Skip to comments.$5 Gas By Summer Is Seen as Iranian Situation Festers
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 ...
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.
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.
Who do you think is behind it? Soros?
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.
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.
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.
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