Oil Prices Jump on Iran Energy Threat ($73.73/bbl)

Daily Press ^ | June 5, 2006

[shortyxeric]

exactly how much crude oil do you think we have in the world left?
and about how long will it last till?

[shortyxeric]

This is a great idea but do you think our leaders are that smart?

[ThinkDifferent]

Oil prices jumped because the sun came up today and a bunch of people want to make even more money off of a product with inflexible demand.

I'm still waiting for a coherent explanation as to why, if this is true, gas prices haven't always been this high.

The fact that we have not made replacing this product with a domestic alternative our top priority tells me that our government cares nothing about national security.

I'll partially agree here. There are a lot of established interests that would be hurt if we were to become less dependent on oil. (Which is another argument against the price-gouging theory; if Big Oil was omnipotent prices would be high but *stable*, and just below the threshold at which alternative energy sources are viable).

[ThinkDifferent]

ACTUAL supply and demand should be the only basis...not some projected hypothetical

That's completely wrong. Suppose we knew that there was a 50% chance that a severe hurricane would disable a large portion of our refining capacity in the next week. If you somehow prevent prices from rising in response to this hypothetical, the inevitable result is massive shortages as people try to get all they can before the potential supply disruption.

[Jazzman1]

I subscribe to the abiotic theory that the earth continually pushes oil up from the middle of the earth. And as such is in limitless supply. The powers that be let the fools theory ride that oil is 'fossil fuel', left by rotting trees and dinosaurs so people BELIEVE it is LIMITED. And of course the enviro-wackos (sic LIBERALS) have their agenda. LIMIT AMerica's growth by strangling any and ALL attempts to harvest this resource. AND you get a weakened AMerica, and hopefully(to them) eventually a Socialist republic.

[gathersnomoss]

I know of many people who are sticking close to home this summer. Also have seen many sell their F150's for Accords for the daily commute. The shift is occuring.

[sully777]

The Iran-Iraq War (1980-1988) stopped almost all production from both countries for 1/2 a decade.



The Iran-Iraq War also involved major attacks on all Persian Gulf shipping (known as the Tanker Wars) sinking numerous supertankers. The Persian Gulf contained seven navies, two of which were the superpower navies of the US and the former USSR. There was more danger of WWIII during that conflict than this asinine banter.

The price of crude fell like a stone in water. Prices bottomed in 1985-87 with a small recovery during the Gulf War.

A fear of war is pure BS manipulation of the market from hedge fund managers. The fear-factor is not based on reality just fear and stupidity.