"One of the things I think is very important to realize is that the growth in the world oil consumption is not that strong." —David Kelly, chief market strategist, J.P. Morgan Funds; The Washington Post, May 4, 2008
We do know that refineries in the U.S. again cut back their utilization to 85%. That's down from 89% a year ago, in a season when production is normally 95%, only because they're trying to draw down gasoline inventories to bid gasoline prices up.
No supply crisis justifies the way the world's oil is being priced today.
* This post was
edited 05/22/08 05:03am by TF36DSMatt *
eltejano1 wrote: Scapegoating groups - greenies, speculators, oil executives, foreign potentates - isn't going to solve the problem. The solution lies within ourselves - park the rv and hang-up the toys....
The Weekenders wrote: ...we only have one chance to live this life, why do we have to give up what we use as our relaxation after working 80 hours a week!!!!!!
I don't think eltejano1 said we had to give up anything, but until we do, we certainly shouldn't expect prices to drop.
U.S. oil company executives told the Senate Judiciary Committee that oil prices whould be between $35 and $90 a barrel if they were based on production costs and supply and demand
"Performance-chasing financial inflows to commodities cause prices to rise, thus delivering good performance, and attracting even more inflows," Lehman Brothers (LEH) analyst Edward Morse wrote in a May 16 report, Is It a Bubble?
"We used to ignore inventory reports, but now they're a matter of life and death," Beutel says. "Now anything can move prices. I'm convinced that if my lawnmower leaked a few drops of oil it would generate buying."
The near-term news could not be worse - up another two dollars overnight and trading at $135 at the moment. Supplies on everything are down and some analysts ae saying we might see the previling year-end forecast of $141 reached within days!!
It' all over folks! We're dead meat.
If Matt's sources are right, and it's an artificial shortage to drive-up prices, what can we do about it in the context of our free enterprise system?
About all I can think of is to make sure that competition is alive and healthy and if there is price collusion, prosecute the offenders under existing law. But, somehow, I just don't think govt has the muscle - or the will- to tackle those economic behemoths in that way. Has the great free enterprise system that brought us all the prosperity suddenly turned on us?
Should we nationalize the whole industry, seize their resources and make it a state-owned monopoly - as in Mexico where diesel is $2.00/gal? An aroused populace could, and likely would , do just that if things get bad enough.
Maybe those survivalist whackos that live out in the woods with their dogs and guns have the right idea after all! :-)
swebber wrote: 3.92 a gallon for regular in VA !!Up seventeen cents this week !!
You may find us Canadians would consider that a deal.
Regular 87 Octane is about $1.27/Litre/average now = $4.81/Gallon
Diesel is about $1.40/liter/average now = $5.30/Gallon.
On the east coast of Canada diesel hit $1.60/Liter last week, which is just a bit above $6.00/Gallon.
If your think your hurting, look north. The only thing going for us is that our economy isn't quite as tanked as yours is. So far it hasn't slowed down many people, so I'm still wondering where the breaking point is in reality.
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