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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on February 23, 2011, 05:10:58 PM
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(http://www.bloomberg.com/apps/data?pid=avimage&iid=iwqsFaTym0vQ)
U.S. Treasury Secretary Timothy F. Geithner said the economic recovery has put the world on a better footing to withstand the increase in oil prices caused by turmoil in the Middle East.
“The economy is in a much stronger position to handle” rising oil prices, Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things.”
bwhahahahaha
http://www.bloomberg.com/news/2011-02-23/geithner-says-world-is-in-a-better-position-to-handle-surge-in-oil-prices.html
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Ha ha ha ha. Hope and change. Carter style.
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Yeah, let's all listen to Geithner--after all, he's never been off the mark.
The Saudis have said that they can "absorb" any oil shortages that may be brought about by the Libya fiasco. I hope so, because I don't want to have a repeat of the summer of '08.
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White House: higher oil prices won't halt recovery (White House economist Austan Goolsbee)
Yahoo ^ | 2/23/11 | Caren Bohan and Alister Bull - Reuters
WASHINGTON (Reuters) – The White House on Wednesday said higher oil prices caused by Middle East unrest must be monitored but would not stall the U.S. recovery, while reiterating a warning on the risks posed by global imbalances.
"Thus far, they're up, but we're not forecasting -- and you haven't seen the private forecasters forecasting -- that at these levels they would derail the recovery," said top White House economist Austan Goolsbee.
U.S. crude oil reached a 28-month high of $100 a barrel on Wednesday as violence in OPEC producer Libya caused output there to be reduced and investors bet that unrest elsewhere in the region could cause additional disruption to supplies.
Goolsbee was answering a reporter's question during remarks on the annual Economic Report of the President, which takes a broad look at the outlook for the U.S. and global economy.
Oil's steady climb in recent weeks as popular revolts toppled autocratic leaders in Tunisia and Egypt, while sparking massed demonstrations elsewhere in the Arab world, has unsettled stock markets and applied a potential brake to growth in the United States and other oil-importing economies.
(Excerpt) Read more at news.yahoo.com ...
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White House: higher oil prices won't halt recovery (White House economist Austan Goolsbee)
Yahoo ^ | 2/23/11 | Caren Bohan and Alister Bull - Reuters
WASHINGTON (Reuters) – The White House on Wednesday said higher oil prices caused by Middle East unrest must be monitored but would not stall the U.S. recovery, while reiterating a warning on the risks posed by global imbalances.
"Thus far, they're up, but we're not forecasting -- and you haven't seen the private forecasters forecasting -- that at these levels they would derail the recovery," said top White House economist Austan Goolsbee.
U.S. crude oil reached a 28-month high of $100 a barrel on Wednesday as violence in OPEC producer Libya caused output there to be reduced and investors bet that unrest elsewhere in the region could cause additional disruption to supplies.
Goolsbee was answering a reporter's question during remarks on the annual Economic Report of the President, which takes a broad look at the outlook for the U.S. and global economy.
Oil's steady climb in recent weeks as popular revolts toppled autocratic leaders in Tunisia and Egypt, while sparking massed demonstrations elsewhere in the Arab world, has unsettled stock markets and applied a potential brake to growth in the United States and other oil-importing economies.
(Excerpt) Read more at news.yahoo.com ...
but in your mind the oil prices are a result of the lack of supply of oil from potential sea drilling sites when it has nothing to do with that. now would you like to school us on the reason for the high prices.. or just keep lying/
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Oil prices have been climbing since the QE2 crap, the drilling bans, the refusa to ok the canadian pipeline, the closing down of the alaska supply, the refusal to pen new areas for drilling, letting th EPA run amok like a locu on the economy, devaluation of the dollar, and a concerted policy to SKYROCKETenergy costs.
Remember Option Douche, Obama states that his goal is to SKYROCKET energy prices.
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April futures contracts hit 103.50 before retreating a bit..
The shit is fucking ridiculous....They need to put in some controls(like lock Limits) on these oil contracts...
Fuck these bogus free markets...
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April futures contracts hit 103.50 before retreating a bit..
The shit is fucking ridiculous....They need to put in some controls(like lock Limits) on these oil contracts...
Fuck these bogus free markets...
Blame OPEC. It's amazing that they're almost never talked about despite the power they have.
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Blame OPEC. It's amazing that they're almost never talked about despite the power they have.
While we refuse to get our own resurces - and we essentially have a fellow traveler in the WH, we are beholden to OPEC. It sucks, but we as a nation made a deal with the devil and now have to suck it.
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Blame OPEC. It's amazing that they're almost never talked about despite the power they have.
OPEC is a cartel...No need to say more...We are at there mercy...It wouldn't surprise me if they were fucking around in the futures market for a two prong attack on oil prices...
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While we refuse to get our own resurces - and we essentially have a fellow traveler in the WH, we are beholden to OPEC. It sucks, but we as a nation made a deal with the devil and now have to suck it.
I just find it funny that for all the CT talk people throw around I hardly ever see OPEC mentioned, despite the fact that they're a cartel that has been manipulating the world economies for years with their set production limits.
Much more entertaining to talk about nameless Illuminati and shit, I guess.
OPEC is a cartel...No need to say more...We are at there mercy...It wouldn't supply me if they were fucking around in the futures market for a two prong attack on oil prices...
Wouldn't surprise me at all. There are a few OPEC members that have been saying for years that oil should be at $150/barrel or higher.
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The WH idiots like Obama/Geithner/Goolsbee and the rest of the incompetent drones have to be smoking crack to believe their statements.
Higher oil prices will absolutely destroy what is left of the economy. Less travel, less commerce, less movement, higher prices in everything, etc.
But oh thats right - this is the Obama WH we are dealing with . . . so I guess they must have some secret brilliant plan where $5 a gallon gas will lead to prosperity and boom times.
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Trump actually mentioned them he wanted to take some form of action but not sure what he had in mind..
Anyway he believed they were fucking over the gas buyers
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Action against OPEC that is
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Trump actually mentioned them he wanted to take some form of action but not sure what he had in mind..
Anyway he believed they were fucking over the gas buyers
Has obama ever said a damn thing about LOWERING oil prices or dealing with OPEC?
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Has obama ever said a damn thing about LOWERING oil prices or dealing with OPEC?
Nope but he should
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Oil prices have been climbing since the QE2 crap, the drilling bans, the refusa to ok the canadian pipeline, the closing down of the alaska supply, the refusal to pen new areas for drilling, letting th EPA run amok like a locu on the economy, devaluation of the dollar, and a concerted policy to SKYROCKETenergy costs.
Remember Option Douche, Obama states that his goal is to SKYROCKET energy prices.
please tell me you are just joking.. you really think that if drilling bans were lifted we would have lower gas prices.. is that what you are telling me right now.. please tell me you are joking
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Wait till the new SDR basket of currency takes the place of the Petro dollar.,
There should be some carnage when that occurs...
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please tell me you are just joking.. you really think that if drilling bans were lifted we would have lower gas prices.. is that what you are telling me right now.. please tell me you are joking
Yes you fucking moron. Damn - will you please fucking read an economics book for once in your damn life instead of regurgitating every leftist lie about almost every issue. Damn - don't you get tired of being so wrong so often?
We need more supply, more refinement, more nukes, more coal plants, more natural gas, which all act as a depressant on the speculators' ability to drive the price up.
Not to mention a reality based monetary policy, which we all know Obama tossed out the window long ago in order to keep funding his crazy spending spree.
Amazing - we are are now at the point where even the most basic principals of economics.
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10% of our oil comes from the Middle East, the rest comes from Canada, Mexico and Venezuela. Scouring the land and drilling everything for oil/nat gas won't do much to alter prices in the near term but just our commitment to exploration and exploitation would help to assure the market that new supply will be added in the mid to long term thus lowering volatility. The problem is I do not believe that the U.S. has its own Ghawar. Oil shale and tar sands are hugely expensive to exploit and the ROI and EROEI would be pretty high meaning oil needs to keep rising for it to be economically viable. I believe I read that exploiting the tar sands in Alberta isn't all that great for the environment either. Oh, and you need a ton of nat gas and other energy to convert the tar sands into something resembling oil.
I mean, drilling everywhere to give his some breathing room and time to build that bridge to somewhere else, wherever that may be, is a must.....but make no mistake, there isn't enough to power us or the world for cheap anymore.
Wind/Solar is not efficient, it's expensive, and costs more per KW/hr than anything else. Add to the fact that we need to buy rare earths from China to build them and it isn't a real proposition. The rare earth problem is real as China has priced out the market with slave labor. it also takes a company an avg. of 10 years to get a permit to build a mine. They are also highly subsidized and they still suck. It's a pipe dream as far as replacing mass energy production. When solar panels get to 50-75% efficiency than I will believe, but not now. As for coal and "Clean Coal" CO2 sequestering is also a pipe dream and the more "Clean Coal" you make a coal plant, the more efficiency it loses. Nothing is for free.
Short Term would be converting our commercial/civilian transport fleets to natural gas, using more natural gas to power the grid etc. This would work and work well. But it isn't being talked about a lot as it is a common sense solution.
We do not need to totally replace oil, but we need more supply and more energy diversity. Simple as that.
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Whwn geithner bashed obama last week, he was 100% accurate an reliable source of economic analysis and info.
This week, when he's defending obama, he's a lifelong shill and lie-teller.
geez 33............ is geithner reliable, or not? You can't just be "a little reliable". You are or you are not. It's like being a little bit pregnant.
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Whwn geithner bashed obama last week, he was 100% accurate an reliable source of economic analysis and info.
This week, when he's defending obama, he's a lifelong shill and lie-teller.
geez 33............ is geithner reliable, or not? You can't just be "a little reliable". You are or you are not. It's like being a little bit pregnant.
Geithner is saying what he is told to say. Same with Goolsbee. They know this is all bullshit and that $5 a gallon will collapse things like they did in 2008. Remember was preceeded the collapse of the market in 2008? High oil prices, look it up.
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He is full of shit. Central Banks have a horrible record throughout history. They create inflation, work for the banks and destroy currencies.
Oil prices and other commodity prices will spike when there are inflationary and/or asset bubble forces at work. Both stem from, in this case, massive and sustained government stimulus whether through a bill or subsidies, U.E. insurance to infinity or increasing the size of government to historical sizes, budget deficits etc.
Asset inflation is partly from central banks loaning/printing money for % interest and POMO actions. Where do you think that money goes?
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He is full of shit. Central Banks have a horrible record throughout history. They create inflation, work for the banks and destroy currencies.
Oil prices and other commodity prices will spike when there are inflationary and/or asset bubble forces at work. Both stem from, in this case, massive and sustained government stimulus whether through a bill or subsidies, U.E. insurance to infinity or increasing the size of government to historical sizes, budget deficits etc.
Asset inflation is partly from central banks loaning/printing money for % interest and POMO actions. Where do you think that money goes?
Gigantor - we all know where itcomes from - HIS STASH!
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U.S. Consumers Feel the Pinch of Surging Oil Prices
yahoo ^ | Feb 24, 2011 11:10am EST | Aaron Task
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Oil prices were surging again Thursday, with crude futures rising above $100 per barrel in New York trading for a second straight day while London's benchmark Brent crude approached $120 overnight. Despite Saudi Arabia's pledge to keep the spigots open, there's growing concern about potential for shortages amid the upheaval in the Middle East and North Africa, where OPEC-member Libya has descended into civil war.
Rising energy prices threaten the global economic recovery, a big reason the stock market and prices of non-energy commodities have tumbled in recent days. Economists estimate each 1 cent increase in gas prices takes $1 billion out of consumers' pockets, making it the ultimate "tax" on Americans already struggling with high unemployment and falling home prices.
In other words, just as American consumers face higher prices for necessities like gas and heating oil, the dollar literally doesn't go as far as it used to. With wages stagnant for most workers, that means this oil spike is going to be even more painful. Hopefully, it won't last long.
(Excerpt) Read more at finance.yahoo.com ...
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Sounds like prosperity right around the corner. ::)
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Yes you fucking moron. Damn - will you please fucking read an economics book for once in your damn life instead of regurgitating every leftist lie about almost every issue. Damn - don't you get tired of being so wrong so often?
Alright,,.now you have gone and done it.. YOU FUCKING PIECE OF SHIT BITCH FEAR MONGER,. i know what the fuck simple supply and demand is. But if your bitch ass would take 2 seconds out of your punk bitch whining session you would know that oil prices now have nothing to do with supply .We have shit tons of oil, we have access to shit tons of oil and we have a lot of reserves. oil prices are a result of speculation and fear. not actual prices you fuckin turd piece of dog shit.
And how much oil do you think we get from Lybia.. you dumb asshole.. the oil from Lybia is sold mainly to Europe.. our prices are raised because WE DONT HAVE THE CAPACITY TO PRODUCE THE OIL at the rate that we get it. its not the supply of the oil that the question.
You fucktard our oil factories and refineries are at 100% capacity. There hasnt been a Refinery build domestically in over 30 years.
So quit your whining about shit you have no idea about. I gave your bitch ass a pass on other shit because it was getting too easy but you had to go and talk shit and again i blew your bull shit out of the water. My father worked for Unocal 76 for much of my child hood. In order to keep his regional exec position we would have had to move the family to phx when it got sold to circle k. So my dad (before the stroke) worked as an expert consultant to all of the oil companies. shell, texaco, valero.. etc.. so he knows his oil and we have talked many times about the economics of oil... and its not a supply thing here....the oil is not harder to get to.. you just want to think whatever you want to think
and put facts to the side.. now speak on this..
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Alright,,.now you have gone and done it.. YOU FUCKING PIECE OF SHIT BITCH FEAR MONGER,. i know what the fuck simple supply and demand is. But if your bitch ass would take 2 seconds out of your punk bitch whining session you would know that oil prices now have nothing to do with supply .We have shit tons of oil, we have access to shit tons of oil and we have a lot of reserves. oil prices are a result of speculation and fear. not actual prices you fuckin turd piece of dog shit.
And how much oil do you think we get from Lybia.. you dumb asshole.. the oil from Lybia is sold mainly to Europe.. our prices are raised because WE DONT HAVE THE CAPACITY TO PRODUCE THE OIL at the rate that we get it. its not the supply of the oil that the question.
You fucktard our oil factories and refineries are at 100% capacity. There hasnt been a Refinery build domestically in over 30 years.
So quit your whining about shit you have no idea about. I gave your bitch ass a pass on other shit because it was getting too easy but you had to go and talk shit and again i blew your bull shit out of the water. My father worked for Unocal 76 for much of my child hood. In order to keep his regional exec position we would have had to move the family to phx when it got sold to circle k. So my dad (before the stroke) worked as an expert consultant to all of the oil companies. shell, texaco, valero.. etc.. so he knows his oil and we have talked many times about the economics of oil... and its not a supply thing here....the oil is not harder to get to.. you just want to think whatever you want to think
and put facts to the side.. now speak on this..
Why have no new oil refineries been built in 30 years? hhhhhmmmmm? ? ? ?
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Why have no new oil refineries been built in 30 years? hhhhhmmmmm? ? ? ?
na bitch.. speak on the supply and demand econ as it relates to oil prices in America obama and why he is responsible for the prices.. speak on that...
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na bitch.. speak on the supply and demand econ as it relates to oil prices in America obama and why he is responsible for the prices.. speak on that...
Supply and Demand is a component of the overall price and the spectre of less supply in the future as a result of foreign political instability is what enables speculators to skyrocket the price, especially whe you have a communist muslim traitor in the WH has made it his lifes' mission to cripple the USA with WTF policies when it comes to energy.
As for Obama - his WTF policies has greatly added to the pricing pressure upwards with QE2, drilling bans, EPA running wild, refusing to agree to the canadian pipeline, etc.
So Option Douche - the chickens of multiple horrible policies by your messiah are coming home to roost. I hope he keeps it up too when gas is $5 a gallon saying "OIL IS THE ENERGY OF THE PAST" while the economy is in tatters. He will be lucky to win 10 states if that occurs.
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The U.S.A doesn't exist in a vacuum. Even if we cut out Mid-East oil from our supply we would still be subject to laws of global supply and demand. Brent and WTI are traded world wide, if the Mid-East further destabilizes than it is reasonable to think that Canada/Mexico/Venezuela/U.S. would start to export more as demand steadies and supply drops, thus prices increase. The world is on a very sharp razors edge concerning spare capacity so any oil producing nation that sneezes is going to upset the balance.
That is, in my opinion, part of the reason
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Alright,,.now you have gone and done it.. YOU FUCKING PIECE OF SHIT BITCH FEAR MONGER,. i know what the fuck simple supply and demand is. But if your bitch ass would take 2 seconds out of your punk bitch whining session you would know that oil prices now have nothing to do with supply .We have shit tons of oil, we have access to shit tons of oil and we have a lot of reserves. oil prices are a result of speculation and fear. not actual prices you fuckin turd piece of dog shit.
And how much oil do you think we get from Lybia.. you dumb asshole.. the oil from Lybia is sold mainly to Europe.. our prices are raised because WE DONT HAVE THE CAPACITY TO PRODUCE THE OIL at the rate that we get it. its not the supply of the oil that the question.
You fucktard our oil factories and refineries are at 100% capacity. There hasnt been a Refinery build domestically in over 30 years.
So quit your whining about shit you have no idea about. I gave your bitch ass a pass on other shit because it was getting too easy but you had to go and talk shit and again i blew your bull shit out of the water. My father worked for Unocal 76 for much of my child hood. In order to keep his regional exec position we would have had to move the family to phx when it got sold to circle k. So my dad (before the stroke) worked as an expert consultant to all of the oil companies. shell, texaco, valero.. etc.. so he knows his oil and we have talked many times about the economics of oil... and its not a supply thing here....the oil is not harder to get to.. you just want to think whatever you want to think
and put facts to the side.. now speak on this..
Has nothing to do with where we get our oil from as the markets are global. And it does have a lot to do with supply and demand...the perception that Libya's problems are going to cause a supply shortage on the global market.
Take into account the strict production quotas that OPEC runs with to ensure that oil prices remain high and one country going offline fucks everything over (even with Saudi Arabia saying that they're willing to meet Libya's quota).
Investors, like all humans, are completely irrational and panic at the first sign of trouble.
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Of course Option Douche knows more than Hofmeister. ::) ::)
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Has nothing to do with where we get our oil from as the markets are global. And it does have a lot to do with supply and demand...the perception that Libya's problems are going to cause a supply shortage on the global market.
Take into account the strict production quotas that OPEC runs with to ensure that oil prices remain high and one country going offline fucks everything over (even with Saudi Arabia saying that they're willing to meet Libya's quota).
Investors, like all humans, are completely irrational and panic at the first sign of trouble.
Im talking about this guy blaming oil prices on obama. And how our offshore drilling has very little to do with our prices.. if there were more refineries we could process/refine more.. the supply is there.. it has always been there. Prices have to deal with Speculation not the actual supply
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Im talking about this guy blaming oil prices on obama. And how our offshore drilling has very little to do with our prices.. if there were more refineries we could process/refine more.. the supply is there.. it has always been there. Prices have to deal with Speculation not the actual supply
AND WHAT IS SPECULATION BASED ON!
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Option Dickwad - watch this and get a clue.
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Option Dickwad - watch this and get a clue.
so again.. you really think there is a shortage or less of a supply of oil which is dictated by obama and thats why we have high gas prices.. simply amazing.. and i dont have to go find youtube clips.. i can find a clip that says big foot is real. now you get a clue
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Obama Unfazed By Impact Of Rising Oil Prices
NewsTime / Reuters ^ | February 27, 2011 | Jeff Mason and Amena Bakr
United States president Barack Obama has said that he feels the global economy can bear the current spike in oil and energy prices report Jeff Mason and Amena Bakr for Reuters.
Obama’s comments came as key US ally Saudi Arabia vowed to increase output to cover any shortfall from Libya. Unrest in Libya has seen a decline in that country’s oil output, as foreign companies seek to evacuate staff from operations. Brent crude prices reached highs unseen in 30 months as they edged near $120/barrel.
Speaking to a group of executives, Obama said :” We actually think that we’ll be able to ride out the Libya situation and it will stabilise”....
(Excerpt) Read more at newstime.co.za ...
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F'ing moron.
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Obama Unfazed By Impact Of Rising Oil Prices
NewsTime / Reuters ^ | February 27, 2011 | Jeff Mason and Amena Bakr
United States president Barack Obama has said that he feels the global economy can bear the current spike in oil and energy prices report Jeff Mason and Amena Bakr for Reuters.
Obama’s comments came as key US ally Saudi Arabia vowed to increase output to cover any shortfall from Libya. Unrest in Libya has seen a decline in that country’s oil output, as foreign companies seek to evacuate staff from operations. Brent crude prices reached highs unseen in 30 months as they edged near $120/barrel.
Speaking to a group of executives, Obama said :” We actually think that we’ll be able to ride out the Libya situation and it will stabilise”....
(Excerpt) Read more at newstime.co.za ...
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F'ing moron.
Wheres the beef..lybia isnt gonna stabilize?
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I just go by what Obama says. The best predictor of the future is always to take the opposite of what he says. so if he says something will help the economy - 99% chance it fucks it up. Etc Etc.
No different here - and no - the economy can not absorb $4 a gallon gas. Only a complete f'ing moron and incompetent idiot like Obama believes that nonsense.
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I just go by what Obama says. The best predictor of the future is always to take the opposite of what he says. so if he says something will help the economy - 99% chance it fucks it up. Etc Etc.
No different here - and no - the economy can not absorb $4 a gallon gas. Only a complete f'ing moron and incompetent idiot like Obama believes that nonsense.
in other words.. you got nothin
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in other words.. you got nothin
In case you didnt watch the news this morning, Gadaffi's forces are killing people in the streets and that country in on the verge of all out civil war.
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In case you didnt watch the news this morning, Gadaffi's forces are killing people in the streets and that country in on the verge of all out civil war.
lol.. annnnd.. our oil supply will suffer right? thats why gas prices are high?.
i swear i tried to type this without laughing.
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The gas just keeps getting more expensive and we always have an excuse to raise it.
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lol.. annnnd.. our oil supply will suffer right? thats why gas prices are high?.
i swear i tried to type this without laughing.
Bro - I'm not kidding - you have eclipsed Blacken and Benny, and that was not an easy task.
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What makes up the price of a gallon of gas?
Posted 5/24/2008 12:00 AM
http://www.usatoday.com/money/industries/energy/2008-05-24-gas-breakdown_N.htm
By Justin Sullivan, Getty Images
Cezar Bonifacio changes the numbers on a gas price display at a Chevron station in San Francisco, California.
Consider the game of chicken that plays out every day across Pennsylvania State Highway 441. In Marietta, where the road hugs the Susquehanna River, a Rutter's Farm Store gas station stands on one side, a Sheetz gas station on the other.
Kelly Bosley, who manages Rutter's, doesn't even have to look across the highway to know when Sheetz changes its price for a gallon of gas. When Sheetz raises prices, her own pumps are busy. When Sheetz lowers prices, she has not a car in sight.
She calls Rutter's headquarters to report the competition's new price and wait for instructions.
"I call a lot of times and say, 'They went down, hurry up! Hurry up! Call me! Call me!' Or it could be where theirs goes up, and I'll say, 'Take your time! You know, I like being busy.' But I have no control over that."
You think you feel helpless at the pump?
Bosley makes a living selling gas — and even she has little control over what it costs.
TRAVEL: Gas costs cut into vacation plans
So how exactly are gas prices set? What determines the hair-pulling figure you see displayed in large electronic or plastic numbers? Why is a gallon of gas, say, $4.11 — not $4.10 or $4.12? Why is the price different across the street?
It all starts with oil.
The biggest factor in the skyrocketing price of gasoline is the historic ascent of crude oil, which has surged from $45 per barrel in 2004 to more than $135 this past week, setting new record highs all the while.
In the first quarter of this year, based on a retail price of gas that now seems like a steal — $3.11 a gallon — crude oil accounted for all but about a dollar, or 70%, of the cost, according to the federal government.
The rest is a complex mix of factors, from the cost of turning oil into gas to taxes to marketing costs to, sometimes, nothing more than the competitive whims of your local gas station owner.
Not that understanding the breakdown makes it any less cringe-inducing to fill 'er up.
How it all works
First a primer on how gas gets to your tank:
Once oil is pumped from the ground, it can be sold on the spot market, a last-minute trading arena where oil companies and distributors buy and sell to each other, or straight to refiners. After it's brewed into gasoline, the product can again be sold on the spot market, or directly to wholesalers, who in turn can supply their own stations or sell it to other retailers.
Each step of the way, buyers and sellers negotiate a price until, finally, drivers pay the ultimate tab at the pump.
At the starting point of all this is the price of oil — which, like the oil itself, is nothing if not crude.
The knee-jerk villains are the oil companies, fat with multibillion-dollar profits, frequent targets of populist anger. But wait: The oil companies don't set the price of oil or the cost of a gallon of gas.
Prices are a function of the open market, the result of futures contracts being traded on the New York Mercantile Exchange, or Nymex, and other exchanges around the world.
Buying the current July crude oil futures contract means you're buying oil that will be delivered by the end of July. But most investors who trade futures have no intention of ever accepting the underlying oil: Like stock investors who frequently buy and sell their holdings, they're simply betting that prices will rise or fall.
Of late, on the Nymex, oil futures have been rising.
Why? Blame the falling dollar. Oil is priced in U.S. dollars, and the weaker the dollar gets, the more attractive dollar-denominated oil contracts are to foreign investors — or any investor looking for a safe haven in the turbulent stock market.
The rush of buyers keeps pushing oil futures to a series of new records, and the rest of the energy complex, including gasoline futures, has followed. That pushes up the price of gas that goes into your tank.
"Crude is the driver," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "As long as it stays up there, gasoline's not going to be able to decline much at all, even if demand slips. That's just the way it is."
There is some evidence Americans are buying less gas as the price marches higher, and common sense suggests they would cut back even more if gas rose to $4.50 or $5 a gallon.
Lower demand should mean lower prices — but it takes time for that to happen, given the enormous scale of refining operations that produce gasoline.
"Once demand begins to slow, that needs to translate into inventories, then you get some price weakening," Ritterbusch said. "But it takes a while."
Oil and gasoline prices often move in the same direction, but they aren't linked directly. In fact, while oil prices have more than doubled in the past year, gasoline is only up about 19% during the same time.
Oil prices often fluctuate with production decisions from the Organization of Petroleum Exporting Countries, which supplies about 40% of the world's crude, or when conflict in the Middle East or Nigeria threatens supplies.
For example, oil prices rose $2.46 in one day last month amid reports a ship under contract to the Defense Department fired warning shots at two boats in the Persian Gulf that may have been Iranian.
A Navy spokesman later said the origin of the boats was unclear, but the news raised concerns that a conflict between U.S. and Iranian forces could cut oil supplies from the region. That same day, gas prices rose another 2.1 cents to a then-record national average of $3.577 a gallon on other supply concerns.
And the rise has only grown more dramatic. Oil sprinted higher this past week, rising more than $4 a barrel on Wednesday alone and past $135 on Thursday.
As for gasoline prices: They're closely tied to demand from U.S. drivers and how efficiently refineries are operating. Falling production or inventories often send prices skyrocketing.
Those prices can vary greatly depending on the region.
The Gulf Coast is the source of about half the gasoline produced in the United States, and areas farthest from there tend to have higher prices because of the cost of shipping gas via pipeline and tanker truck all over the country.
Some of those places, like California and New York, also have higher local taxes that push the price higher.
Oil companies may not set the price of oil and gasoline, but not everyone is willing to sit back and let them claim to be innocent bystanders.
In particular, for the second time this year, Big Oil's biggest executives were on Capitol Hill in recent days getting pummeled by many in Congress for their record profits while Americans struggle with record fuel prices.
"Where is the corporate conscience?" Sen. Dick Durbin, D-Ill., asked the top executives of the five largest U.S. oil companies.
Answers sought
Soaring gas prices have led to cries for a variety of answers, from Hillary Rodham Clinton and John McCain's suggestion to suspend the federal gas tax this summer to President Bush's call to open the Arctic National Wildlife Refuge in Alaska and some offshore waters that are now off limits to oil development.
Others have suggested a windfall profits tax on oil companies, although some economists say that might actually hurt supply. Oil companies say they're not to blame for spiking fuel prices, and their earnings, measured against revenue, are in line with other industries.
On top of that, rising oil prices have sharply cut profit margins for refining, and that hits the major oil companies — which both pump oil and refine it for use as gasoline.
A giant like ExxonMobil can handle the blow. Its refining and marketing profits for the first quarter were down 39% from a year ago, but Exxon still banked a nearly $11 billion profit because of the hefty prices earned on crude it pumped out of the ground.
Smaller refiners aren't so fortunate. Sunoco Inc.'s refining and supply business lost $123 million in the first quarter, hurt by lower margins. Tesoro Corp. lost $82 million for the same period.
In any case, huge profits at big oil companies like ExxonMobil and Chevron aren't because of high prices at the pump. Their massive profits are tied to their exploration and production arms, which are benefiting from record crude prices.
Higher crude costs also have squeezed profits at the refining arms of companies like ConocoPhillips, which don't produce enough crude themselves to refine at full capacity without buying more oil from other producers.
CEO Jim Mulva said ConocoPhillips, the second-largest U.S. refiner behind Valero Energy Corp., buys about 2 million barrels of crude a day at market prices to refine into gasoline and other products.
"If oil costs us $30 a barrel or $40 a barrel or $120 a barrel, that's why the cost of gasoline is what it is," he said. "It's not because of taxes. It's not because of ... refining and distribution. It's because of the cost of oil."
Other factors
But it's not only about the price of oil. Other costs are a factor — though they've remained relatively stable.
For example, federal and state taxes added 40 cents to a gallon of gas in the first three months of this year, roughly the same amount as they added four years ago.
California's 63.9 cents of tax is the nation's highest, Alaska's 26.4 cents the lowest. How the money is used varies from state to state, though the federal take helps to build and maintain highways and bridges.
Marketing and distribution costs — the tab for delivering gasoline from refiner to retailer — were 27 cents to start the year, only 6 cents above the cost four years ago.
The cost of refining added 27 cents to a gallon in the first quarter of this year, a nickel less than what it added in 2004, according to the Energy Information Administration.
That refining occurs at sprawling industrial complexes across the U.S., with most of the biggest along the Gulf Coast. Barrels of crude arrive each day by pipeline, ship and barge. The refineries, by heating, treating and blending the raw oil, turn out products like diesel and lubricating oil.
And, of course, gasoline.
A 'waiting game'
What happens when that gasoline makes its way to your neighborhood gas station?
Major oil companies own fewer than 5% of gas stations. Most are owned by small retailers — and many of them say they're struggling these days to turn a profit on gas. That's because wholesale gasoline prices have risen sharply in recent months — again, blame it on crude — but station owners have been unable to raise pump prices fast enough to keep pace.
And you can't keep jacking up the price when drivers are buying less.
Gas station owners face a balancing act: They must try to maintain a price that allows them to afford the next shipment of gasoline but not give the competition an edge.
Stations pay tens of thousands of dollars for each gas shipment before they see a cent in the register. Eventually, many make only a few cents on a gallon of gasoline, a margin that can disappear altogether when credit card fees are added in.
Thank goodness for beef jerky and sodas.
Most gasoline retailers long ago got past any illusion they can make money by selling gas. They rely on gas sales to drive traffic to their shops, where they hope auto repairs or food and drink sales will help them turn a profit.
"You're always out there competing with the guy next door — literally with the guy across the street — and worried too about how you're going to pay for your next supply," said Rayola Dougher, a senior economic adviser at the American Petroleum Institute, the oil industry's trade association.
In the Philadelphia suburb of Havertown, Pa., earlier in the week, Sunoco station operator Steve Kehler received a load of gasoline — 9,000 gallons — which, at a wholesale price of $3.729 a gallon, cost him 4 cents more than the previous load.
That left him in a sticky situation: Should he raise prices right away to recoup some of his higher gasoline expenses, or should he hold off for a couple of days in hopes his competitors will also have to raise their prices?
"I'm surrounded by $3.89's, and I'm already at $3.91," said Kehler, referring to his prices and those of some nearby competitors. "I'm going to play a little waiting game right now."
The $33,600 Kehler must pay for his overnight gasoline delivery won't be debited from his bank account for a few days. That gives him a little breathing room, time to hold prices steady. Hiking prices too quickly will hurt sales.
"I'll probably change it tomorrow night, at closing," Kehler said. "I'll go up 4 cents."
That will put Kehler at a gross margin of about 20 cents a gallon. After paying credit card fees, labor and rent, Kehler will be lucky to break even on his gasoline sales.
But many times, he loses money selling gas. Kehler, like most other service station operators, relies entirely upon his car repair business for income.
Of course, the plight of retailers is little consolation for drivers.
Mayra Perez said she works two fast-food jobs to help support her family, and gasoline is becoming harder to afford. She said perhaps the government should step in to help ease the burden, possibly by placing price limits on gasoline.
She was filling the tank of her compact car in Miami this past week to the tune of $3.89 per gallon for regular gas.
"This is horrible," she said. "On the weekend, my husband and I use only one car to save on gas.
"But then there's the cost of food, milk, eggs, the rent."
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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I swear you get an argument and latch on to it dont you.. you just cant concede that oil hikes have little to do with real S&D.. and is primiarily greed driven full of fake hikes.. like i said.. if you cant respect that your whole perspective is wack.
http://ilene.typepad.com/ourfavorites/2010/12/fake-out-thursday-oil-scam-continues-unabated.html
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The economy might handle it but can the people? Not that Americans matter to the GodKing at the White House.
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The economy might handle it but can the people? Not that Americans matter to the GodKing at the White House.
Im not sure what the debate is about. But blaming the oil hikes on the offshore drilling ban is partisan bullshit. It just is. Price of oil will and always will be at the hands of OPEC. There is no Shortage of oil. There arent any refineries that dont have enough oil to refine. They are all running at 100% capacity. We didnt get oil from Lybia. Baically OPEC is the end all of the oil market and thats it. They call themselves "competetion limiting CARTEL". Wanna hear something crazy. Oil companies dont even own gas stations any more. They dont even care about tha revenue stream. They sell the rights (name) to some rich arab guy and they sell them the oil. Thats why all the Mergers in the late early late 1900, early 2000s.. they got out of the gas station and went back to the Standard Oil days.. Cornering the market type of deal
Again can someone tell me how gas was at $4.50/gal and less people drove and flew.. but profits were up for oil companies.. how much of that hike was S&D related and how much of it was "because we can" related
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Read the article I posted option douche, it explains that.
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Read the article I posted option douche, it explains that.
you must be high if you think im gonna sit here and read your cut and paste job that was originally written by some right winged hack with an agenda..
Tell me in your own words why OPEC isnt a market controlling cartel and why Oil Prices are soley a reflection of Basic Supply and Demand.. please.. im waiting
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Usa today is far more credible than your whacked out typepad nonsense. Post a link from wsj bloomberg or somewhere else confirming your aergument or stfu.
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Tell me in your own words why OPEC isnt a market controlling cartel and why Oil Prices are soley a reflection of Basic Supply and Demand.. please.. im waiting
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http://www.nytimes.com/2008/02/01/business/01cnd-exxon.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/30/AR2009013003744.html
http://www.blackburnfinancial.com/understanding_big_oil_profits.html
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Like I said - read the usa today piece.
It explains all of that.
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From the Wall Street Journal:
Despite public frustration over high pump prices and flush industry profits, major refining companies are seeking and winning large local tax breaks for their refinery-expansion plans with little political opposition.
tell me why S&D is the reason for the hikes
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I never said anything is the sole reason. Its a combo of factors including suppy and demand, vallue of the dollar, political situations, refinement, cost of delivery etc.
To not grasp that on your part is really ridiculous.
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I just read your article.. it was partly true.. but even if going off of that the, blame was targeted at civil unrest in OPEC countries and the Domestic price is directly related to Refining. As is well known there have been no new oil refineries built in the US since before i was born. I think 1975 or 76 was when the last new refinery was built. Plus we are using more gas than back then. So our refineries work at 100% and when one goes down (fire, malfunction in equipment etc.) the price will go up.. but the actual supply of crude hasnt changed. So in that.. it has nothing to do with offshore drilling as you tried blame obama for.. As i always stated.. the price of oil/barrell is the bullshit.. the price of refined gas is the only thing that should be effected as determined by the limited ability to refine it..
and your article said nothing about supply from offshore drilling
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I never said anything is the sole reason. Its a combo of factors including suppy and demand, vallue of the dollar, political situations, refinement, cost of delivery etc.
To not grasp that on your part is really ridiculous.
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To eliminate the huge factor that refineries play and put blame the supply of crude as the major part is fucking bullshit. We will always get crude.. there is a shit load of it. The price variations for crude is inflated and without competetion. Even when we were offghore drilling (before deep horizon) we had $4.50/gal Gas.
The only justifiable reason for gas hikes is limited refining not supply of crude.. now based on what you know about oil markets, oil production and macro econ.. tell me im wrong
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I agree w you about refineries. No argument on that.
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I agree w you about refineries. No argument on that.
so with that common knowledge.. how can you say that drilling for crude here will significantly affect prices when we are drilling all the crude we can...
Personally i think that we buy from opec soley because we can justify hikes. Thats the only way to attribute record prices and record profits..
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Bernanke: Lasting rise in oil prices pose a danger
By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer – 46 mins ago
WASHINGTON – Federal Reserve Chairman Ben Bernanke told Congress Tuesday that a prolonged rise in oil prices would pose a danger to the economy. But he said a more likely outcome is a temporary and modest increase in consumer prices — not runaway inflation.
Bernanke, in prepared testimony to the Senate Banking Committee, expressed confidence that economic growth would increase this year. But he warned it won't be strong enough to quickly lower unemployment, now at 9 percent.
He also cited other risks to the economy, including rising prices for oil, gasoline, food and other commodities, and further weakness in home prices. All could prompt Americans to spend less.
The Fed chief said the economy still needs the support of its $600 billion bond-purchase program, downplaying runaway inflation risks that others have raised.
"The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation," Bernanke said in the first of two appearances this week to deliver the Fed's twice-a-year economic report to Congress.
The bond-purchase program is scheduled to end in June. It is intended to spur more spending and invigorate the economy by lowering rates on loans and boosting prices on stocks.
Republicans in Congress and some Fed officials worry that the program could trigger high inflation and a wave of speculative buying on Wall Street that could lead to new bubbles in the prices of assets like stocks and bonds.
Bernanke once again defended the program. He said it is needed to energize growth and reduce unemployment. He blamed the rise in oil and global commodities prices on strong demand from fast-growing countries such as China, not the Fed's stimulus policy.
Gas prices jumped over the weekend to a new nationwide average of $3.37 a gallon — 26.7 cents a gallon more than a month ago. Food prices in January rose at the fastest since the fall of 2008.
Political upheaval in the Middle East, Bernanke said, has caused oil and gasoline prices to march higher. However, Bernanke said he and a majority of his Fed colleagues continue to believe that the situation won't lead to out of control inflation.
Workers have little power to demand big pay increases because the jobs market is still weak. Many factories and other companies are operating well below full capacity because customer demand is far from booming. Those forces will prevent inflation from taking off, Bernanke said.
However, a prolonged rise in the price of oil or other commodities would represent a "threat" to economic growth and to inflation, Bernanke acknowledged. The Fed is closely monitoring the situation.
The Fed regularly reviews its bond-purchase program. It could buy fewer securities if the economy were to grow more strongly than anticipated or if inflation showed signs of breaking out. Or it could buy more if the economy was in danger of weakening. Most economists believe the Fed will spend the full $600 billion on schedule.
Bernanke says the sharp drops in the nation's unemployment rates over the last two months were encouraging. But he said it will still take "several years" for unemployment to drop back to normal - around 6 percent.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he said.
If gas prices rise to $3.75 a gallon and stay there for a year, it could mitigate the benefit of the Social Security tax cut, economists said. The economy would still grow, but it wouldn't get a boost from people spending more on goods and services.
If gasoline prices went as high as $5 a gallon, spending cuts by consumers and businesses could push the economy into a recession, analysts say.
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did you post a thread reporting how obama is allowing offshore gulf oil drilling??? or have you not found a way to spin that in a negative light yet..?
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He is not allowing anything. He is in contempt of court with the judge in LA for disobeying a court order. The damage is already done.
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Why are you so dumb
http://www.tickerspy.com/newswire/?p=4114
Federal regulators have granted Noble Energy (NBL) the first new permit for new offshore drilling activities in the Gulf of Mexico following last April’s tragedy aboard the Deepwater Horizon, which saw 11 workers perish and led to the biggest oil spill in the U.S. history. Not surprisingly, the Offshore Drilling Stocks Index is benefiting from the news, jumping 0.6% today.
Following the spill, the Obama Administration placed a moratorium on deepwater drilling in the Gulf and while that moratorium was lifted in October, no new permits for drilling had been issued, frustrating offshore drilling firms and workers in the Gulf Coast region. Texas-based Noble won a permit to drill 6,500 below the Gulf’s surface. Nearly 40 shallow-water permits have been approved since June, according to the BBC.
The moratorium and subsequent stall on issuing new permits has forced companies such as Diamond Offshore Drilling (DO) to move idled rigs out of the Gulf to other locations where they can be put to use. Shares of Diamond Offshore are up 1% today. Shares of Hornbeck Offshore Service (HOS), the company that led a lawsuit last year that sought to overturn the moratorium, are down 1%.
Small-cap name Hercules Offshore (HERO) is leading the Index with a 6% surge. Transocean (RIG), owner of the Deepwater Horizon rig and the world’s largest provider of offshore drilling services, is lower by half a percent. BP (BP), Europe’s second-largest oil company, operated the Deepwater Horizon rig.
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Yeah, too little too late - read your own fucking blurb you hack. Many of these companies have already closed down operations, gone bankrupt, and have been deraile by this communist regime at 1600 PA Ave.
Too little too late. The damage is done. These permits should have been granted almost a year ago when the lawless madoff you voted for got smaked down in court and has been playing games since.
Actions have consquences, and the pofs you shill for fucked everyone over by dithering and playing games in the gulf. Now we all suffer.
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::) ::)
Yeah, too little too late - read your own fucking blurb you hack. Many of these companies have already closed down operations, gone bankrupt, and have been deraile by this communist regime at 1600 PA Ave.
Too little too late. The damage is done. These permits should have been granted almost a year ago when the lawless madoff you voted for got smaked down in court and has been playing games since.
Actions have consquences, and the pofs you shill for fucked everyone over by dithering and playing games in the gulf. Now we all suffer.
Maybe the "JUDGE" (yeah fuckin right) should have acted faster
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One approval after a year and only after being held in contempt. Progress. Let's celebrate that accomplishment! Come on, man. You can't honestly think that's something to write home about.
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Maybe the "JUDGE" (yeah fuckin right) should have acted faster
Glad to see your ignorance now extends to the legal process as well. Damn are you dumb. I bumped threads from lat June I posted predicting the spike in oil prices as a result of the ObaMadoff scams.
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Glad to see your ignorance now extends to the legal process as well. Damn are you dumb. I bumped threads from lat June I posted predicting the spike in oil prices as a result of the ObaMadoff scams.
they are a result of obama because you call them that..you call a rainy day a result of obama.
now i just told you why oil prices spike.. its because they can..all this shit you want to beleive plays factors in crude prices is pure bullshit. you still havent been able to tell me why they can have record prices and less usage but record profits.. explain thay dynamic and we will talk..
and do this.. watch your mouth when you address me on here. im tired of your childish ass names calling
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they are a result of obama because you call them that..you call a rainy day a result of obama.
now i just told you why oil prices spike.. its because they can..all this shit you want to beleive plays factors in crude prices is pure bullshit. you still havent been able to tell me why they can have record prices and less usage but record profits.. explain thay dynamic and we will talk..
and do this.. watch your mouth when you address me on here. im tired of your childish ass names calling
::) ::)
blah blah blah - I have the threads posted predicing exactly what would occur and why on this. Where are yours?
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::) ::)
blah blah blah - I have the threads posted predicing exactly what would occur and why on this. Where are yours?
I posted the links on how gas is priced.. like 5 of them.. i just dont start dumbass threads an post novels on a bodybuilding site.. if you want to click the link..just do that
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I posted the links on how gas is priced.. like 5 of them.. i just dont start dumbass threads an post novels on a bodybuilding site.. if you want to click the link..just do that
Yeah - dumbass threads that only happened to come true.
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Wind/Solar is not efficient, it's expensive, and costs more per KW/hr than anything else. Add to the fact that we need to buy rare earths from China to build them and it isn't a real proposition. The rare earth problem is real as China has priced out the market with slave labor. it also takes a company an avg. of 10 years to get a permit to build a mine. They are also highly subsidized and they still suck. It's a pipe dream as far as replacing mass energy production. When solar panels get to 50-75% efficiency than I will believe, but not now. As for coal and "Clean Coal" CO2 sequestering is also a pipe dream and the more "Clean Coal" you make a coal plant, the more efficiency it loses. Nothing is for free.
Short Term would be converting our commercial/civilian transport fleets to natural gas, using more natural gas to power the grid etc. This would work and work well. But it isn't being talked about a lot as it is a common sense solution.
We do not need to totally replace oil, but we need more supply and more energy diversity. Simple as that.
Nuclear power is something that no one wants to talk about but is a much more viable option than anything else at this point, even natural gas, especially when it comes to talking about powering the grid. It would only take about 300 nuclear power plants to run the entire country yet no one will even consider it because of the hippies.
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Nuclear power is something that no one wants to talk about but is a much more viable option than anything else at this point, even natural gas, especially when it comes to talking about powering the grid. It would only take about 300 nuclear power plants to run the entire country yet no one will even consider it because of the hippies.
everyone is for nuclear power until they want to build the plant in your back yard
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Oil rises above $100 after surprise US supply drop
AP/YahooNews ^ | 3/1/11 | ALEX KENNEDY
Oil prices rose above $100 a barrel Wednesday in Asia as a report showed U.S. crude and gasoline supplies unexpectedly dropped last week, suggesting demand may be improving.
Benchmark crude for April delivery was up 51 cents at $100.14 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.66 to settle at $99.63 on Tuesday.
In London, Brent crude for April delivery was up 23 cents to $115.65 a barrel on the ICE Futures exchange.
(Excerpt) Read more at news.yahoo.com ...
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"US can handle the rising costs."
Of course these guys can. When you're an unemployed idiot still living at home, life is just rosey.
(http://t3.gstatic.com/images?q=tbn:ANd9GcQzlUBI7PdAaOhXisRdGyfcDh8dnJC8UlDfANt4iAtnAjU-U5L7nQ&t=1)
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BUMP - funny how getting closer to the election Solyndrabama feels differently.