Not that speculation in oil futures has anything to do with the prices, of course.
First there’s this:
Most Americans have no idea how important oil prices are to the overall health of the U.S. economy. Whenever oil prices have pressed toward record levels in recent decades, it has always resulted in an economic downturn. A high oil price does not just mean that consumers will have to pay a little more at the pump. The truth is that oil is the very lifeblood of our economic system. We have built our entire country around the concept that we can transport lots of stuff very long distances for a very, very cheap price. When that paradigm beings to change, it fundamentally alters the dynamics of the U.S. economy. A high oil price will mean an even faster economic decline for America.
Here’s one take on things:
The International Energy Agency (IEA), which represents industrial consumers, said prices “already pose a real economic risk” and said Saudi Arabia has stealthily boosted its output. However, OPEC said “any assumption that there is tightness in the market… is incorrect”. The cartel of oil-producing countries blamed the weak dollar and speculation for taking the price per barrel near $100.
[…]
He criticised the IEA for lacking “consistency”, suggesting it was willing to add to oil prices by telling members to raise related taxes, but would then pressure OPEC to curb prices to safeguard growth. However, analysts say that the cartel is reluctant to openly agree output rises in case prices drop sharply.
And then there’s this:
Oil prices dropped ahead of important data on U.S. oil supplies, due 11 a.m. EST Thursday. U.S. oil inventories are expected to fall by 900,000 barrels in the weekly report from the Department of Energy. But the expected decline is partly due to the shutdown of the Trans Alaska Pipeline, which restarted Monday. Fuel inventories are seen continuing their recent steep increase, with gasoline stockpiles expected to grow 2.3 million barrels and distillates, including heating oil and diesel, seen adding 500,000 barrels.
[…]
Supply issues have been paramount in recent days after the shutdown of the Alaska pipeline last week pushed crude futures back above $90 a barrel. With the key 800-mile oil route back in service, investors are closely watching the recent rise in stockpiles of fuel products, both in the U.S. and Europe, as continued builds could stifle any push toward triple-digit oil.
There is nothing on this earth that is not speculated on; blaming speculation is the reddest of herrings.
Furthermore, speculation is a good thing, if it has been allowed to continue, we’d already be at $200 a barrel oil and would consequently be getting real about what we should do about it. As it is, we are like a bunch of stoned Lemmings, traipsing to the cliff.
The other main red herring thrown out is that we’ll never run out… and we won’t, but the question is, how much can/will we pay for it? We’re in an economic slowdown and it’s over $90 a barrel already.
seems no matter how bad things get, they can just make new money. how long will that last for? when will people wake up and realize what is really important to them? oil keep the greed machine running eh?
[Hey Nick… that Shift key will allow you to type caps.
– ed.]
What’s the problem Uncle Dave?
The “Don’t Drill Demobrats” and their Messiah are giving us exactly what they promised.
Remember how Obama said the reason for American’s anger about high gas prices was not with the price? No, no, no, they were angry about the rapid increase. A gradual increase will be acceptable to Americans.
Interior Secretary Ken Salazar stopped oil leases along the Eastern seaboard and a portion of the Gulf of Mexico.
And when Obama said his higher energy prices would bankrupt the coal industry.
Yup, we’re getting everything and more.
I have always been suspicious about the timing of skyrocketing oil just before economic collapse, just before elections.
I think this recession is consequence of real-estate/banking bubble – but that the bubble have had a chance to linger few years more before bursting. “Executing strike” that have started it (sooner than on its own) is definitely 140$ oil.
My “tin hat” theory – Democratic friends in corrupt trading companies (particularly Merrill Lynch) intentionally whipped oil trading frenzy early in 2008 just to collapse economy BEFORE election time.
Now, similar situation from different origins can bite them back. Present oil prices rise is from enemies Obama treated with kids gloves (Iran, Venezuela) plus the disastrous Obama regulation killing domestic oil production. How high will it go is he question. If it goes over 100$ or lingers in 90$’s – double dip recession is here. Faster if it goes higher. We are weaker now so even 120$ will do it within months. And it is not as easy to fake trade prices down as it was to whip them up in 2008.
Let’s find out. Seriously, I’m all for anything and everything that would make prices so outrageous that people will wake up and totally abandon the completely fake and worthless private federal reserve note. It’s not a valid US currency, it’s monopoly paper that’s printed on demand.
I don’t accept it in private transaction, and neither should you.
Too Many: what do you use for currency then? A chunk of gold in your pocket?
This thread is an amazing conservative conspiracy theory circle jerk.
It’s Dick Cheney, Haliburton and all of Bush’s oil buddies fault. Bush is intentionally jacking with oil prices so all his oil buds can get rich!!
(I didn’t have a real theory of my own so I copied and pasted from every libtard conspiracy theory circle jerk blog from 4 years ago.)
I am just curious why no one is bitching about Gas prices going over $3.00/gal. There was a huge outcry before, when prices skyrocketed up, however I think because this raise in pricing has been slow to take hold, either no one is noticing, or no one is caring. I see $3.09 at the pump, and have to think back to last year at this time, when it was just $2.40. Maybe it is just me….but they are raising the prices, without any real reason OTHER than speculation.
No reason other than speculation?
How about less oil permits, the rigs leaving the Gulf, and Obama’s statement that I wish gas prices had just gone up gradually?
Wow the naivete as to how oil prices are decided is amazing.
The ugly truth that nobody wants to even consider is that the economy will never ever grow again, at least not in any real way. It is flat/declining worldwide production of resources like oil that is stopping it.
We are stuck in a circle. Oil and other increasingly rare resources will go up in price when the economy is good, which will cause the economy to stop being good, which will cause prices to fall.
When issues are simple, eg: Was Obama born in Hawaii, or did WTC get hit by two Airplanes, or is record warming caused by hoomans, or did J Edgar Hoover wear a dress there are conspiracy theories and nutcases aplenty to keep the issues selling fish wrap.
When issues are complex like the effect of speculation on the energy market, or the effect of deficit spending to stimulate an economy there are conspiracy theories and nutcases aplenty to keep the issues selling fish wrap.
Oops. I was gonna highlight the difference between them? Oh yeah:
In the first, you can prove the conspiracy theory to be idiotic by “the preponderance of the evidence.” Can’t do that when the issues are complex.
Gasoline and food are ‘supposed’ to double in price in the next 6-9 months due to dollar inflation and the world debate over the dollar potentially not being used in future world reserve currency.
If the reports are true it is going to suck for us as Americans – big time.
Agreed. The mystery is why is it so hard for the thick skulled R’pukes to figure out we need to ween ourselves
…. Off the oil tit!!
#16 If you are thinking you can run electric that isn’t going to work for long haul trucks or planes, and we are not set up to run heavy cargo trains that way nor shipping. Getting the basics were we need them will be a major problem. Expect brownouts and rolling black outs along with staggering fuel and maybe food shortages: beans good if you can get them.
It also hasn’t even begun to penetrate your skull how much we are going to have to increase electric production to make that work and alternative energy sources other than nuclear are completely undependable using existing tech.
In the short run we would either need to build thousands of nuclear power plants or thousands of coal burning plants and the pain of adjustment will change this nation forever in ways you can’t even begin to imagine nor can we control.
The only good news is high transportation costs make outsourcing to other nations much less profitable. Make it or grow it where you need it using local resources if you can.
I must admit though that I’m very much impressed by the leader of China’s willingness to cut transportation costs by traveling commercial when he came to visit his debtor rather than spending millions like Obama when he trails.
You would almost think they were the debtor nation rather than us but then the more ostentatious you are the more likely you are to be the debtor.
In case I wasn’t clear. High fuel costs can knock the crap out of any sort of recovery. Anyone that disagrees doesn’t learn from past events.
#6
So, I guess you are ok with a $40 loaf of bread or $1000/mo for electricity? You do realize that if the price of fuel goes up, pretty much everything goes up by an even greater percentage. So much for liberals caring about the poor.
#15
And I suppose you have an alternate all ready to go that is:
A. Easy to transport
B. Contains as much energy as gasoline
C. Is as cheap to produce
Thought so. For all the bluster about “alternative fuels” we haven’t seen one yet that is a true alternative.
We need a cleaner energy source and I do agree with that sentiment. However, without abundant oil, civilization itself in the US will grind to a halt. That being said… There is enough oil sitting underneath Alaska to last us 500+ years, but someone won’t drill there (Obama for starters). Maybe minds will change when things get bad enough.
Many of the criminal economic hitmen and corporations (like Haliburton and Blackwater for example) are all moving to either Saudi or China. Many of the mega rich are leaving the US like mice evacuating a sinking ship for the past few years. They are almost done raping this country and are moving on to greener pastures. They really like countries like Saudi and China that treats many of their slaves like…. Well… Slaves.. As a proper tyrannical country should.
I guess the US was not enough of a police state or theocracy for them and we are almost bankrupt to boot. The only way I see the US surviving in the next 50 years is to reset the Republic, have a resourceful intelligent public, trust the mega banks about as much as the den of cobras that they are, and rebuild our national infrastructure. Good luck to us.
“There is enough oil sitting underneath Alaska to last us 500+ DAYS, but someone won’t drill there (Obama for starters). Maybe minds will change when things get bad enough.”
Fixed it for you.
I think this Summer when travel goes up. That will be the test to see if higher gasoline prices affect how we spend our money. i would have to say as gasoline goes up more and more of American’s begin to adjust their spending.
Alfred thinks wasting blood and treasure on ill advised invasions makes us strong.
How cute. Or it would be if it weren’t so destructive to the US.
#30–tcc3==don’t limit your scorn to Alflie==ALL PUKES are against reducing military spending when you ask for specifics beyond fraud and abuse.
We forgot that wasting money on the Military was a ruse to sucker the USSR into the folly of trying to keep up with us. After they went bankrupt, we forgot to stop the financial game of chicken that we had one the first lap on.
The guns of our military make us about as safe and secure as the guns in our houses.
Silly Hoomans.
TooManyPuppies in #6 said: “I don’t accept it in private transaction, and neither should you.”
That might work fine for hookers and blowjobs, but I don’t think it will work too good for buying blow or get you anything but attitude down at the grocery store.
All currency is fiat currency, by definition…
Being fungible all currency is based on societal agreement, the definition of a fiat.
Real-estate might be real but its value in fiat currency is dependent on its desirability.
Un-air conditioned 1,200 sq.ft. condo in Manhattan, ~$2mil.
Un-air conditioned 1,200 sq.ft. condo in Death Valley, FREE!!!
If Mr. “I Have A Longer Screen Name Than You And ACORN Is The Anti-Christ And Saul Alinsky Is His Prophet” really hates job-killing regulation, why isn’t he agitating for the repeal of the Ten Commandments, Common Law, the Electrical Code, and those mileage-killing traffic lights and stop signs?
Reading the other comments here, I am continually struck by the total BS people will believe — like a drowning man clutching at straws, they eagerly adopt and advocate any hare-brained idea that absolves them of any responsibility to be energy-conscious. “I can drive my four-ton behemoth as though it were a sports car and heat my drafty home to 80 degrees in winter and cool it to 60 in summer because NObamalinsky is holding us back from Eternal Magical Energy Heaven that would result if we only removed all limitations on energy corporations!”
It’s no wonder the old “Magical Gas Pellet That Makes Fuel From Water” and Nigerian email scams still survive. Barnum was right, and it seems to be only getting worse.
#36 Uncle Patso
Nailed it.
I sure wish I only had to pay $3.08 for gas.
The amount of oil traded is seven times what is delivered. I can’t see how the prices can go up without shortages being more visible at the pump.
When oil goes up, the price of food goes up too.
There is A LOT of fraud relating to fuel surcharges.
A weak dollar certainly contributes to the high price since the dollar and the price of oil move in opposite directions.
# 26
You may be right… It is hard to get a reliable number for how many billions of barrels of oil the US really has under the ground.
Someone needs to invent a Mr. Fusion power generator.
Funny how liberals want to blame high oil prices on speculators, oil companies, and George Bush, but then can’t help but say how they like the idea of higher prices.