We all know crude oil is going to run out sooner or later. But, I know many places such as Alberta in Fort McMurray, there's many oil rigs there and yet they still jack up the oil prices. What the reason behind it even though there is tons of oil?In terms of Supply and Demand, why are oil prices still rising?
The U.S. Senate Commerce Committee held a hearing on this very issue on June 3 2008, last Tuesday. The hearing was titled Energy Market Manipulation and Federal Enforcement Regimes. For a real eye opener, take a look at the testimony from that hearing:
http://commerce.senate.gov/public/index.鈥?/a>
In particular look at the testimony of Michael Greenberger, who served as the Director of the Division of Trading and Markets at the Commodity Futures Trading Commission from September 1997 to September 1999:
http://commerce.senate.gov/public/_files鈥?/a>
After reading this stuff, you will understand what exactly is going on with oil. You are paying at least $1 more for a gallon of gas than you would pay under non-manipulated supply and demand.
Any explanations that blame factors such as increased demand from China and India, dwindling supply, or ';peak oil';, are simply irrelevant. Nobody knows what the actual driving forces are, nor their actual effect, so long as large scale speculators such as hedge funds and Morgan Stanley (the latter is actually buying and stockpiling oil as a hedge against the falling dollar) continue to manipulate the price in unregulated markets.
Don't take my word for it -- read the testimony above. You'll gain a good clear understanding of what exactly has been going on.In terms of Supply and Demand, why are oil prices still rising?
Refining oil in to a product that can be used in the production of gasoline, plastics, and other products, is much more complicated than just taking the oil out of the ground. It is very expensive and slow to build up the machinery and labor force necessary to do this, not to mention the fact that many governments are involved in activities that restrict the import and exportation of oil. All of these factors make it difficult for supply to keep pace with rapidly increasing global demand (which is mostly driven by developing third world countries), and as long as demand is increasing quicker than supply, the price will rise.
Even though the demand for oil has fallen a little in most industrialized countries due to the high prices, the growth of the economies in Asia, especially China, means the would demand is still rising. In many oil producing countries (Russia, Mexico) the output is declining, and in only a few (Canada) is it increasing.
http://www.infoplease.com/ipa/A0922041.h鈥?/a>
Wednesday, April 28, 2010
Hey guys, i was just wondering.. what will the oil price be by the end of this year?
That really depends on where the oil execs plan to vacation in april.Hey guys, i was just wondering.. what will the oil price be by the end of this year?
Probally something that we can't affordHey guys, i was just wondering.. what will the oil price be by the end of this year?
I will guess $75 cuz it is an election year and I don't think it will go too much higher but if it does then I think it will come back down at the end of the year to where it is now at $75. Am I right? Time will tell.
74.00 a barrel.
Don't know about the actual price of a barrel of the stuff---but a good friend of mine who knows this stuff fairly well is saying that we (here in Texas we're paying about 2.89 usd per gallon right now) will be paying around $3.50 usd per gallon by the end of the year--and that price will be stable for at least three months
It will be behind your nose man... sorry to say that
but im looking at $90+ p.b
Probally something that we can't affordHey guys, i was just wondering.. what will the oil price be by the end of this year?
I will guess $75 cuz it is an election year and I don't think it will go too much higher but if it does then I think it will come back down at the end of the year to where it is now at $75. Am I right? Time will tell.
74.00 a barrel.
Don't know about the actual price of a barrel of the stuff---but a good friend of mine who knows this stuff fairly well is saying that we (here in Texas we're paying about 2.89 usd per gallon right now) will be paying around $3.50 usd per gallon by the end of the year--and that price will be stable for at least three months
It will be behind your nose man... sorry to say that
but im looking at $90+ p.b
Engine Oil prices - where are the cheapest deals?
I usually just buy engine oil from the petrol station shop. I am not sure if this gives the best value. I buy it for occasional top-up not total refill (I would get the garage to do that)Engine Oil prices - where are the cheapest deals?
Buy from WalMart or Target. These carry the cheapist. The house brand are good enough. Walmart Super Tec are API sevice SM rated which is good for all cars today.Engine Oil prices - where are the cheapest deals?
buying it from a auto parts and a shoping store would be better and do it your self should save a buck or so
Buy from WalMart or Target. These carry the cheapist. The house brand are good enough. Walmart Super Tec are API sevice SM rated which is good for all cars today.Engine Oil prices - where are the cheapest deals?
buying it from a auto parts and a shoping store would be better and do it your self should save a buck or so
Is current Oil Price a bubble? When wiil this bubble burst?
This is not a bubble, it is reality. Bubbles are typified by prices rising far beyond the real value of the product. The question is, just how much is the consumer willing to pay to drive his 5000 lb SUV 15 miles in 15 minutes while riding in air conditioned comfort? Is that result more desireable than walking or riding a bicycle that same distance (2-5 hours at $XX/hr, whatever value you put on your time)? If so, then the price of gasoline and crude oil is still cheap when compared to the benefit enjoyed by the consumer.Is current Oil Price a bubble? When wiil this bubble burst?
I'm starting to notice some speculation of that, yes. The price keeps rising, but demand isn't rising /that/ fast, and supply is pretty high.
Even if the price 'crashes,' though, it's not likely to fall much below 80 - there's a lot of wells that become unprofitable below that price, so that would represent a very elastic point in the supply curve. That is, if the price hit 75, so much supply would dry up that demand wouldn't be met, and the price would have to rise.Is current Oil Price a bubble? When wiil this bubble burst?
No they are not a bubble, they are here because they are long over due I'm afraid. And they are not going down any time soon.
it might burst when our economy tanks.
and that might not be to far off.
NO
Did the Cigarette price ever go back to a dime a pack
I'm starting to notice some speculation of that, yes. The price keeps rising, but demand isn't rising /that/ fast, and supply is pretty high.
Even if the price 'crashes,' though, it's not likely to fall much below 80 - there's a lot of wells that become unprofitable below that price, so that would represent a very elastic point in the supply curve. That is, if the price hit 75, so much supply would dry up that demand wouldn't be met, and the price would have to rise.Is current Oil Price a bubble? When wiil this bubble burst?
No they are not a bubble, they are here because they are long over due I'm afraid. And they are not going down any time soon.
it might burst when our economy tanks.
and that might not be to far off.
NO
Did the Cigarette price ever go back to a dime a pack
Implication of oil price hike to education?
Higher costs = lower profits = lower tax revenues = less ';free'; money
Higher costs = lower profits = lower business revenues = less donated money
Higher costs = lower profits = lower business revenues = less donated money
If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
The answer is in three parts.
1. What's in the lube can is more than oil.
Today's lubricants are significantly synthetic, even the ones made from 100% Pennsylvania oil. Detergents, antioxidants, viscosity modifiers and other chemicals make up 5% to 50% or more of the can and are much more expensive than any oil bases still in there.
2. Price changes less when inventory is large.
The inventory life of lubricating oils may be several months to a year, while fuels are consumed in a fraction of that time.
3. Speculation and trading by the 'haves' sets oil prices.
Fuel prices are greatly influenced by commodity trading. The 'haves' just don't deal in lubricating oil futures, so normal market forces set lubricant values. In contrast, the rich and powerful and their nervous traders can change oil prices in hours.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gasoline is a much more refinery-intensive by-product of crude oil whereas motor oil requires far less refinement to be usable as a lubricant. A substantial cost factor of gasoline can be directly related to the refining capacity which, at the current time in the U.S., is virtually maxed out.
Simply put, oil is what is pulled straight from the reservoirs and requires far less processing to become motor oil; and gasoline must be produced by extensive and expensive refining processes at much larger quantities. In addition, motor oil is a recyclable commodity whereas once gasoline is burned and gone forever.
You might also consider that far less motor oil is bought and consumed than gasoline. If you were selling both of these as a commodities broker, which would you choose to maximize your profits? And if you knew there was a finite supply, wouldn't you want the maximum profits as quickly as possible? (i.e. Exxon Mobil and other Big Oil company profits have, in just in the past few fiscal quarters, have exceeded the GDP of multiple countries in the industrialized world.)
Post-Hurricane Katrina (when oil prices were around $60 or so per barrel) gas prices shot up to $3.00 per gallon. After the chaos settled down and oil barrel prices dropped back close to pre-Katrina prices, GASOLINE prices did not.
One word...Gouging.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gas prices are dictated partially by OPEC, partially by Oil Companies and Oil Speculators (futures trading), and to put it in a nutshell, they're dictated by GREED!!
Because people don't use it as much as gas (supply and demand) If people stopped using gas for a week the prices would dropscars
1. What's in the lube can is more than oil.
Today's lubricants are significantly synthetic, even the ones made from 100% Pennsylvania oil. Detergents, antioxidants, viscosity modifiers and other chemicals make up 5% to 50% or more of the can and are much more expensive than any oil bases still in there.
2. Price changes less when inventory is large.
The inventory life of lubricating oils may be several months to a year, while fuels are consumed in a fraction of that time.
3. Speculation and trading by the 'haves' sets oil prices.
Fuel prices are greatly influenced by commodity trading. The 'haves' just don't deal in lubricating oil futures, so normal market forces set lubricant values. In contrast, the rich and powerful and their nervous traders can change oil prices in hours.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gasoline is a much more refinery-intensive by-product of crude oil whereas motor oil requires far less refinement to be usable as a lubricant. A substantial cost factor of gasoline can be directly related to the refining capacity which, at the current time in the U.S., is virtually maxed out.
Simply put, oil is what is pulled straight from the reservoirs and requires far less processing to become motor oil; and gasoline must be produced by extensive and expensive refining processes at much larger quantities. In addition, motor oil is a recyclable commodity whereas once gasoline is burned and gone forever.
You might also consider that far less motor oil is bought and consumed than gasoline. If you were selling both of these as a commodities broker, which would you choose to maximize your profits? And if you knew there was a finite supply, wouldn't you want the maximum profits as quickly as possible? (i.e. Exxon Mobil and other Big Oil company profits have, in just in the past few fiscal quarters, have exceeded the GDP of multiple countries in the industrialized world.)
Post-Hurricane Katrina (when oil prices were around $60 or so per barrel) gas prices shot up to $3.00 per gallon. After the chaos settled down and oil barrel prices dropped back close to pre-Katrina prices, GASOLINE prices did not.
One word...Gouging.If gas prices are dictated by crude oil barrel prices, why doesn't motor oil price fluctuate as well?
Gas prices are dictated partially by OPEC, partially by Oil Companies and Oil Speculators (futures trading), and to put it in a nutshell, they're dictated by GREED!!
Because people don't use it as much as gas (supply and demand) If people stopped using gas for a week the prices would drop
What symbol can I use in yahoo finance indexes to show oil prices? I've tried wtic, $wtic and ^wtic.?
Nymex crude oil futures for yahoo use:
CLM09.NYM
that would be for June 2009
CLM09.NYM
that would be for June 2009
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