These oil prices are going to make a difference in November. Elements opposed to the president seek to manipulate market fears by driving oil prices through the roof. It now appears $50/bbl will be reached before Labor Day.
That will not be good for the leader of the free world. Like a rocket exiting the earth's atmosphere and suddenly finding less resistance, at these lofty levels oil prices have no gravity to slow them down.
Leadership should prepare contingincies to hamstring these foreign-financed traders by impelementing special powers permitted under the current Homeland Security structures. This would merely be a 21st century version of the Hunt Brother's treatment and completely legal under U.S. law.
Without aggressive action on this issue the opposition will circle the bases on this one. The dollar just a AA fastball now and the oil market drawing them in like the cheap seats in right field during BP......
J
Like what Einstein?
But thankfully the caribou are safe up in anwar
Out here on the Left Coast, last weekend I saw non-Arco, non-indie gasoline at $1.99 for the 87, $2.07 for the mid-graade (89), and $2.17 for the Super (91).
So oil prices are going up, the Dow is going down, and I am actually SAVING money on my gas?
Interesting.
My theory is that it's the same as a supermarket sale...when you lower the prices, the consumer gets what it wants (more product), the producer gets what it wants (money), and everyone's happy.
However, my guess on the Fraudcast Lamescream Media's spin on this is:
---low gas prices, high oil prices = disaster for stock market.
---low oil prices, high gas prices = disaster for families and businesses, children can't eat...
I don't watch the FLM anymore, so I would not know.
Yet, the self-service regular unleaded is in the low $1.90's in So Cal which is the lowest it's been all year...
Correct if I'm wrong, but don't these service stations price their fuel by what they anticipate what they will have to pay for their next order???
So if that be the case wouldn't it seem that the price of crude has "topped out?"
TS
disclaimer: I am not a broker nor a salesman; commodities dealing is for the experts and the extremely foolish; options on said commodities ... well, add another extremely . . .
Damn good thing the price didn't keep up with inflation, HUH?
Go Bush Go!!!
46.12 right now
Why now? Probably because 1) The cost of security for shipping oil is significantly higher 2) Risk to shipping is much higher 3) We are filling the SPR because of 1&2 (good idea) 4) world demand is higher because economies are recovering.
As for gasoline prices, I suspect the summer production ramp is done and refineries have switched over to heating oil. That is why oil is going up but gasoline prices don't seem to. Probably need to look at heating oil cost to gauge the impact of current oil prices. Considering this summer has been very cool in most of the lower 48, a cold winter could have a negative impact on the US growth rate. Maybe we should lobby for some global warming? Hello Gore?
Bottled water climbs to $600 per barrel.
Good news in a way. This will enforce energy conservation in a manner that no amount of being yelled at by government nannies could possibly achieve, and open up the quest for alternative forms of energy.
Mine the continental shelf for deposits of methane hydrate, extract the methane from the amorphous crystals, compress the methane to liquified natural gas, and transport this fuel source to ports. Automobiles will run perfectly well on methane, and if in liquified form when it is used to fill the storage tank, could be a satisfactory substitute for gasoline or Diesel fuel. Clean-burning, very low CO2 emissions, easy starting under all weather conditions and with relatively high energy content per pound of fuel.
It does take a considerable amount of energy to compress natural gas to liquid form, and refueling would at first seem to be a serious limitation. But swapping out of tanks at a refueling station, similar to what is done for propane tanks for something like a gas grill, should be a feasible technique. How much energy does it take to refine petroleum into its fractions? How complicated is the transport of the crude and refined products? Technology solved those problems, it can solve these problems.
Some day we may use hydrogen fuel cells to drive our personal transportation vehicles. Until that day comes, this makes a good interim engineering solution.
$50 ........ anybody ?
And the US$ downgraded as a B+ junk bond...
Time to start using the "C" word.
The pocket book voters are going to vote socialist with this type of economic news coming out. They will look at the jobs report and go, duh, we got to elect the communist Kerry to FIX everything as he has promised he would do. //sarcasm off//
Also, Russian oil giant Yukos is locked in a battle against bankruptcy in that country's courts over a disputed $3.5 billion back-tax bill.
This is true except for the fact that Putin has guranteed continued selling of oil which has actually increased.
Problem is, Saudies can not hold to their promises because they can not pump more. Iraq sold some oil which is no longer the reality...but the main problem is China...China is doing mass industrialization all out of proportion to market demands...again the facists who run it have very limited understanding of markets and market demand...so they over produce and in so doing drive up prices of all commodities...which drive up prices of other market goods...but at the same time it drive down returns...they also do not seem to get that in bankrupting the West, they in turn assure own destruction. This is for the reason that few Chinese able to buy the crap they make....as such they must rely on others who can.
A smart (none x-communist come facist) Chinese leaders would assure that their population able to buy own goods and thus make own driving force and demand, not just rely on other nations, which go bankrupt in debt.