many percentage of the oil price decreased ?
Anyone know how many percent of the oil price decreased the latest ?How many percentage of the oil price decreased ?
Today it went up .55%, since August it has dropped by 60%.
Today it went up .55%, since August it has dropped by 60%.
Aren't the Opec countries doing anything to reduce the crude oil price?
The Arab countries are laughing their way to the banks! Look at the development in Middle East, isn't it's astonishing? Looking at it, many countries who import oils will suffer from inflation this coming years!
What say you?Aren't the Opec countries doing anything to reduce the crude oil price?
What can we say... Nothing we can do about it. Just prepare for the expensive oil in the coming days. Maybe we should use bicycle only.Aren't the Opec countries doing anything to reduce the crude oil price?
Why should they reduce prices. China is buying all the oil it can at any price.
What say you?Aren't the Opec countries doing anything to reduce the crude oil price?
What can we say... Nothing we can do about it. Just prepare for the expensive oil in the coming days. Maybe we should use bicycle only.Aren't the Opec countries doing anything to reduce the crude oil price?
Why should they reduce prices. China is buying all the oil it can at any price.
Why does the oil price drop after the hurricane?
It's nice that the oil prices are dropping, but I was just wondering why? Is not the hurricane supposed to increase the oir prices?Why does the oil price drop after the hurricane?
The oil prices started going up in anticipation of the hurricane actually hitting the oil production.
But it passed away without impacting oil production and therefore the price of oil dropped. Why does the oil price drop after the hurricane?
Because speculation drives oil prices.
Increased purchasing due to low dollar value is what drove the price up in the first place.
Perception of a possible interruption in supply is caused when a hurricane pops up on the radar. This causes speculators to purchase oil futures looking for a large cash-in if the hurricane disrupts supply. When it doesn't they scramble to sell off their futures before they drop. This selling itself, causes prices to drop.
anyone who thinks supply and demand is driving oil prices is about as misinformed as it gets. I guess maybe it is a supply of future contracts vs demand of future contracts but in reality it is mostly speculation that determines the price of oil.
If the Gustac wouldn't have popped up on the radar in the first place, the prices wouldn't have jumped to begin with, unless some other news influenced speculators to buy more oil.
The gulf is full of oil rigs, and onshore, particularly around Lake Charles in LA, there are most of the country's refinaries. In fact 14 were shut down during the storm.
After the storm proved to be more benign than feared, the price of oil dropped. Actually world wide the prices of all commodities have been dropping because of reduced demand as the worlds' economies soften. So the spike up prior to Gustav was simply a counter bear market rise.
I don't recommend getting into commodities now. Wait till world demand starts to rise again. DEMAND is your key word. It was demand which took the price of oil up, and it is REDUCED DEMAND which is leading the price down.
To dnldslk: Demand will not rise for oil even if it gets cheaper because simply put, there are NOW other ways to get energy sources and run our cars like solar pannels, wind energy, nuclear, natural gas, ethanol, biodiesel, hybrid cars, plug in hybrids, etc.
And even if oil gets again to $50 a barrel, people will still won't go back to gasoline because there is the other problem with oil that is global warming.
Because the storm has not impacted demand for oil by destroying production/refining facilities. Therefore supply ';increases';, and the price drops.
The price went up to allow for a shortage caused by hurricane damage to drilling facilities and refineries along the gulf coast. This damage didn't happen, so there will be no shortage.
It would if it had disrupted gulf production. It didn't.
The oil prices started going up in anticipation of the hurricane actually hitting the oil production.
But it passed away without impacting oil production and therefore the price of oil dropped. Why does the oil price drop after the hurricane?
Because speculation drives oil prices.
Increased purchasing due to low dollar value is what drove the price up in the first place.
Perception of a possible interruption in supply is caused when a hurricane pops up on the radar. This causes speculators to purchase oil futures looking for a large cash-in if the hurricane disrupts supply. When it doesn't they scramble to sell off their futures before they drop. This selling itself, causes prices to drop.
anyone who thinks supply and demand is driving oil prices is about as misinformed as it gets. I guess maybe it is a supply of future contracts vs demand of future contracts but in reality it is mostly speculation that determines the price of oil.
If the Gustac wouldn't have popped up on the radar in the first place, the prices wouldn't have jumped to begin with, unless some other news influenced speculators to buy more oil.
The gulf is full of oil rigs, and onshore, particularly around Lake Charles in LA, there are most of the country's refinaries. In fact 14 were shut down during the storm.
After the storm proved to be more benign than feared, the price of oil dropped. Actually world wide the prices of all commodities have been dropping because of reduced demand as the worlds' economies soften. So the spike up prior to Gustav was simply a counter bear market rise.
I don't recommend getting into commodities now. Wait till world demand starts to rise again. DEMAND is your key word. It was demand which took the price of oil up, and it is REDUCED DEMAND which is leading the price down.
To dnldslk: Demand will not rise for oil even if it gets cheaper because simply put, there are NOW other ways to get energy sources and run our cars like solar pannels, wind energy, nuclear, natural gas, ethanol, biodiesel, hybrid cars, plug in hybrids, etc.
And even if oil gets again to $50 a barrel, people will still won't go back to gasoline because there is the other problem with oil that is global warming.
Because the storm has not impacted demand for oil by destroying production/refining facilities. Therefore supply ';increases';, and the price drops.
The price went up to allow for a shortage caused by hurricane damage to drilling facilities and refineries along the gulf coast. This damage didn't happen, so there will be no shortage.
It would if it had disrupted gulf production. It didn't.
Who do you think has more power - the Oil Barons or us the public in determining Oil price?
Do we as masses have power to change the laws of demand and supply? Can we thwart the schemes of OIL barons who are trying to increase their profits to millions of dollars a day by squeezing every nickel and dime out of middle class folk who are struggling to make a daily living ? Where do we stand in the balance?Who do you think has more power - the Oil Barons or us the public in determining Oil price?
The main upcoming consumers: China and India.Who do you think has more power - the Oil Barons or us the public in determining Oil price?
As long as those with the means to buy the gas for their SUV's, those who are being hurt the most by high gas prices will suffer.
A few people take too much of the limited recourse and drive the price out of reach of everyone else. Aren't you glad we have regulations on drinking water ? Oil suppliers understand this and will charge whatever they can get. There is no limit to the price as long as people continue to buy all that is produced. Government regulations prohibiting the use of alternate fuels such as alcohol (100%) force everyone to use oil based fuels.
Until the brains in the Silicon Valley can get their cottage industry electric (Telsa) and alternative fuel vehicles produced en mass, we will suffer to the greed.
The end consumer dictates the price by your ability to pay....
The main upcoming consumers: China and India.Who do you think has more power - the Oil Barons or us the public in determining Oil price?
As long as those with the means to buy the gas for their SUV's, those who are being hurt the most by high gas prices will suffer.
A few people take too much of the limited recourse and drive the price out of reach of everyone else. Aren't you glad we have regulations on drinking water ? Oil suppliers understand this and will charge whatever they can get. There is no limit to the price as long as people continue to buy all that is produced. Government regulations prohibiting the use of alternate fuels such as alcohol (100%) force everyone to use oil based fuels.
Until the brains in the Silicon Valley can get their cottage industry electric (Telsa) and alternative fuel vehicles produced en mass, we will suffer to the greed.
The end consumer dictates the price by your ability to pay....
Who do you really think is responsible for the oil price gluttonous Feeding on the World?
The Suppliers? The Producers? The Consumers Themselves?or the fact that it is on the Stock Market and gets bought and sold 50 times before it gets to the Refinery?Who do you really think is responsible for the oil price gluttonous Feeding on the World?
Politicians- Congress.
Why ?
1. It was just a speculation. It is proved by the recent market trend ( two months) ; demand / supply or rate of production of oil , have nothing to do.
2. Please watch - the close relationship among : Oil price, Gold price , $ value and stock market.
( Stock price has nothing to do with company performance or profitability , there is no positive relationship. Good or bad time - gamblers to make money - did you not hear ? this is the right time for investment in Stock and or property? For whom ? only rich )
3. Most of the consumer- items' prices shoot up with Oil price. Now whether , the consumer items prices are going down ? Is any one thinking to increase minimum wages rate ?
Most of the countries have adopted wage structure policy = Basic wages + linked with cost of index ( varying quartely). This may justify some what. Here it is fixed for years.
4. Financial crisis is the impact / effect of Oil pricing.
5. How one can believe that the congress / GOP/ government , with so many economists/ advisors could not sense that crisis is to hit all of us.. Nothing happens over night.
Don't you think , it is allowed knowingly ? or just careless or inefficient people ?
PLEASE WATCH , OIL PRICE WILL SHOOT UP, ONCE AGAIN FROM JUNE - JULY 2009 ; AS A RESULT OF COUNTER EFFECT OF ALL BAIL OUT/ FUNDING COUMPANIES.Who do you really think is responsible for the oil price gluttonous Feeding on the World?
I like to blame Bill Clinton and Al Gore. They pushed for the unfair trade agreements with China. That gave China a huge economic boost and led to an increase in the world demand for oil.
OPEC is actually responsible for limiting production to keep prices high so the sheiks can live like pampered brats.
The obstructionist democrat party in America contributes to the problem by putting much of our own oil fields off limits. Probably due to the taking of bribes from the rich elites.
We blame the oil companies. There is no one else to blame. They intentionally limited refinery capacity to jack up the prices. The fact is that there are millions of acres of untapped oil fields that have been leased to these same companies and not a bit of drilling is taking place.
I think the high price of oil is good for a country though. Companies start up because there is so much incentive for us to come out with renewable resources. People will pay a premium for electric cars that can travel a good distance without needing to be plugged in.
in time, the oil companies will only hurt themselves.
Jews
Politicians- Congress.
Why ?
1. It was just a speculation. It is proved by the recent market trend ( two months) ; demand / supply or rate of production of oil , have nothing to do.
2. Please watch - the close relationship among : Oil price, Gold price , $ value and stock market.
( Stock price has nothing to do with company performance or profitability , there is no positive relationship. Good or bad time - gamblers to make money - did you not hear ? this is the right time for investment in Stock and or property? For whom ? only rich )
3. Most of the consumer- items' prices shoot up with Oil price. Now whether , the consumer items prices are going down ? Is any one thinking to increase minimum wages rate ?
Most of the countries have adopted wage structure policy = Basic wages + linked with cost of index ( varying quartely). This may justify some what. Here it is fixed for years.
4. Financial crisis is the impact / effect of Oil pricing.
5. How one can believe that the congress / GOP/ government , with so many economists/ advisors could not sense that crisis is to hit all of us.. Nothing happens over night.
Don't you think , it is allowed knowingly ? or just careless or inefficient people ?
PLEASE WATCH , OIL PRICE WILL SHOOT UP, ONCE AGAIN FROM JUNE - JULY 2009 ; AS A RESULT OF COUNTER EFFECT OF ALL BAIL OUT/ FUNDING COUMPANIES.Who do you really think is responsible for the oil price gluttonous Feeding on the World?
I like to blame Bill Clinton and Al Gore. They pushed for the unfair trade agreements with China. That gave China a huge economic boost and led to an increase in the world demand for oil.
OPEC is actually responsible for limiting production to keep prices high so the sheiks can live like pampered brats.
The obstructionist democrat party in America contributes to the problem by putting much of our own oil fields off limits. Probably due to the taking of bribes from the rich elites.
We blame the oil companies. There is no one else to blame. They intentionally limited refinery capacity to jack up the prices. The fact is that there are millions of acres of untapped oil fields that have been leased to these same companies and not a bit of drilling is taking place.
I think the high price of oil is good for a country though. Companies start up because there is so much incentive for us to come out with renewable resources. People will pay a premium for electric cars that can travel a good distance without needing to be plugged in.
in time, the oil companies will only hurt themselves.
Jews
Why is lack of refinery capacity often cited as one of the reasons for the high crude oil price?
As I see it, lack of refinery capacity would be more likely to create a glut of crude oil (but a shortage of petrol), and to bring the price of oil down.
Mickey Clark (Radio 5 - Wake Up To Money) has mentioned the refinery capacity thing at least four times, but he never tackles my e-mails on the subject.Why is lack of refinery capacity often cited as one of the reasons for the high crude oil price?
Refinery capacity does not really relate to the price of crude, though I understand your assumption. Crude is produced, it needs be to be sold to refineries; if there isn't sufficient refinery capacity, refineries don't buy and there's an excess of crude on the market. I get ya'. This would be unlikely to occur, however, because producers of crude are aware of the market factors and will produce less crude if their buyers won't be able to refine it.
I know you know this, but for the sake of clarity, a very basic diagram:
crude %26gt; refinery %26gt; gasoline
Refinery output, therefore, is just one factor affecting the price of gasoline, not crude. This is why the oil industry itself intentionally shut down many of its own refineries in the 1980s in an attempt to cause oil prices to spike. I don't know or listen to Mickey Clark (is he on the radio? I don't really do talk radio.), but I do know that for some reason, the Republican Party is oil-drunk and has made it their business to defend every piece of self-serving crap that industry hands out, and as such, you get a lot of arguments that don't make sense floating about in a field of so much static and interference that it's hard to get at the truth.Why is lack of refinery capacity often cited as one of the reasons for the high crude oil price?
I do not listen to that radio station, However when I have heard Refinery Capacity mentioned in relation to Prices it has been relative to Gasoline Prices, Not Crude Oil. The Crude Oil prices are mentioned more in relation to Crude Oil production generally. Crude Oil prices also have a major impact on the Gasoline Prices, and production levels are typically manipulated by the major oil producing nations in order to maintain a high Crude Oil Price.
Mickey Clark cant't tackle your e-mails - because he can't - full stop...
The process, as others have described here and:
Oil refinery - Wikipedia, the free encyclopediaAn oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, ...
Is where the money lies ..... the arab countries - the main producers of crude oil in the first place - dictate the price of a barrel of oil world wide .... if they want to up the prices - there's nothing we or any of us can do about it .... and they will up the prices if the demand for the oil is there ....
Then, because they are restricting the production of oil, the price of the barrel is often too high - so refineries don't refine as much as they could to meet demand in order to keep their prices down to a level that doesn't knock us all out ... enough but not too much (which in itself is expensive to you and me).....
The machinery to process the oil is extremely, horrendously expensive.... the process to refine is complicate.... the end product expensive - because there aren't enough refineries..... again down to the price of a barrel of oil..... if the price of the base product is expensive - fewer producers are going to buy it to refine it .... fewer producers = fewer refineries..... fewer refineries = less production of gas and petroleum etc...... high consumer prices......and so it goes on....
It's a vicious circle that only the Arabs control.... world countries cow-tow to appease them - and pay the prices for limited availability......
Because it's easy to say that. They'll never admit to the gigantic markup on refining oil. That's where the billions in profit are coming from. New refineries mean spreading out the profit, reinvesting money and basically producing the same amount of gas - so in the long run it's less profit.
Its just an excuse not a reason seeing that the US on produce and supply 1/4 of the nations oil. Its an excuse to price gouge us.
Because the truth would be unpalatable to the public.
Demand out strips supply thats whysalicylic acid
Mickey Clark (Radio 5 - Wake Up To Money) has mentioned the refinery capacity thing at least four times, but he never tackles my e-mails on the subject.Why is lack of refinery capacity often cited as one of the reasons for the high crude oil price?
Refinery capacity does not really relate to the price of crude, though I understand your assumption. Crude is produced, it needs be to be sold to refineries; if there isn't sufficient refinery capacity, refineries don't buy and there's an excess of crude on the market. I get ya'. This would be unlikely to occur, however, because producers of crude are aware of the market factors and will produce less crude if their buyers won't be able to refine it.
I know you know this, but for the sake of clarity, a very basic diagram:
crude %26gt; refinery %26gt; gasoline
Refinery output, therefore, is just one factor affecting the price of gasoline, not crude. This is why the oil industry itself intentionally shut down many of its own refineries in the 1980s in an attempt to cause oil prices to spike. I don't know or listen to Mickey Clark (is he on the radio? I don't really do talk radio.), but I do know that for some reason, the Republican Party is oil-drunk and has made it their business to defend every piece of self-serving crap that industry hands out, and as such, you get a lot of arguments that don't make sense floating about in a field of so much static and interference that it's hard to get at the truth.Why is lack of refinery capacity often cited as one of the reasons for the high crude oil price?
I do not listen to that radio station, However when I have heard Refinery Capacity mentioned in relation to Prices it has been relative to Gasoline Prices, Not Crude Oil. The Crude Oil prices are mentioned more in relation to Crude Oil production generally. Crude Oil prices also have a major impact on the Gasoline Prices, and production levels are typically manipulated by the major oil producing nations in order to maintain a high Crude Oil Price.
Mickey Clark cant't tackle your e-mails - because he can't - full stop...
The process, as others have described here and:
Oil refinery - Wikipedia, the free encyclopediaAn oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, ...
Is where the money lies ..... the arab countries - the main producers of crude oil in the first place - dictate the price of a barrel of oil world wide .... if they want to up the prices - there's nothing we or any of us can do about it .... and they will up the prices if the demand for the oil is there ....
Then, because they are restricting the production of oil, the price of the barrel is often too high - so refineries don't refine as much as they could to meet demand in order to keep their prices down to a level that doesn't knock us all out ... enough but not too much (which in itself is expensive to you and me).....
The machinery to process the oil is extremely, horrendously expensive.... the process to refine is complicate.... the end product expensive - because there aren't enough refineries..... again down to the price of a barrel of oil..... if the price of the base product is expensive - fewer producers are going to buy it to refine it .... fewer producers = fewer refineries..... fewer refineries = less production of gas and petroleum etc...... high consumer prices......and so it goes on....
It's a vicious circle that only the Arabs control.... world countries cow-tow to appease them - and pay the prices for limited availability......
Because it's easy to say that. They'll never admit to the gigantic markup on refining oil. That's where the billions in profit are coming from. New refineries mean spreading out the profit, reinvesting money and basically producing the same amount of gas - so in the long run it's less profit.
Its just an excuse not a reason seeing that the US on produce and supply 1/4 of the nations oil. Its an excuse to price gouge us.
Because the truth would be unpalatable to the public.
Demand out strips supply thats why
The world gold and world oil price increase so much should be good?
The world gold and oil price increase very much should be making the price of the stock exchange up or down?The world gold and world oil price increase so much should be good?
its better for the rich owners but not for the people because we have to pay for it! Thats why gas is so expensive! Ever heard of the rich get richer and poor, poorerThe world gold and world oil price increase so much should be good?
hi, I think you need to reword this question, it doesn't really make any sense.
its better for the rich owners but not for the people because we have to pay for it! Thats why gas is so expensive! Ever heard of the rich get richer and poor, poorerThe world gold and world oil price increase so much should be good?
hi, I think you need to reword this question, it doesn't really make any sense.
Why did the US economy continued to perform well despite the higher oil price and katrina disaster?
I know that the region itself, did not fare so well, but in terms of the entire US economy on the whole, why was there galloping economic growth, despite the Fed's desire to tighten monetary conditions?Why did the US economy continued to perform well despite the higher oil price and katrina disaster?
Higher oil prices means the US population has to decrease savings and pay more for gasoline and / or;
Borrow more money on credit to pay for gasoline.
Problem is neither is long term sustainable... savings get used up, and credit eventually runs out when borrowers default...
Next thing you know consumers will be screaming for higher wages.. therefore wage inflation.
Does this help any?
Higher oil prices means the US population has to decrease savings and pay more for gasoline and / or;
Borrow more money on credit to pay for gasoline.
Problem is neither is long term sustainable... savings get used up, and credit eventually runs out when borrowers default...
Next thing you know consumers will be screaming for higher wages.. therefore wage inflation.
Does this help any?
How and what are the factors affecting $ and affect global crude oil price?
Is there a link between the interest rates and dollar value.How and what are the factors affecting $ and affect global crude oil price?
The basic answer to your question is this: The Fed.
The more money they put into the system the less that money buys aka higher prices. Interest rates affect the amount of money in the system. Everything is like a big ';Ebay';. If you and 10 other people really wanted 8 items and as you are bidding someone keeps giving everyone money to bid with... what happens to the price of those 8 things? Inflation!
Let's say someone owes you money(that they can print out) ,and that money is the only money that can be used on ';ebay';(aka the markets), they want to pay you the minimum payments as they borrow ALLOT more what happens to the ';ebay'; price of things? Inflation!
I hope this helps.How and what are the factors affecting $ and affect global crude oil price?
US Dollar is the benchmark of global value. Wealth as most know it is the tangible Industrial Technical growth initiated in the US.
Material accumulation of assets which identify a quality of life is likewise a US phenomenon. Home ownership and person automobile transportation are general elements of individual wealth. These two items are negotiable values which can be exchanged on credit.
Credit activity can be effected by levels of discretionary income. When crude oil prices rise over a significant period causing the increases in gasoline, less discretionary income is available for purchases or satisfaction of debt. Lower demand for credit depresses interest rates.
The basic answer to your question is this: The Fed.
The more money they put into the system the less that money buys aka higher prices. Interest rates affect the amount of money in the system. Everything is like a big ';Ebay';. If you and 10 other people really wanted 8 items and as you are bidding someone keeps giving everyone money to bid with... what happens to the price of those 8 things? Inflation!
Let's say someone owes you money(that they can print out) ,and that money is the only money that can be used on ';ebay';(aka the markets), they want to pay you the minimum payments as they borrow ALLOT more what happens to the ';ebay'; price of things? Inflation!
I hope this helps.How and what are the factors affecting $ and affect global crude oil price?
US Dollar is the benchmark of global value. Wealth as most know it is the tangible Industrial Technical growth initiated in the US.
Material accumulation of assets which identify a quality of life is likewise a US phenomenon. Home ownership and person automobile transportation are general elements of individual wealth. These two items are negotiable values which can be exchanged on credit.
Credit activity can be effected by levels of discretionary income. When crude oil prices rise over a significant period causing the increases in gasoline, less discretionary income is available for purchases or satisfaction of debt. Lower demand for credit depresses interest rates.
Have you noticed the Oil Price increase now that the Economy has started to recover?
I guess the Oil Companies will stick it to us as much as they can.
We really need to get off of our dependence on oil.Have you noticed the Oil Price increase now that the Economy has started to recover?
Well, prices always go up in the summer, because they know everyone is out driving around.
But you're right, because Middle Eastern governments pay al-Qaeda not to bomb their oil fields. That money, of course, comes from people who buy their oil -- us. The money we use to fill up our gas tank goes to buying Kalashnikovs and explosive devices that al-Qaeda uses against our troops:
http://www.timesonline.co.uk/tol/news/wo鈥?/a>
http://www.washingtonpost.com/wp-dyn/con鈥?/a>Have you noticed the Oil Price increase now that the Economy has started to recover?
It's summer time. Get off your tails, purchase a bicycle and boycott oil. Let it flop! Our tax dollars may bail out the industry. Who really cares? Ride your bicycle or walk around town. Take the train and airplanes when traveling long distances...I guess a greyhound or Amtrak commuter bus if you have to. Seriously, the reason that they can play around with the prices is because you will keep buying it.
Besides, you have more time to collect your thoughts when you ride your 21-speed or stroll somewhere.
Lazy, entitled Americans...
EDIT (as I am not done): I say triple the gas taxes and let the government put it in an account that will magically get drained one day, just like every other account that they have since so many of you are in support of taxing my tobacco that I CHOOSE to purchase.
Are you really sure of that, the increase is probably from the new taxes Obama wanted to impose. Remember, He said that he did not have a problem with $4.00 a gallon gasoline, just that it happened too quickly. Why is gas going up faster than the price per barrel? I think it's the government controlling the price, not the Oil Companies.
But yes, we need to get off our dependence on Foreign Oil. Drill at home.
Yes. It has nothing to do with demand of course. Since the Stimulus bill lowered with holding of pay check taxes the Oil producers want to get that money just as that direct stimulus check had gone right to them when they rose the costs to over $4 a gallon last year. And if it were just a matter of riding a bike or walking that would be fine.The higher prices are also going to be on food and all other things we as humans need to survive. So we need to not eat? Not buy needed medicines (costs more to transport them to the hospitals and retail outlets).
WHEN did the economy ';recover'; ???
GM just closed 1100 dealerships.
Chrysler just closed 1000 dealerships
GM is bankrupt
AIG is bankrupt
CitiBank is bankrupt
Housing market is dead in all but 2 or 3 small towns
MY business is still DOWN....
MY 401K is still DOWN....
DAMMMMIT.... how come I didn't get a memo that the economy recovered?
I agree our dependence on energy from other countries must end an alternatives need to be developed and you also need to remember the supply and demand as summer driving peak months are ahead. Hey if you don't like paying for gas you are always welcome to walk or ride a bike.
The economy started to recover? News to me...
Couldn't be that the oil market is finally reacting to all of the money that the Fed has flooded the market with, could it?
Could you please let the rest of us know where you get your economic data showing the economy to be in recovery?
You, obviously, read different news papers than I do.
It goes up every spring - the refineries have different regulations for different seasons.
The economy has not recovered.
I have noticed the price of gas going up
But am perplexed by what you consider to be the signs of recovery.
This question is silly and deceptive. The economy is not recovering.
Also, they are jacking up prices for the summer.
The economy still sucks, but demand always surges in the summer because people travel.
The price always goes up for the summer driving season, but I agree. I have a hybrid and a bicycle.
The economy isn't recovering the oil companies are just cutting production to raise the price.
Economy recover? Not around here.
I have noticed for at least my entire adult life that oil and gas prices go up in the beginning of the summer.
How has this economy started to recover?
Gas prices always raise in the summer-
But I agree we need to shift from oil-
It's on Obamas watch. Where's the outrage?
i have a horse and buggy i can sell you
We really need to get off of our dependence on oil.Have you noticed the Oil Price increase now that the Economy has started to recover?
Well, prices always go up in the summer, because they know everyone is out driving around.
But you're right, because Middle Eastern governments pay al-Qaeda not to bomb their oil fields. That money, of course, comes from people who buy their oil -- us. The money we use to fill up our gas tank goes to buying Kalashnikovs and explosive devices that al-Qaeda uses against our troops:
http://www.timesonline.co.uk/tol/news/wo鈥?/a>
http://www.washingtonpost.com/wp-dyn/con鈥?/a>Have you noticed the Oil Price increase now that the Economy has started to recover?
It's summer time. Get off your tails, purchase a bicycle and boycott oil. Let it flop! Our tax dollars may bail out the industry. Who really cares? Ride your bicycle or walk around town. Take the train and airplanes when traveling long distances...I guess a greyhound or Amtrak commuter bus if you have to. Seriously, the reason that they can play around with the prices is because you will keep buying it.
Besides, you have more time to collect your thoughts when you ride your 21-speed or stroll somewhere.
Lazy, entitled Americans...
EDIT (as I am not done): I say triple the gas taxes and let the government put it in an account that will magically get drained one day, just like every other account that they have since so many of you are in support of taxing my tobacco that I CHOOSE to purchase.
Are you really sure of that, the increase is probably from the new taxes Obama wanted to impose. Remember, He said that he did not have a problem with $4.00 a gallon gasoline, just that it happened too quickly. Why is gas going up faster than the price per barrel? I think it's the government controlling the price, not the Oil Companies.
But yes, we need to get off our dependence on Foreign Oil. Drill at home.
Yes. It has nothing to do with demand of course. Since the Stimulus bill lowered with holding of pay check taxes the Oil producers want to get that money just as that direct stimulus check had gone right to them when they rose the costs to over $4 a gallon last year. And if it were just a matter of riding a bike or walking that would be fine.The higher prices are also going to be on food and all other things we as humans need to survive. So we need to not eat? Not buy needed medicines (costs more to transport them to the hospitals and retail outlets).
WHEN did the economy ';recover'; ???
GM just closed 1100 dealerships.
Chrysler just closed 1000 dealerships
GM is bankrupt
AIG is bankrupt
CitiBank is bankrupt
Housing market is dead in all but 2 or 3 small towns
MY business is still DOWN....
MY 401K is still DOWN....
DAMMMMIT.... how come I didn't get a memo that the economy recovered?
I agree our dependence on energy from other countries must end an alternatives need to be developed and you also need to remember the supply and demand as summer driving peak months are ahead. Hey if you don't like paying for gas you are always welcome to walk or ride a bike.
The economy started to recover? News to me...
Couldn't be that the oil market is finally reacting to all of the money that the Fed has flooded the market with, could it?
Could you please let the rest of us know where you get your economic data showing the economy to be in recovery?
You, obviously, read different news papers than I do.
It goes up every spring - the refineries have different regulations for different seasons.
The economy has not recovered.
I have noticed the price of gas going up
But am perplexed by what you consider to be the signs of recovery.
This question is silly and deceptive. The economy is not recovering.
Also, they are jacking up prices for the summer.
The economy still sucks, but demand always surges in the summer because people travel.
The price always goes up for the summer driving season, but I agree. I have a hybrid and a bicycle.
The economy isn't recovering the oil companies are just cutting production to raise the price.
Economy recover? Not around here.
I have noticed for at least my entire adult life that oil and gas prices go up in the beginning of the summer.
How has this economy started to recover?
Gas prices always raise in the summer-
But I agree we need to shift from oil-
It's on Obamas watch. Where's the outrage?
i have a horse and buggy i can sell you
Does the increase in oil price that occur some time ago had something to do with global warming issues?
There was a huge oil price increase, did this increase had to do with global warming regulations. If not what are the determinants for oil price.Does the increase in oil price that occur some time ago had something to do with global warming issues?
No. The price went up due to the increased world demand for oil and the production limits imposed by OPEC.Does the increase in oil price that occur some time ago had something to do with global warming issues?
No it had to do with supply, demand and perceived risk.
No. The price went up due to the increased world demand for oil and the production limits imposed by OPEC.Does the increase in oil price that occur some time ago had something to do with global warming issues?
No it had to do with supply, demand and perceived risk.
How are the Indian Railways able to keep the fares steady even when the oil price is rising?
The bus fare and plane fare is seen increasing with oil price. What is the trick?How are the Indian Railways able to keep the fares steady even when the oil price is rising?
This is just by improving the efficiency in all aspects.
Still there is room to improve the fares.How are the Indian Railways able to keep the fares steady even when the oil price is rising?
Railway ministry is smart, they chose to increase the efficiency of railway to increase the quantity and earn more rather than increasing price. And they had that option, because they could increase bogies in the trains, whereas in case of Bus and air, if they increase buses and planes, that would not work.
They have no option. If they put the prices up then the people wouldn't be able to afford the fares because lots of them are extremely poor.
Putting prices up = People couldn't catch the train to work + people would lose their jobs and riot + railways would lose business and the economy would suffer.
More travellers more profit.
robbing peter to pay pal , an appalling , theory.salicylic acid
This is just by improving the efficiency in all aspects.
Still there is room to improve the fares.How are the Indian Railways able to keep the fares steady even when the oil price is rising?
Railway ministry is smart, they chose to increase the efficiency of railway to increase the quantity and earn more rather than increasing price. And they had that option, because they could increase bogies in the trains, whereas in case of Bus and air, if they increase buses and planes, that would not work.
They have no option. If they put the prices up then the people wouldn't be able to afford the fares because lots of them are extremely poor.
Putting prices up = People couldn't catch the train to work + people would lose their jobs and riot + railways would lose business and the economy would suffer.
More travellers more profit.
robbing peter to pay pal , an appalling , theory.
What's the relationship between oil price and stock price?
It seems like there's a relationship between commodity price (oil price in particular) and stock price. What is it?What's the relationship between oil price and stock price?
If you mean stock prices in general, it can go either way. Lately when one rises the other rises too in anticipation of the economy getting better. If demand for oil goes up then it probably means demand for other goods and services may rise, because most businesses use gasoline and other oil products and so do individuals. But if oil prices rise too high stock prices may start going down, because of the cost of oil products to businesses makes it more expensive for them to operate if they cant raise prices.What's the relationship between oil price and stock price?
win in the stock market...use this...
%26lt;a href=';http://www.real-wishes.com'; title='; wish '; name='; wish ';%26gt;%26lt;img style=';border: ridge 4px yellow;'; src=';http://www.real-wishes.com/images/w鈥?alt='; wish '; title='; wish ';/%26gt;
wish %26lt;/a%26gt;
If you mean stock prices in general, it can go either way. Lately when one rises the other rises too in anticipation of the economy getting better. If demand for oil goes up then it probably means demand for other goods and services may rise, because most businesses use gasoline and other oil products and so do individuals. But if oil prices rise too high stock prices may start going down, because of the cost of oil products to businesses makes it more expensive for them to operate if they cant raise prices.What's the relationship between oil price and stock price?
win in the stock market...use this...
%26lt;a href=';http://www.real-wishes.com'; title='; wish '; name='; wish ';%26gt;%26lt;img style=';border: ridge 4px yellow;'; src=';http://www.real-wishes.com/images/w鈥?alt='; wish '; title='; wish ';/%26gt;
wish %26lt;/a%26gt;
How do gas stations benefit from oil price movement?
Do they benefit if oil price go up and lose if oil price go down everyday because they store their oil in their stations?
How do they manage their profits with price movement everyday?How do gas stations benefit from oil price movement?
This is a very good question, and you show tremendous insight when you mention the fuel that is stored in their tanks.
First, taxes are based on every dollar increase in the price of the fuel not per gallon. When the price goes from 1 dollar to 2 then on to 3, the station's owner becomes responsible for the increase in taxes. The profits do increase, however, when the price goes back down, they typically lose money, as you pointed out, due to the prices they have paid for the fuel that is in the ground now. If the price goes up as they are refilling their tanks, they have to hope for several weeks of higher prices or lose profits. It is very difficult to forecast prices over these periods and causes many to sell back to the companies rather than maintain a franchise. Imagine trying to run a business where your product cost you more to buy than you could sell it for. Gas stations go through those cycles monthly due to the prices they pay to bring fuel to market versus the current fuel prices. Typically profits are in the 5-7 cent per gallon range. Fuel prices swing farther than that in just a week, sometimes.How do gas stations benefit from oil price movement?
Your corner gas station does not pay one price for gas delivered to their tanks. They pay a moving rate based on the price set by the franchise at the time of the actual sale. It's the BP, Mobile %26amp; Shell's that move gas prices daily. Not the independent gas stations. Report Abuse
Actually not even gasoline stations benefit from the nonsense that OPEC wants to put everyone through.
Gasoline stations are actually neo-grocery stores and vehicle repair shops. They make most of their money off of snacks, mechanical repairs to cars, sodas, drinks, unhealthful burgers, hot dogs and other fast food, etc. The vehicle fuel they sell is just a loss leader.
This is similar to what happens in regular grocery stores when you see a weekly special of grapes being sold at 89 cents a pound. The store isn't making any money off of those grapes, They are selling them at cost or near cost. The grape specials draw customers in to impulse buy other items, which may have had their prices raised.
How do they manage their profits with price movement everyday?How do gas stations benefit from oil price movement?
This is a very good question, and you show tremendous insight when you mention the fuel that is stored in their tanks.
First, taxes are based on every dollar increase in the price of the fuel not per gallon. When the price goes from 1 dollar to 2 then on to 3, the station's owner becomes responsible for the increase in taxes. The profits do increase, however, when the price goes back down, they typically lose money, as you pointed out, due to the prices they have paid for the fuel that is in the ground now. If the price goes up as they are refilling their tanks, they have to hope for several weeks of higher prices or lose profits. It is very difficult to forecast prices over these periods and causes many to sell back to the companies rather than maintain a franchise. Imagine trying to run a business where your product cost you more to buy than you could sell it for. Gas stations go through those cycles monthly due to the prices they pay to bring fuel to market versus the current fuel prices. Typically profits are in the 5-7 cent per gallon range. Fuel prices swing farther than that in just a week, sometimes.How do gas stations benefit from oil price movement?
Your corner gas station does not pay one price for gas delivered to their tanks. They pay a moving rate based on the price set by the franchise at the time of the actual sale. It's the BP, Mobile %26amp; Shell's that move gas prices daily. Not the independent gas stations. Report Abuse
Actually not even gasoline stations benefit from the nonsense that OPEC wants to put everyone through.
Gasoline stations are actually neo-grocery stores and vehicle repair shops. They make most of their money off of snacks, mechanical repairs to cars, sodas, drinks, unhealthful burgers, hot dogs and other fast food, etc. The vehicle fuel they sell is just a loss leader.
This is similar to what happens in regular grocery stores when you see a weekly special of grapes being sold at 89 cents a pound. The store isn't making any money off of those grapes, They are selling them at cost or near cost. The grape specials draw customers in to impulse buy other items, which may have had their prices raised.
What part if any did the oil price spike play in the current worldwide economic mess?
Was the run up in oil prices a contributor to the current worldwide economic woes?What part if any did the oil price spike play in the current worldwide economic mess?
Zero - the mess belongs in the lap of two groups. The (mostly Dem) congress who demanded the rights of all citizens to own a home regardless of ability to pay and the (again mostly Dem) group who made it a priority to bail all the fools who were in this situation by the federal guvmint.
This goes all the way back to mr. peanut (Carter) and was magnified by Clinton while being covered up by Frank and Dodd.
Zero - the mess belongs in the lap of two groups. The (mostly Dem) congress who demanded the rights of all citizens to own a home regardless of ability to pay and the (again mostly Dem) group who made it a priority to bail all the fools who were in this situation by the federal guvmint.
This goes all the way back to mr. peanut (Carter) and was magnified by Clinton while being covered up by Frank and Dodd.
How does the share price of the ETF United States Oil (USO) manage to mirror the oil price?
It's far from mirroring it exactly, but it's not very far off and closer than any other oil ETF I've seen (is there a better one?). Futures are too complicated and short-term so I'm considering this ETF to hold long-term.How does the share price of the ETF United States Oil (USO) manage to mirror the oil price?
The ETF performs this by holding actual oil futures. There are also institutional investors in the ETF who can redeem their shares for the underlying assets (an individual investor is not given this privilege).
This allows the larger investors to keep the ETF in line with the underlying asset by buying out the underlying asset when it is undervalued in the ETF (thus driving the price up) or selling it in when it is overvalued (thus lowering the price).
It is theoretically possible for a person or group of people to cause the ETF to diverge significantly from its underlying asset by buying up the available shares and not releasing them for sale, but there isn't a terribly good reason to do this.How does the share price of the ETF United States Oil (USO) manage to mirror the oil price?
Well, when the oil price goes down, some investors will panic and sell their shares of the ETF. It takes a little longer to mimic because the ETF price is more inelastic, investors take more time to make decisions, kind of like how food prices didn't go down as fast when oil prices went down.
i think it's difficult for oil ETF to mirror oil price in short term, but in long term, it would be better.
DONT GO TO THE WEBSITE Eliathas Q
GAVE YOU! ITS A VIRUS!
The ETF performs this by holding actual oil futures. There are also institutional investors in the ETF who can redeem their shares for the underlying assets (an individual investor is not given this privilege).
This allows the larger investors to keep the ETF in line with the underlying asset by buying out the underlying asset when it is undervalued in the ETF (thus driving the price up) or selling it in when it is overvalued (thus lowering the price).
It is theoretically possible for a person or group of people to cause the ETF to diverge significantly from its underlying asset by buying up the available shares and not releasing them for sale, but there isn't a terribly good reason to do this.How does the share price of the ETF United States Oil (USO) manage to mirror the oil price?
Well, when the oil price goes down, some investors will panic and sell their shares of the ETF. It takes a little longer to mimic because the ETF price is more inelastic, investors take more time to make decisions, kind of like how food prices didn't go down as fast when oil prices went down.
i think it's difficult for oil ETF to mirror oil price in short term, but in long term, it would be better.
DONT GO TO THE WEBSITE Eliathas Q
GAVE YOU! ITS A VIRUS!
What happened 1970-1976 to the oil price and what were the reasons for that?
What happened 1970-1976 to the oil price and what were the reasons for that?What happened 1970-1976 to the oil price and what were the reasons for that?
The 1973 Oil Crisis began in earnest on October 17, 1973, when the members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt (i.e., to the United States, its allies in Western Europe, and to Japan).
About the same time, OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to raise world oil prices, after attempts at negotiation with the ';Seven Sisters'; earlier in the month failed miserably. Due to the dependence of the industrialized world on crude oil, and the predominant role of OPEC as a global supplier, these price increases were dramatically inflationary to the economies of the targeted countries, while at the same time suppressive of economic activity. The targeted countries responded with a wide variety of new, and mostly permanent, initiatives to contain their further dependency. August 23, 1973 - In preparation for the Yom Kippur War, Saudi King Faisal and Egyptian president Anwar Sadat meet in Riyadh and secretly negotiate an accord whereby the Arabs will use the ';oil weapon'; as part of the upcoming military conflict[4].
Sept. 15, 1973 - The Organization of Petroleum Exporting Countries (OPEC) declares a negotiating front, consisting of the 6 Persian Gulf States, to pressure for price increases and an end to support of Israel, based on the 1971 Tehran agreement.
Oct. 6 - Egypt and Syria attack Israel on Yom Kippur, starting the fourth Arab-Israeli War.
Oct. 8鈥?0 - OPEC negotiations with oil companies to revise the 1971 Tehran price agreement fail.
Oct. 16 - Saudi Arabia, Iran, Iraq, Abu Dhabi, Kuwait, and Qatar unilaterally raise posted prices by 17% to $3.65 a barrel and announce production cuts.
Oct. 17 - OAPEC oil ministers agree to use oil as a weapon to punish the West for its support of Israel in the Arab-Israeli war. They recommend an embargo against unfriendly states and mandate a cut in exports.
Oct. 19 - Saudi Arabia, Libya and other Arab states proclaim an embargo on oil exports to the United States.
Oct. 23鈥?8 - The Arab oil embargo is extended to the Netherlands.
Nov. 5 - Arab producers announce a 25% output cut. A further five percent cut is threatened.
Nov. 23 - The Arab embargo is extended to Portugal, Rhodesia, and South Africa.
Nov. 27 - U.S. President Richard Nixon signs the Emergency Petroleum Allocation Act authorizing price, production, allocation and marketing controls.
Dec. 9 - Arab oil ministers agree a further five percent cut for non-friendly countries for January 1974.
Dec. 25 - Arab oil ministers cancel the five percent output cut for January. Saudi oil minister Yamani promises a 10% OPEC production rise.
Jan. 7鈥?, 1974 - OPEC decides to freeze prices until April 1.
Feb. 11 - U.S. Secretary of State Henry Kissinger unveils the Project Independence plan to make U.S. energy independent.
Feb. 12鈥?4 - Progress in Arab-Israeli disengagement brings discussion of oil strategy among the heads of state of Algeria, Egypt, Syria and Saudi Arabia.
Mar. 17 - Arab oil ministers, with the exception of Libya, announce the end of the embargo against the United States.
Apr. 15 - The price at the pump in the United States was US$3.20 per gallon (US$0.85 per litre) at the end of 1973. The effects of the embargo were immediate. OPEC forced the oil companies to increase payments drastically. The price of oil quadrupled by 1974 to nearly US$12 per US barrel (75 US$/m鲁).[5]
This increase in the price of oil had a dramatic effect on oil exporting nations, for the countries of the Middle East who had long been dominated by the industrial powers were seen to have acquired control of a vital commodity. The traditional flow of capital reversed as the oil exporting nations accumulated vast wealth. Some of the income was dispensed in the form of aid to other underdeveloped nations whose economies had been caught between higher prices of oil and lower prices for their own export commodities and raw materials amid shrinking Western demand for their goods. Much of it, however, fell into the hands of elites who reinvested it in the West or enhanced their own well-being. Much was absorbed in massive arms purchases that exacerbated political tensions, particularly in the Middle East.
OPEC-member states in the developing world withheld the prospect of nationalization of the companies' holdings in their countries. Most notably, the Saudis acquired operating control of Aramco, fully nationalizing it in 1980 under the leadership of Ahmed Zaki Yamani. As other OPEC nations followed suit, the cartel's income soared. Saudi Arabia, awash with profits, undertook a series of ambitious five-year development plans, of which the most ambitious, begun in 1980, called for the expenditure of $250 billion. Other cartel members also undertook major economic development programs.
Meanwhile, the shock produced chaos in the West. In the United States, the retail price of a gallon of gasoline rose from a national average of 38.5 cents in May 1973 to 55.1 cents in June 1974. Meanwhile, New York Stock Exchange shares lost $97 billion in value in six weeks.
With the onset of the embargo, U.S. imports of oil from the Arab countries dropped from 1.2 million barrels (190,000 m鲁) a day to a mere 19,000 barrels (3,000 m鲁). Daily consumption dropped by 6.1% from September to February, and by the summer of 1974, by 7% as the United States suffered its first fuel shortage since the Second World War.[citations needed]
Underscoring the interdependence of the world societies and economies, oil-importing nations in the noncommunist industrial world saw sudden inflation and economic recession. In the industrialized countries, especially the United States, the crisis was for the most part borne by the unemployed, the marginalized social groups, certain categories of aging workers, and increasingly, by younger workers.[citation needed] Schools and offices in the U.S. often closed down to save on heating oil; and factories cut production and laid off workers.[citation needed] In France, the oil crisis spelt the end of the Trente Glorieuses, 30 years of very high economic growth, and announced the ensuing decades of permanent unemployment.
The embargo was not uniform across Europe. Of the nine members of the European Economic Community, the Dutch faced a complete embargo (having voiced support for and supplied arms to Israel and allowed the Americans to use Dutch airfields for supply runs to Israel), the United Kingdom and France received almost uninterrupted supplies (having refused to allow America to use their airfields and embargoed arms and supplies to both the Arabs and the Israelis), whilst the other six faced only partial cutbacks. The UK had traditionally been an ally of Israel, and Harold Wilson's government had supported the Israelis during the Six Day War, but his successor, Ted Heath, had reversed this policy in 1970, calling for Israel to withdraw to its pre-1967 borders. The members of the EEC had been unable to achieve a common policy during the first month of the Yom Kippur War. The Community finally issued a statement on 6 November, after the embargo and price rises had begun; widely seen as pro-Arab, this statement supported the Franco-British line on the war and OPEC duly lifted its embargo from all members of the EEC. The price rises had a much greater impact in Europe than the embargo, particularly in the UK (where they combined with industrial action by coal miners to cause an energy crisis over the winter of 1973-74, a major factor in the breakdown of the post-war consensus and ultimately the rise of Thatcherism).[citations needed]
Despite being a target of the embargo as well, Japan fared particularly well in the aftermath of the world energy crisis of the 1970s compared to other oil-importing developed nations. Japanese automakers led the way in an ensuing revolution in car manufacturing. The large automobiles of the 1950s and 1960s were replaced by far more compact and energy efficient models. (Japan, moreover, had cities with a relatively high population density and a relatively high level of transit ridership.) [citations needed]
A few months later, the crisis eased. The embargo was lifted in March 1974 after negotiations at the Washington Oil Summit, but the effects of the energy crisis lingered on throughout the 1970s. The price of energy continued increasing in the following year, amid the weakening competitive position of the dollar in world markets; and no single factor did more to produce the soaring price inflation of the 1970s in the United States.[What happened 1970-1976 to the oil price and what were the reasons for that?
2 words: opec, monopoly
The 1973 Oil Crisis began in earnest on October 17, 1973, when the members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt (i.e., to the United States, its allies in Western Europe, and to Japan).
About the same time, OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to raise world oil prices, after attempts at negotiation with the ';Seven Sisters'; earlier in the month failed miserably. Due to the dependence of the industrialized world on crude oil, and the predominant role of OPEC as a global supplier, these price increases were dramatically inflationary to the economies of the targeted countries, while at the same time suppressive of economic activity. The targeted countries responded with a wide variety of new, and mostly permanent, initiatives to contain their further dependency. August 23, 1973 - In preparation for the Yom Kippur War, Saudi King Faisal and Egyptian president Anwar Sadat meet in Riyadh and secretly negotiate an accord whereby the Arabs will use the ';oil weapon'; as part of the upcoming military conflict[4].
Sept. 15, 1973 - The Organization of Petroleum Exporting Countries (OPEC) declares a negotiating front, consisting of the 6 Persian Gulf States, to pressure for price increases and an end to support of Israel, based on the 1971 Tehran agreement.
Oct. 6 - Egypt and Syria attack Israel on Yom Kippur, starting the fourth Arab-Israeli War.
Oct. 8鈥?0 - OPEC negotiations with oil companies to revise the 1971 Tehran price agreement fail.
Oct. 16 - Saudi Arabia, Iran, Iraq, Abu Dhabi, Kuwait, and Qatar unilaterally raise posted prices by 17% to $3.65 a barrel and announce production cuts.
Oct. 17 - OAPEC oil ministers agree to use oil as a weapon to punish the West for its support of Israel in the Arab-Israeli war. They recommend an embargo against unfriendly states and mandate a cut in exports.
Oct. 19 - Saudi Arabia, Libya and other Arab states proclaim an embargo on oil exports to the United States.
Oct. 23鈥?8 - The Arab oil embargo is extended to the Netherlands.
Nov. 5 - Arab producers announce a 25% output cut. A further five percent cut is threatened.
Nov. 23 - The Arab embargo is extended to Portugal, Rhodesia, and South Africa.
Nov. 27 - U.S. President Richard Nixon signs the Emergency Petroleum Allocation Act authorizing price, production, allocation and marketing controls.
Dec. 9 - Arab oil ministers agree a further five percent cut for non-friendly countries for January 1974.
Dec. 25 - Arab oil ministers cancel the five percent output cut for January. Saudi oil minister Yamani promises a 10% OPEC production rise.
Jan. 7鈥?, 1974 - OPEC decides to freeze prices until April 1.
Feb. 11 - U.S. Secretary of State Henry Kissinger unveils the Project Independence plan to make U.S. energy independent.
Feb. 12鈥?4 - Progress in Arab-Israeli disengagement brings discussion of oil strategy among the heads of state of Algeria, Egypt, Syria and Saudi Arabia.
Mar. 17 - Arab oil ministers, with the exception of Libya, announce the end of the embargo against the United States.
Apr. 15 - The price at the pump in the United States was US$3.20 per gallon (US$0.85 per litre) at the end of 1973. The effects of the embargo were immediate. OPEC forced the oil companies to increase payments drastically. The price of oil quadrupled by 1974 to nearly US$12 per US barrel (75 US$/m鲁).[5]
This increase in the price of oil had a dramatic effect on oil exporting nations, for the countries of the Middle East who had long been dominated by the industrial powers were seen to have acquired control of a vital commodity. The traditional flow of capital reversed as the oil exporting nations accumulated vast wealth. Some of the income was dispensed in the form of aid to other underdeveloped nations whose economies had been caught between higher prices of oil and lower prices for their own export commodities and raw materials amid shrinking Western demand for their goods. Much of it, however, fell into the hands of elites who reinvested it in the West or enhanced their own well-being. Much was absorbed in massive arms purchases that exacerbated political tensions, particularly in the Middle East.
OPEC-member states in the developing world withheld the prospect of nationalization of the companies' holdings in their countries. Most notably, the Saudis acquired operating control of Aramco, fully nationalizing it in 1980 under the leadership of Ahmed Zaki Yamani. As other OPEC nations followed suit, the cartel's income soared. Saudi Arabia, awash with profits, undertook a series of ambitious five-year development plans, of which the most ambitious, begun in 1980, called for the expenditure of $250 billion. Other cartel members also undertook major economic development programs.
Meanwhile, the shock produced chaos in the West. In the United States, the retail price of a gallon of gasoline rose from a national average of 38.5 cents in May 1973 to 55.1 cents in June 1974. Meanwhile, New York Stock Exchange shares lost $97 billion in value in six weeks.
With the onset of the embargo, U.S. imports of oil from the Arab countries dropped from 1.2 million barrels (190,000 m鲁) a day to a mere 19,000 barrels (3,000 m鲁). Daily consumption dropped by 6.1% from September to February, and by the summer of 1974, by 7% as the United States suffered its first fuel shortage since the Second World War.[citations needed]
Underscoring the interdependence of the world societies and economies, oil-importing nations in the noncommunist industrial world saw sudden inflation and economic recession. In the industrialized countries, especially the United States, the crisis was for the most part borne by the unemployed, the marginalized social groups, certain categories of aging workers, and increasingly, by younger workers.[citation needed] Schools and offices in the U.S. often closed down to save on heating oil; and factories cut production and laid off workers.[citation needed] In France, the oil crisis spelt the end of the Trente Glorieuses, 30 years of very high economic growth, and announced the ensuing decades of permanent unemployment.
The embargo was not uniform across Europe. Of the nine members of the European Economic Community, the Dutch faced a complete embargo (having voiced support for and supplied arms to Israel and allowed the Americans to use Dutch airfields for supply runs to Israel), the United Kingdom and France received almost uninterrupted supplies (having refused to allow America to use their airfields and embargoed arms and supplies to both the Arabs and the Israelis), whilst the other six faced only partial cutbacks. The UK had traditionally been an ally of Israel, and Harold Wilson's government had supported the Israelis during the Six Day War, but his successor, Ted Heath, had reversed this policy in 1970, calling for Israel to withdraw to its pre-1967 borders. The members of the EEC had been unable to achieve a common policy during the first month of the Yom Kippur War. The Community finally issued a statement on 6 November, after the embargo and price rises had begun; widely seen as pro-Arab, this statement supported the Franco-British line on the war and OPEC duly lifted its embargo from all members of the EEC. The price rises had a much greater impact in Europe than the embargo, particularly in the UK (where they combined with industrial action by coal miners to cause an energy crisis over the winter of 1973-74, a major factor in the breakdown of the post-war consensus and ultimately the rise of Thatcherism).[citations needed]
Despite being a target of the embargo as well, Japan fared particularly well in the aftermath of the world energy crisis of the 1970s compared to other oil-importing developed nations. Japanese automakers led the way in an ensuing revolution in car manufacturing. The large automobiles of the 1950s and 1960s were replaced by far more compact and energy efficient models. (Japan, moreover, had cities with a relatively high population density and a relatively high level of transit ridership.) [citations needed]
A few months later, the crisis eased. The embargo was lifted in March 1974 after negotiations at the Washington Oil Summit, but the effects of the energy crisis lingered on throughout the 1970s. The price of energy continued increasing in the following year, amid the weakening competitive position of the dollar in world markets; and no single factor did more to produce the soaring price inflation of the 1970s in the United States.[What happened 1970-1976 to the oil price and what were the reasons for that?
2 words: opec, monopoly
I want to locate a website with current crude oil price per barrel in the Williston Basin, Montana?
I am trying to search for a website on the internet that I can access daily to find the current price per barrel of crude oil. This would be for the Williston Basin region in Montana.I want to locate a website with current crude oil price per barrel in the Williston Basin, Montana?
Seeing how the oil from the basin ranges from API聽27掳 to 48掳 I don't think that you will find a single number.
Typically producers have a contract with the refineries to which they sell, specifying a grade range of their product (largely based upon API viscosity and sulfur content) and a price (typically a percentage of a benchmark oil). For example, you might be paid 80% of the price of West Texas Intermediate, or some such number.
If I had to guess, I would bet that the Williston Basin oils are sold under a variety of grades and contracts. It is usually not too easy to get the exact terms of such contracts from public sources.salicylic acid
Seeing how the oil from the basin ranges from API聽27掳 to 48掳 I don't think that you will find a single number.
Typically producers have a contract with the refineries to which they sell, specifying a grade range of their product (largely based upon API viscosity and sulfur content) and a price (typically a percentage of a benchmark oil). For example, you might be paid 80% of the price of West Texas Intermediate, or some such number.
If I had to guess, I would bet that the Williston Basin oils are sold under a variety of grades and contracts. It is usually not too easy to get the exact terms of such contracts from public sources.
What makes oil price increase significantly lately, aroun $120 per barrel?
Is it because of a matter of demand and supply, or is there any big political scenario behind it? Or maybe a conspiracy of certain nations?What makes oil price increase significantly lately, aroun $120 per barrel?
George Bush in Iraq.What makes oil price increase significantly lately, aroun $120 per barrel?
There are a variety of reasons for the increase in oil prices.
Supply uncertainty created by political instability in areas like the Middle East and South America.
The rising demand by China as it becomes and increasingly industrialized nation. As well as many other countries that are gaining economic strength.
Price manipulation by people who trade oil futures.
The strength of the dollar against other currencies.
And in the US there are other factors that account for the increase in gas prices aside from the cost of oil. One is the increased cost of transporting gas due to higher oil/gas prices.
Reported reductions in production capacity at oil refineries resulting form fires, hurricanes, and maintenance.
And I'm suspicious of the increased profits being reported by US oil companies. I've heard people try to excuse this by saying it's not the oil companies' fault prices are increasing. But I feel they are unfairly taking advantage of the situation to yield higher profits.
It's like this: There is X amount of oil in the ground. X is diminishing and is being used at such a rate that it will all run out in the foreseeable future (i.e. maybe within one hundred years).
So yes, the price goes up because of demand, and yes, because the amount available is shrinking fast, and yes, because there is a lot of politics behind this, and yes, because every country wants to be the one that controls it. And finally, yes, it will go up a lot more because, regardless of all else, the supply is limited.
In the long run, the only way to reduce the price is to find an unlimited supply of oil.
Probably a conspirancy of certain oil companies and global money holders!
http://www.picable.com/Nature/Sunsets/Su鈥?/a>
Three thrings:
1) Demand
2) Demand
3) Demand
Oil is a fungible commodity. There is no conspiracy of nations.
it is demand ..... or just politics greedy businessmen ( George bush).....chevron and Exxon were the top earning companies for 2007
I'm not sure about events lately...
But sometimes there are just times were mining companies go a long time without finding oil... They freak out and put up the price.
It's because of speculation on the futures market .
OPEC sets the prices. And they are greedy. Simple as that.
George Bush in Iraq.What makes oil price increase significantly lately, aroun $120 per barrel?
There are a variety of reasons for the increase in oil prices.
Supply uncertainty created by political instability in areas like the Middle East and South America.
The rising demand by China as it becomes and increasingly industrialized nation. As well as many other countries that are gaining economic strength.
Price manipulation by people who trade oil futures.
The strength of the dollar against other currencies.
And in the US there are other factors that account for the increase in gas prices aside from the cost of oil. One is the increased cost of transporting gas due to higher oil/gas prices.
Reported reductions in production capacity at oil refineries resulting form fires, hurricanes, and maintenance.
And I'm suspicious of the increased profits being reported by US oil companies. I've heard people try to excuse this by saying it's not the oil companies' fault prices are increasing. But I feel they are unfairly taking advantage of the situation to yield higher profits.
It's like this: There is X amount of oil in the ground. X is diminishing and is being used at such a rate that it will all run out in the foreseeable future (i.e. maybe within one hundred years).
So yes, the price goes up because of demand, and yes, because the amount available is shrinking fast, and yes, because there is a lot of politics behind this, and yes, because every country wants to be the one that controls it. And finally, yes, it will go up a lot more because, regardless of all else, the supply is limited.
In the long run, the only way to reduce the price is to find an unlimited supply of oil.
Probably a conspirancy of certain oil companies and global money holders!
http://www.picable.com/Nature/Sunsets/Su鈥?/a>
Three thrings:
1) Demand
2) Demand
3) Demand
Oil is a fungible commodity. There is no conspiracy of nations.
it is demand ..... or just politics greedy businessmen ( George bush).....chevron and Exxon were the top earning companies for 2007
I'm not sure about events lately...
But sometimes there are just times were mining companies go a long time without finding oil... They freak out and put up the price.
It's because of speculation on the futures market .
OPEC sets the prices. And they are greedy. Simple as that.
Do they British Government really expect to blame the economy on the oil price?
Petrol tax is charged as a percentage. That means that every time the price of oil goes up the government receives more tax for it, so why do they need to raise other motoring taxes?
In fact they should even be able to cut the percentage of fuel tax.
And North Sea oil used to be expensive because it is offshore but now the cost of production has shrunk as a proportion of the sales price so the tax revenue on the oil and on the profit has increased.
When are we going to get the benefit of all this increased income?Do they British Government really expect to blame the economy on the oil price?
Petrol Tax or Fuel Duty. is charged per litre not as a percentage and VAT is charged as a percentage at 17.5 %
I dont think you can blame the goverment for fuel priced the real reason is aside form some stock market people profiteering form it down to US.
we're using it faster than ti can be suppled plus the stock are running out. at current use there should be none left in 10 years.
North sea Oli is expected to run out very sson in next 4 years - it costs more to drain it out now that the first oil as its getting more difficult to drain teh last few drops out of the sea.
once it flowed out under its own pressure - there'e so little left now it has to be persuaded out by pumping in sea water to force it up!
Oil is too valuable (plastics) to be just burnt for fuel.
This shows a very simplistic and uninformed view of the state of the oil market and reserves its affecting the whole world not just they UK!Do they British Government really expect to blame the economy on the oil price?
The 'Credit Crunch' is to blame - globally.
As we are a part of that Global picture; we share some of the pain.
Further, if you voted Conservative in the eighties and early nineties - you may want to examine your conscience.
The seeds of all this were sown back then - today's Labour government are merely harvesting the fruits of those 'seeds'.
Surley, they cannot be entirely to blame for poor seed sowing in the past and a difficult global picture today?
The idea behind taxing us all so much on fuel is to make us use less of it because it is running out and stop us doing untold damage to our environment. The problem is that prices are still at the rate where people are willing to accept paying more rather than stop using it altogether or cut back. So neither the environment or the general public are winning - the only gain is for Alastair Darling on his short term spreadsheet.
Don't be silly. You will not benefit at all. Yes the government will rake it in but so many areas , Forces, NHS, Education, Social services are all screaming out for more money... so there you are. Taxes will go up and up whatever, .....If you don't want to pay the ridiculous price for petrol , the answer is simple... Sell the car . walk and use buses
because the government tax fuel to excess 拢20 fuel 拢10 will
be tax the reason why so high is be cores they give all the tax bailing out other country's that don,t give a stuff about the
UK and they would not help us if we need financial help!!
Your running the north shore oil almost dry it is only a matter of time you'll be worse off than the USA.
In fact they should even be able to cut the percentage of fuel tax.
And North Sea oil used to be expensive because it is offshore but now the cost of production has shrunk as a proportion of the sales price so the tax revenue on the oil and on the profit has increased.
When are we going to get the benefit of all this increased income?Do they British Government really expect to blame the economy on the oil price?
Petrol Tax or Fuel Duty. is charged per litre not as a percentage and VAT is charged as a percentage at 17.5 %
I dont think you can blame the goverment for fuel priced the real reason is aside form some stock market people profiteering form it down to US.
we're using it faster than ti can be suppled plus the stock are running out. at current use there should be none left in 10 years.
North sea Oli is expected to run out very sson in next 4 years - it costs more to drain it out now that the first oil as its getting more difficult to drain teh last few drops out of the sea.
once it flowed out under its own pressure - there'e so little left now it has to be persuaded out by pumping in sea water to force it up!
Oil is too valuable (plastics) to be just burnt for fuel.
This shows a very simplistic and uninformed view of the state of the oil market and reserves its affecting the whole world not just they UK!Do they British Government really expect to blame the economy on the oil price?
The 'Credit Crunch' is to blame - globally.
As we are a part of that Global picture; we share some of the pain.
Further, if you voted Conservative in the eighties and early nineties - you may want to examine your conscience.
The seeds of all this were sown back then - today's Labour government are merely harvesting the fruits of those 'seeds'.
Surley, they cannot be entirely to blame for poor seed sowing in the past and a difficult global picture today?
The idea behind taxing us all so much on fuel is to make us use less of it because it is running out and stop us doing untold damage to our environment. The problem is that prices are still at the rate where people are willing to accept paying more rather than stop using it altogether or cut back. So neither the environment or the general public are winning - the only gain is for Alastair Darling on his short term spreadsheet.
Don't be silly. You will not benefit at all. Yes the government will rake it in but so many areas , Forces, NHS, Education, Social services are all screaming out for more money... so there you are. Taxes will go up and up whatever, .....If you don't want to pay the ridiculous price for petrol , the answer is simple... Sell the car . walk and use buses
because the government tax fuel to excess 拢20 fuel 拢10 will
be tax the reason why so high is be cores they give all the tax bailing out other country's that don,t give a stuff about the
UK and they would not help us if we need financial help!!
Your running the north shore oil almost dry it is only a matter of time you'll be worse off than the USA.
Is the oil spill in san francisco the main reason why the oil price going up?
I am not sure if i am right, but if i am wrong is the spill going to cost us more money for gas? and does anyone why the price is going up recently?Is the oil spill in san francisco the main reason why the oil price going up?
No, the reason the price of gas is going up is the price of oil per barrel has gone up to $98. That's because someone is hording oil. If we were getting oil from Iraq we wouldn't be in dir need of oil now. So the getting oil from Iraq theory isn't true.
No, the reason the price of gas is going up is the price of oil per barrel has gone up to $98. That's because someone is hording oil. If we were getting oil from Iraq we wouldn't be in dir need of oil now. So the getting oil from Iraq theory isn't true.
How can I make an editorial column about oil price hike?
Especially here in Philippines, almost everyday, the price of gasoline increases. I wanted to come up with an editorial column about that. Would you mind giving me examples? THANKS!How can I make an editorial column about oil price hike?
The article listed below explains which factors determines oil prices in the United States. An editorial column for the Philippines could also try to explain to its readers what fundamental economic forces affect gasoline prices.
The article listed below explains which factors determines oil prices in the United States. An editorial column for the Philippines could also try to explain to its readers what fundamental economic forces affect gasoline prices.
Is it better to have fixed heating oil price?
Petro offers a one year service with a choice of having heating oil fixed at $2.939 per gallon or one that fluctuates and is currently 2.779 but has a ceiling of 3.109 and can't get higher? Which will be better?Is it better to have fixed heating oil price?
It is a good deal to have a fixed heating oil price because of the constantly rising prices. But sometimes there are contracts and things that may get you into trouble. Some people sign contracts for, lets say, 100 barrels at that price. they pay the company in advance at that fixed price. But sometimes the prices rise so high that the companys cant stay with just what you paid on the contract. The company goes out of business, then youre out of money and the rest of the oil for the season. It sucks. ill try to find the article for you.Is it better to have fixed heating oil price?
I think I'd have to take the fixed price, it's going to go up again this year.
EXCELLENT QUESTION! i went throught the same senario last year when the hurricane damage helped push oil/gas prices to outrageous highs. i locked in on a fix rate natural gas rate and thought i was doing the right thing??? au contraire my friend!! i talked with 2 different gas companies about which one is cheaper the fixed or the variable?? statistically it seems that unless there is some catastrophe the VARIABLE IS CHEAPER!! the fixed is more or less insurance from price shocks, but as we all know most insurance is a rip off!!!!!! i have about 3 months left on my fixed rate plan and then i plan on doing the variable rate from now on. this leaves me the flexability to switch to whomever has the lowest rate anytime i choose and not be obligated for a year. oh by the way the fixed rate i thought was a good deal last summer is way higher than what i currently could get now under a variable rate, but if i break the contract i will have to pay 50$ to do so. next time i will not go fixed!!!!!!!!
Personally I'd go with the fixed. They say it can't go higher than 3.109, but you never know. At least with a fixed rate, you're sure it won't get too high. Plus, oil will go up during the fall and winter. I always buy propane at a fixed rate before the fall and winter, trust me it's a good idea. Go with the fixed. It'll probably go higher, before it goes lower. Hope I was helpful = )
It is a good deal to have a fixed heating oil price because of the constantly rising prices. But sometimes there are contracts and things that may get you into trouble. Some people sign contracts for, lets say, 100 barrels at that price. they pay the company in advance at that fixed price. But sometimes the prices rise so high that the companys cant stay with just what you paid on the contract. The company goes out of business, then youre out of money and the rest of the oil for the season. It sucks. ill try to find the article for you.Is it better to have fixed heating oil price?
I think I'd have to take the fixed price, it's going to go up again this year.
EXCELLENT QUESTION! i went throught the same senario last year when the hurricane damage helped push oil/gas prices to outrageous highs. i locked in on a fix rate natural gas rate and thought i was doing the right thing??? au contraire my friend!! i talked with 2 different gas companies about which one is cheaper the fixed or the variable?? statistically it seems that unless there is some catastrophe the VARIABLE IS CHEAPER!! the fixed is more or less insurance from price shocks, but as we all know most insurance is a rip off!!!!!! i have about 3 months left on my fixed rate plan and then i plan on doing the variable rate from now on. this leaves me the flexability to switch to whomever has the lowest rate anytime i choose and not be obligated for a year. oh by the way the fixed rate i thought was a good deal last summer is way higher than what i currently could get now under a variable rate, but if i break the contract i will have to pay 50$ to do so. next time i will not go fixed!!!!!!!!
Personally I'd go with the fixed. They say it can't go higher than 3.109, but you never know. At least with a fixed rate, you're sure it won't get too high. Plus, oil will go up during the fall and winter. I always buy propane at a fixed rate before the fall and winter, trust me it's a good idea. Go with the fixed. It'll probably go higher, before it goes lower. Hope I was helpful = )
Is the airfare going to go down because of low oil price?
I am planning a travel Jan-feb, 2009. Should I buy tickets now or should I wait 1-2 weeks. Do you think that the fares would come down because of lower oil prices, early next year ?Is the airfare going to go down because of low oil price?
It is certainly a possibility; with the economy as shaky as it is, though, I'd certainly just go ahead and buy the tickets within the next couple of weeks. You'll have a better choice of seats, too.
And to the answer above mine, jet fuel (aka kerosene) is derived from oil. If the price of oil goes down, the price of kerosene ought to as well, possibly leading to cheaper airfare.Is the airfare going to go down because of low oil price?
Some airlines are already reducing their fuel surcharge, but it really depends
All crystal balls are broken in the present economy
i doubt 1-2 weeks is going to make much difference as opposed to what it's like now, but you do what you want
nope cuz they use jet fuelsalicylic acid
It is certainly a possibility; with the economy as shaky as it is, though, I'd certainly just go ahead and buy the tickets within the next couple of weeks. You'll have a better choice of seats, too.
And to the answer above mine, jet fuel (aka kerosene) is derived from oil. If the price of oil goes down, the price of kerosene ought to as well, possibly leading to cheaper airfare.Is the airfare going to go down because of low oil price?
Some airlines are already reducing their fuel surcharge, but it really depends
All crystal balls are broken in the present economy
i doubt 1-2 weeks is going to make much difference as opposed to what it's like now, but you do what you want
nope cuz they use jet fuel
What is the root cause increasing oil price?
What is the cause of the escalation in oil prices. I have heard it is a supply and demand issue. So is it that demand from emerging markets has increased that much to cause such an increase?What is the root cause increasing oil price?
There are actually five reasons:
1. Increasing demand from countries like China and India that have not until now imported much oil at all.
2. We have passed peak production in much of the world, which is when drillers extract an ever-dwindling supply. (This happened in Pennsylvania at the end of the 19th century, then California early in the 20th and is happening now in Texas and Alaska as well as the mideast.)
3. The war in Iraq.
4. There are an ever-growing number of petroleum-based products like plastics.
5. Mileage standards on U.S. vehicles have not been raised in 25 years, even as the technology to do so has improved.What is the root cause increasing oil price?
More demand
Less suplly
Columbia going to war with Equador..etc
Oil is priced on the American dollar. With the dollar now worth nothing, the price of a barrel goes up and up to make up the difference.
demand exceeds supply. root cause.
the 'emerging worlds' are expanding driving up demand of goods.
suppliers of oil have NO logical reason to increase supplys.
some of up costs is from speculation.
It is a combination of growing global demand and financial speculation.
Countries at war with one another.
There are actually five reasons:
1. Increasing demand from countries like China and India that have not until now imported much oil at all.
2. We have passed peak production in much of the world, which is when drillers extract an ever-dwindling supply. (This happened in Pennsylvania at the end of the 19th century, then California early in the 20th and is happening now in Texas and Alaska as well as the mideast.)
3. The war in Iraq.
4. There are an ever-growing number of petroleum-based products like plastics.
5. Mileage standards on U.S. vehicles have not been raised in 25 years, even as the technology to do so has improved.What is the root cause increasing oil price?
More demand
Less suplly
Columbia going to war with Equador..etc
Oil is priced on the American dollar. With the dollar now worth nothing, the price of a barrel goes up and up to make up the difference.
demand exceeds supply. root cause.
the 'emerging worlds' are expanding driving up demand of goods.
suppliers of oil have NO logical reason to increase supplys.
some of up costs is from speculation.
It is a combination of growing global demand and financial speculation.
Countries at war with one another.
How supply and demand plays in the rising of oil price ?
Oil price is rising obviously is rising, and it is caused by the demand and supply, with demand exceeds the supply.
So, what are actually the factors of these supply and demand...
OPEC come into mine as the supplier and China %26amp; India's rapid economic growth also come to my mine as the cause of demand.
Can anyone explain me more about this supply and demand factors that causes the oil price to increase this much?How supply and demand plays in the rising of oil price ?
OPEC is a cartel and it operates in ways that milk bad situations. They have no incentive to supply more volumes of crude oil to the market since the obscene amounts of money they now make are way beyond their present and future needs. The oil markets are not ';free markets'; and you and too many who buy into the classic market model to understand the price behavior, refuse to learn that. People who spoof conspiracy theories need to understand the origin of our anti-trust laws which have been tossed out to favor overconcentration of power in certain commodities particularily in staples that tend to be highly inelastic on the demand side.
Google ';price fixing behaviors';, ';Anti-trust behaviors'; ';OPEC %26amp; commodity cartels';. If you don't study up on economic history you are welcome to continue believing in the fantasy of ';free markets.'; There are bad people out there with the power to milk us like cows or sheep!
As long as you believe in the academic ideal model, you will be victimized over and over again! Now we are looking at a food crisis and price inflation in everything . Do you really think in terms of the classic free market models you learned in school and have been conditioned to trust to explain the economic realities of the real world! I don't anymore!How supply and demand plays in the rising of oil price ?
We fall prey to OPEC as the nation is addicted to foreign oil. Brazil's PetroBras has freed Brazil from importing foreign oil due to their success in Ethanol project.
The most important immediate remedy is to lessen our use of foreign oil. Less traveling and less electrical consumption will break our demand for gas.
Our Govt. can lead our nation into zero foreign oil import by the propagation and acceleration of ALTERNATIVE SOURCES of ENERGY.
This is the time when great leaders shine. In times of great need. I call upon the nation's leaders to step to the plate and kick GREED BACK INTO DARKNESS.
OPEC 's GREED for power and influence is too much for the world to bear. If this was in the 40's, America would have taken over their oil.
I would have exercised presidential prerogatives to expropriate and tap oil on the outskirts of the Arabian peninsula. Build offshore platforms and protect it with our sea power.
Number #1's post has a good read on the situation.
The government has printed too many dollars so it is losing value. And the military is using lots of oil in the two war fronts. And Iraq is producing less oil after the invasion than before. This is all good for oil company owners and their supporters but bad for the common man.
The demand for oil is rising, and is quite inelastic with respect to price in the short run. That means that people become committed to oil for transportation, heating, and production of energy for running plants etc. It is not easy or cheap to convert to other sources of energy since there is an elaborate infrastructure in place to deliver oil based energy around the world.
So, on the demand side you have the rapid growth in consumption and the difficulty in switching to alternate sources.
On the supply side, you have a cartel controlling a huge portion of the supply. This cartel is able to control the pace of supply enough to cause price increases to their own benefit as well as the benefit of other producers. These are intelligent people, who make rational decisions based on short and long term needs and strategies. So its foolish to think that they will do anything other than maximize their position. That does not mean that all they care about is short term profit. They understand that if the price goes too high, they will create powerful incentives for research and development investment in alternative sources, and investment in the infrastructure needed to deliver the alternative sources to the market. So they keep the volume pumping just fast enough to discourage serious investments of that type.
The third factor that is widely acknowledged right now is a speculative element due to the decline of the dollar. If Americans elect politicians who will pay more attention to the budget deficit, and get our financial house back in order, you can look for the dollar to rebound a bit and the speculators to move on to other opportunities. this would ease the price of oil, perhaps as much as $40 a barrel when all is said and done. But at the same time, rising demand can push the equilibrium price of oil higher, so don't look for a real price decline of $40, that's just the estimated effect of speculation at the moment.
So, what are actually the factors of these supply and demand...
OPEC come into mine as the supplier and China %26amp; India's rapid economic growth also come to my mine as the cause of demand.
Can anyone explain me more about this supply and demand factors that causes the oil price to increase this much?How supply and demand plays in the rising of oil price ?
OPEC is a cartel and it operates in ways that milk bad situations. They have no incentive to supply more volumes of crude oil to the market since the obscene amounts of money they now make are way beyond their present and future needs. The oil markets are not ';free markets'; and you and too many who buy into the classic market model to understand the price behavior, refuse to learn that. People who spoof conspiracy theories need to understand the origin of our anti-trust laws which have been tossed out to favor overconcentration of power in certain commodities particularily in staples that tend to be highly inelastic on the demand side.
Google ';price fixing behaviors';, ';Anti-trust behaviors'; ';OPEC %26amp; commodity cartels';. If you don't study up on economic history you are welcome to continue believing in the fantasy of ';free markets.'; There are bad people out there with the power to milk us like cows or sheep!
As long as you believe in the academic ideal model, you will be victimized over and over again! Now we are looking at a food crisis and price inflation in everything . Do you really think in terms of the classic free market models you learned in school and have been conditioned to trust to explain the economic realities of the real world! I don't anymore!How supply and demand plays in the rising of oil price ?
We fall prey to OPEC as the nation is addicted to foreign oil. Brazil's PetroBras has freed Brazil from importing foreign oil due to their success in Ethanol project.
The most important immediate remedy is to lessen our use of foreign oil. Less traveling and less electrical consumption will break our demand for gas.
Our Govt. can lead our nation into zero foreign oil import by the propagation and acceleration of ALTERNATIVE SOURCES of ENERGY.
This is the time when great leaders shine. In times of great need. I call upon the nation's leaders to step to the plate and kick GREED BACK INTO DARKNESS.
OPEC 's GREED for power and influence is too much for the world to bear. If this was in the 40's, America would have taken over their oil.
I would have exercised presidential prerogatives to expropriate and tap oil on the outskirts of the Arabian peninsula. Build offshore platforms and protect it with our sea power.
Number #1's post has a good read on the situation.
The government has printed too many dollars so it is losing value. And the military is using lots of oil in the two war fronts. And Iraq is producing less oil after the invasion than before. This is all good for oil company owners and their supporters but bad for the common man.
The demand for oil is rising, and is quite inelastic with respect to price in the short run. That means that people become committed to oil for transportation, heating, and production of energy for running plants etc. It is not easy or cheap to convert to other sources of energy since there is an elaborate infrastructure in place to deliver oil based energy around the world.
So, on the demand side you have the rapid growth in consumption and the difficulty in switching to alternate sources.
On the supply side, you have a cartel controlling a huge portion of the supply. This cartel is able to control the pace of supply enough to cause price increases to their own benefit as well as the benefit of other producers. These are intelligent people, who make rational decisions based on short and long term needs and strategies. So its foolish to think that they will do anything other than maximize their position. That does not mean that all they care about is short term profit. They understand that if the price goes too high, they will create powerful incentives for research and development investment in alternative sources, and investment in the infrastructure needed to deliver the alternative sources to the market. So they keep the volume pumping just fast enough to discourage serious investments of that type.
The third factor that is widely acknowledged right now is a speculative element due to the decline of the dollar. If Americans elect politicians who will pay more attention to the budget deficit, and get our financial house back in order, you can look for the dollar to rebound a bit and the speculators to move on to other opportunities. this would ease the price of oil, perhaps as much as $40 a barrel when all is said and done. But at the same time, rising demand can push the equilibrium price of oil higher, so don't look for a real price decline of $40, that's just the estimated effect of speculation at the moment.
How best to profit from the inevitable rise in oil price ?
Even a nitwit like me understands that oil will go up to over $100, so I want to make use of today's bargain price. What gives me the best leverage at the least cost / hassle? Triple leveraged ETF';s, options, futures ? Can anyone describe the pro's and con's in a nutshell?How best to profit from the inevitable rise in oil price ?
If you are talking long-term, there's no way you could do this in a leveraged position. Futures are out. Triple-leveraged is out. The price of oil can go as low as the average cost of production, half of where it is now, or less. With a leveraged position, you would end up owing your house to your broker.
Options expire, and are a time-wasting asset. Out
You can also profit from owning good oil company shares, like Marathon (MRO) or Schlumberger, the leading service provider. It's hard to go wrong with the best. The OIH is an index of oil companies.
Or buy the ETF's, OIL is a good one, like owning a stock, unleveraged.How best to profit from the inevitable rise in oil price ?
Perhaps the price of oil will eventually go back up. The only question is when and from what price. It can be a few months from now or a few years from now. And it can go back up from $20 per barrel rather than from today's price of $37 per barrel.
You might have to sit on big paper losses for a long, long time before you make any money from your oil investments. There is no such thing as a sure thing in any type of investment, including oil.
And one more thing you need to consider is the fact that leveraged investments go down in price a lot more than unleveraged investments. And you might not be able to recover your losses if your leveraged investment in oil goes down too much.
If you are talking long-term, there's no way you could do this in a leveraged position. Futures are out. Triple-leveraged is out. The price of oil can go as low as the average cost of production, half of where it is now, or less. With a leveraged position, you would end up owing your house to your broker.
Options expire, and are a time-wasting asset. Out
You can also profit from owning good oil company shares, like Marathon (MRO) or Schlumberger, the leading service provider. It's hard to go wrong with the best. The OIH is an index of oil companies.
Or buy the ETF's, OIL is a good one, like owning a stock, unleveraged.How best to profit from the inevitable rise in oil price ?
Perhaps the price of oil will eventually go back up. The only question is when and from what price. It can be a few months from now or a few years from now. And it can go back up from $20 per barrel rather than from today's price of $37 per barrel.
You might have to sit on big paper losses for a long, long time before you make any money from your oil investments. There is no such thing as a sure thing in any type of investment, including oil.
And one more thing you need to consider is the fact that leveraged investments go down in price a lot more than unleveraged investments. And you might not be able to recover your losses if your leveraged investment in oil goes down too much.
How could this raising oil price be contained ?
What would be the US strategy in the present scenario? Will US depend more on the Middle East to fulfill its energy needs or going to have a better relationship with Russia? What would be the importance of OPEC countries in the present scenario and how's it going to affect the future political alignments in the world?How could this raising oil price be contained ?
There are a number of factors that can lower the price of oil without having to rely on foreign suppliers.
1. There is the speculator argument. Investors are looking for items that offer a high rate of return and are seeing future contracts in oil as a good investment. They are increasing the demand for these contracts which is increasing the price of oil. Regulate them and prices should fall.
2. Drive less, pretty self explanatory. It would help if governments would put a focus on mass transportation, but given our city landscapes are wide spread this is very costly. One side note, look for real estate values to start increasing near cities. People living in NYC are laughing at everyone paying $4.50 per gallon.
3. Drill for more oil, by increasing the supply of oil the price will fall. I'm not saying this is the best option. A 5-10 year proposal for a short-term fix. We actually import most of our oil from Canada and Mexico. Less then 50% of oil imports are from OPEC. Plus we actually produce about 30% of our oil.
4. Develop new technologies. I know everyone is saying this but it will reduce oil dependence.How could this raising oil price be contained ?
Demand has to decrease/Supply increase.
We need to drill in the Gulf of Mexico, where even Japan is drilling about 16 miles off our coast, along with most of the other countries in the world.
We need to expand drilling in ANWAR - and start building refineries - since there hasn't been a refinery started in this country in the last 30 years due to environmental regulations imposed - there's something like 800 permits necessary to build a refinery and that's BS - the other countries haven't let the tree huggers impede their progress like we have - there needs to be more balance in our domestic policy toward technology and growth instead of being hindered to the point of stoppage over these environmental issues.
There's something like 70 different blends of diesel fuel required depending on population density in an area across the country - gas stations in moderate to higher density has to have the spring loaded ';gaskets'; on gas pumps to keep the amount of fuel vapors to a minimum when people are filling up - why not standardize the fuel filling equipment between pumps and cars to eliminate all vapors - have a locking connection between the two - it could be done -
We need to expand wind and solar energy - stop the likes of the 2 faced Kennedy's that claim to back those things and then fight against them.
every great nation must fall. the world itself is changing and how the next generation views the world. face it none of this will matter in the long run. really what needs to happen is America getting on the band wagon truly and getting rid of these monstrous cares like the Humer (hello I don't care how much money you have your driving a gas guzzler d*%26amp;^ A%^) really we should try and totally rid ourselves of this oil addiction. corn is not the answer as many think. that will just skyrocket the amount of corn and many people will die of starvation in 3rd world countries. how about instead implementing all these alternative sources together %26amp; giving government stimulus for those who do it. and perhaps, just perhaps we can rid ourselves of the environmental doomsday that we are currently sitting at the door of. governments wont matter when the environment takes over. if you really think the us government will help you when theres big trouble you are truly confused. they will be helping ';important'; people which unfortunate rules out most of the population.
The answer is simply one of Supply and Demand. Increase supply and prices will drop. Drill here. Drill now. Pay less. We need to get the government out of the way of the oil companies and let them explore and drill and refine more crude oil. It may take a few years, but in the long run, prices will drop. The government is the biggest reason why gas prices are so high.
There are a number of factors that can lower the price of oil without having to rely on foreign suppliers.
1. There is the speculator argument. Investors are looking for items that offer a high rate of return and are seeing future contracts in oil as a good investment. They are increasing the demand for these contracts which is increasing the price of oil. Regulate them and prices should fall.
2. Drive less, pretty self explanatory. It would help if governments would put a focus on mass transportation, but given our city landscapes are wide spread this is very costly. One side note, look for real estate values to start increasing near cities. People living in NYC are laughing at everyone paying $4.50 per gallon.
3. Drill for more oil, by increasing the supply of oil the price will fall. I'm not saying this is the best option. A 5-10 year proposal for a short-term fix. We actually import most of our oil from Canada and Mexico. Less then 50% of oil imports are from OPEC. Plus we actually produce about 30% of our oil.
4. Develop new technologies. I know everyone is saying this but it will reduce oil dependence.How could this raising oil price be contained ?
Demand has to decrease/Supply increase.
We need to drill in the Gulf of Mexico, where even Japan is drilling about 16 miles off our coast, along with most of the other countries in the world.
We need to expand drilling in ANWAR - and start building refineries - since there hasn't been a refinery started in this country in the last 30 years due to environmental regulations imposed - there's something like 800 permits necessary to build a refinery and that's BS - the other countries haven't let the tree huggers impede their progress like we have - there needs to be more balance in our domestic policy toward technology and growth instead of being hindered to the point of stoppage over these environmental issues.
There's something like 70 different blends of diesel fuel required depending on population density in an area across the country - gas stations in moderate to higher density has to have the spring loaded ';gaskets'; on gas pumps to keep the amount of fuel vapors to a minimum when people are filling up - why not standardize the fuel filling equipment between pumps and cars to eliminate all vapors - have a locking connection between the two - it could be done -
We need to expand wind and solar energy - stop the likes of the 2 faced Kennedy's that claim to back those things and then fight against them.
every great nation must fall. the world itself is changing and how the next generation views the world. face it none of this will matter in the long run. really what needs to happen is America getting on the band wagon truly and getting rid of these monstrous cares like the Humer (hello I don't care how much money you have your driving a gas guzzler d*%26amp;^ A%^) really we should try and totally rid ourselves of this oil addiction. corn is not the answer as many think. that will just skyrocket the amount of corn and many people will die of starvation in 3rd world countries. how about instead implementing all these alternative sources together %26amp; giving government stimulus for those who do it. and perhaps, just perhaps we can rid ourselves of the environmental doomsday that we are currently sitting at the door of. governments wont matter when the environment takes over. if you really think the us government will help you when theres big trouble you are truly confused. they will be helping ';important'; people which unfortunate rules out most of the population.
The answer is simply one of Supply and Demand. Increase supply and prices will drop. Drill here. Drill now. Pay less. We need to get the government out of the way of the oil companies and let them explore and drill and refine more crude oil. It may take a few years, but in the long run, prices will drop. The government is the biggest reason why gas prices are so high.
How to stop increasing oil price, and who are main sources to stop high oil price,?
Now a days world oil price gone up due to high price of oil. Poor people economic is very low and not surviving their life.How to stop increasing oil price, and who are main sources to stop high oil price,?
Darth is right except he left out the one factor that is under our control. If the US reduced our oil use we could have a major impact on world oil demand, and reduce the price. See consumption figures below.
United States: 20,730,000 bbl/day
China: 6,534,000 bbl/dayHow to stop increasing oil price, and who are main sources to stop high oil price,?
1. Increasing demand from china and developed countries
2. Violence and instability in the Middle East
3. Declining reserves of easily accessible oil
Can't change 3., can't really do anything about 1.,
and good luck fixing 2.
Darth is right except he left out the one factor that is under our control. If the US reduced our oil use we could have a major impact on world oil demand, and reduce the price. See consumption figures below.
United States: 20,730,000 bbl/day
China: 6,534,000 bbl/dayHow to stop increasing oil price, and who are main sources to stop high oil price,?
1. Increasing demand from china and developed countries
2. Violence and instability in the Middle East
3. Declining reserves of easily accessible oil
Can't change 3., can't really do anything about 1.,
and good luck fixing 2.
Where can I find an historical crude oil price chart up to and including May 2008?
Department of energy website.salicylic acid
Why cannot we boycott the oil industry to make the oil price drop?
Gas prices are pretty much up in the air, Its taking every dime to make ends meet. Alot of people are facing foreclosure due to hi prices and low valued dollar. What is it going to take before the Stock market crumble like it did in 1929?Why cannot we boycott the oil industry to make the oil price drop?
oil is a necessity of our daily life, and therefore we cannot boycott the oil industry. we need oil to drive our car to work, to power up the electricity for home heating and lights, although we may reduce the use of it at great inconvenienceWhy cannot we boycott the oil industry to make the oil price drop?
Crude oil as well as gas prices are set to a great extent by supply and demand. Supply is limited and running out. Demand in increasing. It's not just the US that is causing the increase in demand. The developing countries such as India and China are increasing their demand by large percentages as their economies grow. We are, though, responsible for some of that. Our out-sourcing of jobs has been a big factor in the improvement of the economies of India and other countries. Our purchasing of products from China and Taiwan and other is also responsible for a lot of their growth. I understand that future speculators were responsible for much of the surge in crude prices but this speculation is based on increases in crude prices. This increase in pricing is a given unless other forms of energy are developed to a point that a significant reduction in demand is created. The development of other sources of energy will take time. In the meantime, crude prices increase. As long as our economy depends of oil for its operation, there's not a lot we can do to decrease demand. High prices in one way, and the most effect way, of reducing demand. A boycott would simply hurt us more than anyone else.
oil is a necessity of our daily life, and therefore we cannot boycott the oil industry. we need oil to drive our car to work, to power up the electricity for home heating and lights, although we may reduce the use of it at great inconvenienceWhy cannot we boycott the oil industry to make the oil price drop?
Crude oil as well as gas prices are set to a great extent by supply and demand. Supply is limited and running out. Demand in increasing. It's not just the US that is causing the increase in demand. The developing countries such as India and China are increasing their demand by large percentages as their economies grow. We are, though, responsible for some of that. Our out-sourcing of jobs has been a big factor in the improvement of the economies of India and other countries. Our purchasing of products from China and Taiwan and other is also responsible for a lot of their growth. I understand that future speculators were responsible for much of the surge in crude prices but this speculation is based on increases in crude prices. This increase in pricing is a given unless other forms of energy are developed to a point that a significant reduction in demand is created. The development of other sources of energy will take time. In the meantime, crude prices increase. As long as our economy depends of oil for its operation, there's not a lot we can do to decrease demand. High prices in one way, and the most effect way, of reducing demand. A boycott would simply hurt us more than anyone else.
What is the reason for oil price hike?
when will its cost come back to normal?why is that the price of oil has increased?What is the reason for oil price hike?
I would have to agree that more than 40% is speculators.
Secretly, countries with better realtionships can still buy oil at $70 per barrel EVEN NOW. To say that the current $130 price is ARTIFICALLY INFLATED, is an understatement.
What do you think would happen if OPEC increased the output suddenly and significantly? just a 5% increase, followed by a second increase to 'seal the deal', would cause the market to collapse. Speculators would be scampering to get rid of oil bought at the higher prices... the effect would be the REVERSE of what is happening now.
Where would a 'demand and supply' arguement fit in THEN? The excess 'demand' in the marketplace is being driven by people buying oil with no intent to actually 'recieve' or 'consume' the oil....speculators. THAT IS NOT natural supply and demand economics.What is the reason for oil price hike?
Google ';enron loophole'; for insight into this question. Big money stands to make even more big money through unregulated commodities speculation. The Senate has been aware of this since at least September 2007:
http://levin.senate.gov/newsroom/release…
To quote from that link:
';Earlier this year, [2007] the Subcommittee released a report, “Excessive Speculation in the Natural Gas Market,” which found that a single hedge fund named Amaranth dominated the U.S. natural gas market during the spring and summer of 2006, and that its large-scale trading significantly distorted natural gas prices from their fundamental values. The investigation examined millions of trading records from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) to track and analyze natural gas trading in 2006. The report concluded that the current regulatory system was unable to prevent price distortions and excessive speculation, because much of Amaranth’s trading occurred on an unregulated market. The report recommended closing the Enron loophole to restore the CFTC’s ability to police all U.S. energy markets.';
That's natural gas, but oil prices are subject to the same skew.
Several reasons.
1. Increased global demand. While the demand in the US is going down a little, demand in places like China, India, etc. has risen much faster.
2. Decreased production. In places like Russia and Mexico, this is because of high taxes (what they call ';windfall taxes'; in the US) making it less cost-effective to dril for hard-to-reach oil, In places like the US and Canada, it's because we know where the oil is, but the environmentalists get the drilling blocked.
3. Rampant price speculation. People bid for oil in the future, expecting the price to go even higher as demand rises and production decreases. This becomes a self-fulfilling prophecy.
4. Weak dollar. A weaker dollar buys less oil, so prices per barrel rise.
When will it go down again? Probably no time soon.
Some great answers here, that FWIW I and my Master's classes in International Economics would say have validity.
#1- the weak dollar. Caused by the sub-prime explosion and uncertainly as to what the US is going to do foreign policy-wise. Also due to the huge US deficit (partly thanks to a large defense budget without a concommittant rise in taxes. The first ever in US history that a war's being fought without increasing tax income.) I think this will improve with the new administration whichever party wins the election.
#2- Increased demand. Actually US demand over the last year has fallen almost 20% from the previous three. That's a very significant decrease in consumption. However India and China's demands are increasing. Increased demand, increased prices. Simple econ.
I think speculation is tied to both of these. Yes, it drives up prices somewhat, but it is more a reflection of 1 %26amp; 2 in the market, than an influencer.
BTW, the occasional spew about ';oil companies'; is just not true. They are now essentially commodities brokers, they don't artificially reduce supply to drive up prices (OPEC excepted). Simply because if one company did, other companies would buy their oil elsewhere to undercut their marketshare. Again simple economic action in the market.
The price is going up because of wall street oil price speculators (mostly).
At first the price was going up because the USA economy was weak (meaning USA dollar is weak). So the oil producer wanted more USA dollar for the same barrel of oil. But then oil speculator stepped in and drove up the price (and that is the cause of most of the price jump).
Good Luck...
you are the reason. and me. and everybody who buys gas or petroleum products. supply and demand, that's the name of the game. we demand tons of oil so up goes the price. works like that in all markets and the markets rule. always have. always will. you think it's bad now? wait till august when peak summer driving happens. ooooooooh yoweeee. how does six bucks a gallon sound?
haha comair. you know less about petroleum economics than you do about flying. wouldn't have thought such a thing possible. hahahahaha. racist too.
It's increased mostly due to fears of supply becoming harder to get at- production is in fact being throttled by OPEC- they see no reason to boost production and lower prices until people stop buying at the inflated prices produced by global speculation and a weak dollar.
When the value of the money used to buy oil goes down the price goes up.
The demand for oil keeps rising, so they (the oil companies) can justify the price.
The quantity of petroleum is decreasing, and the demand is increasing.
greed!
I would have to agree that more than 40% is speculators.
Secretly, countries with better realtionships can still buy oil at $70 per barrel EVEN NOW. To say that the current $130 price is ARTIFICALLY INFLATED, is an understatement.
What do you think would happen if OPEC increased the output suddenly and significantly? just a 5% increase, followed by a second increase to 'seal the deal', would cause the market to collapse. Speculators would be scampering to get rid of oil bought at the higher prices... the effect would be the REVERSE of what is happening now.
Where would a 'demand and supply' arguement fit in THEN? The excess 'demand' in the marketplace is being driven by people buying oil with no intent to actually 'recieve' or 'consume' the oil....speculators. THAT IS NOT natural supply and demand economics.What is the reason for oil price hike?
Google ';enron loophole'; for insight into this question. Big money stands to make even more big money through unregulated commodities speculation. The Senate has been aware of this since at least September 2007:
http://levin.senate.gov/newsroom/release…
To quote from that link:
';Earlier this year, [2007] the Subcommittee released a report, “Excessive Speculation in the Natural Gas Market,” which found that a single hedge fund named Amaranth dominated the U.S. natural gas market during the spring and summer of 2006, and that its large-scale trading significantly distorted natural gas prices from their fundamental values. The investigation examined millions of trading records from the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) to track and analyze natural gas trading in 2006. The report concluded that the current regulatory system was unable to prevent price distortions and excessive speculation, because much of Amaranth’s trading occurred on an unregulated market. The report recommended closing the Enron loophole to restore the CFTC’s ability to police all U.S. energy markets.';
That's natural gas, but oil prices are subject to the same skew.
Several reasons.
1. Increased global demand. While the demand in the US is going down a little, demand in places like China, India, etc. has risen much faster.
2. Decreased production. In places like Russia and Mexico, this is because of high taxes (what they call ';windfall taxes'; in the US) making it less cost-effective to dril for hard-to-reach oil, In places like the US and Canada, it's because we know where the oil is, but the environmentalists get the drilling blocked.
3. Rampant price speculation. People bid for oil in the future, expecting the price to go even higher as demand rises and production decreases. This becomes a self-fulfilling prophecy.
4. Weak dollar. A weaker dollar buys less oil, so prices per barrel rise.
When will it go down again? Probably no time soon.
Some great answers here, that FWIW I and my Master's classes in International Economics would say have validity.
#1- the weak dollar. Caused by the sub-prime explosion and uncertainly as to what the US is going to do foreign policy-wise. Also due to the huge US deficit (partly thanks to a large defense budget without a concommittant rise in taxes. The first ever in US history that a war's being fought without increasing tax income.) I think this will improve with the new administration whichever party wins the election.
#2- Increased demand. Actually US demand over the last year has fallen almost 20% from the previous three. That's a very significant decrease in consumption. However India and China's demands are increasing. Increased demand, increased prices. Simple econ.
I think speculation is tied to both of these. Yes, it drives up prices somewhat, but it is more a reflection of 1 %26amp; 2 in the market, than an influencer.
BTW, the occasional spew about ';oil companies'; is just not true. They are now essentially commodities brokers, they don't artificially reduce supply to drive up prices (OPEC excepted). Simply because if one company did, other companies would buy their oil elsewhere to undercut their marketshare. Again simple economic action in the market.
The price is going up because of wall street oil price speculators (mostly).
At first the price was going up because the USA economy was weak (meaning USA dollar is weak). So the oil producer wanted more USA dollar for the same barrel of oil. But then oil speculator stepped in and drove up the price (and that is the cause of most of the price jump).
Good Luck...
you are the reason. and me. and everybody who buys gas or petroleum products. supply and demand, that's the name of the game. we demand tons of oil so up goes the price. works like that in all markets and the markets rule. always have. always will. you think it's bad now? wait till august when peak summer driving happens. ooooooooh yoweeee. how does six bucks a gallon sound?
haha comair. you know less about petroleum economics than you do about flying. wouldn't have thought such a thing possible. hahahahaha. racist too.
It's increased mostly due to fears of supply becoming harder to get at- production is in fact being throttled by OPEC- they see no reason to boost production and lower prices until people stop buying at the inflated prices produced by global speculation and a weak dollar.
When the value of the money used to buy oil goes down the price goes up.
The demand for oil keeps rising, so they (the oil companies) can justify the price.
The quantity of petroleum is decreasing, and the demand is increasing.
greed!
How does crude oil price affect the gas price at the pump?
When we see this price go down, how soon until we can expect to see the price at the pump go down? Also, these price reports usually include ';for (month) delivery';. Does that mean delivery to consumers, or delivery to the refineries? How does this delivery month affect prices at the pump?
I understand that outside influences can change the price at the pump (refinery capacity, strikes, tax changes, etc). But, if we strip these variables away, how much does the price of crude oil (per barrel) affect the price at the pump?How does crude oil price affect the gas price at the pump?
Delivery is to the buyer of the barrel of crude which means a refiner. It takes about a month to refine the oil that is delivered and the stations don't usually drop prices as fast as they raise them. So assuming that you are looking at July delivery, the refiners will be all set in August and that refined gasoline will be delivered to stations late August in the best case scenario.
The price at the pump is reflected in marginal prices. Since the U.S. consumes more oil than is produced here the real prices are set at the margin (what we buy on the open market). In order to keep the markets stable and liquid the entire stock is priced at the market. The calculations take a little bit but a barrel of oil is 42 gallons and that is refined into various products 19.2 gallons of which is generally gasoline . That should help you see the beginning of the pricing. I have done the full math with estimations on actual profit recieved by everyone. It's a bit long but if you are interested contact me and let me know so I can direct you to it.How does crude oil price affect the gas price at the pump?
it gives the Oil Companies the excuse to commit armed robbery with a gas pump rather than a gun.
you really aren't likely to see any real difference based on the monthly delivery price. This is due to expectations and futures have likely already taken into account this price. So a real change is only when the actual is different from the expected. gas refineries purchase contracts in advance so that is the price or cost they see in the future.
i dont think there is any rhyme or reason to any of this, basicallly. i mean, yea, some of those things you listed DO affect the price, but my dad said its just to get your money...
have you ever noticed the prices go up during holidays like christmas and easter, wen EVERYONE is going to drive out of town to see family?!
i know this has nothing to do with your Q, but your Q triggered my memory of this dream i had last nite...thanks!!!
well i dremt that the price was up to $6 and $7, all in one day! it wuz terrible, cuz you can barely fill up your car without taking out your life savings...it was weird...but if you think this is bad at $3.50, just think of how almost $7 wuld effect our economy!!!
but if we run out of resources, thats wat we will be doing to ourselves because most car companies will not make more fuel-efficient cars, bc they would 'lose money' from all the effieciency...thats just stupid, huh? like wats it going to take before they finally realize that they have to change?!
anyways, thanks for listening to me...
;)
when the price of crude oil increases you expect it to go up most likely a month after.
taxes imposed on petroleum products are already fixed and wont really change unless approve by the gov't
what can negate the effect of oil price increase is the appreciation of your currency
As I think many people have pointed out, crude oil is only one portion of the value chain. It takes about a month to refine and during that time, refining capacity drives the price at the pump much more than movements in WTI crude.
I understand that outside influences can change the price at the pump (refinery capacity, strikes, tax changes, etc). But, if we strip these variables away, how much does the price of crude oil (per barrel) affect the price at the pump?How does crude oil price affect the gas price at the pump?
Delivery is to the buyer of the barrel of crude which means a refiner. It takes about a month to refine the oil that is delivered and the stations don't usually drop prices as fast as they raise them. So assuming that you are looking at July delivery, the refiners will be all set in August and that refined gasoline will be delivered to stations late August in the best case scenario.
The price at the pump is reflected in marginal prices. Since the U.S. consumes more oil than is produced here the real prices are set at the margin (what we buy on the open market). In order to keep the markets stable and liquid the entire stock is priced at the market. The calculations take a little bit but a barrel of oil is 42 gallons and that is refined into various products 19.2 gallons of which is generally gasoline . That should help you see the beginning of the pricing. I have done the full math with estimations on actual profit recieved by everyone. It's a bit long but if you are interested contact me and let me know so I can direct you to it.How does crude oil price affect the gas price at the pump?
it gives the Oil Companies the excuse to commit armed robbery with a gas pump rather than a gun.
you really aren't likely to see any real difference based on the monthly delivery price. This is due to expectations and futures have likely already taken into account this price. So a real change is only when the actual is different from the expected. gas refineries purchase contracts in advance so that is the price or cost they see in the future.
i dont think there is any rhyme or reason to any of this, basicallly. i mean, yea, some of those things you listed DO affect the price, but my dad said its just to get your money...
have you ever noticed the prices go up during holidays like christmas and easter, wen EVERYONE is going to drive out of town to see family?!
i know this has nothing to do with your Q, but your Q triggered my memory of this dream i had last nite...thanks!!!
well i dremt that the price was up to $6 and $7, all in one day! it wuz terrible, cuz you can barely fill up your car without taking out your life savings...it was weird...but if you think this is bad at $3.50, just think of how almost $7 wuld effect our economy!!!
but if we run out of resources, thats wat we will be doing to ourselves because most car companies will not make more fuel-efficient cars, bc they would 'lose money' from all the effieciency...thats just stupid, huh? like wats it going to take before they finally realize that they have to change?!
anyways, thanks for listening to me...
;)
when the price of crude oil increases you expect it to go up most likely a month after.
taxes imposed on petroleum products are already fixed and wont really change unless approve by the gov't
what can negate the effect of oil price increase is the appreciation of your currency
As I think many people have pointed out, crude oil is only one portion of the value chain. It takes about a month to refine and during that time, refining capacity drives the price at the pump much more than movements in WTI crude.
How is the international oil price per barrel calculated?
With ever increasing oil prices, i wonder if it is worth buying a petrol car?How is the international oil price per barrel calculated?
At international commodities markets where people bid on it the same way they do with stocks. So basically supply and demand. Which is the lopsidedness you hear about. Demand grows every year but supply can no longer keep up with it.
At international commodities markets where people bid on it the same way they do with stocks. So basically supply and demand. Which is the lopsidedness you hear about. Demand grows every year but supply can no longer keep up with it.
How high will the oil price rise to this year?
So the oil price fell today to 69.50 as I predicted it would go back down. But what do you think about the oil will it go down or up. I am predicting up with hurricane season coming up and we are on the brink of going to war with iran. The question is how high do you think it will go? $80 $100 dolars a barrel?How high will the oil price rise to this year?
about $85-$90. But it really depends on the political situation. if USA attacks iran then the oil prices will shoot up to $100-$120.
The best thing is to accumulate gold as the price of gold mimics the price of oilHow high will the oil price rise to this year?
I think it will go down below $60. Too much hype!
My guess is about $85 a barrel
about $85-$90. But it really depends on the political situation. if USA attacks iran then the oil prices will shoot up to $100-$120.
The best thing is to accumulate gold as the price of gold mimics the price of oilHow high will the oil price rise to this year?
I think it will go down below $60. Too much hype!
My guess is about $85 a barrel
Now that oil prices has halved, can you truly contribute the price drop to lower demand?
Because oil was at $147.27 in July, that figure has been halved. During this time the American public was urging people to cut down on oil consumption in retaliation to the price drop and to save money. Do you believe that this contributed heavily to the price drop, and if so is this a good weapon to use against OPEC and other oil producing nations not part of OPEC as a grassroots level of economic sanction?
After all, capitalism is prevalent in our world and people want to make money. They certainly DON'T want to lose business.Now that oil prices has halved, can you truly contribute the price drop to lower demand?
I believe we are in a pickle because once the election roll over gas will trip and tax will definely increase on middle class family.. Why you ask? Gas is similiar to water.. it is needed in almost everyday life.. some said they can live without gas but the said truth is u cannot oil run the electricity, it run food production for the trailer.. it run the world....it is necessary until we find a major shift in energy source.. it is basically over before we know what hit our head!!!Now that oil prices has halved, can you truly contribute the price drop to lower demand?
Oil prices didnt halve, oil futures price halved. It's a derivative not directly linked to oil prices. i think the wild oscillation can be attributed to simple market volatility. money went out of stocks and into oil, created oil bubble, it had to peak and burst sometime, and whenever that happens there's a crash.
Our consumption went down some but i dont think it's that closely connected to supply and demand.
Demand is what lower prices, but it wasn't America's demand. China and India have both cut back on oil consumption because, in relation to the US's economy, they won't need/afford the oil anymore as they lose their biggest customer, the US.
This just insures the US economy is in danger.
Good question. I think that there was a small amount of demand increase but nothing to contribute to that kind of increase in price per barrel. Look into something called the Enron loop hole, not to confuse the subject. I think that the price of oil over shot on the high and will over shoot to the low.
I like your theory, but that's really not how it works. On Nov 1st OPEC has cut back on a million and half barrels a day. This will drive the demand up, and when demand is up prices go up. In Dec. OPEC's annual meeting will be about bringing a price of oil back to $100.00 a barrel.
Everybody knows that corporate America does all this, gas is down because the economy sucks, not because (yes, this was on the news) people are traveling less, in a local town near my house, gas is 1.89, this summer, 3.59
HaHa..60.52 is the oil price of now, OPEC have grassroots level of economic sanction but if oil price still getting down there will be a problem.
http://www.oilgold.cn/
I think it went down because of the election and i believe prices are going to shoot up after Nov 4..
When you are referring to these prices you aren't referring to the price of oil you are referring to the oil market prices called futures. The demand did cause this but it was demand for oil futures not oil. Although the futures do mature and you would get barrels of oil delivered to your door if you held them long enough, the demand you are talking about is very different. The demand for actual oil is very inelastic. The USA will always be consuming about the same amount of oil no matter the price. The TV people just don't clarify these terms when they speak, it makes eveything sound much simpler and intriguing.salicylic acid
After all, capitalism is prevalent in our world and people want to make money. They certainly DON'T want to lose business.Now that oil prices has halved, can you truly contribute the price drop to lower demand?
I believe we are in a pickle because once the election roll over gas will trip and tax will definely increase on middle class family.. Why you ask? Gas is similiar to water.. it is needed in almost everyday life.. some said they can live without gas but the said truth is u cannot oil run the electricity, it run food production for the trailer.. it run the world....it is necessary until we find a major shift in energy source.. it is basically over before we know what hit our head!!!Now that oil prices has halved, can you truly contribute the price drop to lower demand?
Oil prices didnt halve, oil futures price halved. It's a derivative not directly linked to oil prices. i think the wild oscillation can be attributed to simple market volatility. money went out of stocks and into oil, created oil bubble, it had to peak and burst sometime, and whenever that happens there's a crash.
Our consumption went down some but i dont think it's that closely connected to supply and demand.
Demand is what lower prices, but it wasn't America's demand. China and India have both cut back on oil consumption because, in relation to the US's economy, they won't need/afford the oil anymore as they lose their biggest customer, the US.
This just insures the US economy is in danger.
Good question. I think that there was a small amount of demand increase but nothing to contribute to that kind of increase in price per barrel. Look into something called the Enron loop hole, not to confuse the subject. I think that the price of oil over shot on the high and will over shoot to the low.
I like your theory, but that's really not how it works. On Nov 1st OPEC has cut back on a million and half barrels a day. This will drive the demand up, and when demand is up prices go up. In Dec. OPEC's annual meeting will be about bringing a price of oil back to $100.00 a barrel.
Everybody knows that corporate America does all this, gas is down because the economy sucks, not because (yes, this was on the news) people are traveling less, in a local town near my house, gas is 1.89, this summer, 3.59
HaHa..60.52 is the oil price of now, OPEC have grassroots level of economic sanction but if oil price still getting down there will be a problem.
http://www.oilgold.cn/
I think it went down because of the election and i believe prices are going to shoot up after Nov 4..
When you are referring to these prices you aren't referring to the price of oil you are referring to the oil market prices called futures. The demand did cause this but it was demand for oil futures not oil. Although the futures do mature and you would get barrels of oil delivered to your door if you held them long enough, the demand you are talking about is very different. The demand for actual oil is very inelastic. The USA will always be consuming about the same amount of oil no matter the price. The TV people just don't clarify these terms when they speak, it makes eveything sound much simpler and intriguing.
What happen to oil price after Russia reintegrate Georgia?
Any guess? Russia will be the new OPEC that is 10 times more ruthless. World needs to speak up strongly against the incursion into Georgia. What do you think? What happen to oil price after Russia reintegrate Georgia?
Russia still has no technology to move the oil to the coast where it can be sold. The Alaskan Pipe line took 10 years to build and even though technology has improved today Russia is a way more hostile terrain.
You see the polar bears did not shoot at us while we were building the Alaskan Pipe Line.
tcwWhat happen to oil price after Russia reintegrate Georgia?
Georgia is in a key location where oil pipelines allow the EU to import oil from the far east avoiding Russian territory and Iran.
Georgia is a key part of Europe's plan to get off Russian oil. It's not just about Georgia and NATO membership, but Europe's independence from Russian oil and gas.
It is vital that all NATO membership petitions from Georgia and Ukraine be expedited. France and Germany opposed it because they didn't want to ';anger'; Russia. This is what happens when you show weakness. Just like they tried to appease Hitler, how many countries will be swallowed up this time before the madness is met with strength and determination. This Presidential election is whether we will be the weak America or strong America.
Mark my words,gas will go down to about $50 per barrel. By the way,when that happens,America will be history,at least within 6 months to a year of that happening. This whole thing is a set up,and once again,America is gonna be sucked into another war we have nothing good getting out of; Brace yourselves folks,this is an exciting time to be alive,you might as well start writing journals on the current events,they will be use in history books.
By the way,Russia has more oil than the whole middle east,and Indonesia is about to ';discover'; several oil fields(yeah i used the ';'; on purpose,cause they already know about those fields)
I think it's just a small step before they take over all the oil pipelines that feed Europe.
Remember, when the USSR was poor we could keep them under control, but as Russia they now have tons of money and oil.
While democrats like Pelosi and Reid are working overtime to weaken our country by not letting us get to our own oil, Russia is gearing up big and rich in oil.
We can never get off of oil. Even if we didn't use it for transportation, we'd still import billions of barrels for every other aspect of our lives. I wish more people were more educated on this subject. By demonizing the oil companies we are inadvertently undermining our economy.
For those with American public education, Georgia has oil, maybe not enough, but:
Oil - production: 1,979 bbl/day (2005 est.)
Oil - consumption: 13,400 bbl/day (2005 est.)
Oil - exports: 2,400 bbl/day (2004)
Oil - imports: 13,530 bbl/day (2004)
Oil - proved reserves: 35 million bbl (1 January 2006 est.)
Natural gas - production: 14.39 million cu m (2005 est.)
Natural gas - consumption: 1.8 billion cu m (2007 est.)
Natural gas - exports: 0 cu m (2005)
Natural gas - imports: 1.264 billion cu m (2005)
Natural gas - proved reserves: 8.147 billion cu m (1 January 2006 est.)
Georgian Minister of Defense is Jewish and holds double citizenship (Israeli-Georgian).There are more Jewish Ministers in Gergian governement. Israel was helping to train Georgian soldiers and delivered some airplanes and other armory.
Looks like Israel controls not only US government but other's contries too.
Georgia does not have that much oil. Still will be OPEC running the show. Don't think we should do much of anything as we have no right, with our actions in Iraq, it the pot calling the kettle black.
I just want to know why we need to butt into other countries business again, is it really in our best interest??? Are we going to have to send our troops over there to kill and be killed like in Iraq??
I think the world can't base it's judgment on economic needs and has to recognize Russia's legitimate interests
The price should down as Russia will drill and pump. They need the money right now.
Simple.
It will rise further.
Georgia has no oil, but it does have part of that pipeline.
Now people can see why we have to free ourselves from the oil dependency. It will go up
all of russia's oil goes to western europe. will have little effect here.
they will sky rocket.
Georgia has no oil. None whatsoever.
Russia still has no technology to move the oil to the coast where it can be sold. The Alaskan Pipe line took 10 years to build and even though technology has improved today Russia is a way more hostile terrain.
You see the polar bears did not shoot at us while we were building the Alaskan Pipe Line.
tcwWhat happen to oil price after Russia reintegrate Georgia?
Georgia is in a key location where oil pipelines allow the EU to import oil from the far east avoiding Russian territory and Iran.
Georgia is a key part of Europe's plan to get off Russian oil. It's not just about Georgia and NATO membership, but Europe's independence from Russian oil and gas.
It is vital that all NATO membership petitions from Georgia and Ukraine be expedited. France and Germany opposed it because they didn't want to ';anger'; Russia. This is what happens when you show weakness. Just like they tried to appease Hitler, how many countries will be swallowed up this time before the madness is met with strength and determination. This Presidential election is whether we will be the weak America or strong America.
Mark my words,gas will go down to about $50 per barrel. By the way,when that happens,America will be history,at least within 6 months to a year of that happening. This whole thing is a set up,and once again,America is gonna be sucked into another war we have nothing good getting out of; Brace yourselves folks,this is an exciting time to be alive,you might as well start writing journals on the current events,they will be use in history books.
By the way,Russia has more oil than the whole middle east,and Indonesia is about to ';discover'; several oil fields(yeah i used the ';'; on purpose,cause they already know about those fields)
I think it's just a small step before they take over all the oil pipelines that feed Europe.
Remember, when the USSR was poor we could keep them under control, but as Russia they now have tons of money and oil.
While democrats like Pelosi and Reid are working overtime to weaken our country by not letting us get to our own oil, Russia is gearing up big and rich in oil.
We can never get off of oil. Even if we didn't use it for transportation, we'd still import billions of barrels for every other aspect of our lives. I wish more people were more educated on this subject. By demonizing the oil companies we are inadvertently undermining our economy.
For those with American public education, Georgia has oil, maybe not enough, but:
Oil - production: 1,979 bbl/day (2005 est.)
Oil - consumption: 13,400 bbl/day (2005 est.)
Oil - exports: 2,400 bbl/day (2004)
Oil - imports: 13,530 bbl/day (2004)
Oil - proved reserves: 35 million bbl (1 January 2006 est.)
Natural gas - production: 14.39 million cu m (2005 est.)
Natural gas - consumption: 1.8 billion cu m (2007 est.)
Natural gas - exports: 0 cu m (2005)
Natural gas - imports: 1.264 billion cu m (2005)
Natural gas - proved reserves: 8.147 billion cu m (1 January 2006 est.)
Georgian Minister of Defense is Jewish and holds double citizenship (Israeli-Georgian).There are more Jewish Ministers in Gergian governement. Israel was helping to train Georgian soldiers and delivered some airplanes and other armory.
Looks like Israel controls not only US government but other's contries too.
Georgia does not have that much oil. Still will be OPEC running the show. Don't think we should do much of anything as we have no right, with our actions in Iraq, it the pot calling the kettle black.
I just want to know why we need to butt into other countries business again, is it really in our best interest??? Are we going to have to send our troops over there to kill and be killed like in Iraq??
I think the world can't base it's judgment on economic needs and has to recognize Russia's legitimate interests
The price should down as Russia will drill and pump. They need the money right now.
Simple.
It will rise further.
Georgia has no oil, but it does have part of that pipeline.
Now people can see why we have to free ourselves from the oil dependency. It will go up
all of russia's oil goes to western europe. will have little effect here.
they will sky rocket.
Georgia has no oil. None whatsoever.
Is falling oil price good during a recession?
I was wondering if there are any downsides to falling oil prices during a recession? It seems like it would be a good thing since low oil prices would lower the price of goods which would encourage consumers to spend and boost the economy so on... Am I missing something?Is falling oil price good during a recession?
Canada's stock market still goes down when oil and gas prices go down. So Canada will see this as unwanted, even though individuals using those fuels will benefit. The vast majority of Canadians will benefit temporarily by dropping prices.
We all, Canadians, Americans, anyone else, will be hurt if dropping oil prices induce us to increase our consumption of our limited non-renewable resources. This will be after our current recession, but it will trigger our next recession, not because of falling demand but because so much money will be leaving the economy once again.Is falling oil price good during a recession?
Well........it is good in a way. A sort of ';economic stimulus'; if you will. However, it means the economy is very bad. I think for now on we should look at gas prices with a better understanding of what they mean. Yeah, 4.00/gas sucks, but it means the economy is at least doing ok. However, you will not get the typical American to appreciate such an idea. However, as you see sub $2.00 gasoline, it's obvious that something is inherently wrong with the economy.
i agree with u about the fact that lowing oil price will help lower the price of goods but u should also think that worker are losing their job and they are refusing to consume more and reducing their transportation expenses. i believe there is no point in decreasing oil price at this time a time where consumers are thinking about a way to get a job. we americans have spent significant sum of money on unnecessary war. we have to sit down and analyze how we can increase our employment rate in stead of appeasing us with a lower oil price. we needed that years ago not now. our economy stinks really bad.
It is good for everyone except the states that collect gas tax and it's not so good for the atmosphere..
it is good for oil-importing countries, and bad for oil-exporting ones.
Canada's stock market still goes down when oil and gas prices go down. So Canada will see this as unwanted, even though individuals using those fuels will benefit. The vast majority of Canadians will benefit temporarily by dropping prices.
We all, Canadians, Americans, anyone else, will be hurt if dropping oil prices induce us to increase our consumption of our limited non-renewable resources. This will be after our current recession, but it will trigger our next recession, not because of falling demand but because so much money will be leaving the economy once again.Is falling oil price good during a recession?
Well........it is good in a way. A sort of ';economic stimulus'; if you will. However, it means the economy is very bad. I think for now on we should look at gas prices with a better understanding of what they mean. Yeah, 4.00/gas sucks, but it means the economy is at least doing ok. However, you will not get the typical American to appreciate such an idea. However, as you see sub $2.00 gasoline, it's obvious that something is inherently wrong with the economy.
i agree with u about the fact that lowing oil price will help lower the price of goods but u should also think that worker are losing their job and they are refusing to consume more and reducing their transportation expenses. i believe there is no point in decreasing oil price at this time a time where consumers are thinking about a way to get a job. we americans have spent significant sum of money on unnecessary war. we have to sit down and analyze how we can increase our employment rate in stead of appeasing us with a lower oil price. we needed that years ago not now. our economy stinks really bad.
It is good for everyone except the states that collect gas tax and it's not so good for the atmosphere..
it is good for oil-importing countries, and bad for oil-exporting ones.
World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?
It would be more acceptable that the price of commodities really result of natural, unpredictable fluctuations on offer and demand, not on artificial factors?World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?
It's so freakin fixed it ain't funny. Boy am I on the wrong side of the equation...lol
Last time I checked the remaining reserves added up to about a trillion bbls at 42 gallons each or 42 cubic miles of crude. Currently using 1 cubic mile per year.....oh no 42 more years of this crap. At the current crude price I bet they'll find a lot more.....World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?
Great question!
Several reasons.
1) Increasing demand from developing countries like China and India. They are rapidly growing, and growth requires energy: oil.
2) Geo-political tensions in the oil producing countries. Iraq, Iran, and other middle eastern countries are politically unstable.
3) Natural disasters such as hurricanes, landslides, earthquakes, and tsunamis can destroy oil rigs and platforms and pipe-lines. It is hurricane season in the gulf of Mexico.
4) The strength of the dollar is falling. Weaker dollar means you pay more dollars for the same amount of oil.
5) And of course, the oil cartel dictates the price of oil.
It's so freakin fixed it ain't funny. Boy am I on the wrong side of the equation...lol
Last time I checked the remaining reserves added up to about a trillion bbls at 42 gallons each or 42 cubic miles of crude. Currently using 1 cubic mile per year.....oh no 42 more years of this crap. At the current crude price I bet they'll find a lot more.....World oil reserves are not dropping whilst oil price soars. What agent is responsible for oil price?
Great question!
Several reasons.
1) Increasing demand from developing countries like China and India. They are rapidly growing, and growth requires energy: oil.
2) Geo-political tensions in the oil producing countries. Iraq, Iran, and other middle eastern countries are politically unstable.
3) Natural disasters such as hurricanes, landslides, earthquakes, and tsunamis can destroy oil rigs and platforms and pipe-lines. It is hurricane season in the gulf of Mexico.
4) The strength of the dollar is falling. Weaker dollar means you pay more dollars for the same amount of oil.
5) And of course, the oil cartel dictates the price of oil.
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