Posted on 04/24/2006 8:41:25 AM PDT by churchillbuff
Mr. Gaines, chief executive officer of Houston-based Dune Energy and a former top institutional energy analyst, told The New York Sun that those factors could include the current shortage of gasoline inventories, a really hot summer, supply disruptions arising from troubles in Iran and Nigeria, or another serious hurricane in the Gulf, 13% of whose production is offline.
These factors, he says, also could easily produce $90 to $100 oil, as well, versus Friday's close of $75.17.
Equally significant are the implications for interest rates. The gushing oil price, says money manager Leonard Mohr of Los Angeles-based MCR Associates, re-enforces his conviction that the Fed, contrary to overwhelming Wall Street expectations, is in no position to call it quits on future interest rate increases, given the inflationary ramifications of the burgeoning price of oil.
(Excerpt) Read more at nysun.com ...
Wouldn't matter if we were.. its futures manipulation not supply shortages that have been driving gas prices through the roof for the past few years... Even if we tapped ANWAR the price would still be going up, because the markets being manipulated.
Tankers are SITTING in harbors because we have no place left to store the crude we have such oversupplies around the world, but the price keeps going up.. its a speculative manipulated bubble driving up prices for the past few years, not war in Iraq or issues with Iran.. just pure old greed by a few powerful folk.
It is all total insanity. Yet we (our government) continue to self-destruct when it comes to energy independence. Washington continues to stand there, doing nothing about it. And anyone who thinks this will not have a profound impact on key elements in our economy are living a major lie -- it already is. We continue to be OWNED by the international oil cartel.
Heaven forbid, what with the 'Rats doing everything possible to make Bush look bad, plus the Bugs and Bunny crowd doing likewise and obstructing the development of our domestic energy resources (including nuclear), rationing may be a real possibility in the near future...
I will particularly enjoy that discussion.
As an aside... just announced on the radio: the Brits are paying $8 a gallon for fuel. So we should be happy!
What a lame argument!
Please, I don't think so.
OK.
'Splain this to me... if you can.
How did Southwest Airlines manage to secure futures at half of the current price? Pretty inept 'manipulation', if you ask me.
Since 1974, Government has not done anything about a national energy policy which addressed all aspects of energy. Nothing. Carter did the most, he said turn your thermostats down at night.
thank a hippy for that.
Friday night I was taking a NYC cab home, my driver was a Pakistani and he was listening to the BBC which started discussing recent gas/oil prices.
He blurted out quite seriosuly that America "should just invade Saudi Arabia and take their gas". "They don't have any army and the young people all want to be American".
Nothing like prices at the pump to spur public opinion.
By the end of the summer, drivers will be screaming to drill ANWR and invade Iran already.
The Dems should be cheering. Isn't this what they have wanted?
Splain this to me:
We have so much crude right now we can't even unload it.. because we have nowhere left to store it.. not only here in the US, but also in Japan and other countries around the world.
Demand, worldwide is actually declining.
Yet the price of a bbl of crude continues to climb....
Long term contract for delivery was available long before a futures market existed in the US.... all you have going on right now is futures manipulation, just like you had tech stocks in 99.
But wait, OPEC says oil price will drop!!
I'm getting VERY frustrated at these gas prices.
Perhaps a Congressional investigation of gasoline prices should include looking into George Sorros and other oil speculators. In addition to not tapping our own supplies of oil, we haven't built a new oil refinery in 25 years, despite increasing demand for gasoline...thanks again to the tree huggers.
Absolutely.
The good news is that none of them has even a clue on how to fix the problem. The silence is deafening...
Can you think of a single product or commodity produced here in the U.S. that is inexpensive by international standards?
-------
For openers, GASOLINE used to be....
The demand falls off at three or close to three, and unless we experience a major supply problem, which we do not have presently, the price will remain in the three dollar range to curb demand.
This is all Shumer speak nonsense.....
"And why aren't we drilling in Alaska?"
Sorry, but Senator Maria Cantwell's Sierra club checkwriters say we aren't going to and as long as they are funding her elections, she and the rest of the dem anti-drilling obstructionists like Feinstien are going to do everything they can to keep us dependant on foriegn oil.
Must be food. We're the fattest society on the planet.
That's actually a good thing. This country doesn't need a "national energy policy," just as it doesn't need a "national housing policy," a "national retirement policy," a "national health care policy," etc.
Quite frankly, I'm content to have people in Washington leave us alone. Now if only we can get them to reduce their legislative sessions to two weeks in every calendar year . . .
The connection between the two threads should be obvious at least to any Republican temporarily occupying a seat in the H.R. who is willing to open his/her eyes to the difference in energy policy between this administration and the 8 years of peace and prosperity we all enjoyed under Clinton and Gore.
Or the Iranian madman could be enticed into an amBush by unleashing suicide bombers on the USA.
There are so many ways to skin a Democrat.
BUMP
Interesting that $75 per barrel has the effect it does on prices at the pump since the gas at the pump is derived from oil that was purchased by contract at a much lower price up to 3 months ago.
The spot price of $75 per barrel today has nothing to do with the price at the pump for gasoline today.
But that's capitalism for ya I s'pose. Fillerup!
No, it wasn't. It only seemed that way because other countries impose much higher taxes on it than we do.
/tinfoil on
Who do you think is behind it? Soros?
/tinfoil off
The OPEC guys are getting nervous. The high prices could reach a tipping point where a viable alternative to their product emerges and gains traction. Personally, I would run my car on hog manure and fill it by hand if it meant not burning the oil of terrorists and dictators.
bump
Good to see you again. Missed you.
Food is actually pretty expensive here in the U.S., when you add the taxpayer-funded subsidies to the retail price. Any product or service that is subsidized by the government will ultimately be consumed to excess, which is why we consume so much food here in the U.S.
That's because they are stupid.
Fixes:
1. Nuke power.
2. Suspend the blends.
3. Coal gasification.
4. Tar sands.
5. Take out the tax.
6. Draw and quarter greenpeace, earthfirst, et al.
What exactly is being done to 'manipulate' the world price of crude? Is someone, somehow knowing what the 'real' future price will be, agreeing to pay much more than that in order to somehow fool everyone? The tankers that are supposedly floating around the seas of the world have no effect on the future prices, they are there now, not then. Any insecurity about the future of oil supply will cause a rise in future price speculation. You can thank Iran for that uncertainty.
I love my Ford Escort!
not enough refining capability. The environment lobby has made sure with the dems in their pockets that not a single new refinery has been built in the US in decades.
This will create a Dem takeover of Congress, with Bush impeached in 2007 (but not convicted in the Senate). Meanwhile, no drilling will be allowed in Alaska. This, in turn, will defeat Hillary in 2008 by a public wild-eyed with rage over $6 gasoline, meaning a likely McCain presidency and a Dem Congress 2008-2010. All bets will then be off.
no tinfoil at all.. Nope, not soros.. amazing everyone wants to go blame Soros, when in fact the crap is domestic and far closer to home.
Hedge fund is created to buy oil.... guess what, every dollar in there must buy oil futures... well there are only so many at costs that make sense... so hedge funds start buying and selling futures to one another to buy their required obligations.... they have to spend their money, they can't say.. WAIT, we are in a bubble, price is not justified hold off... So they just keep bidding up futures contracts to values that are a joke... meanwhile folks outside go get the oil at more realistic prices and sell it to these funds and walk away fat.
Its the EXACT same thing that was going on in tech in 99... no flipping difference, other than its EASIER to manipulate the futures market because there are less rules to dodge, and enforcement of the ones that are there are even more laughable than the SEC under Clinton.
You may have stumbled upon the truth.
As the old saying goes; More Nukes, Less Kooks.
While it is true there hasn't been a new refinery built since the 70s.. demand for gas is not greater today than it was a year ago.. or even 3 years ago by any discernable measure... blaming refinery capacity for the most recent run up is simply a red herring. Refinery capacity does not affect futures pricing, which is where the run up is happening...
Its not a lack of crude, its not a lack of processed product, its pure and simple futures manipulation and greed.
Bunk. Futures run up has been going on for at least the past 3 years.. has nothing to with Iran... just a bubble drivin by a an easily corruptable market and greed.
You obviously don't understand how a retail business works. Regardless of how much a retailer actually pays for his inventory, the price of his product is largely dictated by how much it will cost him to replenish his inventory.
If I bought 10,000 gallons of fuel three months ago for $1 per gallon, I can get a 25% profit margin by charging $1.25 per gallon today (let's ignore all my other operating expenses for the sake of this argument). My $10,000 yields $12,500 in gross revenue.
But if I know today that my next delivery of fuel is going to cost $2 per gallon, then even a 25% "profit" will leave me $7,500 short when it comes to replenishing my inventory. If I know that my next delivery is going to cost $2 per gallon, then getting anything less than a 100% "profit" (i.e., charging $2 for the fuel I bought for $1) on my current inventory would be financially disastrous and grossly irresponsible.
Just fine, thanks for asking.
Again not true, not enough refining would not affect the crude price of oil... secondly demand for end product is actually DECREASING.... thirdly demand is no greater now than 3 years ago, and since refinery capacity has been relatively flat since the 1970s. Forth, since the fed reduced requirements for many gormet blends following Katrina et al, there is even less issues limiting refining to the pump.
The argument that refinery limitations are behind the run up don't hold water.
You might want to wipe your chin there. Seems there's a little drool dribbling out.
Lance the festuring mullah made mess..
Jaaba?
Demand, worldwide is actually declining.
Could you please provide a source for your statements ?
Dream comes true for Daddy. This is just what BushI said Americans should be paying for their gas.
Article was posted here on FR just in the last 2 or 3 days.
Crude supplies are at record highs, and demand is actually dropping.
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