$82 Bucks a Barrel

[FM2436]

I'm surprised there hasn't been any discussion about the fact that Oil closed above $82.00 a barrel yesterday. Forecasts are oil will continue a rapid increase as interest rates were dropped which analysts expect will increase even more the demands for oil and gas. I hope US Airways is prepared. One could easily foresee future reduction, if not outright elimination, of lower and non-profitable markets.

http://news.yahoo.com/s/ap/20070919/ap_on_...e/oil_prices_56

September 2007. A barrel of oil cost only $82. Man-oh-man, those were the good ole days.

 

[Piedmont1984]

September 2007. A barrel of oil cost only $82. Man-oh-man, those were the good ole days.

NFS man.

A relative of mine works as an engineer for Westinghouse in their "passive light weight water nuclear reactor" division. He says that new domestic orders from dozens of utilities are streaming in with new construction to begin in the next few years.

I have not heard or read anything at all about this in the media. I wonder if this development could be the event that bursts the oil bubble?

If oil reaches $160 by September then it will have doubled in just one year. As far as I am concerned such a price is not supported by the fundamentals, world supply and demand notwithstanding.

 

[sharktooth]

Nope, not that fuel costs are lower anyway.....

Surcharge: an additional tax, cost, or impost

Jim

Thanks. Just wanted to get clarification on your statement.

 

[nycbusdriver]

NFS man.

A relative of mine works as an engineer for Westinghouse in their "passive light weight water nuclear reactor" division. He says that new domestic orders from dozens of utilities are streaming in with new construction to begin in the next few years.

I have not heard or read anything at all about this in the media. I wonder if this development could be the event that bursts the oil bubble?

If oil reaches $160 by September then it will have doubled in just one year. As far as I am concerned such a price is not supported by the fundamentals, world supply and demand notwithstanding.

WSJ had an interesting article in it concerning China sucking up so much supply. They conjecture that China may be stockpiling to insure no embarrassing shortages during the Olympics. Also, they think China may be using more oil to replace coal until after the Olympics, also, in order to improve air quality. It's all about saving face over there, not only for cultural reasons, but to try to show the world how well they can make their communism work. Once the games are over, we will see if China closes the spigot.

 

[midnightmech]

sure, and at 136.00+ a barrel, the SUV's and F-150's are sure slowing down on the interstate too...trying to conserve, what a joke.....the higher the price, the faster the majority go

 

[PHX-F/A]

WSJ had an interesting article in it concerning China sucking up so much supply. They conjecture that China may be stockpiling to insure no embarrassing shortages during the Olympics. Also, they think China may be using more oil to replace coal until after the Olympics, also, in order to improve air quality. It's all about saving face over there, not only for cultural reasons, but to try to show the world how well they can make their communism work. Once the games are over, we will see if China closes the spigot.

I thought they might be stockpiling as well. Makes a lot of sense. Over 1 million people converging on a already crowded city.

 

[ussnark]

I thought they might be stockpiling as well. Makes a lot of sense. Over 1 million people converging on a already crowded city.

Isn't the US effectively stockpiling when they do not drill in 82 million square miles of leased land? What is good for the goose is good for the gander.

The US taxpayer has been subsidizing oil for decades.

 

[autofixer]

Our inaction with respect to Iran and its nuclear ambitions is about to blow up in our faces. Last year our politicians denied that Iran had an active nuclear weapons program (There is only one reason to enrich uranium beyond a certain point, and it is not for peaceful purposes. Our political class knows this, but they are only concerned short term with re-election and the persuit of power.). Now it looks as if the Iranians will have a weapon in short order and an operational delivery system to hit Isreal, our bases in Southwest Asia and large parts of Eastern Europe and Asia. We are now too weak, as a nation and the president is too weak politically to deal with the Iranian problem. It is my opinion that this is the real reason we went to Iraq. We wanted to squeeze Iran from two sides, ie, Afghanistan and Iraq. Now we cannot capitalize on our hard won position in the region. We are going to pay horribly for our inaction, politically and economically. The Israelis are going to deal with Iran, as they believe it is a clear and present danger to their existance. Oil is going to go ballistic from here. I hope I am wrong.

http://www.jpost.com/servlet/Satellite?cid...icle%2FShowFull

http://www.iht.com/articles/2008/07/10/business/opec.php

http://www.breitbart.com/article.php?id=D9...;show_article=1

http://www.breitbart.com/article.php?id=D9...;show_article=1

 

[nycbusdriver]

The Israelis are going to deal with Iran, as they believe it is a clear and present danger to their existance.

I believe Israel will go in and knock Iran's nuclear program into about , oh, the sixth century. Along with it, possibly Iran itself (which is where Ayatollah Khomeini wanted to take the country anyway.)

Oil is going to go ballistic from here. I hope I am wrong.

I agree. And I think you are right. We may see the current oil prices decrease for a while, but when Israel does its expected job of protecting itself (Iran is officially on record in vowing to wipe Israel off the face of the earth), oil prices will shoot past the moon and stay there.

 

[prechilill]

The oil non-bubble:

http://www.nytimes.com/2008/05/12/opinion/...amp;oref=slogin

 

[autofixer]

Good article Prechill. For those of you who are still being decieved by the politicians, here is a piece by Walter Williams (Former Economics Chair at George Mason University), explaining the basics of speculation.
http://www.townhall.com/columnists/WalterE...ing_speculators

 

[ussnark]

The oil non-bubble:

http://www.nytimes.com/2008/05/12/opinion/...amp;oref=slogin

Krugman has usually been on top of the US economy. The present administration has proven that by doing almost everything opposite to whatever Krugman says, just like they did the opposite to whatever the previous administration did with terrorists, at least, until 9-11.