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but other oil producers with excess capacity, such as Organization of Petroleum Exporting Countries (OPEC) nations, would have an incentive to produce more in the present once they believe that future U.S. output will be higher. This example from 2008 is one example of oil price relief because of potential future oil production.
"Once Again, Speculators Behind Sharply Rising Oil and Gasoline Prices"
Once Again, Speculators Behind Sharply Rising Oil and Gasoline Prices | Truthout
Considering that this is a thread about domestic gasoline prices, I have one question for you: Who controls the domestic flow of oil?Theres a little group called OPEC that controls the flow of oil, the oil comps buy all they can all the time. I can't believe I am responding to a poster that starts out with "Well duh". :dohWell duh... whoever controls the flow oil controls the price of oil :doh [...]I agree that obama will open up the strategic reserves in a purely political move but I would be interested to know how you think oil company's can control the price of oil.
Had a minute and found this
Some people argue that allowing more domestic offshore drilling would have little impact on oil prices. It is true that oil is a global commodity; however, after President Bush lifted the executive moratorium on July 14, 2008, and after Speaker Nancy Pelosi announced on September 23, 2008 that Congress would allow the congressional moratorium to expire, there were immediate price decreases. This is illustrated by the chart below:
View attachment 67122888
Economic theory predicts that the potential for greater future oil production should lead to price relief. It is true that lifting the moratorium could not immediately increase oil production from the affected areas, but other oil producers with excess capacity, such as Organization of Petroleum Exporting Countries (OPEC) nations, would have an incentive to produce more in the present once they believe that future U.S. output will be higher. This example from 2008 is one example of oil price relief because of potential future oil production.
Institute for Energy Research | Why Are Gas Prices So High?
Bad news -- the Republicans want you to keep working... Mitt Romney needs a tax cut :shock:[...] I have to get ready for work now, I am still TRYING too retire, no luck yet. :lol:
I don't understand why everyone acts confused about the sudden jump in oil/gas prices, when every major News outlet has a story about it being caused by ME unrest?
The Looming Threat to Gas Prices: Strait of Hormuz Explained | Daily Ticker - Yahoo! Finance
Hahaha.. give that man prize......
I don't understand why everyone acts confused about the sudden jump in oil/gas prices, when every major News outlet has a story about it being caused by ME unrest?
The Looming Threat to Gas Prices: Strait of Hormuz Explained | Daily Ticker - Yahoo! Finance
Thanks. :mrgreen:
I read several of the big News sites every morning and one of the main stories is how the Iran oil cuts to Europe, and ME unrest has markets changing prices. It's not Presidential policies, demand and supply that are directly impacting the sudden change.
The bigger fear is that Iran might retaliate by bombing Jubail, Dhahran, Ras Tanura and Abqaiq.. That would be far more devastating for a much longer time than closing the Straits of hormuz.
Yea that's the fear that Iran will use oil as a weapon. And our economy can ill afford that sort of problem right now.
More articles on the situation.
Gas Prices Rise Again: Average Price Now $3.59 - ABC News
Record sterling oil price sparks fears - FT.com
You know, grip... Iran only produces 3.5 million bpd.. and half of that it for domestic consumption.
I agree with you I don't think Iran is producing enough to have a major impact on the literal consumption rate, though any threat of loss freaks investors. I believe the fear is that they can have an impact on delivery of other supplies in the area and generate some support. Russia, China, Europe, etc are competing for the same resources we are in relation to current and more so future usage.
Currently China is buying more oil from Saudi Arabia than Iran.. but the situation is certainly tricky and dangerous.
Iran could easily produce 6 million bpd.. if they could get rid of their government and attract some investors.
So could Iraq ... or Venezuela.
So could Iraq ... or Venezuela.
According to Chavez VZ has the largest oil reserves in the world. Bet Exxon would love to get their wells back from Petroleos de Venezuela?
According to Chavez VZ has the largest oil reserves in the world. Bet Exxon would love to get their wells back from Petroleos de Venezuela?
Oil prices rose while demand fell. Speculators are at work.
Right now with US demand down, US refineries are manipulating US supply of gasoline by exporting the fuel produced. The exporting has reached record levels over the past year. Toss in the fire at one of the CA refineries and speculation over war with Iran on top of the tight US fuel supplies and you have record fuel prices for this time of year.You know folks, with all the debates going on about the price of oil/gas, I'm seeing a lot of mixed messages. Can anyone provide just the straight poop on how oil and gas is priced?
It seems that the prime movers are Supply and Demand, and Speculators, right? So if the US produces more domestic oil, that domestic oil will not necessarily be cheaper because oil price follows the Intl market price, right? But sometimes some countries get oil for more or less, and that seems contradictory, yes? And how can the president be or not be responsible for the price of gas?
And then the price of gas is obviously influenced by the price of oil, but does that (gas) follow Intl pricing? I don't think it does. The price of gas follows the regular rules of Supply and Demand I would think because I can get different gas prices from different stations in the same town. Correct?
I'm not trying to be a wiseass, I'm asking sincerely.
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