Is it just me,it seems like one day gas prices were tolerable,then the next thing you know,prices are out of sight and rising.I feel that somewhere,somebody missed alot of signs of things to come.Or maybe some kind of conspiracy or major overall plan.I don't know. On the news they talk of our large oil deposits. What if, like in the Hoover days,Instead of massive unemployed and welfare numbers,provide jobs for those that are physically able to work, jobs building refineries,drilling for oil,or other projects that would benefit our Country.I'm all about ecology,but sometimes sacrifices have to be made.Someone once said"drastic times call for drastic measures."What do Y'all think?
Yeah, it was only about 6 years ago that we could buy a gallon of gas for $1.25 now it's over $4. A barrel of crude has more than tripled in price in the last few years which is the main cause. The oil companies are posting record profits though so they don't really seem to care if it further kills our economy or not. They have also been whining that they want more areas to drill like our coasts which in my opinion would be fine to a certain extent except that they have lots of permits open already to explore and drill and they simply won't. It comes down to greed and power of the rich over the little guy.
The petrol and oil price hike is now untolarable. There were protests at some parts of our country over the prise hikes. See images, India strike over fuel price rise - Off Topic Chat The protest was to severe!
Obama said he was upset that the price of fuel went up " too fast", which means he and others of the political class are just fine with the price of fuel.
I remember in the 70's and 80's being told that we should be paying what the Europeans are paying. Now I see where some congressmen are proposing subsidies for gas and heating oil, in other words, "Vote for me and I will help you with your fuel bill." Now you know why they are opposed to drilling and other means of lowering the price of oil........You peasants!
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06' GT Tungsten gray,seq. turn sigs. no spoiler.
XM,
An armed man is called a citizen.A disarmed man is called a subject.
Don't worry guys, it will go back down. It's a bubble the commodities market has created to make some people a lot of money. The people in the know will get out when the time is right and the dummies, not in the know, will be left holding the bag. A bubble like the high tech bubble and the housing bubble. Some people made a lot of money, a lot of people were left holding the bag in both cases. Oil has tripled in price in the last few years. Like tech stocks and housing prices. You can,t tell me that demand has tripled in that amount of time. I think it will eventually drop like a rock to about half of what is now by possibly next year.
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Pete
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2005 GT
Redfire
Red Leather
Premium
5 speed
Straight Stock
What I have gathered from various sources is that when the housing market crashed, investors began moving to something more "stable": the oil market. As the rest of the economy suffered, more investors began piling their money into oil funds, hiking up the price of oil. So, logically, once the economy returns to normal, investors will move their money out of oil and back into their usual investments, and the price of oil should drop to within 50 cents of pre-spike prices. Just my theory, though. But if my theory is correct, and with Obama probably going to be our next President, the economy probably won't pick up and oil prices will stay high until he leaves.
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Proud owner of a '65 289 coupe w/ C4. Equipped with Edelbrock Performer intake K&N air filter, and 600 cfm carb, Comp Cams Xtreme Energy valvetrain, Comp Cams XE262H cam, MSD ignition, and ported heads. Suspended by 600# 1" drop front and stock rear springs, KYB shocks, 1" front and 7/8" rear sway bars, and Traction Master style traction bars. Your friendly suspension kid.
What I have gathered from various sources is that when the housing market crashed, investors began moving to something more "stable": the oil market. As the rest of the economy suffered, more investors began piling their money into oil funds, hiking up the price of oil. So, logically, once the economy returns to normal, investors will move their money out of oil and back into their usual investments, and the price of oil should drop to within 50 cents of pre-spike prices. Just my theory, though. But if my theory is correct, and with Obama probably going to be our next President, the economy probably won't pick up and oil prices will stay high until he leaves.
A little bit of history, in 1983 the New York Mercantile Exchange dropped the futures market on potatoes (yes potato futures!) and added oil futures to their portfolio along with pork bellies and soybeans. This changed the whole price structure and buying of oil. Oil use to be bought as supply demanded it and as refiners need it for the different seasons and customers. As investment firms began buying oil they started driving up the price to show higher returns to their investors. Before they changed the rules in 83' most investment firms would not touch oil because of the low return.
Your right it is a bubble and how long it last is probably going to be determined in November.
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06' GT Tungsten gray,seq. turn sigs. no spoiler.
XM,
An armed man is called a citizen.A disarmed man is called a subject.
It is definitely a bubble, one created largely by politics (here and abroad).
The idea that the prices are being driven by supply and demand would be true ONLY if there was a supply shortage (there is none - there are currently nearly a million barrels daily avaialble for sale over and above contracts [note, NOT talking about futures contracts per se]).
The other thing that can drive prices would be the cost of production (currently running between $4 and $29 per barrel, depending on the location and extraction method) - the cost of refining (which has been slowly increasing year-to-year at approximately the same rate as inflation, about 3-5%) - or the cost of transportation.
The only other thing that affects prices are political in nature, which includes everything from war threats (Israel/US-vs-Iran) to internal turmoil in major producers (Nigeria, Iran, Iraq, Venezuela, etc). Large factors are international politics: currency manipulation and oil price subsidies by China - currency manipulation by Europe (cheaper dollars = cheaper oil for Europe) - currency manipulation by Japan (more expensive dollars = more exports for Japan), etc, etc.
Finally, there is the impact of local politics within the United States, particularly given the sensitivity of the topic and the fact that a Presidential election is roaring along.
Democrats know well that Americans blame Presidents for economic problems, so high oil costs = good news for Dmeocrats right now. Any incentive to actually do anything about the problem will be tempered by the likelihood that they would give up a decisive election advantage by addressing the price crisis.
Oddly enough, the Bush administration is also experiencing a similar problem, since taking dramatic, confrontational action to address the problem might well cost McCain his chance at a win.
So what we are essentially doing is waiting for the two major parties to figure out a method of using CHEAPER oil to benefit their political goals!
Anyone who is puzzled why the American people are being left to swing in the wind while this goes on HAS been paying attention!
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tripleblack
"You can never be free until you let yourself go."
The price of oil 
