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$50 a barrel

Discussion in 'Issues Around the World' started by ethics, Oct 15, 2007.

  1. Violet1966

    Violet1966 Stand and Deliver Staff Member

    Boy am I glad we filled up the heating oil early. This is bad. :(
  2. jimeez

    jimeez Thread Killer

    Why Oil May Not Stop at $100

    Pretty good piece in the WSJ today re: oil prices and why $100/barrel may be only the beginning. They do a good job assessing the complexity of the issue; everything from limited supply to politics.
  3. Stiofan

    Stiofan Master Po

    Listen, china and India are not buying appreciably more oil than last year. One of the biggest drivers of oil's climb is the weakness of the US Dollar. Oil is pegged to the dollar, and the Fed is lowering the value of the dollar by trying to save the housing market. It's screwing up our economy because those who've let the the housing bubble get so big are afraid the bubble bursting will crash the economy, so they are lowering rates every month, pumping ever more worthless greenbacks onto the market.

    value of USD vs. Euro

    26 Oct 2000 €1.2118
    30 Oct 2007 €0.6941

    You can see the dollar has fallen by half against the Euro since Bush took office. There's going to come a time when devaluing the dollar won't work anymore.
  4. jfcjrus

    jfcjrus Veteran Member

    Good point Stio.
    In that, it must also be concidered that; It's not that Oil got more expensive, but that the value of the $Dollar has turned to shit!

    I witnessed that in Belize a couple of weeks ago.
    The Dollar has lost about 40% of its value there in the last three years.

  5. ethics

    ethics Pomp-Dumpster Staff Member

    Not sure I agree. You are not wrong, but that's not the biggest factor, nor is it China and India. It's the potential and final realizations by the markets in regards to finite reserves. :)
  6. jfcjrus

    jfcjrus Veteran Member

    Which translates into about 20% of the price/barrel, due to NOTHING other than the speculation of the traders, which has absolutly NOTHING to do with supply and demand!

  7. ethics

    ethics Pomp-Dumpster Staff Member

    More or less.
  8. jimeez

    jimeez Thread Killer

    Interesting little article tucked away in the 3rd section of last night's WSJ addressing just this issue. When I read your post last week, I didn't quite get it...it didn't sink in. I got it now and I am amazed once again at how very little I really know.

    I am amazed that a pool of investors can have that much control on the price of oil....just so they can earn the maximum profit. :shake:
  9. ethics

    ethics Pomp-Dumpster Staff Member

    "Greed is good".
  10. jimeez

    jimeez Thread Killer

    I guess. :huh: Especially if you were one of the smart ones that invested when oil was down.
  11. mikeky

    mikeky Member

    Well I definitely thought those buying at $70/bbl were screwed. I guess they were a lot smarter than me.
  12. jimeez

    jimeez Thread Killer

    I thought they were screwed at 60!
  13. Violet1966

    Violet1966 Stand and Deliver Staff Member

    96.37 end of day. :(
  14. jimeez

    jimeez Thread Killer

    $5 Gas in CA

    Yep. Folks are paying $5+ per gallon in some parts of CA.
  15. ethics

    ethics Pomp-Dumpster Staff Member

    It will get worse... Watch folks... :(
  16. tke711

    tke711 Oink Oink Staff Member

    Yep, it sure will. It's $3.14 here in the Milwaukee area today.
  17. Violet1966

    Violet1966 Stand and Deliver Staff Member

    Heating oil has gone up again we just learned. We're lucky we filled up when we did. If we had done it two days before we did, we would have saved more money too. Winter is coming. This isn't good for some people. :(
  18. MNeedham73

    MNeedham73 Well-Known Member

    Yep, it's bad that I thought I did pretty well only paying $3.05 yesterday morning.
  19. jfcjrus

    jfcjrus Veteran Member

    Yea, we peons are paying more becauseTHE FUTURES SPECULATORS are guessing and making MASSIVE profits.
    And, it all has NEXT TO NOTHING to do with Supply & Demand.

    If this Horseshit doesn't convince us that the $billions we taxpayers contribute to fund agencys such as the 'Federal Trade Commission' (FTC) is an absolute WASTE of money, I don't know what will!

    SPECULATORS, on Wall Street, run this country; not those that we citizens think we elect to do so, every few years.

    Just my observation over time.
  20. ethics

    ethics Pomp-Dumpster Staff Member

    Joe, calm down. It has everything to do with supply and demand. As I've said earlier, the market is catching up (albeit LATE) to the reality. Add to that the demand from India and China, add to that the low rate of the dollar, and you get what we see. It's late in coming and that's why it will probably overreact in the long term but you are just seeing the beginning of the curve not the end.

    Only now are gasoline companies realizing this as well. Expect $5 soon as well if this keeps going.

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