Oil Prices.... is there an end to the current spike in prices?

I know a little about economics to know that at some point gas prices are going to go down but when? This to me is getting out of hand, is like speculators have manage to bubble up the price of oil but at some point a price correction is in order.

On the personal side, I have a steady income so does my wife, but of late we are starting to feel the pinch of this hike on prices and we are taking some measures to cut on our usage.

The Saudis said the other day that they don't see the need to produce more oil because they are meeting demand, so if demand is supply and demand are steady, when does prices start to go down or at least level off?


[edit on 20-5-2008 by Bunch]

Yes, but it will take a change in peoples behavior before the price of gas will decrease.

On the news last night I saw a report on how more people were riding rapid transit in my area. Ridership was up 45%.

During the same report, the news people interviewed a person who was riding the bus. He said that it takes a take of gas per week to drive his truck to work. That costs $80 per week. He said the bus costs $20 per month to ride and he doesn't have to worry about the cost of parking. So, now he's a bus rider.

This morning there was a report on the news about people shopping for cars, trying to trade in their gas guzzlers and get something that is fuel efficient. The guy at the car lot basically said not to expect much for even a newer gas guzzler because he had a lot full of them and the only thing that was selling was small fuel efficient cars.

So, people are being forced to change their driving habits. When enough people change, there will be a glut of oil on the market. I think that you may see sudden drops in the price of crude but not for awhile.

Originally posted by Wildbob77So, people are being forced to change their driving habits.

This is quite noticeable here in Daytona. Compared to the same time last year,after 6 pm the roads are practically deserted. I mean, there's still traffic, but it's way, way lighter then it was and I'm seeing a lot more scooters/motorcycles then there were.

I hear a lot of people saying that drastic reduction in use will force them to lower the price, but the way I see it they will probably raise the price to keep their profits flowing. You won't buy as much? We'll charge more! As much as this goes against the traditional supply and demand principles, I think economics is a changing beast. After all, fiat economy doesn't make good economic sense, but that's what we're using, regardless.

After all, no matter what they charge, or whether the population buys it or not, they always have a steady, ever-hungry customer in the government. Tanks, Hummers, and jets all need fuel, and they're obviously not planning to stop the wars due to something as trivial as the price of fuel. They'll just get more money from the taxpayers and/or the Fed to foot the bill, and the oil guys keep raking it in.

Oil prices won't go down, at least not considerably by much.

As OPEC said, if prices were to go down they would be decreased max to $80, and a month later they stated that oil prices could go up tp $200 a barrell in 1-2 years.
They have no interest in decreasing the price since they wouldn't profit from it, and having control over most of the worlds oil they can set the prices that suits them.
Be aware, when the US will attack Iran, that's when we will start seeing oil prices really sky-rocketing; this is only the beginning.

[edit on 20-5-2008 by Estess]

I don't expect prices to go down any time soon, at least not before January 2009.

It will be an absolute feeding frenzy between now and then to get away with as much as possible.

So, if our county undertook a concerted effort to gain energy independence and was willing to help other countries with energy independence as well how would this affect the price of crude?

Imagine, that next year, we break ground on new nuclear reactors. We haven't built any since the 1970s.

Also imagine that we mandate that all cars will have flex fuel engines so they can run on 85% ethanol. Also imagine that all farm subsidies are stopped and the fields switched to corn.

Also, think about huge rebates for home owners who put up photoelectric arrays on their roofs.

China is currently drilling oil wells off the coast of Florida, why aren't we?

It doesn't take all that great an imagination to figure out how we could seriously reduce our dependence on foreign oil.

I think that it might take a couple of years but it would also create employment opportunities. Potentially you could help out the employment situation and cut your dependence noticeably in just a few years which would seriously reduce the price of crude.

Are you ready for $5 gas?
Elect another president with ties to energy companies and gas may even surpass that. All other prices will also skyrocket because everything is tied to energy prices either in Mfg, transport etc.

If you are pleased with this current administration and their energy policies, then McCain's your man.
Diesel prices perhaps may come down when truckers finally say "enough" and strike, shutting the country down.



[edit on 20-5-2008 by whaaa]

reply to post by whaaa


I think our government no matter who is elected has lost its influence on oil prices. They just announced that they were going to stop shipping oil to the SOR and the price went up more that 2 dollars for the barrel. If that do not sends a message to speculators I dont know what will.

The governemnt has just signal an intention of not procuring oil for the SOR!!!

If you read between the lines that means that they are willing to go as far as it takes to lower the proce of oil!!!! Again read between the lines!!

The truth is that the speculators, producers, refiners do not take this countries intentions seriously, and by the time that we get enough things moving they would see their little bubble burst but not before they take billions away from those who most need their money...

.......its a sickening game in which the most needy always loose