World Events
Topic: Oil up $10 last week! Record price of $126 PPB!!

#	Author	Message
1	X-san Fri 5/9/2008 6:32p	Wow. Where does this end? Anyone recall the low from a year or two ago? Hasn't it just about doubled at this point!?
2	dshyates Fri 5/9/2008 7:29p	"Where does this end?" When the demand goes down. Soon enough we will have to find an answer. Some are speculating the China is buying up huge quantities and stockpiling it to break the US economy.
3	fkurucz Fri 5/9/2008 9:10p	^^^All it would take is for them to stop lending us money. The bottom line is that demand is rising and OPEC and the indpendent oil producing countries have chosen not to increase production. If this continues they will own us lock, stock and barrel. We dug our own grave.
4	fkurucz Fri 5/9/2008 9:13p	And don't worry about your Suburban, Hummer or Pickup truck. It will have some value as scrap metal.
5	fkurucz Fri 5/9/2008 9:16p	>>"Where does this end?"<< My guess: $200 a barrel by year's end. At the pump? $5-6 a gallon. I guess oil could come down if the entire global economy crashed. Great Depression II?
6	EighthDwarf Fri 5/9/2008 9:37p	<<The bottom line is that demand is rising and OPEC and the indpendent oil producing countries have chosen not to increase production.>> That sounds nice but it is not accurate. Supply is not the problem here. Take a look at this: http://www.opec.org/opecna/Pre...2008.htm <<In recent months, oil prices have become increasingly volatile, mainly driven by financial market developments and the increased flow of speculative funds into oil futures. The turmoil in some global equity markets and the considerable depreciation in the US dollar have encouraged investors to seek better returns in commodities, particularly in the crude oil futures market. This has driven prices higher. There is clearly no shortage of oil in the market. OECD commercial oil stocks remain above the five-year average, with days of forward cover at a comfortable level of more than 53 days. US crude inventories, meanwhile, rose by almost six million barrels last week, which is a further indication that oil supplies are plentiful.>>
7	oc_dean Fri 5/9/2008 9:39p	Greed.
8	oc_dean Fri 5/9/2008 9:43p	This is increasingly becoming crippling. The oil companies seem to think we all can just keep paying more ... like we have wallets with endless amounts of cash.
9	EighthDwarf Fri 5/9/2008 9:53p	<<The oil companies seem to think we all can just keep paying more ... like we have wallets with endless amounts of cash.>> They're right. Demand for gasoline is very inelastic, meaning demand does not decrease very much as prices increase.
10	X-san Fri 5/9/2008 10:47p	Yup. The only real danger for the oil companies is if they take things too far and the gubment steps in complaining of gouging issues (which, with the oil spot price still at a record high, ain't gonna happen).

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