Oil Prices Greatly Extended, Expect a Significant Pullback

Discussion in '2008 Archive' started by I Am Blessed 24, May 24, 2008.

  1. I Am Blessed 24

    I Am Blessed 24
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    Tuesday, May 20, 2008 8:05 AM
    By: David Frazier

    Oil prices spiked to another all-time (intraday) high on Friday, as the Federal Reserve pumped more money into the economy and the U.S. dollar resumed its decline against other major world currencies.

    Although members of Congress continue to blame OPEC for not supplying enough oil to the market, the chart below clearly illustrates that the available supply of oil has been more than enough to meet demand over the past few months.

    THE REST OF THE STORY INCLUDING A GRAPH
     
  2. Revmitchell

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    Fienstien and Finegold spent time attacking oil execs the other day accusing them of intentionally holding back production in order to raise prices. They really made a fool of themselves. In the end it was just an attempt to deflect the fact that the rise in oil prices are a result of liberal environmental policies that has stopped much drilling and refining.
     
  3. dragonfly

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    Do you have any proof of these allegations?
     
  4. Crabtownboy

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    Whine, whine, whine. You can start whining when gas prices in the US equal those in Europe. :laugh:
     
  5. Revmitchell

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    It was on cspan. I watched it did you?
     
  6. I Am Blessed 24

    I Am Blessed 24
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    The high gas prices are keeping me from visiting my grandchildren this summer so I can whine NOW! :tear:
     
  7. Revmitchell

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    The fuel prices in Europe are self inflicted due to excessive and unnecessary taxes. Apples and Oranges.
     
  8. Pastor Larry

    Pastor Larry
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    Why?

    I think the gas prices are inflated due to speculation on the futures market. If people would quit buying up the price of gasoline futures, prices might go down.
     
  9. Revmitchell

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    That is what the oil execs said to their congressional lynch mob the other day. They also said other causes were the bottleneck created in this country due to a lack of refineries, uncertainty in the middle east, the need to import it from so many other resources, and higher demand around the world. They did also assert that fuels like ethanol helped to decrease the price but its impact was almost insignficant.
     
    #9 Revmitchell, May 24, 2008
    Last edited by a moderator: May 24, 2008
  10. Pastor Larry

    Pastor Larry
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    I saw a report that said that ethanol costs more to make than it is worth, and uses more natural resources.
     
  11. Revmitchell

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    The oil execs were not speaking to that only answering the question of Dems who were trying to paint them as at fault for rising oil prices so as to deflect their own culpability. It is true that as far as oil prices go it helps decrease costs although not very significantly. But the price of making it out weighs the effect it has on oil prices.
     
  12. I Am Blessed 24

    I Am Blessed 24
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    I saw the same report.

    What about this new device you can buy and put on your car and it will allow you to mix water and gas and get more 'bang for your buck' (or miles per gallon)?
     
  13. dragonfly

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    No, but thank you for the information. Maybe I will be able to see it there later.
     
  14. billwald

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    Two comments. First, as noted in the Economist, the price of oil can't be a "bubble" because the typical bubble involves demand caused by hoarding. Trades on the commodity boards only trade IOUs, not physical stuff.

    Second, the statement in the IP confuses wholesale and retain supply& demand. Per any elementary econ text, prices should rise until profits (not sales) fall. Lots of people are buying $4 gas. Why should retailers lower their prices?

    Further, most gas stations make their profits from beer and ciggybutts. They only sell gas to get you into the store thus they don't care how much gas you buy as long as you come in the store.

    Also consider that in many areas every brand of gas comes from the same wholesaler.

    Logically, how can prices not be fixed in small towns where the station owners know each other as neighbors? Is there any other product which is sold for less than people are willing to pay except for loss leaders? Gas as a loss leader? Fat chance of that!
     
  15. billwald

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    >Originally Posted by Pastor Larry
    >I saw a report that said that ethanol costs more to make than it is worth, and uses more natural resources.

    Worth to whom? The taxpayers give the alky manufacturers 50 cents a gallon for making the stuff. It's a shame to waste all that moon shinel as car fuel.
     

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