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Gas Could Fall To $2 Per Gallon If Congress Acts On Speculators: Analysts

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posted on Jun, 24 2008 @ 01:17 AM
reply to post by dbates

Originally posted by dbates
Why do people balk at rising oil prices when supply is flat, and demand is increasing? The same people don't think twice about news reports of high corn prices due to crop shortages.

There is no shortage of oil. I, or you, can go to the nearest gas station and pump until our wallets are flat.

Back in Jimmy Carter days, there were oil shortages. Manufactured, to be sure, but the lines stretched for blocks to even get to a pump where you were often limited as to how much you could buy.

Congress definitely has the ability to influence the price by creating laws regulating speculation. But do they have the guts to do it?

posted on Jun, 24 2008 @ 01:19 AM
What irks me the most about this is that we have now been conditioned to the point that we would look at $2/gal gas as a great deal and be greatful to whomever was responsible for bringing it about. We have already forgotten about how upset we were a few years ago when gas hit $2.00. Bush even said he was going to look into it and that he was very concerned.

Fast forward to today and now we would look at him as our saviour if he can just bring it back to $2.00. This whole thing was a set up that made the oil industry trillions of dollars and we were taken to the cleaners. I will be happy if my gas price goes down by $2.25/gal, but I won't forget and I will still be pissed that we got played the way that we did.

posted on Jun, 24 2008 @ 01:30 AM
I must add in my two cents worth on this one. Hedge Funds and supply and demand have nothing to do with the price of oil. The very people who sit in their cloistered chambers and talk of enacting laws to prohibit speculation are just blowing steam! It is in their best interests to keep the prices high until the election in November. Do a little paper chase on the money trail and you will find that 2/3 of congress are directly or indirectly making a fortune from these speculations. Just another example of greed overriding gesture!

posted on Jun, 24 2008 @ 02:27 AM
This really made me think of a news story I saw earlier this month...

There's been drivers going south from California to Mexico because gas is $2.54/gal there! If their prices are at $2.54 with the exchange rate, I wouldn't think the $2 range is out of line with what the OP posted.

posted on Jun, 24 2008 @ 03:41 AM
Anybody heard about the term Peak Oil ?
Every 3 months we need a new discovery of a field the size of the one which was just discovered in Brazil, not to increase production, just to make up for the decline in production in the old fields

What is missing from this graph is Russia and Saudi Arabia. Russia admitted peak last year :

Russian oil production peaked last year, the vice-president of Lukoil, the country's second largest oil group, said in an interview published Tuesday.

The future supply of Russian oil is threatened by a likely decline in production levels, one of the country's top oil executives has warned.

Once highly-productive fields in Siberia are slowly being exhausted and the huge cost of searching for oil in the untapped but remote region of eastern Siberia has deterred firms.

"When the well's productivity falls, you have to keep drilling more and more," Mr Fedun said, referring to the steady depletion of older fields.

"You have seen it in Alaska and the Gulf of Mexico and now you are seeing it in Siberia.

Saudi Arabia is hiding it's data , they do not want to cause more panic. But the only way for the price of oil is up. Also there are more types of oil, light crude is the most valuable and useful, Saudi Arabia is producing a lot of heavy crude right now, and the world does not need it :

The market is really looking for light sweet crude and there isn't really a huge demand for what Saudi Arabia has to offer,'' said Gerard Burg, an energy and minerals economist at National Australia Bank Ltd. in Melbourne. ``Oil is primarily used as a transport fuel these days and the heavier grades that yield less transport fuels are less desired.''

We would like to see $5 for a gallon gas here in Romania, now we are paying 6.43 $
In our measurements 1.7 $ / litre

[edit on 24-6-2008 by pai mei]

posted on Jun, 24 2008 @ 04:40 AM
make it $10, maybe then people will stop buying it..

posted on Jun, 24 2008 @ 04:44 AM
I did not read every post in this thread. I just wanted to say that speculation is a global strategy. There for even if congress does act on speculators the price of oil dropping in half I think is just a pipe dream. supply and demand will remain the biggest factors.

posted on Jun, 24 2008 @ 06:43 AM

Originally posted by dbates
Why do people balk at rising oil prices when supply is flat, and demand is increasing? ...

Oh, so worldwide demand DOUBLED from 2005 until now? Are you actually saying that TWICE AS MUCH gasoline was consumed over the three year period of 2005-2008, as opposed to 2002-2005?

If you want to know why gasoline has almost tripled in cost, look back to Iraq in 1990-1991. Check their oil prices. Just for fun, find out how many independent oil refineries there were in the U.S. Check oil prices now. Compare how many truly independent oil refineries there are now, compared to '91.

When Saddam Hussein started dumping oil for cheap to fund his Iran/Iraq war, the big oil companies were barely making any money. They realized that any large oil-producing country could do that to them at any time. So, what they did was find a way to regulate how much gasoline was made. They did this by buying most of the large independent refineries.

Here is a chart for you. Notice that in most years, the gasoline REFINED goes DOWN in the summer months, when people do the most driving. Amazing coincidence, no? But then notice how they produce WAY more than average in the months where people drive THE LEAST. Another amazing coincidence, right? One would almost think it was done on purpose.

Notice what years that started becoming common, and just do a general note of average gas prices in those years.

[edit on 24-6-2008 by sir_chancealot]

posted on Jun, 24 2008 @ 07:12 AM

Originally posted by pai mei
We would like to see $5 for a gallon gas here in Romania, now we are paying 6.43 $
In our measurements 1.7 $ / litre
[edit on 24-6-2008 by pai mei]

Over here in England, the UK to some of you, we make even your's in Romania look cheap. I find it funny you lot in the US are making a big deal out of $6 a gallon when you don't know how much we're paying for ours. Basically we pay for our petrol over here by the liter, 4.5 liters are in a gallon. Each liter of unleaded for us is costing £1.18, with diesel over £1.30. So this works out at £5.39 per gallon. So when this is converted into the US dollar, which is 1.96 comparared to that of the british pound it works out at $2.31 per liter. Then once this is converted is comes out at $10.41. So basically we're paying almost twice what you're paying over there.

[edit on 24-6-2008 by maximerto]

posted on Jun, 24 2008 @ 07:40 AM
reply to post by DimensionalDetective

I didnt read the entire series of posts here, so my apologies if someone asked this already:

If you say "no speculation" in investments of petrol products

doesnt that make the investors go elsewhere, causing gasoline to rise again?

posted on Jun, 24 2008 @ 08:24 AM
reply to post by Andrew E. Wiggin

I think it depends what you mean by '' investors going elsewhere'', certainly if investors move all their oil transactions to international markets or they are banned from trading on oil futures altogether there is a good chance for oil prices to spike thus gas prices would spike too but in my opinion the chances of any of those two scenarios happenning are minimal.

posted on Jun, 24 2008 @ 08:28 AM

Originally posted by maximerto
I find it funny you lot in the US are making a big deal out of $6 a gallon when you don't know how much we're paying for ours.

You don't have a full understanding of the distances traveled in the U.S. If I drive at 70 m.p.h. I can reach my parents in about 4 and a half hours. This is all inside of the same state (Texas). I'm pretty sure the entire U.K. will fit inside of Texas. I can't imagine that it's 45 - 70 miles between towns in the U.K. like it is in West Texas.

posted on Jun, 24 2008 @ 08:32 AM
I have been saying for some time that this rise in prices was not the result of supply and demand but of price gouging and an enron style screwing.

posted on Jun, 24 2008 @ 08:47 AM

Originally posted by schrodingers dog
reply to post by Bunch

I was actually agreeing with you.
But I think you will find that there's very little the US government can do about it.
Most of these funds will not take a single dollar from a US citizen or resident, thus avoiding any jurisdiction from the US. And in this case crude futures are traded on many international markets so they never come near US markets.

let's've got 2 oilmen (bush and cheney) in the whitehouse, and a saudi royal family that visits bush at his ranch and stays in the white house guest rooms when visiting washington. and you wonder why the government isn't doing anything about oil prices????.....yeah... it's just those vague and mysterious "speculators" causing this oil crisis....right...ok.

posted on Jun, 24 2008 @ 09:24 AM
reply to post by dbates

I see what your saying, but you probably dont do that daily

Most peoples daily commute is from the 'burbs to the office, or to their site or wherever.

And for most people who commute by car, I'd put money on it that the distance a commuter drives in the US, isnt that different that what a commuter drives in the UK. After all, we all have limits on how long we'd drive to get to a job.

Either way, we're all in a rough position just now, and I don't see it getting better anytime soon.

On a plus not, I saw a tv show the other day regarding our oilfields in the North Sea, and we're now apparently opening up the old ones because it's now financially and technologically viable to remove the remaining 70% of the oil. The show said that in days gone past we could only take approx 30% out of a field.

posted on Jun, 24 2008 @ 09:38 AM
It seems to me that the 'speculation' angle of this lacks the one thing that will give it teeth. That would be proof that the hedge funds are, in fact, acting in unison.

I know little about the jargon and language used by this industry to complicate what would otherwise be something as straightforward as buying and selling. I have a limited understanding of the construction of offshore accounting firms whose sole function seems to be to isolate financial transactions from otherwise normal taxation and issues of sovereignty and accountability in commerce.

We know that national wealth in the form of billions is moving about 'outside' of the sphere of influence of our own legal-control systems and that this wealth is giving zero return to the nation, per se.

There have been a number of ham-handed attempts at deflecting public scrutiny such as the 'supply and demand' and 'peak oil' myths. Even, to a lesser degree, the notion that eco-friendly initiatives are to blame. Some remain convinced that the oil companies are the culprits, and not the 'owners' of the oil companies. Some think it's the producers, and not the companies.

The bottom line is clear however, the wealth is going somewhere, and it's going so quickly, and in such rapid succession with the credit/housing fiasco, I am tempted to call it economic terrorism. We are being either economically attacked or placed under economic siege, and our business-loving leaders are NOT protecting us in any way shape or form.

I suspect that some day such economic hostile action will be recognized as such, especially since its execution is detrimental to billions of people on this planet. But the real problem is the fact that the 'executors' of this action have remained both anonymous, and unaccountable - while MBA-style thinkers in world leadership positions toss around platitudes and pointless political tripe which doesn't get us any closer to controlling the bleeding of national wealth into 'invisible coffers.'

posted on Jun, 24 2008 @ 09:45 AM
$2/gallon gas? Not going to happen.

Take note of the following article off MSNBC - I think it's spot on in telling you where the problem is and how to solve it.

Said another way: producers don’t control prices, consumers do. If we all cut consumption, prices will fall. It’s happened before, and there’s absolutely no reason it can’t happen again.

Unfortunately, too many consumers in the US are happier to dismiss the demand side of the equation, blame greedy speculators or entertain delusions of oil industry price manipulation. (Never mind that Big Oil only controls only about 10 percent of global production — there are plenty of “documentaries” on YouTube “proving” that a price conspiracy is alive and well.)

Unless and until the public comes to terms with the true causes of the problem, it’s going to be hard to generate political support for real, effective solutions.


posted on Jun, 24 2008 @ 09:57 AM
Here in Italy today, we pay $10,6501 per gallon...... 1,5 euro per litre.... TEN DOLLARS....

posted on Jun, 24 2008 @ 10:07 AM
I don't think anyone has a clue as to what the hell is going on. There are dynamics in place that break known rules of economics. What is for sure is that when the banksters are done stripping us of our wealth by gouging commodities like oil and corn, they will move onto a new scheme, probably water...followed by air.

It's a shake down during the final throes of civilization. We are about to see a global drop in the standard of living. The SuperClass are just trying to cushion themselves and their lifestyles from the blow we are all about to take.

posted on Jun, 24 2008 @ 10:11 AM
Gas prices $2 ????Thats a joke,and not a good one. The very best we might get is around $3.50,but in all likelyhood,it will just stay wherever it is when we solve this problem. I mean,even if we got it down to $60-$70 a barrel,we are already paying over $4,why go down?Thats more profits for the oil guys,and the polititians that are in bed with them.

Another thing,why waste energy arguing over who pays more?The bottom line is we are all in it together and are all being bent over.Us arguing back and forth just takes attention off the people responsible.

And to the guy who said he will get a truck if they drop,I understand where you are coming from,but we need to remember what got us in this mess in the first place.I am glad they are stopping production on the Hummer and wish they would limit other gas guzzlers.I understand people need these big vehicles for work,but there are a lot of people driving them just because.Now I am not mad at them,we are free to buy what we want. But understand,it is just giving oil companies a reason to jack up prices...

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