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News Oil Prices

Discussion in 'Off Topic' started by e_andree, Apr 28, 2008.

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    e_andree E

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    Oil Prices

    Originally Posted by AP
    Oil's meteoric rise to near $120 a barrel looks like more than just another economic bubble - growing demand and tighter supplies are likely to keep prices high. Some analysts say even $200 a barrel would not be out of the question.

    The latest price surge - pushing crude to record heights in recent weeks, and to nearly double its level a year ago - has some key components of a classic bubble, when market prices climb far above their intrinsic value. The burst comes when investors realize the assets are overvalued.

    However, growing worldwide thirst for crude, in large part from the rapidly developing economies of China and India, means frustrated consumers probably won't get any relief...

    Oil came close to $120 a barrel Friday on news that a ship under contract to the U.S. Defense Department fired warning shots at two Iranian boats in the Persian Gulf. The markets also were weighing the effects of a pipeline attack in Nigeria and a looming refinery strike in Scotland...

    The Organization of Petroleum Exporting Countries - which supplies about 40 percent of the world's crude - insists that it is supplying more than enough oil.

    Many observers blame speculative traders for bidding up the price as a hedge against inflation and as protection from a sinking U.S. dollar. Some see that as evidence of a bubble...

    Toss in the weak dollar and political instability in some oil-producing countries, and it seems unlikely that oil will fall below $100 a barrel anytime soon, if ever again...

    Supply is at the heart of soaring prices, said John Moroney, a Texas A&M economics professor who just finished a book on energy production and consumption. He cites production declines in Mexico, an unstable oil industry in Venezuela and possible shrinking production capacity in the Middle East.

    "I don't buy the bubble theory," he said.

    Many analysts believe the weakness of the dollar is a bigger factor than supply and demand because the soft dollar draws investors worried about inflation into commodities such as oil and gold.

    It also makes commodities less expensive for buyers operating in other currencies. Many investors see the dollar only heading lower if the Federal Reserve keeps cutting interest rates, which most analysts expect it to do next week.

    Some market watchers say oil probably will keep rising until demand falls off, which they describe as the market's way of finding fair value for the commodity. For oil, some estimate that price as low as $60 or $70 a barrel.

    "The fundamentals don't justify anywhere near these prices, even when you factor in geopolitical problems," said Michael Lynch, president of Strategic Energy & Economic Research Inc. in Cambridge, Mass.

    He expects prices to fall as low as $80 this year and perhaps as low as $50 in the next three or four years as more global supply comes on line.

    Demand already has begun to wane in the United States, where fuel prices are causing turmoil in an economy already saddled with recession fears, a housing and credit crisis, and dismal retail sales.

    Drivers have begun to cut back on gasoline consumption. Some people have taken to riding bikes to work or organizing car pools. The sale of gas-electric hybrid vehicles is up. Larger trucks and sport-utility vehicles are selling slowly...

    The major oil companies began reporting earnings for the first three months of the year this week, with ConocoPhillips saying it earned more than $4 billion, up 17 percent from a year ago. Exxon Mobil Corp. and Chevron Corp. are scheduled to report earnings Thursday and Friday.

    The higher prices have allowed companies to extract oil from sources too expensive to tap only a few years ago, like the Canadian oil sands and deepwater sites in the Gulf of Mexico, said Gary Adams, who heads the U.S. oil and gas practice for Deloitte & Touche USA LLP. He expects the price of oil to settle at around $90 to $100 a barrel in the coming months.

    Even if oil prices fall back to $60 or $70 a barrel, "the capacity of those businesses to do well and fund major projects will continue," said analyst Bernard Picchi of securities firm Wall Street Access. "These are great storehouses of value, and I don't think anyone can take that from them right now."
    e_andree, Apr 28, 2008
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    1337Rolla oh my

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    all I know is we need hydrogen cars now. My wallet can't take much more of this. :(
    1337Rolla, Apr 28, 2008
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    e_andree E

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    I highlighted the biggest points.......its the strength of the dollar that is the main blame.
    e_andree, Apr 28, 2008
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    Phan Well-Known Member

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    Phan, Apr 28, 2008
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    tsburt Active Member

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    I can't take it anymore.....gonna trade the eclipse for a corolla
    tsburt, Apr 28, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    Yup, I love my gas mileage. :)

    btw, just a shout out. People are stealing gas from parked cars and driving off from stations without paying. Watch out if you park your car in an unguarded area for long periods of time or overnight.
    GSE21tuner, Apr 28, 2008
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    DrunkSaru Unsuspecting Poo Flinger

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    I have a lock on my gas cap so i'm all good. hehe. i've had a few attempts though.

    I really wish the government/city would attempt cheap and easy alternative transportation methods, if not all around the US, at least where I live in the LA area. Make underground subways or monorails. Pay someone who comes up with the idea of how to make it safe from earthquakes and stuff. Make it electric or hydrogen based fuel and quiet so it won't interfere with local houses and businesses. and last but not least, since everything in the LA area is so far apart, have like mini shopping carts that folds for storage that can easily be taken back and forth from the train stations to your house for shopping purposes.

    I'm tired of seeing regular shopping carts everywhere in the middle of the street. I would also give up driving on a daily basis if the alternative transportation was easily accessible and cheaper. If that was the case, I wouldn't mind if gas prices were raised to 8 dollars a gallon. I just hope the government would use the extra money to maintain alternative transportation and stuff..

    Anyway enough with my rants..Oil prices are high but not high enough to consider getting rid of my car yet for a more gas efficient car.
    DrunkSaru, Apr 28, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    The Metor Orange Line was created for public transportation, but no one is using it. I always see those busses running around empty or close to empty. I heard that they had to downsize and laid off workers since demand was too low. People complained, but I assume only from the poorer people of the Valley who don't own cars of their own. I would take it myself, but the lines run nowhere near me.
    GSE21tuner, Apr 28, 2008
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    ShallowPockets New Member

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    ^that's some of the problem with our public transportation. We've got a core group of poorer, inner-city folks who ride MATA, but the "matillac" doesn't stop anywhere close to where I work, and the schedule is spotty at best. Most people cannot be a half hour late to work or more and expect to stay employed.

    There's talk of an East-West light rail line that would connect one of the larger Suburban areas with the work area hotspots...but one neighborhood association is strongly opposed to having a stop in their area.
    ShallowPockets, Apr 28, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    It's simply poor public transportation planning. I don't even have any ideas how to improve it so that the general public can have easy access to it. I mean, if they could solve that problem, I would ditch the car at home and ride the bus, train, subway, whatever all the time. I hate having my wallet gouged every week and then go through the nightmare of attempting to find a parking spot at school. :(
    GSE21tuner, Apr 28, 2008
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    DrunkSaru Unsuspecting Poo Flinger

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    If they made public transportation cheaper i'm sure more people would ride it. but like by the time i spend money to ride the bus to go to the nearest orange line so i can ride that, I've spent more money than if i was to drive my car. They have to increase the gas price a lot or decrease the bus prices to where its irresistible to not ride public transportation.
    DrunkSaru, Apr 28, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    Yeah, the bus system is retarded. It's for those that have time to walk, aka the poorer people.
    GSE21tuner, Apr 28, 2008
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    corollarider19 New Member

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    i think right now were in the middle of a recession and things will get better but not until after the summer
    corollarider19, May 9, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    It's going to a very long time for the economy to right itself again. Bush really screwed things up this time, just like how the last Bush did as well. Clinton cleaned up the mess and it's making me wonder if it might take another Clinton to clean it up again. lol
    GSE21tuner, May 9, 2008
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    Tonyota VVTI BLOWN..??

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    On the news the other night. New way of stealing gas here. Drilling a hole in your gas tank and catching with a bucket. Tell you what they will need more than a bucket If my acp catches them.
    Tonyota, May 9, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    Automatic Colt Pistol? Isn't that just the cartridge? :) I'm guessing a .45
    GSE21tuner, May 9, 2008
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    10R New Member

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    Anvil crotch punch?
    10R, May 9, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    Take your pick

    A Correct Pistolcaliber
    Another Criminal Plastered
    Absolute Crushing Power
    Astonishing Crackhead Perferator
    Attacker Crumples Perfectly
    :D

    My favorite: Astonishing Crackhead Perferator
    GSE21tuner, May 9, 2008
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    Vibe New Member

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    anatomically correct penis
    Vibe, May 9, 2008
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    10R New Member

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    Automatic coma pill.
    10R, May 9, 2008
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    Cuztomrollaz98 MAD VLAD!

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    That's why I love my bike man, almost 40+ mpg most of the time..... hell the rolla doesn't even come out to play that much anymore lol
    Cuztomrollaz98, May 9, 2008
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    GSE21tuner Formerly rollatuner110. Representing AZLexus.club

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    I'm thinking of a bike too. But then again, I'm also thinking about my brain all over the road or my body impaled on some asshole driver's car... :D
    GSE21tuner, May 9, 2008
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    Cuztomrollaz98 MAD VLAD!

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    Yeap but that can also happen while getting out of bed or while plowing snow on the driveway..... there's risks on everything we do. Yes bikes have an increased danger rate but in 3 yrs of riding I went down for my first time ever 2 weeks ago.......... but back in topic though, scooters and bikes are being bought like crazy around here cause people just can't take it anymore with these gas prices.

    Cuztomrollaz98, May 9, 2008
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    JspeXAE102 Well-Known Member

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    drill alaska and gulf of mexico FTW
    JspeXAE102, May 9, 2008
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    Cuztomrollaz98 MAD VLAD!

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    lol I 2nd that motion lol
    Cuztomrollaz98, May 9, 2008
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    its_ikon FIRST widebody

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    is the rise in prices really hurting people that bad or is it a sign that people live far beyond their means? sure gas has gone up, but it does it ever year during the summer. that shouldn't be a surprise to anyone. most people on this board have a corolla which gets at or above 30 mpg if driven normally.

    as for public transporation, it is just not logical for most people. the pick ups and stops don't fall in line with everyone and where they are going and then factor in the time it will take to get where you need to go and the value is not there. i would rather pay $5 a gallon then have a 1-2 hour commute on a bus.
    its_ikon, May 10, 2008
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    DeebsTundra Big Tires :)

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    It's starting to hurt me. Going from living paycheck to paycheck to finally starting to be able to "breathe" with some back up money, I find my fuel budget rising rapidly. I can see it slowly getting worse until I may be back to the paycheck to paycheck lifestyle again. Last fill up was $81.

    I totally agree with you iKon about public transportation. For some people, it may work great. In my case, I would have to leave probably an hour and a half to two hours earlier than normal to make it to work by 14:00. ... and I don't even know how long it would take to get home by bus at 04:00. Don't really even want to think about it.
    DeebsTundra, May 10, 2008
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    Cuztomrollaz98 MAD VLAD!

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    yeap it certainly depends on what you would consider a "need"..... hell half the people around here have trucks cause they're needed in this state HOWEVER you get the people that live in a 20x20 box and drive EVO's or STI's knowing that they can barely afford them.... The problem is choice in a way.
    Cuztomrollaz98, May 10, 2008
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    e_andree E

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    Depends on how much youre driving.

    Its gone up a few dollars per gallon....whereas a year ago it cost 25 bucks to fill up for someone, now its costing 50 bucks to fill up that same tank. Thats a significant increase.

    I fill up 2-3 times a week, so yeah...it adds up. Just something that I deal with though.
    e_andree, May 10, 2008
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    corollarider19 New Member

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    wont help anything for at least 10 years
    corollarider19, May 10, 2008
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