Oil prices...

[AxlsMainMan]

Oil prices rise to near $133

THOMAS HOGUE

The Associated Press

May 26, 2008 at 7:06 AM EDT

BANGKOK ? Oil rose to near $133 (U.S.) a barrel Monday in Asia on persistent worries about global petroleum supplies and the outlook for the U.S. dollar.

The dollar has weakened over the past week after a modest recovery, and investors will be watching economic data out of the United States over the next few days for further clues about the world's biggest economy.

?The dollar's been swinging down again,? said Mark Pervan, senior commodity strategist at Australia & New Zealand Bank in Melbourne, and this is ?going to sway sentiment.?

Oil and other hard commodities are seen as hedges against a weakening greenback and inflation. Also, a weak dollar, the currency of international oil trade, makes petroleum less expensive to Asian and European buyers.

This week, investors will be watching for what implications U.S. consumer confidence, new home sales, gross domestic product and other economic data might have for the dollar and oil prices, Mr. Pervan said.

?It's a pretty price-sensitive week for economic data,? Mr. Pervan said. ?The data we're seeing out of the U.S. at the moment looks pretty weak. You'd expect that trend to continue, pushing further down on the dollar.?

Light sweet crude for July delivery was up 77 cents at $132.96 a barrel in electronic trade on the New York Mercantile Exchange. The contract had risen $1.38 to settle at $132.19 a barrel on Friday. Nymex floor trading is closed Monday for Memorial Day.

Prices got a boost when militants in Nigeria claimed they destroyed a Royal Dutch Shell PLC joint-venture oil pipeline and killed 11 soldiers. Nigeria is Africa's largest oil producer and a major supplier to the U.S. market.

Last week, a series of supply warnings rattled markets, and on Thursday a report that the International Energy Agency will lower its forecast of long-term global oil supply sent crude futures rocketing to an all-time high of $135.09 a barrel.

Investors are also worried about a growing squeeze on global diesel supplies as demand in China surges. Over the weekend, China's top economic planning agency again urged oil and power companies to make sure there are enough supplies for earthquake-hit areas and for the Beijing Olympics in August.

?They certainly want to have a buffer of supply ... so there's pressure on the upside from demand in Asia,? Mr. Pervan said.

The U.S. driving season officially began with the Memorial Day long weekend, and even if American demand for gasoline and diesel is lower than a year ago, it will still be stronger than it has been in recent month, he added.

http://www.reportonbusiness.com/servlet/story/RTGAM.20080526.woilprices0526/BNStory/energy/home?cid=al_gam_mostview

[Perfect Criminal]

The speculators are the effect not the cause.

Reminds me of a White Stripes song. 

[Smoking Guns]

Allowing more competition in the oil industry could be something the Gov't could promote.  We really have only 5 major oil companies and there is no incentive for them to not take the high profits.  It is close to a monopoly.

I don't really understand the economics but from what I understand, the oil companies are only part of the problem along with speculation and the weak dollar. Encouraging competition in the oil companies seems to me the exact wrong thing to do. I'd prefer if we were taking away incentives from oil companies, and putting the incentives into alternative energy sources, tax breaks to work at home, public transport - though it's probably far too late for that to make much difference to the infrastructure. Even in the unlikely case that we aren't contributing to global warming, it's a resource which is running out and causing stupid, expensive wars.

Even without government intervention, we're seeing the results of a non-competitive cozy kind of capitalism, where most people have been living comfortably for a few decades. But sudden shifts are part of capitalism (ex. the industrial revolution and industry/agriculture), some people gain, some people lose - people who moved to the suburbs and drove long distances to work with no alternative, but lived comfortably are pretty much going to be the losers now unless they adapt. That's the harsh reality of capitalism, it's of little use expecting the government to bail you out once it's your turn to suffer.

I'm not promoting a cap on oil prices, that would be unrealistic. A windfall profits tax where the revenue goes towards lowering prices is a possible solution.

I guess I don't understand windfall tax. Wouldn't that be money going from the companies to the government? Even if the gas tax was repealed, prices are rising by more than that in weeks, and it's only 18c/gallon. Gas isn't suddenly going to fall to $1.50. How would a windfall tax benefit consumers?

Tap, now that I have read this, it is very clear you have no understanding of economics.  Competition always drives down prices.  There is no competition right now.  First, what is the alternative fuel source right now in America?  Ethanol.  Is that available to everyone?  No.   Is a good alternative in the long run?  No.  So basically unless you have the subway, you need oil based fuel to travel far distances.  Lets talk about the "cartel" known as OPEC.  They are a regulatory body that governs most of the Oil we import.  People not in Cartel simply shadow the cartel as to what they are doing.  If they get too cheap, it doesn't matter or reflect at the pump, so its a non factor. 

The companies themselves, Exxon, BP, etc, have obligations to shareholders, first, consumers 2nd.  So they must keep trying to get record profits, which I understand, but we are dealing with a limited resource comming from a Cartel.  There is no free trade or competition for innovation.  This used to be what life was like in Cable TV.  Cable TV, like Charter Cable, would get rights to areas where only they could be in.  To a degree, that is still the case.  But guess what?  We now have a viable alternative to Cable TV.  Its called Dish Network, or Direct TV, or other Sattelite companies.  What happened when they came along?  Better deals and packages with Cable.  More channels, etc.  Competition helped and brought down prices.

Competition and free markets are good things.

[SLCPUNK]

Voting oilmen into the White House:

-Casino economy that yields a weak dollar
-International policies that create more unrest in oil rich areas

Peak Oil 101:

-Demand v Supply
-Oil more expensive/difficult to obtain

I hate to laugh at anybodies financial misfortune, as we've all had difficult times in our lives. But for those who continue to deny that Bushco (as well as their support of Bushco) created this mess, deserves everything they fucking get, and I have zero sympathy for them. This kid killing cowboy administration has ruined the dollar, and poked a stick in the hornets nest, inflating your cost at the pump. The same smug fools laughed at the very mention of peak oil, 100/barrel oil, and demand outstripping supply. They created strawmen to argue against, called names, and showed their asses, ignoring scientific method presented by geologists (that have been in the field well over 40 years.)

So, now here we are, pushing upwards towards 150/barrel on the back of a beaten down US dollar and these chumps still won't own up to getting fucked in the ass. The same bitches who call Carter every name in the book for promoting peace, want to adopt his failed policies at the gas pump, but are too fucking stupid to realize that either. That's totally laugh out loud fucking hilarious!

Finally, desperately denying any sense of reality, they are ready to ask big government to bail them out and set the price, so they can continue to live the American dream. An ironic twist for the free market chickenhawks, who turned out to be little more than a group pinko commie fags masquerading as Ronald Reagan Republicans.

Wonder if they will finally start peeling off their W stickers once we hit 5/gallon?

[Smoking Guns]

Voting oilmen into the White House:

-Casino economy that yields a weak dollar
-International policies that create more unrest in oil rich areas

Peak Oil 101:

-Demand v Supply
-Oil more expensive/difficult to obtain

I hate to laugh at anybodies financial misfortune, as we've all had difficult times in our lives. But for those who continue to deny that Bushco (as well as their support of Bushco) created this mess, deserves everything they fucking get, and I have zero sympathy for them. This kid killing cowboy administration has ruined the dollar, and poked a stick in the hornets nest, inflating your cost at the pump. The same smug fools laughed at the very mention of peak oil, 100/barrel oil, and demand outstripping supply. They created strawmen to argue against, called names, and showed their asses, ignoring scientific method presented by geologists (that have been in the field well over 40 years.)

So, now here we are, pushing upwards towards 150/barrel on the back of a beaten down US dollar and these chumps still won't own up to getting fucked in the ass. The same bitches who call Carter every name in the book for promoting peace, want to adopt his failed policies at the gas pump, but are too fucking stupid to realize that either. That's totally laugh out loud fucking hilarious!

Finally, desperately denying any sense of reality, they are ready to ask big government to bail them out and set the price, so they can continue to live the American dream. An ironic twist for the free market chickenhawks, who turned out to be little more than a group pinko commie fags masquerading as Ronald Reagan Republicans.

Wonder if they will finally start peeling off their W stickers once we hit 5/gallon?

I think my explanation uses a lot less "ifs, ands, or buts" and more facts about what really is going on.  OPEC was a cartel long before Bush.  Bush didn't create Hurrican Katrina that shot up price significantly the first time.  Is there some blame at his feet?  Sure.  There still is plenty of Oil on this planet.  Hell, there is more oil in Utah than in Iraq.  For now its the cheapest and easiest way to power your vehicle.  The technology is out there for more efficient cars, but those cars are very expensive as well.  Its just time we have another source for fuel that is just as good as oil.

[AxlsMainMan]

Oil Slips Just Below $130 a Barrel

By Brian Baskin

Crude-oil futures traded lower Tuesday, as traders took profits after a record-setting run last week.

Light, sweet crude for July delivery traded $2.40, or 1.8%, lower at $129.79 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $2.72 lower at $129.65 a barrel.

http://online.wsj.com/article/SB121189647308922781.html?mod=googlenews_wsj

[TAP]

Allowing more competition in the oil industry could be something the Gov't could promote.  We really have only 5 major oil companies and there is no incentive for them to not take the high profits.  It is close to a monopoly.

I don't really understand the economics but from what I understand, the oil companies are only part of the problem along with speculation and the weak dollar. Encouraging competition in the oil companies seems to me the exact wrong thing to do. I'd prefer if we were taking away incentives from oil companies, and putting the incentives into alternative energy sources, tax breaks to work at home, public transport - though it's probably far too late for that to make much difference to the infrastructure. Even in the unlikely case that we aren't contributing to global warming, it's a resource which is running out and causing stupid, expensive wars.

Even without government intervention, we're seeing the results of a non-competitive cozy kind of capitalism, where most people have been living comfortably for a few decades. But sudden shifts are part of capitalism (ex. the industrial revolution and industry/agriculture), some people gain, some people lose - people who moved to the suburbs and drove long distances to work with no alternative, but lived comfortably are pretty much going to be the losers now unless they adapt. That's the harsh reality of capitalism, it's of little use expecting the government to bail you out once it's your turn to suffer.

I'm not promoting a cap on oil prices, that would be unrealistic. A windfall profits tax where the revenue goes towards lowering prices is a possible solution.

I guess I don't understand windfall tax. Wouldn't that be money going from the companies to the government? Even if the gas tax was repealed, prices are rising by more than that in weeks, and it's only 18c/gallon. Gas isn't suddenly going to fall to $1.50. How would a windfall tax benefit consumers?

Tap, now that I have read this, it is very clear you have no understanding of economics.  Competition always drives down prices.  There is no competition right now.  First, what is the alternative fuel source right now in America?  Ethanol.  Is that available to everyone?  No.   Is a good alternative in the long run?  No.  So basically unless you have the subway, you need oil based fuel to travel far distances.  Lets talk about the "cartel" known as OPEC.  They are a regulatory body that governs most of the Oil we import.  People not in Cartel simply shadow the cartel as to what they are doing.  If they get too cheap, it doesn't matter or reflect at the pump, so its a non factor. 

The companies themselves, Exxon, BP, etc, have obligations to shareholders, first, consumers 2nd.  So they must keep trying to get record profits, which I understand, but we are dealing with a limited resource comming from a Cartel.  There is no free trade or competition for innovation.  This used to be what life was like in Cable TV.  Cable TV, like Charter Cable, would get rights to areas where only they could be in.  To a degree, that is still the case.  But guess what?  We now have a viable alternative to Cable TV.  Its called Dish Network, or Direct TV, or other Sattelite companies.  What happened when they came along?  Better deals and packages with Cable.  More channels, etc.  Competition helped and brought down prices.

Competition and free markets are good things.

Apparently I can't read either, because your reply has pretty much nothing to do with what I wrote.

[TAP]

Bush didn't create Hurrican Katrina that shot up price significantly the first time. 

Now it's the weather's fault. 

[Smoking Guns]

Bush didn't create Hurrican Katrina that shot up price significantly the first time. 

Now it's the weather's fault. 

Tap, read second part of that point or go to community college and learn something before you dribble any more on your computer screen.   

[TAP]

Bush didn't create Hurrican Katrina that shot up price significantly the first time. 

Now it's the weather's fault. 

Tap, read second part of that point or go to community college and learn something before you dribble any more on your computer screen.   

Ouch, that one hurt.....a lot. I'm really, really sorry that it's costing you so much more to drive, but it would probably be easier without the stick up your ass.

[TAP]

Voting oilmen into the White House:

-Casino economy that yields a weak dollar
-International policies that create more unrest in oil rich areas

Peak Oil 101:

-Demand v Supply
-Oil more expensive/difficult to obtain

I hate to laugh at anybodies financial misfortune, as we've all had difficult times in our lives. But for those who continue to deny that Bushco (as well as their support of Bushco) created this mess, deserves everything they fucking get, and I have zero sympathy for them. This kid killing cowboy administration has ruined the dollar, and poked a stick in the hornets nest, inflating your cost at the pump. The same smug fools laughed at the very mention of peak oil, 100/barrel oil, and demand outstripping supply. They created strawmen to argue against, called names, and showed their asses, ignoring scientific method presented by geologists (that have been in the field well over 40 years.)

So, now here we are, pushing upwards towards 150/barrel on the back of a beaten down US dollar and these chumps still won't own up to getting fucked in the ass. The same bitches who call Carter every name in the book for promoting peace, want to adopt his failed policies at the gas pump, but are too fucking stupid to realize that either. That's totally laugh out loud fucking hilarious!

Finally, desperately denying any sense of reality, they are ready to ask big government to bail them out and set the price, so they can continue to live the American dream. An ironic twist for the free market chickenhawks, who turned out to be little more than a group pinko commie fags masquerading as Ronald Reagan Republicans.

Wonder if they will finally start peeling off their W stickers once we hit 5/gallon?

Are you saying that the chickens have come home to roost? 

[SLCPUNK]

Fuckin A Wright.

[SLCPUNK]

Voting oilmen into the White House:

-Casino economy that yields a weak dollar
-International policies that create more unrest in oil rich areas

Peak Oil 101:

-Demand v Supply
-Oil more expensive/difficult to obtain

I hate to laugh at anybodies financial misfortune, as we've all had difficult times in our lives. But for those who continue to deny that Bushco (as well as their support of Bushco) created this mess, deserves everything they fucking get, and I have zero sympathy for them. This kid killing cowboy administration has ruined the dollar, and poked a stick in the hornets nest, inflating your cost at the pump. The same smug fools laughed at the very mention of peak oil, 100/barrel oil, and demand outstripping supply. They created strawmen to argue against, called names, and showed their asses, ignoring scientific method presented by geologists (that have been in the field well over 40 years.)

So, now here we are, pushing upwards towards 150/barrel on the back of a beaten down US dollar and these chumps still won't own up to getting fucked in the ass. The same bitches who call Carter every name in the book for promoting peace, want to adopt his failed policies at the gas pump, but are too fucking stupid to realize that either. That's totally laugh out loud fucking hilarious!

Finally, desperately denying any sense of reality, they are ready to ask big government to bail them out and set the price, so they can continue to live the American dream. An ironic twist for the free market chickenhawks, who turned out to be little more than a group pinko commie fags masquerading as Ronald Reagan Republicans.

Wonder if they will finally start peeling off their W stickers once we hit 5/gallon?

I think my explanation uses a lot less "ifs, ands, or buts" and more facts about what really is going on.  OPEC was a cartel long before Bush.  Bush didn't create Hurrican Katrina that shot up price significantly the first time.  Is there some blame at his feet?  Sure.  There still is plenty of Oil on this planet.  Hell, there is more oil in Utah than in Iraq.  For now its the cheapest and easiest way to power your vehicle.  The technology is out there for more efficient cars, but those cars are very expensive as well.  Its just time we have another source for fuel that is just as good as oil.

You don't read very well.

It's Bush's huge deficits that are pushing the dollar down. That is a FACT. This pushes the price of crude up for Americans. This has nothing to do with "Cartels", it has to do with simple economics. Something you are telling others to go to school for, but are completely oblivious about. Currency traders see this administrations actions as favoring a weak dollar, in particular the federal and trade deficits, and acts accordingly. As the dollar goes down, oil goes up, and you pay more at the pump and for your food.

Everything else, with perhaps the exception of peak oil, is secondary.

[SLCPUNK]

In fact Bush's socialized bail out of Wall Street, 200 Billion, has come home to roost as well. Every time you open your wallet at the gas station, you are paying for the money we printed out of thin air, and borrowed in order to prop up Bush's "Free Market" financial institutions.

Chumps.

[fuckin crazy]

It's Bush's huge deficits that are pushing the dollar down. That is a FACT. This pushes the price of crude up for Americans.

It pushes the price of everything up. Though, I hear the the American Eagle 1oz is a good buy these days ... if you live somewhere else.

[Perfect Criminal]

Voting oilmen into the White House:

-Casino economy that yields a weak dollar
-International policies that create more unrest in oil rich areas

Peak Oil 101:

-Demand v Supply
-Oil more expensive/difficult to obtain

I hate to laugh at anybodies financial misfortune, as we've all had difficult times in our lives. But for those who continue to deny that Bushco (as well as their support of Bushco) created this mess, deserves everything they fucking get, and I have zero sympathy for them. This kid killing cowboy administration has ruined the dollar, and poked a stick in the hornets nest, inflating your cost at the pump. The same smug fools laughed at the very mention of peak oil, 100/barrel oil, and demand outstripping supply. They created strawmen to argue against, called names, and showed their asses, ignoring scientific method presented by geologists (that have been in the field well over 40 years.)

So, now here we are, pushing upwards towards 150/barrel on the back of a beaten down US dollar and these chumps still won't own up to getting fucked in the ass. The same bitches who call Carter every name in the book for promoting peace, want to adopt his failed policies at the gas pump, but are too fucking stupid to realize that either. That's totally laugh out loud fucking hilarious!

Finally, desperately denying any sense of reality, they are ready to ask big government to bail them out and set the price, so they can continue to live the American dream. An ironic twist for the free market chickenhawks, who turned out to be little more than a group pinko commie fags masquerading as Ronald Reagan Republicans.

Wonder if they will finally start peeling off their W stickers once we hit 5/gallon?

We get it....you hate Bush.  No real need to keep bashing him here though.  I don't see any Bush lovers on this board (at least not by the things they post), and most people here agree he's been aweful.  We understand you really, really hate him.  The 10-15 people here all get that. 

It's a simple supply vs. demand thing also.  There is less demand because the cartel is holding back production.  Are you saying the cartels are blameless?  Why are they holding back production?  Because oil pumped tomorrow is worth more than oil pumped today.  That has to have a profound impact on the economy and the price of oil.

[SLCPUNK]

It's a dollar crisis, not an oil cartel conspiracy theory.

And it's not your dumbed down "bashing", it's pointing out the administration that has ravaged our currency for it's socialist version of "free market".

These are fundamental economic truths, and plenty of fiscal conservatives stand beside me in that regard.

[Perfect Criminal]

It's a dollar crisis, not an oil cartel conspiracy theory.

And it's not your dumbed down "bashing", it's pointing out the administration that has ravaged our currency for it's socialist version of "free market".

These are fundamental economic truths, and plenty of fiscal conservatives stand beside me in that regard.

Just so we're clear....supply and demand and the cartels have nothing whatsoever to do with the oil prices going up?

[SLCPUNK]

It's a dollar crisis, not an oil cartel conspiracy theory.

And it's not your dumbed down "bashing", it's pointing out the administration that has ravaged our currency for it's socialist version of "free market".

These are fundamental economic truths, and plenty of fiscal conservatives stand beside me in that regard.

Just so we're clear....supply and demand and the cartels have nothing whatsoever to do with the oil prices going up?

That has to have a profound impact on the economy and the price of oil.

If you actually read my posts, you'd see where I said supply and demand have a part in it. You even quoted it, which shows you aren't reading what I wrote.

Much of the world is paying much less than we are for a reason, and it has nothing to do with your Oil Cartel.

How could that possibly be?

[Perfect Criminal]

It's a dollar crisis, not an oil cartel conspiracy theory.

And it's not your dumbed down "bashing", it's pointing out the administration that has ravaged our currency for it's socialist version of "free market".

These are fundamental economic truths, and plenty of fiscal conservatives stand beside me in that regard.

Just so we're clear....supply and demand and the cartels have nothing whatsoever to do with the oil prices going up?

That has to have a profound impact on the economy and the price of oil.

If you actually read my posts, you'd see where I said supply and demand have a part in it. You even quoted it, which shows you aren't reading what I wrote.

Much of the world is paying much less than we are for a reason, and it has nothing to do with your Oil Cartel.

How could that possibly be?

I know the cartel's home countries pay less, but most of Europe pays way more.

Our goverment has kept the cost of gas artifically low.  Here's a list of the top tier:

Norway $8.73
United Kingdom $8.38
Netherlands $8.37
Monaco $8.31
Iceland $8.28
Belgium $8.22
France $8.04
Germany $7.86
Portugal $7.84
Italy $7.73