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Oil hits record $122 on $200 oil prediction, supply concerns

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posted on May, 6 2008 @ 10:38 AM
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Oil hits record $122 on $200 oil prediction, supply concerns


biz.yahoo.com

NEW YORK (AP) -- Oil futures blasted to a new record of $122 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
(visit the link for the full news article)




posted on May, 6 2008 @ 10:38 AM
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Prices have almost doubled from one year ago. Doubled! The speculators have turned this into a giant mess that will likley only get worse. This is irresponsible. Price controls and regulations need to go into effect. A new global system, like Bretton Woods needs to be instituted. If things do not change there will be a level of upheaval not seen since the rise of Communism and Fascism at the dawn of the 20th century.

biz.yahoo.com
(visit the link for the full news article)



posted on May, 6 2008 @ 10:44 AM
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Wow, burning man is getting more and more expensive then, I believe you can find their explosion of so and so tons of gasoline, its rather wasteful and potentially harmful to the economy. I think its something you should look up to coincide with this and add other such "cause and effect" cases and maybe find a few more things. It would be interesting to find the gas per entertainment and such used.

Like, how much do we spend to waste because we can?



posted on May, 6 2008 @ 04:16 PM
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Originally posted by MikeboydUS

The speculators have turned this into a giant mess that will likley only get worse. This is irresponsible. Price controls and regulations need to go into effect. A new global system, like Bretton Woods needs to be instituted.


I'm not seeing it Mike. Specs can make money regardless of price direction...they bet the trend, either up...or...down. I mean, if the nebulous specs control prices...and only profit on the upside...where were they at $35? I think we need to look closer at real supply issues...and the anemic Dollar.

Ostensibly...Nixon ended Bretton Woods to defend the Dollar against attacks by "currency speculators". It had absolutely nothing to do with a very costly war in SEA...soaring inflation, and unmanageable international debt
Ultimately, the death of BW, and the Nixon price/wage controls only served to spur currency speculation/volitility.


Here's the classic Moldy Oldie....RMN puts BW out to pasture.





[edit on 6-5-2008 by OBE1]



posted on May, 6 2008 @ 04:50 PM
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reply to post by OBE1
 


As far as I know there have been no real supply issues, like were running out oil. I have seen problems in Nigeria and the mess in Iraq has slowed down the production of petroluem, but they do not justify the current prices.

Doubling in one year? Come on. Our currency has only fallen around 20 cents to the Euro since last year. That is simply not enough to warrant these idiotic prices. The same goes for food prices as well.

The whole situation is a fraudulent scam.



posted on May, 6 2008 @ 08:25 PM
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Hi Mike.



Originally posted by MikeboydUS

As far as I know there have been no real supply issues, like were running out oil.



Macro-supply info doesn't make the headlines on a daily basis, but it is available if we search for it. The movers & shakers are way-out in front on supply developments...we see this reflected in price.

The rapid YOY decline in production levels from Mexico' Cantarrel field is a good case-in-point (one of the 4th largest fields in the world). Mexico' economy is highly dependent on oil revenues...oil profits support the majority of Mexico' national programs. I'd rather not broach the implications that declining Cantarrel production holds for the immigration issue.

Prudhoe Bay/North Slope...drying-up.

North Sea...depletion rates escalating.

Russia reports 1st production decline in 10yrs.

New feasible, recoverable discoveries lagging global growth/demand...remaining resources...more expensive to reach/extract/process.

The oil companies catch a-lot of flack for not investing in new refineries (30yrs). Big oil blames the environmentalists/cost. Maybe, just maybe...big oil has known since the seventies that there won't be additional supply to refine? Jus thinking out loud here. The new refineries are being built in oil producing countries, close to supply...the US is destined become a net importer of finished gasoline products. The remainder are being built to process Heavy-Mayan...is that what's left? Jus thinking here




I have seen problems in Nigeria and the mess in Iraq has slowed down the production of petroleum, but they do not justify the current prices.


With respect to price, geopolitical events are temporary 'noise' in the greater uptrend. Wait till hurricane season arrives


I forgot to mention declining Iraqi production...but that's more situational than permanent imo...thanks.


Doubling in one year? Come on. Our currency has only fallen around 20 cents to the Euro since last year. That is simply not enough to warrant these idiotic prices. The same goes for food prices as well.


I think it's closer to .25 in the past 12 months. The EUR/USD has appreciated 7% so far this year...9.5% in 2007. 16.5% is a whole lotta love in a year and a half. I was one of the posters at $80 a few months back...predicting that $100 bbl oil will look cheap by the end of 08. I made that assessment based on the Dollar chart...and the fact that producers won't abide the loss of purchasing power relative to the weak USD. So I agree there is some hanky-panky being played at the OPEC spigot. The USDX posted another historic low last month...in my opinion, aside from the occasional overbought relief-rally...Uncle Buck still has a ways to the downside...commodities to the upside...years in fact.



The whole situation is a fraudulent scam.


Specs always catch the wrath first. Ask a cash-strapped farmer, needing to lock-in a futures price, so he can take that piece of paper to the bank...pay for crop insurance...and borrow enough to buy fertilizer & equipment to bring in harvest...ask him what he thinks about the "spec" that's willing to assume the risk that allows him to continue
his livelihood.

At the bottom of the price pyramid...it's about supply/demand (which can be manipulated). Specs contribute...but basically grease the wheels imo.




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