Skip to comments.What has caused the recent drop in oil price/bbl(about $20/bbl; $0.60/gal at the pump)? (Vanity)
Posted on 05/30/2012 7:51:58 PM PDT by izzatzo
Actually, I know the answer to my own question. The answer is manyfold: Hussein has lifted the drilling moratorium; Hussein approved Keystone; Hussein has opened domestic exploration, drilling, and production; Hussein has opened the "strategic reserve"; Hussein didn't actually "invest" all those billions in Brazil's, etc. petroleum industries, he invested it our petroleum industry; Hussein Obama pees oil thereby increasing domestic supply driving the price down; isn't Obama wonderful? NOT
I'm not an industry economist so what did I miss? Don't tell me it's all because of Memorial Day and summer's arrival, that doesn't make sense.
This is not an excerpt.
Worldwide supply and demand (real and perceived).
The commodities markets are manipulated by hedge funds, sovereign banks, governments and indirectly world economic factors.
The oil exporting countries (mostly Muslim) want to keep taxing Americans to fund their war against this country. They know Obama wants to increase dependence on their oil and they have not yet learned they cant trust Romney so the price of gas will be less than $3.00 a gallon by election day..
Excess inventory. Possible demand drop due to China slowdown and the Eurozone blowing apart.
Europe’s stalled economy
No, it is fundamentals of microeconomics. There is a surplus of crude at American refineries. This shifts the supply curve to the right meaning less price per unit of product. Increased efficiency in cars and behavior changes favoring less driving is overcoming the typical increase in demand associated with summer driving. All things considered, this leads to a surplus which creates a new market equilibrium at a lower price. Next question?
The ruling council has decided that over the next two years we have a brief window of opportunity to impoverish and weaken them by driving down the price of oil. Iraq and Iran need to produce and sell their oil at well over one hundred dollars a barrel. In the next twenty four months, we will gradually increase our production with the objective of breaking the price of crude down to sixty dollars a barrel.
Gas still way over $4/gal here in CA. Thanks, Obutthead.
We are heading for a depression. The 10-year note is at an all-time high, mortgage rates at an all-time low, Europe is headed for chaos, and China’s economy is collapsing.
And, to think, I traded my gas-guzzler in.
90 % of “ - - - Worldwide supply - - - “ is controlled directly by foreign governments, or indirectly by State-owned oil companies.
The price is where the demand rises up to meet the supply. When demand goes down the price follows. Less demand means less economic productivity is being predicted.
With the price of feeder stock (=crude oil) headed South, a slowdown in the economy is indicated. Good for the gasoline consumer, bad for those who already have jobs and those that are looking for jobs.
When the price of feeder stock goes up, the gasoline consumer will pay more to travel to his pace of work, and there will be more jobs, jobs, jobs.
Supply and Demand plus “the invisible hand” equals the time-honored FREE MARKET!
Oil Prices Are Rising Despite Lowest Demand Since 1997
By Pat Garofalo on Feb 15, 2012 at 11:50 am
Rising Gas Prices: Not Demand Driven
By Matthew Philips
May 30, 2012 11:15 PM EDT
Gas prices are off to a fast start in 2012. The national average for a gallon of regular gasoline is up more than 8 percent since the end of 2011, rising from $3.25 per gallon to $3.52, according to new data released by the U.S. Energy Information Administration.
Prices shot up during the Libyan war, but production is probably back to near normal by now.
Not long ago, I was paying about $3.85 for unleaded, I bought it today for $3.27—not $0.60, but close to it; and, Texas is hot, but not necessarily exotic, at least where I am.
That and consumption is down.
I filled up this AM for $3.28
And that’s still to high!
It doesn't do either Obama or the Middle East any good when prices are high because the calls for increased drilling here then become very loud. If the US develops its resources the US prospers to the Middle East's detriment, something Zero and his masters don't want.
Up to $4.07 where I live.
There’s been a drop in the price at the pumps?? Really?? Of $0.60 per gallon? Where? Certainly NOT in California.
In Houston the lowest I seen is 3.39 so far.
Here in Hilo, HI it’s still 4.65 and up as you head to Kona
The fall in the value of the Euro has caused a rise in the value of the dollar, hence more oil for the buck. That and demand is lower because no one needs to ship stuff if no one is buying stuff, and if no one is buying stuff, there’s less demand for petroleum products like plastic, too.
Anyone out there who believes that gas prices are determined by the the principles of the free market, probably still believes wealth can be obtain by leaving a tooth under their pillow for the tooth fairy.
They didn’t get the memo in Oregon, our station went from 4.23 to 4.27 for unleaded today. That’s almost 40 cents more than what I paid in Chicago (3.79) on Thursday. That’s crazy!
Weak Demand: The economy continues to flatline -- demand for gasoline continues to drift lower eventhough it's Summer driving season.
Remember when Barrack bowed to the Saudia King.
Here is his reward: The Saudia sent a flood of oil to the US last month and FLOODED the market with oil!
Nobody in the newrooms is smart enough to connect the dots. Just in time to help Obama avoid any effects of gas prices on his re-election chances.
Fracking is saving our economy.
Meanwhile, I’m sure our local “conservative” moron radio host will not offer any grateful cheers to the local gas stations. He likes griping about how they are “gouging” everyone at every chance, but like liberals, fails to offer any kudos when prices have gone down, only vitriol when it goes up. He doesn’t understand why a gas station near our big beltway is more expensive than the station in horse country 5 mi down the road. Moron.
Retail gasoline prices in Aiken County, SC for 2012: 01/04 3.009 01/18 3.189 01/28 3.099 02/09 3.369 02/21 3.439 03/07 3.499 03/19 3.539 03/24 3.689 03/28 3.649 04/12 3.659 05/01 3.539 05/09 3.339 05/21 3.299 05/30 3.149
Obozo’s moratorium is the only thing keeping it above $3/gal. Lots of new production in WY that he can’t stop.
Pray for America
The One picked up the phone, called the King of Saudi Arabia, and said, “I need for you to hold the price of oil down until after the election.”
Nope, no conspiracy.
What is happening is the collapse of the EU. Wealthy europeans are fleeing the euro and buying american dollars and american bonds. This is driving up the value of the american dollar, so everything priced in dollars falls in price.
Our economy is still going down the shitter, it just looks like it isn’t at this particular moment because of the flight from the euro to the dollar. It’s temporary. Once there’s no more rich europeans left to flee from the euro, the dollar will drop back down to its former value...or lower. Then rich people will have to find something else to flee to...maybe the brazillian currency...maybe back to the euro after the PIIGS are purged from the EU.
Normally the Saudis send one supertanker every 2 months.
This spring the Saudis sent 11 supertankers to the US.
That is why gas prices are falling now. After the election, the prices will skyrocket again.
And if Obama could get the Saudis to do this for him, what other events could he have arranged to occur to help himself?
War? Yep. I think he is going to ‘Wag the Dog’ and have a event take place so that he can take ‘command’ to save the day and his regime.
Gut feeling, without looking at all the numbers, I’ll offer two theories:
1. The Arab countries are seeing a collapse in their best customers - the West - and deciding as good merchants do that a lower price means increased consumption. They’re increasing production to sell as much as they can before the Western economies collapse.
2. Big Boy Billionaires are slinging money around in the speculative market (i.e. Soros) which affects pricing. When you have several billion dollars to throw on the table you can influence market prices.
Q.E.D. the supporters of the new world order like Soros can manipulate the outcome of the global economy. I think we’re seeing a combination of the above two things.
It is still climbing up in Nevada.
Damn right, and his Muslim Saudi buds are raising production muy pronto to drop the price of crude. But once Obama is reelected, Katy bar the door on rising crude prices.
America and Americans no longer control the oil market. US companies control less that 5% of the worlds oil production.
Crude oil is a fungible commodity and what the US does today matters little on the world price of it.
True, our motor home has been sitting idle (no pun intended) for a long time. If gas prices dip below $3.00 a gallon. wife and I might take a road trip, but until then it’s paid for and isn’t eating anything but cost of insurance and yearly license fee.
America produces about as much oil as Saudi Arabia and is by far the world’s largest consumer of it. Hardly numbers that don’t matter!
A few of the refinerys are doing turn arounds right now, I sell to Navajo and their going through one right now. they can only take in half as much crude as they were. I’m starting to stack up on a few of my battery’s and theres been times I’ve had to shut in some of my better wells. I’ve got one centeral battery with 3 500’s on it that I can transfer to but even it gets tight. I’m not the only one having this problem.
Bandar later said:
"We hoped that the oil prices will stay low, because that's good for America's economy, but more important, it's good for our economy and the international economy," he said. "This is nothing unusual. President Clinton asked us to keep the prices down in the year 2000. In fact, I can go back to 1979, President Carter asked us to keep the prices down to avoid the malaise."
"So yes, it's in our interests and in America's interests to keep the prices down. But that was not a deal."
Bandar said much the same thing on April 1, after he met with national security adviser Condoleezza Rice at the White House amid concerns that OPEC production cuts might further push up the price of oil, with U.S. gas prices already at record levels.
Bandar said then that the Saudis wanted to keep the per-barrel price of oil, now topping $33, to between $22 and $28 a barrel, and he also said Bush and Crown Prince Abdullah, Saudi Arabia's de facto ruler, "have been in touch on this subject for a while now."
If the Saudis open up their closed spigots, get back to me then about US being their equal.
I think that’s exactly what will happen. And, if he’s re-elected, he’s said it himself, he’ll have a lot more room to do anything he damn well pleases. And, folks, then it’s time for serious resistance.
Hussein has lifted the drilling moratorium; Hussein approved Keystone; Hussein has opened domestic exploration, drilling, and production; Hussein has opened the "strategic reserve"; Hussein didn't actually "invest" all those billions in Brazil's, etc. petroleum industries, he invested it our petroleum industry; Hussein Obama pees oil thereby increasing domestic supply driving the price down; isn't Obama wonderful? NOTThe price of anything is whatever the buyer is willing to pay *and* the seller is willing to take for it.
Speculators have finally realized the the world economy is still swirling around the toilet, and demand for oil products must necessarily fall. I don’t think there is any conspiracy to it....
Even as population has increased, US use of gasoline has fallen because of the terrible economy, China growth forecast keeps shrinking, and the EU is a basket case.
WTI should be 38-40 per barrel right now! The only reason its not there has been pure speculation that the world economy was improving. They found out last month that it definitely is not.
This is bad news for Obama. He can’t crow about the low price much, simply for the reasons it dropped, and it is a harbinger of things getting much worse before the election.
On the West Coast, you guys have a lack of refining capacity combined with a lack of E-W pipelines and special formulation requirements that are keeping prices high.
In the rest of the country, low demand because of the poor economy both here and in Europe, plus increased supply driven by the high prices of the last year, plus perhaps increased Gulf State production to hurt Iran, are driving prices downward.
Yep, that’s about it.
Regular unleaded peaked at $3.93 here and can now be found for $3.27, with $3.35 being widely available. This, after falling into the low three dollar range before Christmas of last year.
Supply and demand is not swinging that widely or rapidly. War fears are no more and no less than in years past. Wide volatility has been a feature of the market since 2008. The price crash of 2009 came on the heels of a revelation tha a single now failed hedge fund controlled over 80% of all crude oil futures with no intent or even ability to take delivery.
This is not normal. It’s speculation run amok. Such volatility is not healthy and does not contribute to the economic health of the nation.
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