Oil Slick Stuff

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Who's fault is it for HIGH OIL PRICES?​





A. The falling dollar because oil is priced in US dollars. So when the dollar falls, it allows other countries to buy more oil which drives up demand and prices. 25% (1401 votes)
B. No one. This is just the free market and the natural laws of supply and demand in effect. 9% (519 votes)
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C. Emerging countries like China and India - whose need for oil has increased dramatically in just the last year or two. They are buying every barrel they can lay their hands on. 19% (1049 votes)
D. OPEC and Big Oil - conspiring together so that they can rake in even bigger, record-breaking profits this year than ever before. 30% (1704 votes)
E. We the consumer - who choose to buy gas guzzling SUV’s instead of using public transportation or buying a smaller, more fuel friendly car. 17% (971 votes)
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Total Votes: 5644
 
IT'S CROOKS!!


AP
Oil hits record near $140 a barrel on dollar, fire
Monday June 16, 9:41 am ET
By John Wilen, AP Business Writer Oil futures shoot to a record near $140 a barrel on falling dollar, North Sea fire
NEW YORK (AP) -- Crude oil futures hit a record close to $140 a barrel Monday as the dollar weakened against the euro. Retail gas prices rose to a record $4.08 a gallon.
Light, sweet crude for July delivery rose to $139.89 before retreating to trade up $3.62 at $138.48 a barrel on the New York Mercantile Exchange.
Many investors buy commodities such as oil as a hedge against inflation when the dollar falls. Also, a weaker dollar makes oil less expensive to investors dealing in other currencies. Many analysts believe the dollar's protracted decline is a major factor behind oil's doubling in price over the past year.
The euro bought $1.5504, a sizable increase from $1.5354 late Friday in New York. The British pound rose to $1.9668 versus $1.9469 in New York.
Also supporting prices was an overnight fire at a StatoilHydro ASA drilling rig in the North Sea, which could affect as much as 150,000 barrels of daily oil production, said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn.
But prices of North Sea-produced Brent crude oil, while higher, were lagging Nymex crude's advance, suggesting to analysts that the dollar was the main driver of Monday's rally.
"We have a weaker U.S. dollar, and the buyers are out in force right now," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.
Saudi Arabia, the world's largest oil producer, told U.N. chief Ban Ki-moon over the weekend that it would boost output by 200,000 barrels a day, or by 2 percent, from June to July. In May, the kingdom raised production by 300,000 barrels a day. That increase was largely ignored by traders amid strong global demand and falling production elsewhere.
It appeared as if the same thing happened Monday.
"They have to increase by north of 1 million barrels per day (in order to have an impact on prices), and the market doesn't think they have it," Cordier said. At the pump, meanwhile, the national average price of a gallon of gas rose 0.3 cent overnight to its latest milestone, according to AAA and the Oil Price Information Service. Gas prices are following crude prices higher, and likely have several more cents to rise before catching up with oil's latest advance. If oil prices pass $140 and head even higher, the pain consumers are feeling at the pump will intensify.
http://biz.yahoo.com/ap/080616/oil_prices.html
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This jacks my Jaws!:nuts:

Market Update

1:30 pm : The S&P 500 is hovering near the unchanged mark. Four of the ten economic sectors are in positive territory, led by financials (+1.3%).
Crude oil is trading up 0.1% to $135.09 per barrel -- marking a more than $4 retreat from its all-time high. Brokerage firm Oppenheimer noted that the current record high oil prices are due to excessive speculation, and are not justified by supply and demand. The firm believes current fundamentals support oil prices at or below last years level of roughly $65 per barrel.
The dollar continues to trade with steep losses, down 0.8%.DJ30 -24.18 NASDAQ +15.43 SP500 +0.91 NASDAQ Adv/Vol/Dec 1691/1.05 bln/1333 NYSE Adv/Vol/Dec 1691/624 mln/1333
http://finance.yahoo.com/marketupdate/overview?u
 
Er...what's Oppenheimer group smoking? Worldwide demand continues to grow even with the rising prices - China and India are part of the growing demand even as the U.S. demand slows/reduces. If it was only speculation, it wouldn't hold long. The speculation is a reaction, unfortunately right now Oil is a nice ride to be on :( and the dollar isn't.
 
Instead of getting busted in the market they are buying Energy, Oil, Gas etc. This drives the price up and they are making money. If I was holding energy stocks I would think about taking profits!!View attachment 4080
 
Sounds like Meredith applied the same thinking to bank stocks when she spanked em last week...they keep buying enough of their own stocks to keep the prices afloat/up. Oil companies and speculators are doing the same thing with oil and oil stocks. Good way to keep the price of your commodity up and maximize your profits.
 
Gas prices break record run:o

National average price for a gallon of gas slips slightly to $4.078 a gallon, according to AAA.

Last Updated: June 17, 2008: 6:52 AM EDT

NEW YORK (CNNMoney.com) -- Retail gasoline prices have eased slightly from their record high, according to a daily survey released Tuesday by auto club AAA.
The national average price for a gallon of regular gas fell two-tenths of a cent to $4.078, according to AAA. That's down from the all-time high of $4.080 set the previous day.
The decline ends 10 days of consecutive increases and ends nine straight record highs.
Still, gas prices are up 7.5% from a month ago, and they're nearly 36% higher than they were at this time last year.
Gas prices are highest in California, where a gallon of gas averages $4.603, followed by Alaska at $4.444 and Connecticut at $4.384.
The lowest gas prices can be found in Missouri at $3.832 a gallon.
Diesel prices also fell moderately. The national average price for a gallon of diesel lost two-tenths of a cent to $4.795 from a record $4.797.
Meanwhile, crude oil prices eased after spiking nearly $5 a barrel to a record high of nearly $140 in volatile trade Monday.
http://money.cnn.com/2008/06/17/news/economy/gasoline_prices/index.htm?cnn=yes
 
Oil falls further from $140 mark

But traders say supply concerns could send prices higher.

Last Updated: June 17, 2008: 8:34 AM EDT


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KUALA LUMPUR, Malaysia (AP) -- Oil eased in Asia on Tuesday after hitting a record of nearly $140 a barrel the previous volatile session, but traders said prices may climb again amid persistent supply concerns and strong demand.

Light sweet crude for July delivery fell $2.11 to $132.50 a barrel in electronic trading on the New York Mercantile Exchange.
Crude prices gyrated Monday, soaring to a trading record of $139.89 before tumbling to as low as $132.84. It settled at $134.61 a barrel, down 25 cents.[more]
http://money.cnn.com/2008/06/17/markets/oil.ap/index.htm?postversion=2008061706
 
Suspicious of oil prices, commodities cop takes action
The push to improve the integrity of the white-hot oil futures market is gaining momentum. With suspicions of oil speculation on the rise, the USA's top commodities cop announced steps Tuesday to close some regulatory loopholes that hindered its ability to detect market abuse. The moves are designed to make it easier for U.S.-based regulators to monitor investors that trade U.S. oil on foreign exchanges and identify ones that try to game the system. The Commodity Futures Trading Commission will now require trades placed on the ICE Futures Europe, an electronic exchange based in London, to adhere to the same position limits and reporting standards that apply in the USA. The more stringent rules apply to the West Texas Intermediary crude oil contract, which is linked to the New York Mercantile Exchange (Nymex) crude oil contract. The new rules, which must be met for ICE traders to access U.S. markets, take effect in 120 days. This change will, in effect, undo some of the regulatory differences between the CFTC and the Financial Services Authority, which oversees British trading. It will enable the CFTC to gather more detailed overseas trading information — especially on large positions — on a more frequent basis.
http://www.usatoday.com/money/industries/energy/2008-06-17-ctfc-oil_N.htm
 
Fivetears said:
Suspicious of oil prices, commodities cop takes action
The push to improve the integrity of the white-hot oil futures market is gaining momentum. With suspicions of oil speculation on the rise, the USA's top commodities cop announced steps Tuesday to close some regulatory loopholes that hindered its ability to detect market abuse. The moves are designed to make it easier for U.S.-based regulators to monitor investors that trade U.S. oil on foreign exchanges and identify ones that try to game the system. The Commodity Futures Trading Commission will now require trades placed on the ICE Futures Europe, an electronic exchange based in London, to adhere to the same position limits and reporting standards that apply in the USA. The more stringent rules apply to the West Texas Intermediary crude oil contract, which is linked to the New York Mercantile Exchange (Nymex) crude oil contract. The new rules, which must be met for ICE traders to access U.S. markets, take effect in 120 days. This change will, in effect, undo some of the regulatory differences between the CFTC and the Financial Services Authority, which oversees British trading. It will enable the CFTC to gather more detailed overseas trading information — especially on large positions — on a more frequent basis.
http://www.usatoday.com/money/industries/energy/2008-06-17-ctfc-oil_N.htm
Click to expand...

A big step in the right direction, it's about time!!:nuts:
 
Now we're Talkin'!!:D

McCain wants to lift ban on offshore drilling

CNN) -- Sen. John McCain on Tuesday proposed lifting the ban on offshore drilling as part of his plan to reduce dependence on foreign oil and help combat rising gas prices.
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Sen. John McCain says it's time for the federal government "to put our own reserves to use."

"The stakes are high for our citizens and for our economy," McCain, the presumed Republican nominee for president, said at a press conference Tuesday in Houston, Texas.
Hours later, White House Press Secretary Dana Perino said President Bush on Wednesday will ask Congress to lift the ban on offshore drilling.
Bush has long called for opening the Arctic National Wildlife Refuge in Alaska to oil exploration, but Perino said he now wants to go further.
"For years, the president has pushed Congress to expand our domestic oil supply, but Democrats in Congress have consistently blocked such action," she said.
Earlier in the day, McCain, describing the high price of fuel, confused the cost of gallons versus barrels, which drew laughs from the crowd and the candidate himself. He quickly corrected himself.
"And with gasoline running at more than $4 a barrel ... a gallon ... I wish ... $4 a gallon, many do not have the luxury of waiting on the far-off plans of futurists and politicians," he said.
"We have proven oil reserves of at least 21 billion barrels in the United States. But a broad federal moratorium stands in the way of energy exploration and production. And I believe it is time for the federal government to lift these restrictions and to put our own reserves to use."
McCain's plan would let individual states decide whether to explore drilling possibilities.
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Watch a McCain adviser describe the proposal »
The proposal could put McCain at odds with environmentalists who say it is incongruous with his plans to combat global warning. California Gov. Arnold Schwarzenegger, a McCain ally, opposes offshore drilling.
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Florida Gov. Charlie Crist had expressed opposition to exploring coastal waters, but he said this week he supports McCain's plan to lift the moratorium and would not rule out letting his state choose to drill offshore.
"It's the last thing in the world I'd like to do, but I also understand what people are paying at the pump, and I understand the drag it is on our economy," Crist told the St. Petersburg Times. "Something has to be done in a responsible, pragmatic way."
The current law, which has been in effect since 1981, covers most of the country's coastal waters.
Many officials from coastal states oppose offshore drilling because of the risk of oil spills. Environmentalists want offshore drilling to stop to protect oceans and beaches from further pollution.
"The next president must be willing to break with the energy policies, not just of the current administration, but the administrations that preceded it, and lead a great national campaign to achieve energy security for America," McCain said Tuesday.[more]
http://www.cnn.com/2008/POLITICS/06/17/mccain.energy/index.html
 
Sure, we can open up off shore drilling and Anwar or whatever else is out there. Just don't expect all that oil to stay here. It will be sold in the global market.

The people in Alaska, of all places, have been experiencing a shortage of natural gas. It's not that it isn't available, the problem is that it's being sold overseas.
 
Wrngway said:
Sure, we can open up off shore drilling and Anwar or whatever else is out there. Just don't expect all that oil to stay here. It will be sold in the global market.

The people in Alaska, of all places, have been experiencing a shortage of natural gas. It's not that it isn't available, the problem is that it's being sold overseas.
Click to expand...

Yeah, but it is a global market and it should affect prices globally, too.
 
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