Oil prices...

[SLCPUNK]

What has happened in the middle east?

Are you serious?

The dollar is weak. This is not a "theory" it's economics 101.

Here's a question for you. Oil demand has gone down in America lately because of gas prices, yet demand has gone up in other countries at the same time. Why is that?

[Smoking Guns]

What has happened in the middle east?

Are you serious?

The dollar is weak. This is not a "theory" it's economics 101.

Here's a question for you. Oil demand has gone down in America lately because of gas prices, yet demand has gone up in other countries at the same time. Why is that?

Again, gas was $1.87 last year when the middle east was more volatile.
What countries exactly has gas demand risen?  India and China right?  The numbers are not reflecting accurately what is going on with supply and demand. If our demand is dropping, an India or Chinese increase is somewhat negated.  Why don't people ever think gas prices are what they are because people are still willing to pay for it?  Now that is economics.

[Dr. Blutarsky]

Saudi calls for talks; oil experts see no change

By DONNA ABU-NASR, Associated Press Writer 54 minutes ago

RIYADH, Saudi Arabia - Saudi Arabia will call for a summit between oil producing countries and consumer states to discuss soaring energy prices, Information and Culture Minister Iyad Madani said Monday.
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The kingdom will also work with OPEC to "guarantee the availability of oil supplies now and in the future," the minister said following the weekly Cabinet meeting, held in the seaport city of Jiddah.

Madani said that the kingdom has informed "all oil companies it deals with as well as countries that consume oil that (the kingdom) is ready to provide them with any additional oil they need."

"The Saudi Cabinet has instructed Oil Minister Ali al-Naimi to call for a meeting in the near future that will include representatives of oil-producing countries, consumers and companies that work in extracting, exporting and selling oil to look into the price hike, its causes and how to deal with it," said Madani.

The Saudi announcement comes just three days after the biggest single-day price leap ever, when oil surged more than $11 to surpass $139 per barrel.

Retail gas prices rose further above $4 Monday in the United States, the world's largest oil consumer, following the unprecedented price rally.

The kingdom will work to ensure there will be no "unwarranted and unnatural oil price hikes that could affect international economies, especially those of developing countries," said Madani.

"There is no justification for the current rise in prices," he said.

On Monday, light, sweet crude for July delivery fell $4.18 to $134.36 a barrel in volatile trading on the New York Mercantile Exchange.

"It's not a situation that's going to move the market today," said Phil Flynn at Alaron Trading Corp. in Chicago, suggesting that there it might have a more long term effect. "I do think a conference is warranted, we need to sit down."

Jim Ritterbusch, president of the U.S.-based energy consultancy Ritterbusch and Associates cautioned that such meetings have taken place in the past and could be more an effort to calm the market without taking concrete measures.

"It's not anywhere near as significant as if they called an emergency OPEC meeting," he said. "It seems to me to be more political than anything ... They're reaching their worry threshold."

The Saudis are concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting them in the long run.

Investors last month shrugged off news that Saudi Arabia had increased production by 300,000 barrels a day after a visit from President Bush, who sought a major production increase.

Energy experts say most producers have little ability to expand output. The exception is Saudi Arabia, which is producing about 9.4 million barrels a day and has the ability to increase production by about 2 million barrels a day, but has not done so.

"In the current circumstances, every barrel that can be used is being used," said Addison Armstrong, director of market research at Tradition Energy. "Unless the Saudis and OPEC suddenly produce some oil that nobody has heretofore known about, then this meeting is likely to produce no meaningful outcomes."

The current president of the Organization of Petroleum Exporting Countries, Chakib Khelil, has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna.

http://news.yahoo.com/s/ap/20080609/ap_on_bi_ge/saudi_oil

[SLCPUNK]

Why is it a shock to anybody that we have high oil prices with a group of Oil Men in the White House?

The same group who advocate a weak dollar and never ending war on top of one of the largest oil reserves on the planet.

[Smoking Guns]

The Saudis are always the last to perform to capacity.  Historically they are the member that wants to restrict out put to increas the price per barrell.

[Smoking Guns]

Why is it a shock to anybody that we have high oil prices with a group of Oil Men in the White House?

The same group who advocate a weak dollar and never ending war on top of one of the largest oil reserves on the planet.

I thought it was China and India.  So  now its back to Bush.  How about the duty to the stock share holders of these companies?   SLC, you give us a new reason every day as to why gas is so high.  I have been saying since day one, its about the money.  And its like this on purpose.  And its not so much supply vs. demand.

[SLCPUNK]

I thought it was China and India.  So  now its back to Bush.  How about the duty to the stock share holders of these companies?

What is wrong with you? Reading comprehension is not your forte huh?

I've outlined it all in this thread. There are many factors, some are cause some are effect.

If I chose to post one or two, that does not negate the others.

You can get your panties in a wad over these big bad men coming to rip you off, or you can look at the whole enchilada. Or, you can choose to be willfully ignorant. It's up to you.

  SLC, you give us a new reason every day as to why gas is so high.   

On the contrary, I've been saying the same thing the entire time you inane moppet.

[Smoking Guns]

SLC, we agree there are many factors. 

The 3 biggest are the following:

World Wide Supply, Demand, and competition of Crude are the biggest factors.  As crude goes up, so does the price of Gasoline.  Remember, since we are dealing with a cartel, supply and demand are not always accuratley reflected.  Also speculators driving up the price of crude is also a factor as of late.  Bush would be a "small" factor.   

[TAP]

The cause of increased barrel prices NOW is speculation of shit that ISN'T happening....

Based on what happens in currency markets, in particular our dollar, and middle east tensions (policy). That drives speculation.

You are putting the cart ahead of the horse.

What has happend i the middle east in the 6 years we have been there that affected Oil?

The Dollar has been getting stronger lately, so there goes that theory. 

Middle East tensions:

"if Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective. Attacking Iran, in order to stop its nuclear plans, will be unavoidable." - Israeli Transport minister, last Friday.

Dollar vs Euro:

[Smoking Guns]

The cause of increased barrel prices NOW is speculation of shit that ISN'T happening....

Based on what happens in currency markets, in particular our dollar, and middle east tensions (policy). That drives speculation.

You are putting the cart ahead of the horse.

What has happend i the middle east in the 6 years we have been there that affected Oil?

The Dollar has been getting stronger lately, so there goes that theory. 

Middle East tensions:

"if Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective. Attacking Iran, in order to stop its nuclear plans, will be unavoidable." - Israeli Transport minister, last Friday.

Dollar vs Euro:

They should wait till after Israel bombs Iran to raise prices.  They have been doing this shit for a while.  Just like they do with hurrican season, then no hurrican comes.    The dollar is coming back.   its value is increasing (even if a small amount) yet the price still going up.  Must not have THAT huge of an impact.

[SLCPUNK]

The dollar may fluctuate in currency markets, but as long as we have a trade deficit in the trillions, it's going to take a beating.

[Smoking Guns]

The dollar may fluctuate in currency markets, but as long as we have a trade deficit in the trillions, it's going to take a beating.

agreed.

[SLCPUNK]

  I have been saying since day one, its about the money.  And its like this on purpose. 

I don't understand.

In one thread, you bash the working poor, yet here, you come off like a whiny bitch over gas prices.

Why not take some of your own advise,  work harder, maybe go back to school, and quit looking for a fucking handout.

[polluxlm]

Demanding money the government steals from you is not looking for a handout. They're the ones wanting and receiving handouts.

[TAP]

  I have been saying since day one, its about the money.  And its like this on purpose. 

I don't understand.

In one thread, you bash the working poor, yet here, you come off like a whiny bitch over gas prices.

Why not take some of your own advise,  work harder, maybe go back to school, and quit looking for a fucking handout.

I think it doesn't count if it's in a different thread.

[Smoking Guns]

  I have been saying since day one, its about the money.  And its like this on purpose. 

I don't understand.

In one thread, you bash the working poor, yet here, you come off like a whiny bitch over gas prices.

Why not take some of your own advise,  work harder, maybe go back to school, and quit looking for a fucking handout.

Collusion and Monopolies are wrong, just like being a lazy fuck is wrong too.

[Dr. Blutarsky]

This is one bill I side with the Dems on....

Democrats' Oil Windfall Tax Plan Fails in Senate Vote

Tuesday, June 10, 2008



WASHINGTON  ?  Senate Democrats failed to gain enough votes on an energy bill that would have imposed higher taxes on oil companies, which are making record profits as oil and gasoline costs continue surging higher.

Republicans led a charge against the tax, saying it would tinker with the market and lead to suppressed oil supplies at home, and wouldn't bring in the money as planned.

The bill, which needed to pass the preliminary vote by a margin of 60 or better, failed 51-43.


The bill also would have rescinded $17 billion in tax breaks the companies expect to enjoy over the next decade.

"The oil companies need to know that there is a limit on how much profit they can take in this economy," said Sen. Richard Durbin of Illinois, the Senate's No. 2 Democrat, warning that if energy prices are not reined in "we're going to find ourselves in a deep recession."

The five largest U.S. oil companies earned $36 billion during the first three months of the year.

Majority Leader Harry Reid, D-Nev., without the 60 votes he needed, switched his vote to "nay," so he could bring up the bill later. But the bill is essentially dead for now.

Only last week, Reid was forced to withdraw a measure aimed at addressing global warming, falling short of the 60 votes needed to advance that legislation.

The Democrats' energy package also would have:

? Made oil and gas price gouging a federal crime, with stiff penalties of up to $5 million during a presidentially declared energy emergency.

? Authorized the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.

? Required traders to put up more collateral in the energy futures markets to curb speculation.

Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."

Oil executives, testifying before Congress last month, called the proposed taxes "punitive" and warned that they would discourage domestic oil and gas exploration and production, possibly causing prices to rise instead of fall.

The American Petroleum Institute, which represents the major oil companies, has been reminding lawmakers that in the early 1980s, when the government imposed windfall profits taxes on oil companies, domestic oil production dropped and imports increased.

But Democrats rejected the comparison.

The Senate proposal would impose a 25 percent tax on profits over what would be determined "reasonable" and would allow oil companies to avoid paying the tax if they invest the money in alternative energy projects or refinery expansion.

The tax breaks that would be rescinded, given by Congress over the past five years, are expected to save the five largest oil companies about $17 billion over the next 10 years. The Democratic proposal would funnel the money into tax incentives for renewable energy sources such as wind and solar, and for programs promoting energy efficiency and conservation.

Most Senate Republicans have a different approach to dealing with the growing energy crisis ? pump more oil and gas.

The GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states to opt out of the national moratorium that has been in effect for a quarter century against oil and gas drilling in more than 80 percent of the country's coastal waters.

"Republicans by and large believe that the solution to this problem, in part, is to increase domestic production," said McConnell.

The Associated Press contributed to this report.

http://www.foxnews.com/story/0,2933,364846,00.html

[SLCPUNK]

NEW YORK (AP) -- Oil prices fell Tuesday, giving up an earlier advance as the dollar held its gains against the euro and the Energy Department slashed its oil consumption projections. Retail gasoline prices rose to a new record over $4.04 a gallon.

The dollar rose on recent supportive comments by U.S. officials, prompting selling by investors who had bought commodities such as oil as a hedge against inflation. Also, a stronger dollar makes oil more expensive to investors overseas.

The Energy Department, in a monthly report, indicated that high prices are cutting oil consumption more than expected in the industrialized world. Consumption is now expected to fall by 240,000 barrels a day in 2008; last month, the department forecast consumption would be unchanged from 2007 levels.

That report calmed a market that earlier sent oil up more than $3 on a projection by the International Energy Agency that said global demand will continue to rise, especially in China.

Light, sweet crude for July delivery fell $2.55 to $131.80 a barrel on the New York Mercantile Exchange.

Reports that Saudi Arabia has increased oil output by 500,000 barrels a day this quarter, 200,000 barrels a day more than previously thought, added some pressure to the market. Still, analysts said the Saudi move was only a peripheral factor in Tuesday's price drop.

"A couple hundred thousand barrels just isn't enough," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "The main item here today is the dollar strengthening."

"The dollar is the supreme driver here," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Linda Rafield, senior oil analyst at Platts, the energy research arm of McGraw-Hill Cos., said the Saudi news didn't surprise the market.

Meanwhile, the IEA, in its own monthly report, cut its demand growth forecasts, projecting that global demand for petroleum products such as gasoline, diesel and heating oil will grow by 0.9 percent, or 800,000 barrels a day, in 2008. That's down from the 1.2 percent, or 1 million barrels, the IEA forecast earlier this year.

However, the IEA, an energy adviser to Western industrialized nations, also said demand for fuel for reconstruction work in the aftermath of May's earthquake will boost Chinese oil demand by 5.5 percent this year, a slightly higher forecast than in previous reports.

"A 5.5 percent increase in one of the largest consumers of oil in the world is a lot of barrels of oil," Ritterbusch said.

But the gains were difficult to sustain in the face of a stronger dollar, analysts said.

"You don't get a lot of ... additional buying when the dollar is strong," Ritterbusch said.

Gas prices, meanwhile, advanced another 2 cents into record territory Tuesday, reaching a new record national average of $4.043, according to a survey of stations by AAA and the Oil Price Information Service. Gas prices are following crude futures higher, and aren't likely to stop rising until crude prices peak.

"When crude tops out, we'll finally start getting some relief at the pump," Ritterbusch said.

In other Nymex trading, July gasoline futures fell 5.71 cents to $3.3369 a gallon, and July heating oil futures fell 4.57 cents to $3.8313 a gallon. July natural gas futures fell 15.9 cents to $12.445 per 1,000 cubic feet.

In London, July Brent crude fell $2.68 to $131.24 on the ICE Futures exchange.

[SLCPUNK]

[Dr. Blutarsky]

Guess Iraq wasn't about oil, huh?