Canuck1 wrote: 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 there is these pesky things called taxes, which are much higher in Canada .....
Do you remember when the price of oil was going from $65/ to almost $100 the price of gas at the pump stayed at $1.00 per litre in Canada throught that whole period. Yes the U.S. dollar did a massive nose dive and that is part of what is going on when you read the price of oil which tends to be quoted in US dollars. there is a long thread here on rv.net with the facts well discussed.
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.
The overall demand has continued to go up, I was discussing the 'royal we' with that 10% - i.e. global demand. Just because one person is using 10% less means nothing since there are 5 other people in the world who just bought their first car last week .....
The latest from the Sheik is that there is plenty of oil the problem is that the refineries cant produce fuel fast enough.If that is the case that means that the demand for oil is bottlenecked at the refineries. The cost of fuel goes up because of the shortage of fuel created by the refineries and a surplus of oil also created by the refineries. So why is the price of a barrel of oil going up????
You haven't read the entire thread. Oil is traded in US dollars. The value of the US dollar is declining. This means oil producrs have to charge more to make the same profit. On top of that, Wall Street and other trading markets are speculating on oil futures. The good news is that bubble may burst and oil prices may drop 30%. Bad news is so might the stock markets. Don't forget that only 30% of crude is used for fuel. Everything in our lives today is made of oil.
Flyfisherman128 wrote: The latest from the Sheik is that there is plenty of oil the problem is that the refineries cant produce fuel fast enough.If that is the case that means that the demand for oil is bottlenecked at the refineries. The cost of fuel goes up because of the shortage of fuel created by the refineries and a surplus of oil also created by the refineries. So why is the price of a barrel of oil going up????
Low value of the dollar.
Nothing else decent to invest in.
Everyone including traders focused on the oil market. As the price at the pump goes up, it makes the news. The news makes everyone watch the oil market, and it just goes round & round & round.
rob85546 wrote: So its in the news, it MUST BE TRUE... Im not saying its true or not, but shouldnt believe everything they tell you....
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
It is true, demand is way down in the USA, due to high prices...
I just read somewhere that last year, less new oil was discovered than was consumed. One wonders how close we are to the tipping point where demand starts exceeding supply.
I agree with previous poster that u.s. budget debt, weak u.s. dollar, and futures speculators are all factors.
I would add higher demand in China, India, etc; conflict (Nigeria);refiners switching to more expensive summer fuel blends; refinery shutdowns for maintenence, etc.
I also read that oil companies ( BTW, I own a sector mutual fund that invests in energy) make 8% on their investment.
Does this mean that instead of making $.24/gallon on $3.00 a gallon gas, they make $.32 on $4.00 a gallon gas? A 33% jump in profit? If so, then wouldn't it be in their interest to see prices continue to rise?
A bunch of you guys have said Big Oil = Organized crime. Fair enough. I have two questions:
1. Could you please define Big Oil?
2. If you were put in charge of Big Oil, what would you do?
68 Me & DW
93 DD
03 DD
06 F150 Screw 6.5' Bed, 4x4, 5.4, 3.73
04 Tahoe 23RB-GL Honda EU2000 Parallel Cables "I hope you like Guinness, Sir. I find it a refreshing substitute for...food." Col. Jack O'Neill, Stargate SG-1.
Is there a Little Oil? If so, do they only generate misdemeanors?
How do I recognize them for the rascals that they are?
Is their criminal conspiracy Unorganized?
If they are not a criminal conspiracy, will they rise up and help us bring down Big Oil and thus save the world as we know it?
And if they topple Big Oil, who will make sure that they don't get organized and grow into Big Oil?
This is all a little confusing. I think I will go out for a drive in my motorhome.
No, it's much simpler ... its just 5 guys that go to the same "strip joint" in Houston, and they decide how much to go up at the pump, which is why the price is the same on all 4 stations at the same corner.
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I think I will go out for a drive in my motorhome.
& Mary 
