The High price of oil~~~explained?

[jmac00]

from Business week:

http://tinyurl.com/6d9u3v


it's all about speculation :confused:

[royc]

Why do you use tinyurl, instead of the original...

http://www.businessweek.com/lifestyle/content/jun2008/bw20080626_022098.htm?chan=top+news_top+news+index _news+%2B+analysis


Roy

[jmac00]

Why do you use tinyurl, instead of the original...

http://www.businessweek.com/lifestyle/content/jun2008/bw20080626_022098.htm?chan=top+news_top+news+index _news+%2B+analysis


Roy


I always copy to tinyurl (well, almost always) I just hate when it goes out 122 characters.

Is that a problem???

[royc]

I always copy to tinyurl (well, almost always) I just hate when it goes out 122 characters.

Is that a problem???

In your case maybe no, but when one hits a unknown url, one can download an executable, that could be harmfull.

Roy

[Snapperhead]

The price of oil is determined by the World Markets . I wish now I had purchased OIL stock 10 years ago :(

Whoever did .... is doing very well .

Oil is nothing but a commodity like wheat , corn ... etc

[jmac00]

the point is, there is plenty of oil laying around in STORAGE? it's NOT a supply problem, it's a speculation problem

[BigJon3475]

I can agree with that.......wouldn't suck to wake up one day and there is no more food in your home and none to be found anywhere......I would be speculating well before I ran out on what to do for food.

Oil makes the world go round.....I'd hate to see what happens when it runs out without proper preparation.

[desto1]

oil is high only because the dollar has no worth.it is the same reason commodities are going thru the roof like gold and copper,the dollar is devalued

[whec720]

oil is high only because the dollar has no worth.it is the same reason commodities are going thru the roof like gold and copper,the dollar is devalued

That's one of the main reasons. The Fed, which I despise of its existence, has lost all control of it. I think they are clueless as to what to do about it. Thus, the silence.

[BigJon3475]

So Americans still driving like gas is $.99 doesn't have anything to do with it?



I know if I had apples and they were .99 a bag.....and they were going like no tomorrow and I would run out....I'd raise the price till I saw it curb then drop it back down slightly.......guess who is selling the apples and who's buying them.....why not make more money if your product is needed more than you can supply.

[jmac00]

So Americans still driving like gas is $.99 doesn't have anything to do with it?



I know if I had apples and they were .99 a bag.....and they were going like no tomorrow and I would run out....I'd raise the price till I saw it curb then drop it back down slightly.......guess who is selling the apples and who's buying them.....why not make more money if your product is needed more than you can supply.


THATS THE PROBLEM, it's not a supply problem. It's a dollar valuation problem and a "FED" problem

[BigJon3475]

No.....they can supply more but it cost more to do it.....is there billions barrels of untapped oil.....yes.....it doesn't come out of the ground for free. It also can only come out so fast.......more than 8 billion people using it....has to be a lot of pumps....

The people that control oil are on a teeter totter system.....if they go to high we stop using.....if they go to low we use up their capacity.



What America is doing is using up what everyone else has then when it's all gone we have our reserves.....at least that much is obvious to me. The gov. knows the real numbers and they provide us with the worked numbers......in the end they will not be the ones to run out.....it will be the ones that didn't think to do the same thing......the greedy ones...in deserts.


At least that's my opinion I'm probably wrong as usual.

[Carnak]

That's one of the main reasons. The Fed, which I despise of its existence, has lost all control of it. I think they are clueless as to what to do about it. Thus, the silence.

Lol I was telling you guys about a drop in buying power months ago and of course I was full of it then

[Andy Schoen]

the point is, there is plenty of oil laying around in STORAGE? it's NOT a supply problem, it's a speculation problem





THATS THE PROBLEM, it's not a supply problem. It's a dollar valuation problem and a "FED" problem

If you think it's the former, you can make a fortune buying put options on oil futures. :) And then you wouldn't even care about the price of gas! :D

Unfortunately, the latter cause has no self-correcting mechanism. But if you think the dollar will further devaluate, then call options of foreign currency futures (I'd suggest euros) would be in order. ;)

[The Doctor]

Lol I was telling you guys about a drop in buying power months ago and of course I was full of it then

Yup, and ANYTHING that the American Enterprise Institute says is right and good. Especially when they carry water for the Fed. :D

Don't you know how to carry water, Carnak?

[The Doctor]

Meanwhile, back at the ranch ...has anyone else checked out the book called "The Creature from Jekyll Island"? Griffin is the author's name.

Oh yeah, oil....where were we? Devaluation of the dollar...anyone ever heard of Ron Paul? I thought he was saying something about this for the LAST TWENTY YEARS! Oh well, carry on mighty empire builders.

Better check that toner cartridge on the printing press, it's flashing low!!

[whec720]

Lol I was telling you guys about a drop in buying power months ago and of course I was full of it then

You were and, as I remember, I never disagreed with you on that. Don't lump me in the "you guys" category.

[Snapperhead]

Devaluation of the dollar...anyone ever heard of Ron Paul? I thought he was saying something about this for the LAST TWENTY YEARS! Oh well, carry on mighty empire builders.

Better check that toner cartridge on the printing press, it's flashing low!!are you saying when we run low on money , they just crank up the printing presses and make more ?

C;mon now , they wouldn't do that .... Why that would make the dollar useless .... oh wait :cool:

[whec720]

I guess I could be splitting hairs, but I remember the last thread on this very subject, I stated part of the problem was the weak dollar. You and I debated, but not about the dollar. It was about increasing domestic energy capacity and energy consumption habits.

www.hvac-talk.com/vbb/showthread.php?t=172338&highlight=Dollar

[Carnak]

was back around last september whec, the health care one, where at that point I said my buying power THEN had dropped a good 30 percent, because my money is fixed to the US dollar and we import everything. You were not being the stubborn one then, was someone else, my bad.

[jmac00]

If you think it's the former, you can make a fortune buying put options on oil futures. :) And then you wouldn't even care about the price of gas! :D

Unfortunately, the latter cause has no self-correcting mechanism. But if you think the dollar will further devaluate, then call options of foreign currency futures (I'd suggest euros) would be in order. ;)


I never understood option trading? for some reason, it's total mystery to me...other than being high risk

[whec720]

was back around last september whec, the health care one, where at that point I said my buying power THEN had dropped a good 30 percent, because my money is fixed to the US dollar and we import everything. You were not being the stubborn one then, was someone else, my bad.

It's cool. I suppose I'm a little cranky this morning, being out of coffee and all. Man, that is the worst.....Monday morning and no coffee.
Gotta hit the road in a half hour and will get my "fix" then.
Have a good one.:)

[BigJon3475]

http://video.google.com/videoplay?docid=3340274697167011147

:confused:

[oloenneker]

The real reason that Gasoline prices are high, can be directly blamed on "free market capitalization".

If the "market" can "bear" the price, so does the inflation of such item.


Morons in America like to drive big gas guzzling cars, with indifference to prior history, and cry like little babies when they get taken advantage of.

If we had learned from the 1970's and 1980's when there indeed was a movement to drive more fuel efficient cars, it was all supplanted by our own greed to have "bigger and better"....

You can thank the "Gipper" for all that non-sense. Look where it has landed us now?

[royc]

The real reason that Gasoline prices are high, can be directly blamed on "free market capitalization".

If the "market" can "bear" the price, so does the inflation of such item.


Morons in America like to drive big gas guzzling cars, with indifference to prior history, and cry like little babies when they get taken advantage of.

If we had learned from the 1970's and 1980's when there indeed was a movement to drive more fuel efficient cars, it was all supplanted by our own greed to have "bigger and better"....

You can thank the "Gipper" for all that non-sense. Look where it has landed us now?

Actually thats not the reason, and Americans are in denial about the real reason, I realize that oil manipulation has a bit to do with it, but if you want the real reason, all you have to look is at what gas used to cost in a stable currency.

In 1960 the price of gold was $35, today the same amount of gold is $928. On top of it all, gold has been manipulated and does not even reflect the real price if it was open. You can do the same with silver or any other valued metal.

You can only print so much money, until the party that takes it, realizes that it can no longer hold its value, and the more money you print, the more the value falls.

The problem is and always has, is private banking systems controlling the money, no fiat currency has survived ever, and unless we insist to our goverment to take matters at hand, and print real money, we are going to be in for a hard ride.

And as far as I can tell, neither presidential candidate has the stomach to do it, not to mention if it was attempted, chances are he wouldnt survive it.


Roy

[The Doctor]

There may be an extensive adjustment in our lifestyles that will seem unprecedented.
It's not the end of the world. It might take some people by surprise though.

The issue in the U.S. that partially drives the love of automobile is distance. It's a big country.
While I would agree with the premise of Oloenneker Hi Otto, that is we've chosen this situation, and that some are becoming uncomfortable, I would urge patience and allowing free market forces to do what they do best: high prices fix high prices. Granted, even the U.S. economy is not a pure free market.

But it seems that there are a lot of people who want the government forces to control the situation rather than let the law of scarcity (supply and demand) do what it will naturally do.

Just remember: we're from the government, we're here to help you.
You're safe now :eek:

Can you say hello taxes?

[Andy Schoen]

The real reason that Gasoline prices are high, can be directly blamed on "free market capitalization".

Oloe, I'm happy to see you are still around. Hope all is well, and I'll not quote you on your economic analysis concerning our high gas prices. ;)


Actually thats not the reason, and Americans are in denial about the real reason, I realize that oil manipulation has a bit to do with it, but if you want the real reason, all you have to look is at what gas used to cost in a stable currency.

Roy, remind me what we disagreed on in our past posts. Your thinking seems to closely parallel mine. :)

[Carnak]

Yup, and ANYTHING that the American Enterprise Institute says is right and good. Especially when they carry water for the Fed. :D

Don't you know how to carry water, Carnak?I am not a water bearer, I am afraid you lost me