Posted on 11/12/2007 7:16:10 AM PST by rightinthemiddle
Oil Prices Fall $2 on Word That OPEC Will Talk About Increasing Output at Upcoming Meeting
Oil prices fell about $2 a barrel Monday after reports that OPEC would discuss increasing output at an upcoming meeting in a bid to cool record crude prices.
Saudi Arabia's oil minister said Sunday that the Organization of Petroleum Exporting Countries would discuss the issue of boosting production when it meets later this year.
"The comments by the Saudi oil minister on the weekend didn't necessarily say that they're going to increase production, it wasn't quite that extreme, but the mere fact that he's speaking aloud about it shows that the issue is there," said Tobin Gorey, commodity strategist at the Commonwealth Bank of Australia in Sydney.
Light, sweet crude for December delivery dropped $2.40 to $93.92 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. In London, December Brent crude futures fell $1.92 to $91.26 a barrel on the ICE Futures exchange.
Reports of an attack an Exxon Mobil oil export terminal in Nigeria temporarily halted the slide, but company officials said operations were not disrupted and calm appeared to have been restored.
Heating oil futures fell 4.88 cents to $2.5700 a gallon (3.8 liters) on the Nymex, while gasoline prices declined 5.89 cents to $2.3971 a gallon. Natural gas futures fell 15.4 cents to $7.743 per 1,000 cubic feet.
(Excerpt) Read more at biz.yahoo.com ...
LOL! That’s right...but, once the price gets higher, they can find more.
They’d love to have oil settle in with a bottom of $75...remember when peanut butter was cheap? Coffee? Beef?
there would not be speculation of this type, if there was more than enough of it in the market.
what would ‘fuel’ that kind of speculation if there was a surplus of oil?
Look for a huge surge in prices when people realize this.
what would ‘fuel’ that kind of speculation if there was a surplus of oil?
So in your world there is plenty of oil but liberals won't let anyone get it? Is that all in ANWR?
ANWR, Colorada, Florida & California Coast and numerous other places. Not to mention no new nuclear facilities since the 70s.
A lot of oil options expire this week and if the $100 mark isn’t hit there is expected to be a big sell-off.
pretty smarmy answer.....all I am saying is that if we were allowed to use our resources and there were enough world wide to fuel everyones needs, then perhaps the prices would be lower....
check out 'supply and demand', I am not sure, but I believe it is one of the basic tenents of capitalism....
Already there. This is peak oil.
Not to mention, not one new oil refinery along the gulf or CA or the east coast been built sine 1973, however, over 150 small refineries that made products including gas are closed and sitting idle, greenies and EPA crap keep them from being refurbished at this time. Those small refineries can take the load of big ones for stuff like kerosene, etc. and the land they sit one is already contaminated, so what’s the big deal?
Your posts seem to require that because they don't make sense. You don't seem to be aware of how supply and demand are effected on a finite resource like oil. Your initial post on which I commented "American leftist politicians have put us in this boat." is just about equal to saying "liberals are dumb" and thinking that's an intelligent conservative post.
check out 'supply and demand', I am not sure, but I believe it is one of the basic tenents of capitalism....
As is speculation on investor money. It's so old it's in the bible yet you don't seem to get it.
You're probably right.
Did you see the report from a German group claiming we peaked last year or so? I can probably find it again on the net and send you the link. But it's not great, in my opinion, just a rehash. Nowhere near the class of Matt Simmons.
I've been reading some talk of $160/barrel soon. Think there's anything to it?
Just when we think we are running out of oil, we develop better technology to extract oil from shale rocks in the mid west and Canada. We live in a world of unlimited resources just like our economy which is not a fixed pie but an ever expanding and growing pie.
I work in the oil industry and see this data on a daily basis. One reason oil price is high is that we do not use crude oil but refined oil and we have not built a new refinery in the USA in over 30 years. That and political pressures and the futures market and the environmental wackos. The world is swimming in crude oil if you just looked at the facts.
No. Not that it couldn’t happen, for example if Iran closes the Strait. The peak might well be quite broad with prices remaining near the present level for several years. 10-15 years from now oil production might well be falling and the alternatives coming on line and the price rising.
Believe it or not this has been current events (eyewitness) for me for 50+ years. But, thanks for the lecture. No, this is really it, we have arrived.
We can also grow oil, but what we're talking about is crude that comes out of the ground. The size of the earth is finite, the amount of oil available is finite.
Discovering more doesn't change the definition of the word finite.
It is not liberals preventing us from making more refinieries, it's because the corporations that refine oil don't want to make more. Peak oil is a real thing and consumption will start to drop when the price gets high enough. At that point we will have more refining capacity than we need.
Also, oil price is not based on refining capacity it's based on the demand for oil. Having more refineries would do what for for oil demand? Think about it.
Sorry to interject myself into your conversation, all I'm doing is adding a reply to your question. Additional refineries would, at the very least, stabilize the supply chain and throughput. There have been numerous pricing spikes in the past 18 months simply because a refinery was taken off line (repairs, for etc.)
Yes, I agree. But that pertains to the overall supply line to our gas tank. The issue we were discussing is the price of oil.
Ah, pre-refinery supply chain. Thanks for the clarification.
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