Oil prices fall
Posted 07-16-2008 at 09:31 AM by jimkim
A totally non-political man made a speech yesterday and talked about allowing offshore drilling. The price of oil immediately fell $10.00 a barrel. A little while later a totally non-political woman made her speech and said basically there would be no offshore drilling allowed. The price went back up $4.00. Does anyone still believe that drilling wouldn't have an immediate effect on oil prices? This blog is non-political.
Total Comments 10
Comments
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Well, the price of gas here rose from $3.87 to $3.91 so I don't know if that's true or not. Still that's a $6 decrease in the barrel. I definitely think prices would drop because of more competition, but then again who's to say the companies drilling for our oil won't be just as greedy and keep prices up.Posted 07-16-2008 at 12:51 PM by TexasT
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I keep hearing that oil speculators are whats driving up the oil prices. Does anyone know what the h*** that means? I sure dont.Posted 07-16-2008 at 02:52 PM by iflylow74 
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They "speculate" on what the price will be due to supply and demand. They are betting that in one month they will be able to sell the oil they bought today for $134.60. It went down Four dollars and fourteen cent a barrel today. They know as long as the supply stays the same and the demand stays the same they can continue to charge the oil companies more for oil. Recently two things happened to cause them to speculate the price would go down. One was, a report came out highlighting the drop in US consumption of oil. The second thing is the President came out and is pushing for drilling. If congress breaks down and ok's drilling(yeah right) then it will drop more. If a person gets elected who is against drilling the price will go right back up. I wish I could explain it better but I tried. JimPosted 07-16-2008 at 09:06 PM by jimkim - Thanks Jim, I think I understand. Sounds kinda like buying stock.Posted 07-16-2008 at 11:15 PM by iflylow74
- It is. It is just like going long on orange juice. Sometimes these guys loose money too. That doesn't make the news though. If it keeps going down there will be a point where they will sell short to cut their losses and the price could drop quick. I don't know if it will, but I'm hoping the President can make them nervous enough so they will start to sell off. Many people don't know this but the only currency accepted in the oil market is the US dollar. Keep your eye on the value of the dollar and interest rates too. Dollar goes down oil goes up. Interest rates go down value of dollar goes down. It sounds more complicated than it is.Posted 07-16-2008 at 11:35 PM by jimkim
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The bastards are driving the price up, and making money, off of the rest of us! I truly wish a big hole would open up, and swallow the greedy bastardsa!Posted 07-16-2008 at 11:36 PM by Seabeescotty - Jim, I remember hearing somewhere that OPEC is planning on going from the dollar as standard to the Euro instead. I wonder how that would affect things?Posted 07-17-2008 at 11:17 AM by iflylow74
- Iran and Venezuela wanted OPEC to switch to the Euro.
BBC NEWS | Business | Venezuela mulls euro oil switch
The reason they didn't was because there was a ripple in the market and the Europeans were unable to rebound as quick as we did. If they switched to the Euro it would cause the world to dump their dollars back on the market and buy Euros. The value of the dollar would drop and the Euro's value would increase. So we would have to pay even more for oil.Posted 07-18-2008 at 01:58 AM by jimkim
Updated 07-18-2008 at 02:08 AM by jimkim - When Chavez nationalized the fields that Exxon/Mobile and Conoco/Phillips were setting on and threw them out, we should have nationalized all Citgo's and frozen all bank accounts in their name.Posted 07-20-2008 at 10:57 AM by Brother Bob
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Well here in otherside of hell ga i have watched gas go up 30cents in 2weeks.Things aint so rosy here in this little piece of the new camolotPosted 06-19-2009 at 10:47 PM by JUSTJASON
