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Good News, Oil is now more expensive than EVER

Discussion in 'The Lounge' started by cbbr, Aug 8, 2005.

  1. cbbr

    cbbr 1 ton status GMOTM Winner

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    http://news.yahoo.com/s/nm/20050808/bs_nm/markets_oil_dc#youdidntforgetaboutthisdidyou

    LONDON (Reuters) - Oil prices hit a new record high near $64 on Monday after warnings of militant attacks in the world's biggest oil exporter Saudi Arabia and on worries about refinery outages in the United States.

    U.S. crude was up $1.49 at $63.80 a barrel at 1725 GMT after peaking at $63.99. London Brent crude was up $1.49 at $62.56 a barrel after touching $62.70.

    As the United States shut its diplomatic missions in Saudi Arabia in response to threats, Britain warned that militants were in the final stages of planning strikes in the kingdom.

    "The latest security threats in Saudi Arabia, even though they're not directed at oil installations per se, and the continuing refinery issues are having a supportive role," said Marshall Steeves, an analyst at Refco Group in New York.

    Concerns over the Saudi security situation coincided with news that another U.S. refinery had run into output problems, adding to pressure on gasoline supplies in the world's biggest consumer during peak summer demand.

    News that OPEC's second largest producer Iran had resumed its nuclear work, despite European Union warnings of possible United Nations sanctions, further strained nerves.

    In real terms, stripping out inflation, oil is still below the $80 a barrel on average for the year after the 1979 Iranian revolution.

    But at an average of more than $53 for the year to date for U.S. crude, prices are well above those during the 1974 Arab oil embargo.

    Encouraging dealers to push prices higher, energy inflation has yet to have a significant impact on economic growth, particularly in the world's biggest consumers the United States and China.

    Naohiro Niimura, vice president at the derivatives division of Mizuho Corporate Bank, said the world's economy was coping with oil prices that have charged almost 50 percent higher since the start of this year.

    "The (global) economy is tolerant to these high oil prices," he said.

    "After the very strong pick-up in US growth data over the past few weeks, we believe the risk of a sharp slowdown in commodity demand looks negligible in the short term," said Barclays Capital in a report.

    U.S. refineries have been hit by more than half a dozen unplanned outages in the past few weeks as plants show the strain of trying to keep up with two years of unexpectedly strong demand growth after a decade of underinvestment.

    A fire at the weekend shut a 200,000 barrel per day crude unit at Sunoco Inc.'s (NYSE:SUN - news) Philadelphia oil refining complex, a company official said on Monday.

    Further storms in what is proving a severe Atlantic hurricane season could knock out more U.S. output, analysts said.

    "People dare not price in the surpluses they see," said Deborah White, senior energy analyst at SG Commodities in Paris, of comfortable U.S. crude inventories.
     
  2. R72K5

    R72K5 Banned

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    Encouraging dealers to push prices higher, energy inflation has yet to have a significant impact on economic growth, particularly in the world's biggest consumers the United States and China.

    Naohiro Niimura, vice president at the derivatives division of Mizuho Corporate Bank, said the world's economy was coping with oil prices that have charged almost 50 percent higher since the start of this year.

    "The (global) economy is tolerant to these high oil prices," he said.

    "After the very strong pick-up in US growth data over the past few weeks, we believe the risk of a sharp slowdown in commodity demand looks negligible in the short term," said Barclays Capital in a report.

    -----

    great, so since we appear to them as being able to handle the prices and able to give the extra $$ for this oil then they will continue to hold and push for higher prices

    when is civil war II gonna be exactly ?

    surely this will be one of the many factors that will start it.,.,


    its only a matter of time..


    seems like all society is doing is taking it all and living with it,

    wont it be a matter of time before society says enough is a enough ?

    no ?

    maybe not...

    i worry...


    hmm..

    either way its not gonna end up being very good,

    cuz i dont see opec and such willingly dropping prices, very soon, if ever,

    since we are forking over the higher costs and have been for so long now,.

    why would they want to drop the prices ?
    that just woudlnt make any sense

    its just sad that we can effectively boycott oil purchasing

    todays world runs on oil.,

    its too late

    society is stuck with having to pay whatever it has to for the stuff, there is no cap/limit/control
     
  3. tRustyK5

    tRustyK5 Big meanie Staff Member Super Moderator GMOTM Winner Author

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    Oil is traded on the open market. OPEC doesn't set the price, the market does. More pointedly the traders that buy and sell oil futures set the prices. I was reading recently that approx $20-$25 per barrel is based more on hand wringing and greed than the supply reality.

    OPEC strives to maintain a price equilibrium by increasing or decreasing supply to the market. Prices drop on the market, they tighten up and limit the supply (and prices go up). Prices increase too much and they open things up to offset (and prices go down).

    The price of crude right now is just complete crap, uncertainty of the supply chain rightfully does increase the trading prices...however, I feel that that 'uncertainty' has been exaggerated to foster massive profit taking.

    Rene
     
  4. 89GMCSuburban

    89GMCSuburban 1/2 ton status

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    Agree totally, and if I'm right, Gasoline is on a seperate future than oil, so oil supplies can be fine, but if a refinery shuts down, gas prices can climb. Why in the hell a terrorist attack on transportation in London would raise oil prices? You got me. Oil reserves are the highest since the late 80's but oil is this high. It's funds and big traders hedging their bets to screw us. Oil companies making record profit but they don't build any more refineries. Why should they? More gasoline made, more supply, lower prices, less mone! F'in retarded. I just filled up at $2.41 a gallon.
     
  5. southernspeed

    southernspeed 1/2 ton status GMOTM Winner

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    Lucky SOB!!!!! Our gas has just hit £1.00 a litre in some garages. Yep...thats about $8.45 a gallon! :mad:
    The worst bit of it is knowing that our gas is actually the same price as yours....the rest is all government tax and duty!
    (but I'm still not going to buy a Honda despite using about $150 $200 of gas a week :doah: )
     
  6. cbbr

    cbbr 1 ton status GMOTM Winner

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    I always try to remember you guys when I complain about gas prices. No knock, but at least it isn't that bad here. Gas prices kill me because I am on the road all of the time, but at $8.45/gallon I wouldn't have a chance. :eek:
     
  7. blazinzuk

    blazinzuk Buzzbox voodoo Premium Member GMOTM Winner

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    Somebody who has the power sees an oppurtunity to make a profit, gas prices go up the US continues to buy gas we just whine about it more than we did last year. As long as all we do is whine and continue to consume gas prices will remain high
     
  8. cbbr

    cbbr 1 ton status GMOTM Winner

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    That sounds like exactly what I am doing right now. Whining and driving a truck that gets the same mileage as a supertanker. :D
     
  9. MTMike

    MTMike 1/2 ton status

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    I hear you there. I have 1300 (give or take) cumulutive horsepower sitting in my driveway. If it gets much worth I'll start digging for oil in my back yard :doah:
     
  10. diesel4me

    diesel4me 1 ton status Premium Member

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    why is this "good" news???

    Nothing "good" about crude prices going so high!--it only means misery for the people who can least afford it..

    I was tempted to try converting my 82 K20's 6.2 diesel to run on waste fryolator oil...but I asked around at a few fast food joints,and many already give away most of the used stuff,and have turned people away--they just dont have enough to handle the demand!--other places have a "re-cycling" firm contracted to haul it off,and they sell it back to the biodiesel companies :doah: guess there in NO way to get "free" fuel now....unless you grow your own soybeans or something.... :mad: :crazy:
     
  11. cbbr

    cbbr 1 ton status GMOTM Winner

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    Sarcasam. I think that we all realize that there is nothing actually good about it.
     
  12. 89GMCSuburban

    89GMCSuburban 1/2 ton status

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    I don't complain about prices...I knew the burb would get 8 MPG when I got it and knew it would be expensive. You guys in England actually have a decent public transportation system though, too. Denver's is pretty good, but still haven't found a route to work.
     

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