Oil Going to $200

[runningman]

Re: Oil Going to $200

Oil goes up because of an airstrike "near" a pipeline.

http://www.reuters.com/article/2011/03/02/us-markets-oil-idUSTRE71192R20110302

The oil companies can just say whatever they want to drive up the price of oil.

Most of you on here seem perfectly happy that the propaganda is so strong to validate the price of gas at the pump. The TRUTH is that no oil fields have been hit supply is still the same yet prices are going through the roof.

Boy the fat cat oil barons must really be having a chuckle on this one.

[res0nat0r]

Re: Oil Going to $200

the truth is you don't understand how it works.

[Localizer]

Re: Oil Going to $200

Oil goes up because of an airstrike "near" a pipeline.

http://www.reuters.com/article/2011/03/02/us-markets-oil-idUSTRE71192R20110302

The oil companies can just say whatever they want to drive up the price of oil.

Most of you on here seem perfectly happy that the propaganda is so strong to validate the price of gas at the pump. The TRUTH is that no oil fields have been hit supply is still the same yet prices are going through the roof.

Boy the fat cat oil barons must really be having a chuckle on this one.

If there's a fire by your wheat fields, the price of wheat will go up because there's a chance your wheat may get taken out.

If there's a monsoon in India that causes flooding, the price of rice will go up.

It doesn't matter if the oil gets hit or not, just the mere fact that there is 'danger' close by is enough to escalate prices because the future is unforseen.

http://en.wikipedia.org/wiki/Oil_reserves_in_Libya

Oil reserves in Libya are the largest in Africa and the ninth largest in the world with 41.5 billion barrels (6.60×109 m3) as of 2007. Oil production was 1.8 million barrels per day (290×103 m3/d) as of 2006, giving Libya 63 years of reserves at current production rates if no new reserves were to be found. Libya is considered a highly attractive oil area due to its low cost of oil production (as low as $1 per barrel at some fields), and proximity to European markets. Libya would like to increase production from 1.8 Mbbl/d (290×103 m3/d) in 2006 to 3 Mbbl/d (480×103 m3/d) by 2010–13 but with existing oil fields undergoing a 7–8% decline rate, Libya's challenge is maintaining production at mature fields, while finding and developing new oil fields. Most of Libya remains unexplored as a result of past sanctions and disagreements with foreign oil companies

[runningman]

Re: Oil Going to $200

Wow you couldn't be more wrong. If the factory next to mine catches fire I can't charge more money for my widgets because there was danger near by. The only thing that could affect prices would be if half my factory got burned down and I could only produce half the widgets. Then my supply couldn't meet the demand therefore driving prices up because of its rarity.

What next a fire is near the factory in silicon valley so computer prices triple? Danger might be near. Guess what it is a dangerous world out there!


Resonator if you compare the intellect between my posts and yours it is quite obvious you don't have a clue about business, economics, or reality for that matter.

[res0nat0r]

Re: Oil Going to $200

Wow you couldn't be more wrong. If the factory next to mine catches fire I can't charge more money for my widgets because there was danger near by. The only thing that could affect prices would be if half my factory got burned down and I could only produce half the widgets. Then my supply couldn't meet the demand therefore driving prices up because of its rarity.

What next a fire is near the factory in silicon valley so computer prices triple? Danger might be near. Guess what it is a dangerous world out there!


Resonator if you compare the intellect between my posts and yours it is quite obvious you don't have a clue about business, economics, or reality for that matter.

The reality you exist in is obviously not the one the rest of us here share.

[runningman]

Re: Oil Going to $200

well prove my post wrong then. Don't just do your typical " I speak for everyone, you are stupid" defense.

What affects prices? Is it supply/demand? Or some other form of economics I'm not aware of.

What is going on here is nothing more then PURE speculation. The mega banks and oil companies are driving the price up through the roof.

[res0nat0r]

Re: Oil Going to $200

What is going on here is nothing more then PURE speculation.

You just answered your own question, and repeated what Jenks said 2 pages ago. Fail.

[runningman]

Re: Oil Going to $200

God it hurts sometimes talking to you.

So let's just allow big oil and big banks do whatever they want right? I mean they already stole trillions from you why stop now right?

[res0nat0r]

Re: Oil Going to $200

Here is an excellent reality check:

http://www.google.com/search?q=how+is+the+price+of+oil+determined

Unless of course these Google results are being skewed by the oil companies.

[res0nat0r]

Re: Oil Going to $200

...

[res0nat0r]

Re: Oil Going to $200

oops. firefox is messing up.

[Localizer]

Re: Oil Going to $200

Wow you couldn't be more wrong. If the factory next to mine catches fire I can't charge more money for my widgets because there was danger near by. The only thing that could affect prices would be if half my factory got burned down and I could only produce half the widgets. Then my supply couldn't meet the demand therefore driving prices up because of its rarity.

What next a fire is near the factory in silicon valley so computer prices triple? Danger might be near. Guess what it is a dangerous world out there!


Resonator if you compare the intellect between my posts and yours it is quite obvious you don't have a clue about business, economics, or reality for that matter.

Definitely need a facepalm for your reply. Geopolitical unrest allows prices to go up because for fear there will be a lack of production in certain commodities. Libya, as it states in wiki, supplies Europe, with some of it by Eni, who has already pulled out most of its employees. There have already been cuts in production. This isn't hard to grasp.

[runningman]

Re: Oil Going to $200

http://www.google.com/hostednews/afp/article/ALeqM5grVFjE4fjRZr7ipROjK0WyqHtzBw?docId=CNG.4103fec93a330f1c195d92e86c2ce8c3.71

Saudi can offset any Libya oil supply gap: IEA chief

Saudi Arabia is capable of offsetting any shortfall in global oil supplies due to the current turmoil in Libya, the head of the International Energy Agency (IEA) said Wednesday.
Saudi Arabia "can supply any gap. Even if Libya may stop exportation totally ... Saudi (Arabia) can offset or Saudi (Arabia) can (make up) ... this oil demand," Nobuo Tanaki told reporters.

"The current situation is very different from 2008 when the price went up to 147 dollars because we have plenty of spare capacity in the producing countries like Saudi (Arabia)," Tanaki said.






Yes you do need a face palm for your ignorance.

[runningman]

Re: Oil Going to $200

The devil shows his face

http://www.reuters.com/article/2011/03/02/us-goldman-oil-europe-idUSTRE7212YO20110302

Beware of another oil supply shock-Goldman Sachs

(Reuters) - Oil prices could spin out of control if markets are hit by a further supply shock similar to that caused by unrest in Libya, according to a Goldman Sachs fund manager.

[Localizer]

Re: Oil Going to $200

http://www.google.com/hostednews/afp...2e86c2ce8c3.71

Saudi can offset any Libya oil supply gap: IEA chief

Saudi Arabia is capable of offsetting any shortfall in global oil supplies due to the current turmoil in Libya, the head of the International Energy Agency (IEA) said Wednesday.
Saudi Arabia "can supply any gap. Even if Libya may stop exportation totally ... Saudi (Arabia) can offset or Saudi (Arabia) can (make up) ... this oil demand," Nobuo Tanaki told reporters.

"The current situation is very different from 2008 when the price went up to 147 dollars because we have plenty of spare capacity in the producing countries like Saudi (Arabia)," Tanaki said.






Yes you do need a face palm for your ignorance.

I guess you didn't read right under it did you? Which underlines the whole point I stated before that geopolitical issues are affecting the price and that whether or not the oil lines are hit doesn't matter; the fact that they are close by matters.

The head of the Paris-based IEA did however express concern about oil prices hitting $100 per barrel on concerns at the problems in Libya and the popular unrest across the Middle East and North Africa.
"We are concerned about what is happening in North Africa and the Middle East. That is making the market very nervous about future interruptions," the IAE chief admitted.

What did i say in the first reply to you? 'Hedging'
What did i say in the 2nd reply to you? 'danger' will drive prices
And guess what? Libyan crude is different from Saudi crude which will make it more difficult to refine and more expensive.