Edit: Accidently pressed the quote button, this post isnt directed at one particular person.
You really dont think that there is a chance that the Bush family with all its ties to the Saudiscould influence them to reduce prices??? Especially after taking out Sadam one of the Saudis biggest thorns?
Edit: Accidently pressed the quote button, this post isnt directed at one particular person.
You really dont think that there is a chance that the Bush family with all its ties to the Saudiscould influence them to reduce prices??? Especially after taking out Sadam one of the Saudis biggest thorns?
I do think the government has actively lobbied OPEC on production levels. They've been moderately successful.
THen i dont see why this thread is far fetched...I scratch your back, you scratch mine.
You forgot the part where Washington is always lobbying OPEC on production levels.
The thread is far-fetched because it simply claims that Republicans are in trouble, there is an election in November, oil prices are falling....THEREFORE REPUBLICANS ARE LOWING OIL PRICES. It's faulty reasoning based on false cause.
Two weeks ago this board was full of threads talking about Republicans raising oil prices to line there pockets. Now we're talking about Republicans lowering them. Another day, another barrel.
You forgot the part where Washington is always lobbying OPEC on production levels.
The thread is far-fetched because it simply claims that Republicans are in trouble, there is an election in November, oil prices are falling....THEREFORE REPUBLICANS ARE LOWING OIL PRICES. It's faulty reasoning based on false cause.
Two weeks ago this board was full of threads talking about Republicans raising oil prices to line there pockets. Now we're talking about Republicans lowering them. Another day, another barrel.
Look at it through the context i suggested, im not saying its true, just that it's not far fetched either.
prices started dropping at the end of August, at a time that is traditionally the most expensive time of the year for gas, labor day weekend, while the middle east is getting worse, while there is a partial shutdown of oil production coming out of Alaska (BP pipelines shut down), the threat of Iraqi Shia uniting with the Iranian Shiite government, and two gas refineries are shutdown in the western US for some reason, yet prices are dropping somewhat dramatically, considering where they were expecting to go.
exactly my point...
while I understand the concept of "supply and demand"...I feel it's subjective and can be easily manipulated....the question is: by whom....?
WASHINGTON — The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s — perhaps as low as $1.15 a gallon.
"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he says, they appear to be poised for a dramatic plunge.
Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.
Here's why:
For most of the past two years, oil prices have risen because the world's oil producers have struggled to keep pace with growing demand, particularly from China and India. Spare oil-production capacity grew so tight that market players feared that any disruption to oil production could create shortages.
Fear of disruption focused on fighting in Nigeria, escalating tensions over Iran's nuclear program, violence between Israel and Lebanon that might spread to oil-producing neighbors, and the prospect that hurricanes might topple oil facilities in the Gulf of Mexico.
Oil traders bet that such worrisome developments would drive up the future price of oil. Oil is traded in contracts for future delivery, and companies that take physical delivery of oil are just a small part of total trading. Large pension and commodities funds are the big traders and they're seeking profits. They've sunk $105 billion or more into oil futures in recent years, according to Verleger. Their bets that oil prices would rise in the future bid up the price of oil.
That, in turn, led users of oil to create stockpiles as cushions against supply disruptions and even higher future prices. Now inventories of oil are approaching 1990 levels.
But many of the conditions that drove investors to bid up oil prices are ebbing. Tensions over Israel, Lebanon and Nigeria are easing. The hurricane season has presented no threat so far to the Gulf of Mexico. The U.S. peak summer driving season is over, so gasoline demand is falling.
With fear of supply disruptions ebbing, oil prices began sliding. With oil inventories high, refiners that turn oil into gasoline are expected to cut production. As refiners cut production, oil companies increasingly risk getting stuck with excess oil supplies. There's already anecdotal evidence of oil companies chartering tankers to store excess oil.
All this is turning financial markets increasingly bearish on oil.
"If we continue to build inventories, and if we have a warm winter like we had last winter, you could see a large fall in the price of oil," said Gary Pokoik, who manages Hedge Ventures Energy in Los Angeles, an energy hedge fund. "I think there is still a lot of risk in the market."
As it stands now, the recent oil-price slump has brought the national average for a gallon of unleaded gasoline down to $2.59, according to the AAA motor club. In the Seattle area, prices per gallon have fallen to $2.856 currently from $3.071 a month ago, a decline of 7 percent, according to AAA.
Should oil traders fear that this downward price spiral will get worse and run for the exits by selling off their futures contracts, Verleger said, it's not unthinkable that oil prices could return to $15 or less a barrel, at least temporarily. That could mean gasoline prices as low as $1.15 per gallon.
Other experts won't guess at a floor price, but they agree that a race to the bottom could break out.
"The market may test levels here that are too low to be sustained," said Clay Seigle, an analyst at Cambridge Energy Research Associates, a consultancy in Boston.
On Monday, the oil-producing cartel OPEC hinted that if prices fall precipitously, OPEC members would cut production to lift them. But that would take time.
"That takes six to nine months. If we don't have a really cold winter here [creating a demand for oil], prices will fall. Literally, you don't know where the floor is," Verleger said. "In a market like this, if things start falling ... prices could take you back to the 1999 levels. It has nothing to do with production."
Anyone else see through this b.s. about oil dropping? Seems to me the republicans are in a bit of trouble this coming November, and wouldn't you know it, oil prices are falling. Hmmmmmmmm
what an ignorant statement. so when prices go up, you would think repulicans do this too, to make more money for themselves.
the price of oil is driven by supply and demand. its a freely traded commodity. yes, OPEC controls supply but free markets determine the price.
to think that republicans have any control of OPEC is ridiculous.
It really amazes me how people think when their mind is made up about a particular person (bush) or party.
gas has dropped in my area from $2.89 - $2.19 in the last week and a half....i'm not complaining. But, I bet it will be below $2 by the November elections. These prices are in the Branson, MO area. If you drive 20 miles south into my town in AR the price is still $2.69. There is a HUGE senate election in MO this year.
I wish I were the verb "to trust" and never let you down
gas has dropped in my area from $2.89 - $2.19 in the last week and a half....i'm not complaining. But, I bet it will be below $2 by the November elections. These prices are in the Branson, MO area. If you drive 20 miles south into my town in AR the price is still $2.69. There is a HUGE senate election in MO this year.
gas has dropped in my area from $2.89 - $2.19 in the last week and a half....i'm not complaining. But, I bet it will be below $2 by the November elections. These prices are in the Branson, MO area. If you drive 20 miles south into my town in AR the price is still $2.69. There is a HUGE senate election in MO this year.
good call...
I, too, am betting on gas prices dropping below 2 bucks a gallon by 11/1/06...
gas has dropped in my area from $2.89 - $2.19 in the last week and a half....i'm not complaining. But, I bet it will be below $2 by the November elections. These prices are in the Branson, MO area. If you drive 20 miles south into my town in AR the price is still $2.69. There is a HUGE senate election in MO this year.
It costs less to make gas in the winter months than the summer months...that is most likely the biggest contributor......and I know this because I am involved in this field...that is biggest reason...happens every year after the first weekend in September and will rise up again steadily for four months beginning in late May.....
why, because republicans had the power to drop the price when they need to get elected, or because of supply and demand?
do you people really not understand economics?
do know not understand the power the oil lobbying has in Washington? If they wanted to, they could control the price like this. It will go down until about a week after the election, than get ready.
do know not understand the power the oil lobbying has in Washington? If they wanted to, they could control the price like this. It will go down until about a week after the election, than get ready.
From what I have read the Democrats also reap the rewards of oil lobbyists...wish people would realize that the gasoline blending process is a huge contributor.....and I am no way a Bush lover but that is the reality of making gasoline and rules the government imposes on it for blending....
It costs less to make gas in the winter months than the summer months...that is most likely the biggest contributor......and I know this because I am involved in this field...that is biggest reason...happens every year after the first weekend in September and will rise up again steadily for four months beginning in late May.....
oh, I hear you, I do understand your point...but please answer me this: Aren't there a lot of subjective factors and guessing that goes into priceing of gas...? I'm serious...it just seems that when prices jump, many excuses are used (if outlined in earlier posts), yet when drops, the excuse is "it's just natural"...
if memory serves me right...when labor day hits, it drops by a few cents, but not like is dropping now...
I have to admit, I'm a skeptic when it comes to gas prices, and truely feel the oil industry and our current powers that be have a "cozy" relationship...
From what I have read the Democrats also reap the rewards of oil lobbyists...wish people would realize that the gasoline blending process is a huge contributor.....and I am no way a Bush lover but that is the reality of making gasoline and rules the government imposes on it for blending....
I've been involved in the Democratic Party for a while, and I am ashamed to admit that you are correct
oh, I hear you, I do understand your point...but please answer me this: Aren't there a lot of subjective factors and guessing that goes into priceing of gas...? I'm serious...it just seems that when prices jump, many excuses are used (if outlined in earlier posts), yet when drops, the excuse is "it's just natural"...
if memory serves me right...when labor day hits, it drops by a few cents, but not like is dropping now...
I have to admit, I'm a skeptic when it comes to gas prices, and truely feel the oil industry and our current powers that be have a "cozy" relationship...
You would be shocked to realize how one less additive makes it so much more difficult to blend gasoline to meet governmental standards, which happen to change quite readily.....the gasoline industry is quite amazing really....they constantly have to improve on technologies to meet new standards (which to some may be surprised are quite restrictive when compared to even 10 years ago)......
Comments
You really dont think that there is a chance that the Bush family with all its ties to the Saudiscould influence them to reduce prices??? Especially after taking out Sadam one of the Saudis biggest thorns?
I do think the government has actively lobbied OPEC on production levels. They've been moderately successful.
You forgot the part where Washington is always lobbying OPEC on production levels.
The thread is far-fetched because it simply claims that Republicans are in trouble, there is an election in November, oil prices are falling....THEREFORE REPUBLICANS ARE LOWING OIL PRICES. It's faulty reasoning based on false cause.
Two weeks ago this board was full of threads talking about Republicans raising oil prices to line there pockets. Now we're talking about Republicans lowering them. Another day, another barrel.
Look at it through the context i suggested, im not saying its true, just that it's not far fetched either.
http://atlasshrugs2000.typepad.com/photos/uncategorized/bush_hand_holding_1.jpg
(but I don't believe any of that)
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
exactly my point...
while I understand the concept of "supply and demand"...I feel it's subjective and can be easily manipulated....the question is: by whom....?
By Kevin G. Hall
Seattle Times
WASHINGTON — The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s — perhaps as low as $1.15 a gallon.
"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he says, they appear to be poised for a dramatic plunge.
Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.
Here's why:
For most of the past two years, oil prices have risen because the world's oil producers have struggled to keep pace with growing demand, particularly from China and India. Spare oil-production capacity grew so tight that market players feared that any disruption to oil production could create shortages.
Fear of disruption focused on fighting in Nigeria, escalating tensions over Iran's nuclear program, violence between Israel and Lebanon that might spread to oil-producing neighbors, and the prospect that hurricanes might topple oil facilities in the Gulf of Mexico.
Oil traders bet that such worrisome developments would drive up the future price of oil. Oil is traded in contracts for future delivery, and companies that take physical delivery of oil are just a small part of total trading. Large pension and commodities funds are the big traders and they're seeking profits. They've sunk $105 billion or more into oil futures in recent years, according to Verleger. Their bets that oil prices would rise in the future bid up the price of oil.
That, in turn, led users of oil to create stockpiles as cushions against supply disruptions and even higher future prices. Now inventories of oil are approaching 1990 levels.
But many of the conditions that drove investors to bid up oil prices are ebbing. Tensions over Israel, Lebanon and Nigeria are easing. The hurricane season has presented no threat so far to the Gulf of Mexico. The U.S. peak summer driving season is over, so gasoline demand is falling.
With fear of supply disruptions ebbing, oil prices began sliding. With oil inventories high, refiners that turn oil into gasoline are expected to cut production. As refiners cut production, oil companies increasingly risk getting stuck with excess oil supplies. There's already anecdotal evidence of oil companies chartering tankers to store excess oil.
All this is turning financial markets increasingly bearish on oil.
"If we continue to build inventories, and if we have a warm winter like we had last winter, you could see a large fall in the price of oil," said Gary Pokoik, who manages Hedge Ventures Energy in Los Angeles, an energy hedge fund. "I think there is still a lot of risk in the market."
As it stands now, the recent oil-price slump has brought the national average for a gallon of unleaded gasoline down to $2.59, according to the AAA motor club. In the Seattle area, prices per gallon have fallen to $2.856 currently from $3.071 a month ago, a decline of 7 percent, according to AAA.
Should oil traders fear that this downward price spiral will get worse and run for the exits by selling off their futures contracts, Verleger said, it's not unthinkable that oil prices could return to $15 or less a barrel, at least temporarily. That could mean gasoline prices as low as $1.15 per gallon.
Other experts won't guess at a floor price, but they agree that a race to the bottom could break out.
"The market may test levels here that are too low to be sustained," said Clay Seigle, an analyst at Cambridge Energy Research Associates, a consultancy in Boston.
On Monday, the oil-producing cartel OPEC hinted that if prices fall precipitously, OPEC members would cut production to lift them. But that would take time.
"That takes six to nine months. If we don't have a really cold winter here [creating a demand for oil], prices will fall. Literally, you don't know where the floor is," Verleger said. "In a market like this, if things start falling ... prices could take you back to the 1999 levels. It has nothing to do with production."
- 8/28/98
- 9/2/00
- 4/28/03, 5/3/03, 7/3/03, 7/5/03, 7/6/03, 7/9/03, 7/11/03, 7/12/03, 7/14/03
- 9/28/04, 9/29/04, 10/1/04, 10/2/04
- 9/11/05, 9/12/05, 9/13/05, 9/30/05, 10/1/05, 10/3/05
- 5/12/06, 5/13/06, 5/27/06, 5/28/06, 5/30/06, 6/1/06, 6/3/06, 6/23/06, 7/22/06, 7/23/06, 12/2/06, 12/9/06
- 8/2/07, 8/5/07
- 6/19/08, 6/20/08, 6/22/08, 6/24/08, 6/25/08, 6/27/08, 6/28/08, 6/30/08, 7/1/08
- 8/23/09, 8/24/09, 9/21/09, 9/22/09, 10/27/09, 10/28/09, 10/30/09, 10/31/09
- 5/15/10, 5/17/10, 5/18/10, 5/20/10, 5/21/10, 10/23/10, 10/24/10
- 9/11/11, 9/12/11
- 10/18/13, 10/21/13, 10/22/13, 11/30/13, 12/4/13
what an ignorant statement. so when prices go up, you would think repulicans do this too, to make more money for themselves.
the price of oil is driven by supply and demand. its a freely traded commodity. yes, OPEC controls supply but free markets determine the price.
to think that republicans have any control of OPEC is ridiculous.
It really amazes me how people think when their mind is made up about a particular person (bush) or party.
I don't agree with Bush...but yes to blame his party for rising oil prices is amusing.....
seriously, give it up.
good call...
I, too, am betting on gas prices dropping below 2 bucks a gallon by 11/1/06...
It costs less to make gas in the winter months than the summer months...that is most likely the biggest contributor......and I know this because I am involved in this field...that is biggest reason...happens every year after the first weekend in September and will rise up again steadily for four months beginning in late May.....
why, because republicans had the power to drop the price when they need to get elected, or because of supply and demand?
do you people really not understand economics?
do know not understand the power the oil lobbying has in Washington? If they wanted to, they could control the price like this. It will go down until about a week after the election, than get ready.
http://www.reverbnation.com/brianzilm
Its not even economics at that...its the gasoline blending process......
From what I have read the Democrats also reap the rewards of oil lobbyists...wish people would realize that the gasoline blending process is a huge contributor.....and I am no way a Bush lover but that is the reality of making gasoline and rules the government imposes on it for blending....
oh, I hear you, I do understand your point...but please answer me this: Aren't there a lot of subjective factors and guessing that goes into priceing of gas...? I'm serious...it just seems that when prices jump, many excuses are used (if outlined in earlier posts), yet when drops, the excuse is "it's just natural"...
if memory serves me right...when labor day hits, it drops by a few cents, but not like is dropping now...
I have to admit, I'm a skeptic when it comes to gas prices, and truely feel the oil industry and our current powers that be have a "cozy" relationship...
I've been involved in the Democratic Party for a while, and I am ashamed to admit that you are correct
http://www.reverbnation.com/brianzilm
You would be shocked to realize how one less additive makes it so much more difficult to blend gasoline to meet governmental standards, which happen to change quite readily.....the gasoline industry is quite amazing really....they constantly have to improve on technologies to meet new standards (which to some may be surprised are quite restrictive when compared to even 10 years ago)......