Skip to comments.Oil Gives Economy Both Barrels
Posted on 03/04/2012 8:57:27 PM PST by U-238
Most drivers are familiar with the nagging refrain of "Are we there yet?" But with gasoline heading back to $4 a gallon on average, it takes on more urgency: Oil can't go much higher without derailing the economy.
Brent crude oil is back above $120 a barrel. Looked at on a 12-month rolling average, it is now 6% above its prior 2008 peak. U.S. gasoline demand is down almost 7% year-on-year. This year, Europe is forecast to consume 10% less oil than it did in 2008. Global demand is still forecast to rise, but only in emerging markets.
Oil's high price greases this transfer of demand from the West to the rest. While mature economies are forced to brainstorm efficiencies, emerging markets offset the pain with faster economic growth and, often, consumer subsidies.
At some point, though, oil prices overwhelm everyone. Efficiencies take time to develop: The faster way to lower consumption is recession. In emerging markets, high oil prices stoke inflation and make subsidies unmanageable.
(Excerpt) Read more at online.wsj.com ...
Today, oil trades 35% above the cost of producing the world’s most expensive barrel, according to Sanford C. Bernstein
Obama and the media can attempt to deflect the blame for high gas prices all they want.
In the end though, even if he doesn’t get blamed for gas prices, the economy will tank and he owns it. Period.
wow, the average deep horizontal well costs 9.2 million, so they are not getting as rich as you think
The dollar is worth less and the speculators are out in droves.
You are also forgetting the hedge funds
You may want to hold your horses. There are other people waiting for an answers in other threads. Since you called me the “a” word you will not get a response.
I think you consider freeper mentalitiy as done. Try it.
Take it to the hand...
Iran is going to take over the world.
The refineries need maintenance
The speculators are doing it
We're running out of oil
We have plenty
Americans are driving less, so we need to raise prices
The Chinese have millions of mopeds to fuel
There is a leak in a pipe in Moose Jaw Alaska
A rodent chewed through a line at the main pump station in Texas.
Demand is down but we are producing more however, our refineries have been and are being shut down
Prices will go to 6.75, but 3 days before the election, Obama will lower prices to 1.40 to ensure reelection
A school of endangered blowfish have been sucked into a pipe, and it takes time to get them out.
Iran has nukes
Unstable markets worldwide.
A big refinery fire
A small refinery fire
A refinery fire could possibly happen
New gas additives are being developed to make Americans even more stupid
They forgot to build a pipe
They dont like pipes
Rich liberals want the price even higher.
Obama hates the oil industry
The oil industry hates Obama and are hoping this kills his reelection
Liberals want everyone ridding donkeys and bicycles to work as a sacrifice for the planet
We moved more armaments to the gulf because Iran is taking over the world
Wild money printing and massive deficits
Americans love high gas prices
Refinery margins are tight They hardly make any money at all.
The masses have no idea how free market works.
It is being exported because we are making more than we use.
Demand has fallen
We need refinery upgrades and expansion
We are making more than we use so we have to sell it to the Chinese, (They have 1 billion mopeds to fuel , and need to go to work so they can send us more Communist products .
We have plenty of oil, so much so, we need to sell it abroad to keep prices low.
We have plenty of oil, so much so, we need to sell it abroad to keep prices high.
Barry intentionally pissed off the oil companies and seriously limited their profit and boy are they POd.
That seems to be a complete list of excuses. Pretty soon, aliens will attack from outer space.
Would you care to be honest?
This discussion has ended. Please stop stalking me
Oh, no... #12 is just a few of the excuses I’ve heard in just the past week.
There are more.
List them. I think its interesting.
He is really made. Try it from him..Whineing pathetic, too close to reality. must be nice. I qaulifiy one.
Aren’t they like, speculators?
They are both involved in speculation but hedging involves taking an offsetting position in a derivative in order to balance any gains and losses to the underlying asset. Speculators make bets or guesses on where they believe the market is headed.
I've read through this thread 3 times trying to figure out what your problem is to no avail. Care to spell it out in simple, understandable terms?
I’m no oil analyst but it’s pretty clear that this oil bubble, assuming no Mid-East war, will be over long before October\November and gas will be at $3 or less, certainly well under $3.50.
If the Mid-East does go up in flames, I’ll probably buy a Volt and a 200 foot extension cord to charge it from my condo.