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$50 a barrel

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

  1. jimeez

    jimeez Thread Killer

    I'm gonna go out on a limb here and make a prediction. $40/bbl before the end of '08. Crazy you say? Time will tell.
  2. Violet1966

    Violet1966 Stand and Deliver Staff Member

    OMG wouldn't that be nice? 40 a barrel? Hope you're right Jimeez. :)
  3. Greg

    Greg Full Member

    When I first saw his post I presumed it was a typo: $140/barrel. It makes no sense otherwise.
  4. jimeez

    jimeez Thread Killer

    No no. I meant $40.00 per barrel.
  5. Greg

    Greg Full Member

    I'm sorry I don't do drugs. If I did I'd want some of whatever Jimeez is having. :)
  6. jimeez

    jimeez Thread Killer

    Sorry, I don't do them anymore, but I never claimed to have clear judgment prior to those days either. ;)

    While it may not reach $40.00 by the end of the year, I predict it will be well on its way by that time.
  7. Greg

    Greg Full Member

  8. jimeez

    jimeez Thread Killer

    Unfortunately I am at work and don't have time to go into great detail, but basically...I believe...it's a bubble. Just like gold, silver, copper, platinum, steel, housing prices, etc.. Today's commodity prices are determined by investors' projections more so than any sort of supply/demand factors (IMO). Eventually it's gonna pop.
  9. Kluge

    Kluge Observing your world for over 50 years

    2-1/2 million cars were sold in China in the 1st quarter of this year. And that's just one catch-up nation. I think the world consumption of fuel is going to climb significantly in the next decade.

  10. dsl987

    dsl987 Member

    I do believe the price is inflated somewhat but if you think OPEC will ever let it go back to $40 you are wrong. They have tasted the good life, they know we can afford it and they have publically said that they think $60 is fair and I personally think they will defend $75.

    I think some of the other commodities are also a little high, such as gold and platinum but only because the same speculation that is driving oil is present there as well. On the flip side, steel and copper are in record demand and even some food commodities are at record highs.
  11. Stiofan

    Stiofan Master Po

    It's all about the value of the dollar. If the value of the dollar doubled, the price of oil would drop to $55. Simple.

    Oil is priced in U.S. dollars. The dollar tanks, oil goes up.


    It's really not that hard to understand. When you have a currency worth $^%&, it's takes a lot more $^%& to buy a barrel of oil.

    I now return everyone to their previously scheduled whining. ;)
  12. Violet1966

    Violet1966 Stand and Deliver Staff Member

    Makes sense. That would be great. Hope Jimeez is right. :)
  13. jimeez

    jimeez Thread Killer

    Yes, parts of it are as simple as that. And we all know the dollar will not remain tanked forever. It will go back up.

    However, there is a long term potential for oil to shift away from the U.S. dollar. Iran is making a serious attempt at making that a reality. They no longer accept U.S. dollars for oil. And with the opening of their Oil Bourse, there is no telling what will happen. They definitely have an ambitious plan. What effect this will have on US oil prices, I do not know.
  14. dsl987

    dsl987 Member

    I would think that it would make the dollar even weaker, which would make oil more expensive for the US as we would have to convert to Euro's before buying oil.
  15. jfcjrus

    jfcjrus Veteran Member

    I, for one, would like to know your reasoning for such a statement.

    IF the USA economy is such a force in the world, and IF the US DOLLAR is thus solely dependent upon the strength of the USA (rather than based on gold or something), exactly WHY is it worth about half of what it was 5 years ago?

    What the heck is it that's currently killing our dollar on the world's monetary stage?
    The massive debt due the cost of the Iraq situation?
    The massive debt due to out of control government spending and borrowing?
    The unbalance of trade?

    I just don't see any logical reason for the dollar to EVER recover.
    Exactly how do you think it will untank, and go back up?

    Just asking.
  16. jimeez

    jimeez Thread Killer

    Now wait a minute, I'm the pessimist here. ;)

    To be honest, I don't have a good reason. I guess it just doesn't seem possible to me that the dollar will stay down forever. It's been down before and rebounded. Why can't it do so again? Are you telling me that you believe the United States' status as economic juggernaut #1 is over for good? Maybe so. But then again maybe not. Who knows. I'm not an economic expert and frankly I am not sure the experts can accurately predict what will happen. In the words of George Michael, "You gotta have faith." ;)

    IMO, what is really killing the U.S. dollar right now, above everything else, is the lost faith and respect in the United States of America as a nation. We've ruined our reputation with the rest of the world. We were on the right path post 9/11...and had the backing of the rest of the world...when we went into Afghanistan, but then we made a horribly wrong turn when we entered Iraq and it's been downhill from there. I also think the re-election of GWB in the '04 election further tarnished our reputation. I am not saying Kerry was the right choice, but the rest of the world sat back and had a good chuckle when we re-elected Elmer Fudd for the 2nd time.

    If we can somehow manage to restore our good name and excavate what remains of our pride we stand a good chance of turning this ship around. Other nations will invest in the U.S. again. If not, then we bomb the %$&@ out of everyone else and start over. :banghead:
  17. Violet1966

    Violet1966 Stand and Deliver Staff Member

    It's true. I see that as logical too. With the next adminstration coming in soon, we might see a renewed interest in investments in the USA, where others were holding back before due to instability fear. Something in the next admin might make people just jump right in and help us get the dollar back on it's feet, or, it could get worse, which I don't even want to imagine. God forbid.
  18. Greg

    Greg Full Member

    Irrational enthusiasm.

    What's really killing the dollar is that special interests have taken over our electoral system and put in power those who do not have the best interests of the American people in their hearts.

    The next administration will be chosen by the voters from either the Democrat's special interest chosen candidate or the Republican's special interest chosen candidate. Unfortunately practically all the other political offices have also been rigged by special interests.

    No need to wait. Here's the result of the next election:

    Winner: Special interests
    Loser: America's people
  19. jimeez

    jimeez Thread Killer

    I do not disagree with your assessment/predictions. However, I do suggest that perception is a very powerful force. If the rest of the world perceives that the U.S. has made a smart electoral decision and we can somehow brush up on our foreign affairs....there stands a chance for change.
  20. ethics

    ethics Pomp-Dumpster Staff Member

    Perception drives the world and will ALWAYS trump facts. Look at Global Warming.

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