Posted on 07/06/2008 12:08:46 PM PDT by decimon
ALGIERS (AFP) - OPEC president Chakib Khelil warned Sunday that oil prices will continue to rise because of the falling dollar, in an interview in the Algeria-News.
"The price of oil will rise again in the coming weeks. We have to follow the evolution of the dollar, because a one percent fall in the dollar means four dollars more on the price of oil," Khelil, who is Algeria's minister of energy and mines, told the independent daily.
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"I believe that 60 percent of the rise is due to the fall in the exchange rate of the dollar and to geopolitical problems, and 40 percent to the intrusion of bioethanol on the market," he said.
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(Excerpt) Read more at news.yahoo.com ...
Not many in the media covering this aspect are they? It’s not about shortages, it’s about the US fed printing too much money.
Maybe we have a warnign r two for the OPEC President like if there is no market for yur oil you will drive camels instead of solid siver cars...............
Reid and Pelosi have been working real hard since 2006 to implement their comprehensive energy policy. It also tells us lots about who might be pulling Obama’s strings. Certain currency manipulators seem to be closely related to the financing of the DNC. The ethanol farce is just one more sign as to how quickly things out of hand when the greed and stupidity over rule the free market.
Drill our own oil, watch the price fall.
The man is making a valid point. A point that is ignored by the media as well of the Fed as they keep lowering interest rates.
And what happened to all those Freepers that once cheered the devaluation of the dollar so that American markets would open up to the world? Fools.
Sinking dollar, rising prices.
Offshore drilling won’t reduce gas prices, stronger dollar will.
Offshore drilling is just election year BS.
Oh, big deal! Cheeze, what did they expect this guy to say: "Well, if the truth be known, we here at OPEC feel the rise in oil prices is just about over, and are bracing for a sharp market correction.'
Like Limbaugh said this kind of stuff isn't news, it's made-up "news" by the MSM.
Yeah. It's not like we can drill our way out of the problem. More supply never affects prices.
They are still cheering it.
Rising oil price = no end in eventual reduction of demand.
Some leadership we've had, where we've reached a point where some bathrob wearing freak named Ali Baba Cheatya Killya issues threats while slowly choking off America...
Fortress of America sounds better and better.
We should start doubling our food production, and start a national drive for energy Independence...Use imprisoned illegal aliens for farm labor to save fuel on farm machines...All we've really got to do is eat and drink and double the size of our military, double our food production, build nuke plants etc and start the national drive for energy independence...Only genuine allies like Australia will benefit...
All others that want to eat our food will pay 50 barrels of oil for a half dozen corn dogs. A T-bones will go for 60 barrels...With meat..150 barrels.
Get real. There has been no double demand increase. There has been a double inflation increase. Presidents of both parties over the past 30 years have not pushed offshore drilling. Offshore drilling is in the same category as reducing gas taxes for the summer. It's election year bullcrap.
Get real yourself.
I didn't see any threats. The headline contains the word 'warns' but the headline is from some editor with the job of producing catchy headlines.
time to go short...
Wow, I think you are one of the very few around here that actually understand the current situation.
First, that that devaluation of the dollar is having a great impact on the current price of oil.
Second, that Offshore Drilling will not solve our problems and is little more than election year window dressing.
Don’t you find it interesting that so many blame the Democrats for the Offshore Drilling ban while that ban was first signed into law by a GOP President and renewed 24 times by either or GOP President, a GOP Senate or a GOP House and Senate?
OPEC was complaining about the weak $US 35 years ago. It’s boilerplate.
You don't see any threats from the Mideast oil sultans?
Tell ya what, when it continues to go up and this country is brought to it's knees, because our leadership is at their never ending garden party behind locked gates, and your piece of the pie is reduced to a pan of macaroni and a Chinese made scooter...You can tell me all about not seeing any threats.
Are you talking about the current Offshore Drilling Ban.
Now, Let’s Review who has kept that Offshore Drilling Ban in Place since 1981.
Now let’s review each year since 1981 and see who it is that voted for and signed the renewual of the Offshore Drilling Ban.
1981 GOP President and a GOP Senate
1982 GOP President and a GOP Senate
1983 GOP President and a GOP Senate
1984 GOP President and a GOP Senate
1985 GOP President and a GOP Senate
1986 GOP President and a GOP Senate
1987 GOP President
1988 GOP President
1989 GOP President
1990 GOP President
1991 GOP President
1992 GOP President
1993 Dem President Dem House and Senate
1994 Dem President Dem House and Senate
1995 Dem President GOP House and Senate
1996 Dem President GOP House and Senate
1997 Dem President GOP House and Senate
1998 Dem President GOP House and Senate
1999 Dem President GOP House and Senate
2000 Dem President GOP House and Senate
2001 GOP President GOP House and Senate
2002 GOP President GOP House and Senate
2003 GOP President GOP House and Senate
2004 GOP President GOP House and Senate
2005 GOP President GOP House and Senate
2006 GOP President GOP House and Senate
2007 GOP President Dem House and Senate
Look up “price in-elasticity” and you will see why it takes only a small shortfall of supply to send oil prices skyrocketing.
Not in this article.
Ben Bernanke is a monetary slut.
“Sinking dollar, rising prices.
Offshore drilling won’t reduce gas prices, stronger dollar will.
Offshore drilling is just election year BS.”
Exactly and isn’t it fascinating that the closer to the election we get, the lower the dollar sinks. Now, what group benefits from that? Working class Americans? Middle class Americans? College elite liberals?
And rank and file Republicans wonder why the GOP will get smoked in November!!!!!!!!!
Eye opening!
But we are drilling our own oil now at full capacity and are booked up for years to come. So why is the price not doing what you claim it will?
No end to the rise in oil prices? OK...then how about an end to OPEC?
Drill here, Drill now. We are already producing 40% of our domestic need. With expanded expoloration and new extraction technologies, we should be able to get to 85-90% or even more. Get the tree huggers and enviro-whackos out of the way. Add refinery capacity. Develop nuclear energy for electricity. Incentivize R&D into new energy sources.
It’s well past time... (thanks, Jimmuh).
Yes, there is oil at Gull Island, but it is much like that at Endicott. It is an environmental nightmare.
The older part of the Prudhoe field has been running down the last ten years. When we first started, (1977) our production liner was 9 5/8, and we produced it with 7” tubing. Now it is down to 3 1/3” and we produce with 2 7/8 tubing.
Formation pressures have also fallen off drastically and we pump sea water into the formation to induce a flow. Which also causes further problems.
We can't make any more drilling rigs in a few years? More hand-wringing BS. We need to get off our collective duffs and get rollin'.
We'd have to find much cheaper methods of extracting the oil or we'd be using the more expensive oil while our competitors, like China, got the less expensive oil. That would be economic suicide.
You don't see any threats from the Mideast oil sultans?
Not in this article.
Oh, OK.
The dollar will never recover with dems running congress. Never.
No, we aren't.
A lot of things are not adding up, seems like there is oil everywhere and we are just not drilling it for some reason. The only thing that makes sense without getting conspiratorial is whacked out enviros doing the dirty work for the socialist dems.
Somebody please educate me. I thought a weak dollar only means rise in oil price in US domestic? But why do we see the rise of oil prices in other countries as well?
I’m no expert, but I seem to recall a thread a long time ago that said that Saudi (perhaps OPEC as a whole) only took U.S. $ for oil. (I think the thread was about them thinking of switching over to using the Euro).
Thanks. But if that's the case, I thought the country (whose currency is stronger compared to the US$) will pay cheaper price as now they have more US$ per one unit of whatever currency they have?
“....”The price of oil will rise again in the coming weeks. We have to follow the evolution of the dollar, because a one percent fall in the dollar means four dollars more on the price of oil,” Khelil, who is Algeria’s minister of energy and mines, told the independent daily....”
Do the math, how can 1%= a $4.00 increase in the cost of a barrel of oil? Even my bad math can not make any sense out of this crazy bastards claim.
$140 a barrell times 101%= $141.40, that is a change of $1.41 not $4.00.
Yeah - you would think that. I don’t know. Then I wondered how much oil the U.S. consumes - I knew we were number one. A search brought up the following. I kept the China info. in as well as that is a huge part of the increase I think.
*****
The United States continued unchallenged as the world’s single largest oil-consuming nation in 2007, using almost one fourth of the global total at a rate of 20.7 million barrels daily.4 But U.S. oil consumption was virtually unchanged for the third year in a row, as rising oil prices discouraged demand despite three years of steady economic growth.5
China increased its petroleum consumption by 5.5 percent in 2007, up from 7.3 million barrels per day in 2006 to 7.7 million barrels.6 It now accounts for nearly 9 percent of the world’s total oil use.7 Over the past decade China has nearly doubled its oil consumption,
So, on top of that, just the mere declaration that we will drill (by Congress) will not only have an immediately psychological impact on the price of oil (lowering prices), but strengthen the dollar as well.
So the question is - why not drill?
Our Democrats are pushing for Marxist Socialism - nationalize oil production. Step in and provide Socialist solutions to the devalued dollar, make everyone dependent on government for survival.
Is that a map of where Republican Presidents and Republican Congresses have voted for 25 of the last 27 years to keep the Offshore Drilling Ban in place?
As a general rule, costs of new technology tend to fall over time, as the technology matures. I believe the same would apply, to some degree, with new crude oil extraction techniques.
Regardless, there is a price point at which extraction processes are profitable. I submit that global markets, like crude, tend to factor in global availability along with global demand. Bringing additional supply into the marketplace would tend to push down prices. It might be that the downward price pressure would take prices below the breakeven of the new extraction process(es) but the supply/demand relationship would still be in play. Suppliers would withdraw from the market, supplies would fall, price would go up, suppliers would get back into the market at a profit point. There would, however, be an oscillation toward equilibrium.
The technology may need to be incentivized in some manner, for some period of time. I generally don’t support government participating in the marketplace, but this one may be an exception. Of course, the gubmint has pretty much screwed it up to this point.
I believe this is an important enough issue that we simply must move forward.
The fact that we currently produce a large portion of our crude oil needs still leaves a lot of oil to be sourced from beyond our borders. I’ve read that most of that oil comes to us from accpetable trading partners...Canada, Mexico, etc. However, to the extent that we are sourcing ANY crude oil from the Middle East, we are quite likely funding our enemy in the War on Terror. That is an untenable situiation, IMO. And may well be the strongest argument for developing additional domestic supplies.
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