Speculators Spooked....Oil Price Dropping Fast

Originally posted by Dubyakadubla
there is no shortage of oil

Sure, and there is no shortage of water on this planet yet we have drought stricken areas even in the United States. How is that possible when 2/3 of the Earth is covered with water?

Gov. Brad Henry will face some fence-mending when he flies to the Oklahoma Panhandle Wednesday to tour drought-stricken areas of Cimarron County and visit with local ranchers.
www.kjrh.com...

You see while we have billions and billions of barrels of oil still yet to recover, there is a limit to how much we can get out at a time for consumer use. And all oil is not equal. Some types require extensive efforts to get to and even further refining processes before it can be used. The United States alone uses about 23 million barrels of oil a day. That's nearly a billion gallons used every single day. You can be drowning in a resource and still not have the ability to use it.

Remember The Rime of the Ancient Mariner?

Water, water, every where,
And all the boards did shrink ;
Water, water, every where,
Nor any drop to drink.




[edit on 15-7-2008 by dbates]

reply to post by dbates


The US has no shortage of oil.

Production increases from the Canadian Oil Sands alone meet the "rising demands" of the economy.

In fact, no self respecting economist would blame high oil prices on "demand"...

Oil prices in 2001: $20/b ... oil prices 2008: $150/b ...

So either the World just entered the most extreme golden age of economic expansion ooorrrr.....

The price of oil is artificially high because of speculators influencing the markets.

"Demand" my arse.

Yea everything I have read has said it is pretty much the oil speculating that is pushing the price up ..basically gouging the hell out of us.Even Opec has come out and stated they are pumping more oil than they ever have and has said the price should not be this high.But yet the big Oil companies continue to make record profits every quarter.I'd be willing to bet there is an artificial cap on the price of oil and when it is reached that is when we will see a very gradual decrease in fuel prices.

sorry guys, i cant login, but something i researched:
in the top 10 oil companies in the world, who is the biggest?
Exxon? not on the list. #1 is the United Arab Emirates, #2 is (drum roll) IRAN (so guess where we are invading next) and there are two more companies in there owned by the same country ... IRAQ so why o why is oil so high? It has to drop unless something else is going on, and if not, what is that something else?

What is it 90% of economics is all speculation...?

IF you are a psychotic conspiracy theorists you'd think, all these oil guru's are using this as a ploy for "demand" to skyrocket, and then BAM....they hit you hard and something happens on another front (war, etc) and like magic the price goes even higher. Prepare for something bad to happen OR

You are a calm realist and see some hope at the end of the tunnel. Where the possibility of Lowered Oil Prices, raise our dollar, help the stock market, and bring some prosperity to this dreaded year.

As of 11:15 a.m. CST today (7/15/2008) the NY Mercantile Exchange showed oil trading at $138.31/barrel. Yesterday's close was at $145.18 and today's high has been $146.73.

I wouldn't count on oil going down anytime soon. The situation with Iran is still hot. If at any time they shut down the Strait of Hormuz, the U.S. is royally f*****. It won't matter what price oil is because we will have a REAL shortage problem.

Oil prices are still following the same trend they have for the past six months. They would have to go to $130 or $134 before they start a downward trend. Right now, it just seems like normal fluctuations. I wouldn't start shorting oil just yet.

On July 7, we had the same drop. Two days later it was at record highs.

Print out a graph of prices for the past year, and draw a trend line along the lowest prices for the past three months. You will see it's business as usual.

Here's a graph for you. When it goes below the blue line, then sell.

[edit on 15-7-2008 by Slipgrid]

The price of oil is inflated, it is not worth anywhere near what current prices are. The United States has sent a signal to the world; in 10 years we won't need your oil.

Think China or Russia Combined will use as much oil? NO. Most of China's power plants are coal fired, all new ones are solar, wind and hydro. Russia relies primaryly on Natural Gas as does most of Europe.

Grow a brain people, we have been scammed and its comming to an end. Soon (15 years) OPEC will be back to selling Oil to CHINA for $25, do you really think they will pay $150 a barrell?

No.

It ends, soon.


[edit on 15-7-2008 by crisko]

[edit on 15-7-2008 by crisko]

reply to post by crisko


Just a little contrived volatility to make some cash.....
I agree, $150/b before $120/b

Check out th lower graph on this on this site and look at the Barrel to gas price ration.....gas is lagging by design...


www.zealllc.com...

Oil is also being driven up so that the oil companies and their contractors can profit by offshore drilling. Bush admin is taking advantage (if not manipulating) of this price hike to make a show of the dems when they vote down his lifting the ban etc. Just follow the money, as it is all rigged for political and corporate reasons. When all that has been accomplished, we will see a return to normal levels IMO.

Not everybody is a stupid as you think I don't invest my money. I have a broker/firm to do that, and they sold their/our stock at around 145 a barrel. So I am cool with the lower prices now. Time to get in on some cheap bank stock! I will say that I was pissed when my broker yanked me out at 145....I was under the impression that it would top 200, but thank God I don't invest my own money.......I gotta run....Got to do the "happy dance"

Its a distraction, muse the people before their strike, to many resources available to the population.

reply to post by Rockpuck

Oil prices in 2001: $20/b ... oil prices 2008: $150/b ...

So either the World just entered the most extreme golden age of economic expansion ooorrrr.....

Or we put an oil man in the whitehouse between those years?

I'm afraid you'll see oil go much higher first. The big bucks want to make a big pile of money from this so it'll go probably to 190.

Then they'll pull out & move into something else, like gold.

The price of oil is tied to the national debt. debt grows price of oil grows. pretty simple.

www.bloomberg.com...

video.google.com...

reply to post by dbates

lol. Shortage of water. ON A PLANET. In certain areas, sure, fresh water is in decline (severely in some areas). But that doesn't mean we're running out of water. Water doesn't disappear or get used up and not come back, it evaporates, meaning that water will go somewhere else. Water shortage on a planet with gravity? Almost impossible. Fresh water shortage and droughts in certain areas? Yep.

Shortage of a non-renewable resource (like oil) is obviously possible. Don't put a non-renewable resource and a mostly renewable resource (water can be changed into either pure hydrogen or oxygen, or compounds when used with other elements or compounds) into the same category. Or be specific, and say fresh water is in decline.

And I'm not saying we should use as much water as we want. I'm sorry if this post looks like a straw-man argument. I just like people to be specific.

Originally posted by Rockpuck
reply to post by Dubyakadubla

 

Well...

Yes, oil is a bubble. That much is actually a fact. "Real" price of oil is actually between 25-40 US Dollars.

Well.. add +30% for our falling Dollar value.

Anyways. Oil prices are not "dropping fast" .. I don't know why you chose that topic.

In fact, oil just hit a record high .. and it is expected to hit another high today as the US economy is about to take another blow .. DOW Futures show the Index well bellow 11,000 .. lowest levels in over 2 years. The US Dollar also hit a brand spankin new record low Monday and is expected to again, Tuesday.

Don't get your hopes up for "cheaper" oil any time soon...

I think that you also invested all your life savings into the Oil Shares Gang-Bang Boomerang....!!!

Oil prices drop $9 over two days

You know Oil Hoarders will never tell you that their hoarding is causing them a Stomach Pain in the Head, because they purchased purely out of Greed at Prime Prices from Sharks that wanted to Sell and Run

Oil prices plunged for the second consecutive day on Tuesday, dropping $5.33 a barrel, to $136.04, and causing a sell-off of oil stocks.

Oil analysts said the immediate reasons for the sudden drop in price included the strengthening of the dollar in recent days and the apparent veering northward of Bertha, the first hurricane of the 2008 hurricane season, meaning it was likely to miss the oil and natural gas facilities in the Gulf of Mexico.

They also noted that President Mahmoud Ahmadinejad of Iran had dismissed the possibility that war with the United States and Israel was imminent in remarks to reporters in Kuala Lumpur, relieving worries that Iran might try to block oil shipments in the Strait of Hormuz.

www.iht.com...

speculators add only a small part of the price on a barrel of oil. Without speculation, there would be chaos.

The problem is Supply and Demand and simple economics. China and India are heavily competing for the very same oil resources we are. Speculators are reflecting supply and demand issues. We need more oil. The prices are pretty much set in the middle east. No different than a farmer who drives his wheat to the market, he determines what to sell it for.

I dont believe in peak oil. They are finding hydrocarbons on Titan. So if Oil is old fossils, then titan did too? Something to think about.

[edit on 15-7-2008 by soup_sandwich]

[edit on 15-7-2008 by soup_sandwich]

Originally posted by dbates

Originally posted by Dubyakadubla
there is no shortage of oil

Sure, and there is no shortage of water on this planet yet we have drought stricken areas even in the United States. How is that possible when 2/3 of the Earth is covered with water?

Gov. Brad Henry will face some fence-mending when he flies to the Oklahoma Panhandle Wednesday to tour drought-stricken areas of Cimarron County and visit with local ranchers.
www.kjrh.com...

You see while we have billions and billions of barrels of oil still yet to recover, there is a limit to how much we can get out at a time for consumer use. And all oil is not equal. Some types require extensive efforts to get to and even further refining processes before it can be used. The United States alone uses about 23 million barrels of oil a day. That's nearly a billion gallons used every single day. You can be drowning in a resource and still not have the ability to use it.

Remember The Rime of the Ancient Mariner?

Water, water, every where,
And all the boards did shrink ;
Water, water, every where,
Nor any drop to drink.




[edit on 15-7-2008 by dbates]

Water is not Oil and Oil is not Water, neither do they mix together !!!!

Please educate yourself on the Oil Brothel Business, read these few links to research this Mafia Business.

www.oilwatchdog.org...