When the opposition in the Third World War produces said commodity, they will use it as a weapon. The dollar, and the West, suffering a nonlinear assault far more dangerous than a few suicide bombers.
Suicide bombers can't beat the West. Oil can.
J
It's going to keep going up until y'all stop buying gas.
World demand is approaching 84 million barrels a day. World production is also about 84 Mb/d and can't be increased appreciably. Not a lot of slack.
It isn't supply and demand, it's greed. There is no reason that oil should be this high.
Could easily get to $80/brl by year-end.
Expect higher interest rates and the dollar losing more value to other major currencies. In the mean while all our tradable jobs are being exported oversee.
Where are all the democrats running around saying we could solve the problem if we just took oil out of the Strategic Petroleum Reserve?
Oh that's right, it's not an election year.....
And it's going higher. Next stop, $75 - expect it soon.
Natural gas is up too.
This winter may be quite interesting.
I just don't understand the reluctance of conservatives to support conservation measures. I know market forces will provide some of this, but higher fuel economy requirements will speed that along. This is quickly becoming a force that could drive us into recession again.
Why would a potential decrease in demand for crude oil, as would be expected if refineries go offline, drive crude oil prices up?
IMHO: This price run up is pure speculation and may be the result of someone tricking the market. Methinks the Rooshians and the Chicoms have something to do with it.
This has to be good news for domestic oil suppliers.
Nonsense.
Oh it might cause hardships such as a recession and force some needed but painful corrections (credit, housing overextension), but nothing near what would be considered 'beating the West'. Rising in oil prices sooner or later would reach the thresholds for the affordability of alternative fuels, such as shale oil and coal gasification, not to mention reaction alternavies such as shifts towards more coal and nukes for electric generation, changing consumer habits towards conservation, fewer driving vacations, more choosing transit, etc. We are a very diversified and resilient society. Change may not be easy, cheap, or painless, but there are usually plenty of options.
The speculation is killing us in many, many ways. There is a supply and there is a demand - this whole thing is a farce.
If you remember, it started its ride up during terrorist attacks on Iraqi oil pipes as an excuse to get it up over 40.. then we had hurricanes in Florida which was used as an excuse to get it up over 50 - now this.
The supply is there, we just have a bunch of rampant speculators who do not want to lose their money and keep pushing the prices up.
If we do not watch it, this is going to kill the economy AND the government will be turned over to the dems.. they will win the 2006 election and impeach bush the next day.
Unless somthing stops the way gas prices are headed (especially with interest rates going up, etc) - this spells really, really bad trouble.
My question is, does Bush care enough to do somthing about it. I am not talking about the strategic preserves either. that wont do jack.
Especially when there is almost no such thing as inventory but just in time delivery instead. This means that supply is carefully throttled by price like a control loop, if yer into engineering.
the only thing that can "beat the west" was enunciated by(attributed to) de Toqueville: America is great because America is good, and if America ever ceases to be good, America will cease to be great!
My elderly mother enjoyed visiting me regularly, she loved the drive down to my house and the drive gave her something to look forward to. But ever since gas has done through the roof, her visits have become sparingly. She is on a fixed income and I'm not a wealthy person either, we decided to take turns visiting each other since we both live a good 30 miles one way from each other homes. The price to fill up is slowly becoming burdensome on the pocket book. I hope we get some relief soon!
At what point does the production of crude oil from alternate sources such as tar sands and shale become economically viable?
I do believe we have abundent sources of both as does Canada.
As far as gasoline prices...there is wide variability between states in the east. Im thinking this is a matter of both taxes, proprietary state mandated blends, and some good old price gouging.
We do need more refinery capacity though...particularly in states which have special reqs on gas such as CA.
interestingly supply is still outpacing demand
gasoline stocks always fall this time of year and will continue to fall until mid September.
The insurance and taxes on my vehicles have gone up by a much higher percentage than the price of gas.
If gas gets over $3 a gallon I wouldn't be suprised if the democrats start running for the 2006 congressional elections on a platform of initiating price controls on gas to "stem the greed of the big oil companies" or some such nonsense. Of course many of the "joe six packs" will buy the price control nonsense hook, line, and sinker...