Oil surges to $66 a barrel ... Reported on Drudge

Drudge ^ | 08/11/2005 | Unknown

[DownInFlames]

Oil surges to $66 a barrel ... Developing

[Eagles Talon IV]

Markets all surged in the final hour so it apparently is not to important to the traders who seem top be seeing something not very obvious to the masses.

Dow up 90

NASDAQ up 17

S&P up 9

[Eagles Talon IV]

"US Govt can buy or sell as many as they like from the Fed depending on how much money they want there to be at any given time."

Damn! I wish I could do that.

[Dane]

You missed my point. The so-called "oil crisis" began long before 1973. Check out the price of oil and the value of the U.S. dollar from 1969-1973

And you missed the point that your "the military is using all the oil" theory is all wet.

[mississippi red-neck]

Good, maybe people will start conserving

Yeah they could stay at home and go on welfare since it no longer pays them to go to work.

Then all these small and large businesses that depend on deliverers could go out of business just think of the gas that will save.

The people can turn of their home utilities they can no longer afford, They can quit buying those groceries which fuel prices have driven so high.

What American workers need to do is pick out about five days and stay at home and let the politicians in Washington realize that they have obligations other than making themselves and their rich corporate buddies richer by bleeding American working class.The oil companies are the worst.

Our Government leaders and their partners in crime are bleeding us at the pumps and then they take billions of our tax dollars and pour into their already bulging pockets on the other end and call it an energy bill.

This was never about shortages or a non existent free market, only about pure unadulterated extortionist greed.

[HangnJudge]

http://www.eia.doe.gov/emeu/cabs/china.html
Oil Demand in China

http://www2.chinadaily.com.cn:80/english/doc/2004-10/07/content_380099.htm
China Daily analysis

http://www.cbc.ca/news/background/oil/supply_demand.html
Multiple good sources of data including

Oil demand by country (in millions of barrels/day)
Country 2000 2001 2002 2003 2004
USA 19.70 19.65 19.76 20.03 20.52
China 4.80 4.92 5.16 5.55 6.63
Japan 5.61 5.53 5.46 5.58 5.44
Former Soviet Union 3.90 4.30 4.11 4.18 4.16
Germany 2.77 2.81 2.72 2.68 2.67
India 2.05 2.10 2.10 2.20 2.30
Canada 2.03 2.04 2.08 2.19 2.29
France 2.00 2.05 1.98 2.06 2.04
UK 1.76 1.72 1.77 1.72 1.86
Total World 76.95 78.10 78.44 79.89 82.63

Sorry, I don't do charts yet in HTML

[Eagles Talon IV]

$105 bbl for delivery when? remember that the prices you are seeing are for delivery in coming months and that price may not actually be paid by the refiner.

I saw an interview with the CEO of SW Airlines a few weeks ago and the moderator ask him how, in the face of these oil prices can his airline continue to be so very successful qtr after qtr. His answer was interesting. He said his company had hedged the purchase of the needed Aviation fuel based on oil priced at $28.00 bbl and they were covered all the way out to 2015.

[AdamSelene235]

The Mandrake Mechanism-(How the Fed Creates Money)

[Eagles Talon IV]

Commodity prices, in this case oil, are emotion driven. There is no factual reason for oil to be at $66.00 bbl but because the speculators THINK weather will cut refining capacity and they THINK the terrorists will cause disruptions and they THINK China's demand and ours also will continue to increase they keep bidding up the future price of the commodity. But this can work both ways, When you start to see the "experts" calling for $105.00 bbl oil and this year yet then I believe the end is near for this run up.

[NathanBookman]

blah, blah, blah. start your own oil company then. car pool, take public transportation, buy a horse, spend less on booze and hookers.

[Blzbba]

" And yes, my name is a tribute to that great actor Johnny Brown."


Excellent. What a great show 'Good Times' was. Too bad they wouldn't even dare to show it today.

[Fitzcarraldo]

Thank you - good sources and now bookmarked.

[simon says what]

Commodity prices, in this case oil, are emotion driven. There is no factual reason for oil to be at $66.00 bbl

Commodity prices are supply/demand driven. The world needs xxx amount of oil per day and there is xxx amount per day pumped out of the ground. Demand has been growing faster for oil due to the emergence of China, India, SUV gas mileage, etc. Supply is constrained because the major oil fields are either in decline or pumping at maximum capacity. Hurricanes, terrorism, and any other risk associated with further limiting of supply will drive the price up but that is a supply driven issue....not an emotion driven issue.

[The Last Rebel]

"I take it you must be < 20 as anybody who lived through the 1970's know you ain't seen nothing yet ;) "

I was a mere child during that time myself, but I remember watching the news every night and seeing the lines at gas stations. One of those things you remember and don't know why.


TLR

[bobdsmith]

Dear God we are all going to die! Quick does anyone have the number to a company that sells bunkers? and tinfoil - i need lots and lots of tinfoil.

[gogogodzilla]

I don't think it'll reach $105 per barrel this year... but I do think it's a good possibility that it might reach $80-$90 per barrel.

I don't hear much about oil companies actually expanding production or building refineries. Until they do, oil prices will continue to rise. There's no other way around it (increased demand + static supply levels = higher prices).

[tobyhill]

"Commodity prices are supply/demand driven."

Commodities are supply and demand driven but in oils case it's mostly speculative driven. The speculators, brokers, traders and investors in oil have learned the trick of pump by fear and that's exactly why no matter the amount OPEC can pump there will be bad data to counter the increased production. In this capitalistic society it's a perfectly acceptable form of profiting. Advertise the bad data on the MSM day after day and you get your increased bid price. If all the bad news about oil in the past two years was for real then right now there would be stations unable to have a gas inventory but I haven't seen even one. Things aren't great by any means but they probably aren't as bad as the speculators are making it out to be either. After Labor Day there will probably be about a 10%-15% sell off and profit taking.

[gogogodzilla]

You're right that alternative fuels are now profitable. The Alberta tar sands and coal gasification come to mind.

Yet, I've not seen any news about any company doing anything about it.

So, until some company actually does something about it, the prices will continue to rise.

[oldfarmer]

This is the first week that I've really felt the pinch of higher prices. We used to be able to fill up our little car (a Saturn) for $10-12; today it cost me over $20!

[RightWhale]

In light of this profiteering or whatever is going on, how does the concept of free enterprise figure in? Is there some kind of ring or cartel that is more powerful than Congress? Can't FedGov spring us loose from this worldwide business? Even though we import some 60% and that number seems to only increase.

[tobyhill]

Good questions. The Energy Lobbyist are more powerful than our congress because most of our representatives have personal investments in the energy, oil and gas sectors. The other problem of our government is that a reduction in gasoline is a reduction in the 18.4 cent a gallon tax and then the big highway bill gets shortchanged. Based on the current cost of gas, it's like an 8% federal tax and with that in mind the government really could care less where they get the gas from because they get their share