I'm always amazed that when some event happens - like an attack on an oil pipeline in Nigeria - oil will go up say $2/bbl because the traders must think 'oh no, there's a shortage so it's now worth more. But so far two things seem to happen.
1) there is no shortage of fuel at the pumps after one of these 'events'.
2) the price never drops back down $2/bbl after the event has been resolved (if there ever was even a problem in the first place)
The dollar is weak, which causes the price to increase, and the traders are in the game big-time taking big profits. So far, we can't do much to fix the dollar until we fix the trade deficit, etc, but I think the traders should be taken out of the loop. Maybe the oil companies should be dealing DIRECTLY with oil producers and take the commodities aspect out of oil. After all, their chief function is to profit at the cost of ours and other economies.
As for Europeon oil being higher. there is a huge amount of tax applied to each litre sold there.
2006 F350 6.0 PSD CC DRW King Ranch
2003 Hitchhiker II LS 345 RLTG
Gas prices are high because we will continue to buy at high prices. I applaud WZ for his work. He is making a buck (maybe) at his job. You can choose to not buy gas, or to buy less. Or, you can continue to drive your rig and complain.
nickthehunter has a decent grasp on why we're in this fix. When I noticed every mom at the local school picking up their one kid in a huge SUV I knew we were in for it. Same thing that happened in the 70's.
Gas will always go up, just like all prices. Why did it jump? Just like all other products, they stay relatively level for a while and then jump to make up for falling behind inflation. They will peak a bit above inflation, then go back to where it should be.
Now, add in a huge demand increase around the world that has occurred in the last decade. Combine that with horrible international trade policies on the part of all countries and taxes on all this by every government who can see money.
End result is higher prices on everything. Gas is getting the blame right now because it has gone up so fast. Where were all you complainers when house prices spiked beyond belief?
Government control? Yeah, right, like I want the same government who has taxed us to death already to control the gas market. Get the government out of this and we might have a chance to recover.
Gas is going up, and will go up more. Want a prediction? $6/gal next year or year after. Probably level off in that range for a while. That is the price relative to what it was in 1975 after the last surge and that's what I am preparing for. If the government does anything to try to control it, it will probably go higher than that.
So, WZ should keep buying and selling for a while
charlie
2006 Toyota Tundra Crew Cab
2003 Skyline Nomad 24ft Fiver
Me and Wife
Maggie the Old English Sheepdog
portablevcb wrote: Gas prices are high because we will continue to buy at high prices. I applaud WZ for his work. He is making a buck (maybe) at his job. You can choose to not buy gas, or to buy less. Or, you can continue to drive your rig and complain.
nickthehunter has a decent grasp on why we're in this fix. When I noticed every mom at the local school picking up their one kid in a huge SUV I knew we were in for it. Same thing that happened in the 70's.
Gas will always go up, just like all prices. Why did it jump? Just like all other products, they stay relatively level for a while and then jump to make up for falling behind inflation. They will peak a bit above inflation, then go back to where it should be.
Now, add in a huge demand increase around the world that has occurred in the last decade. Combine that with horrible international trade policies on the part of all countries and taxes on all this by every government who can see money.
End result is higher prices on everything. Gas is getting the blame right now because it has gone up so fast. Where were all you complainers when house prices spiked beyond belief?
Government control? Yeah, right, like I want the same government who has taxed us to death already to control the gas market. Get the government out of this and we might have a chance to recover.
Gas is going up, and will go up more. Want a prediction? $6/gal next year or year after. Probably level off in that range for a while. That is the price relative to what it was in 1975 after the last surge and that's what I am preparing for. If the government does anything to try to control it, it will probably go higher than that.
So, WZ should keep buying and selling for a while
charlie
Once again. One does not NEED to go out and buy a house. People do need fuel. It is basically a utility at this point. It is no different than electricity or water when it comes to making our economy go. High fuel equals higher utilities, food and other products. Couple that with people staying home and it kills the retail sales as well. It is a slippery slope. To expect everyone to drive a Prius and ditch their SUV's tomorrow because gas prices went up is rediculous.
Once again, gas consumption has gone down in the US yet the price rises. People need to stop with making it out like things are business as usual despite the cost. It isn't. Funny speculation never goes the opposite direction. Raid on a pipeline and there is a shortage so prices rise. Make a discovery of a new oil source and the price rises.
Well, if you are setting beside a table full of food and you starve to death because you won't get off you ass to get it, that's your fault.
If there is a flower bed between you and the table that someone won't let you cross (such as the tree huggers), that's their fault. That is the complete problem we have now.
The ecologist have never been right yet, they are not right on this.
None of our politicians have enough guts to do what is right.
We Americans are great people... ignorant as hell at times but overall smart people who have historically survived. There are a lot of tree huggers who like to hug trees when they can drive to them with $2/gallon gas. $4/gallon gas? Not so many...
My point is it seems like a noble cause to stand up for some perceived damage to the environment when it's convenient and free. But these guys are going to be dropping like flies and jumping on board the 'drill our way out' crew.
Even if it's not drilling for oil there's going to be a lot of people sick of being broke and options like nuclear power will all of the sudden appear more attractive.
Assuming this whole democracy thing works like it's supposed to, this sentiment should trickle down to our politicians pretty soon. Of course, in the meantime we're stuck with $4/gallon or more fuel but hopefully there's some end in sight.
Once again. One does not NEED to go out and buy a house. People do need fuel. It is basically a utility at this point. ......
Oh, but, they do need to buy a house if they need a job somewhere. Just like they need to buy food or any other necessity.
Should we blame someone selling a house at a much higher price because demand for a house in that area is high?
What about a farmer selling a crop at a higher price because he wants to make a higher profit? Is it any different?
Or what about someone selling a car that someone needs to go to work? Should we blame a used car dealer for making a higher profit?
Every part of the economy is based on someone's need or for someone to make a profit.
charlie
Is it any wonder why the Oil Cartel is getting away with this when we have a nation of people like Charlie around?
This is the kind of guy who actually tries to comfort himself by laughing at fellow victims because he doesn't have the guts to do anything, he's the cowardly type who is too afraid of getting upset because it might lead him to lose faith in the status quo he's been taught to love since childhood, instead he tries to suck up to it so that he can feel a little bit bigger too, vicariously.
Offline
