kmb1966 wrote: I only want to point this out. With all these fuel price posts that are appearing here on the rv.net, could we please stop posting comments that say today's gas & diesel prices are because of supply & demand? Even the OPEC chief says price is not related to supply & demand anymore. I read all these posts and it just "irks" me when I see somebody trying to be intelligent by posting a reply relating the price of gas and oil to the economic concept of supply & demand. Cartel will increase production if suppl........is problem, but he doesn’t think it is
I have been saying this for several years now. It's time to take our oil supply out of the futures market.
I don't think "out" is the right way. How about only let buyers and sellers of fuel participate.... oil companies, airline, trucking companies, railroads, etc...
kmb1966 wrote: Even the OPEC chief says price is not related to supply & demand anymore.
Do you not think they may have a strong vested interest in saying this clearly wrong statement.... with over a trillion dollars flowing thier way this year due to high oil prices
There are aspects where there is not a direct link between supply and demand, like the lack of refineries but that does not drive oil prices. If the world was to use 10% less oil next month (May) then the price would be $50/barrel in June. I'll places bets with anyone on that and even give odds.
For those who remember how OPEC got started, recall it was the sons of the locals in the middle east who sent their kids to England to learn economics and they got taught how oil was a classically inelastic demand curve. then they went back home and the dads were looking for a way to pressure the west and ... well the rest is history.
...I ain't as smart as Trop-a-cal, but I lern't during my career thingy to look for finance pundants who forecast that crude will reach $187 a barrel in the next 36 months: a 59.8% increase.
Let's see, if Diesel No. 2 increases the same, here in good ol' Oregon that would make the price at the pump $8.63 gallon. At that price I can still afford to come-and-go to a lot of really nice places for under $200.
Mind you this is the forecast of a broker who stands to make a profit from people who want to invest bet on oil; that is, they want the price of oil to go up. Without gettin' into all the jive, mathematics, and lies about price forecasting, Fibonacci and the Elliott theory, if the oil price maintain its historical trend, the price may peak in the near future (nine months or less) stabilize in a "correction," and then drop; how far it may drop is where Fibonacci's Golden Mean math jive comes in.
This run-up in oil prices is making oil producers take a 2nd look at old oil wells here in the US. Wells that didn't produce a high enough volume of oil at $20 per barrel are becoming attractive at today's prices. They are uncapping old wells here in California and resuming operations. Oil shale production might become economically feasible at $100+/barrel pricing. So will deep ocean drilling.
My family is starting to behave a little differently with higher oil prices. I drive the gas guzzler 4 miles to the train station every day--so a 42 gallon tank of gas lasts a long time for commuting. We are combining errands and making a single trip instead of 2 or 3 trips. Rather than take an 80-mile round trip to deliver a gift to a friend, I went by the UPS store and shipped it for 10% of the cost of driving it there.
As gas prices go higher, we'll have no choice but to further adjust our usage to rein in costs. Our RVing trips this year are going to be shorter. No 2,200 mile trips like last year.
The cars on my train are getting packed with more and more commuters each day. People who "just couldn't be without their cars" must be finding out that they can do just that.
As rising fuel prices continue to eat into the family budgets, Americans are going to adjust.
MFinCA
2004 Homestead Settler 255RS
1999 Chevrolet Suburban 2500
I've read with interest the posts about the value of the US dollar being the root cause of the high oil prices. IF, that were the case then would it not be logical to think that here in Canada, where our dollar is strong, that the price of fuel would be SIGNIFICANTLY less than that in the US? Well, I can tell you that our fuel costs are SIGNIFICANTLY higher than those in the US. How about gas at almost $5.50 per gallon.
In my opinion, we are simply being gouged and any "explanation" is nothing more than a fairy tale to try and appease us. We are being scr???d.
Canuck
kmb1966 wrote: Even the OPEC chief says price is not related to supply & demand anymore.
Do you not think they may have a strong vested interest in saying this clearly wrong statement.... with over a trillion dollars flowing thier way this year due to high oil prices
There are aspects where there is not a direct link between supply and demand, like the lack of refineries but that does not drive oil prices. If the world was to use 10% less oil next month (May) then the price would be $50/barrel in June. I'll places bets with anyone on that and even give odds.
For those who remember how OPEC got started, recall it was the sons of the locals in the middle east who sent their kids to England to learn economics and they got taught how oil was a classically inelastic demand curve. then they went back home and the dads were looking for a way to pressure the west and ... well the rest is history.
And I get accused of conspiracy theroies!
No way to take the bet, but we are already using less and the price has not been affected at all. If we used 10% less, we'd get 10% more excuses for kneejerk price hikes (gunboats, militants, hurricanes, cold weather, refinery capacity, dead battery in the doomaflochy. One thing for sure using less doesn't cause the price to go down, because if it did, it would, and it hasn't. So drive your RV all you want if you can afford to.
Quote: In my opinion, we are simply being gouged and any "explanation" is nothing more than a fairy tale to try and appease us. We are being scr???d.
Ditto. The rich get richer and the poor get poorer.
And a few folks that want to act like they are immune to it all get on the rv site and brag their mutual funds and dividends in an effort to help out their egos while calling the realists "whiners and complainers". Don't listen too much to them, they just troll the site looking for a fight. They know who they are.
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