last week oil set a record at $67 a barrel, today it is $97

discuss...

 

President is buying another house?

 

What's to discuss?

When the value of the dollar drops, the greedy Arabs up the price per barrel so that they don't take a loss in profit and to further fatten their wallets.
It's typical bussiness.

And sadly I just had to pay a whopping $3.25 per gallon just to fill my S up.

 

I don't think it's the end of the world. Rather, this may be the beginning of the catalyst we need for market change into the next generation of transportation. We cannot keep gas prices artificially low for long, so why not join the rest of the world? Seriously, how much would you like to never be sitting in traffic surrounded by 5,000 lb. soccer mom monstrosities with no more than 3 passengers in each one again? I say bring on the high oil prices that drive the market change. I can afford the increase, but many others may be feeling regret for their poor purchasing choices.

/<My .02>

 

Oil was not $67 a barrel last week. There was a brief dip in the pirce to less than $70 in august but last week it was in the $90+ range all week.

 

I don't think it is so much the greedy Arabs as it is an increased price caused by several normal economic conditions.

While there are a limited number of suppliers of crude, the market for crude oil is not a monopoly. It would seem that, if another supplier of oil could make more money by selling its products at a lower cost and gaining market share, that supplier would do so. This is a constant pressure, for instance, that OPEC has faced throughout its history. So let's briefly look at some of the factors that are contributing to an upward trend in oil prices.

One, there is an increase in demand caused by China's continued economic development. Southeast Asia and the Indian subcontinent in general have been increasing their demand for oil over the past few years. The U.S., as a capitalist economy, can't realistically be heard to object if the suppliers of oil are willing to sell their product to the highest bidder. After all, the U.S. has no greater right to foreign oil reserves than anyone else. In addition, the U.S. get about 10% of its oil from Venezuala which is not a stable market vis a vis the U.S.

Finally, there is a general skittishness in the markets respecting the Middle East because of on-going concern about Iraq and U.S. intentions respecting Iran. Iran has the third largest known reserves of oil. There will also likely be more stresses on wholesale oil prices with the uncertainty in Pakistan and its proximity to the Middle East. Above all else, commodities markets do not like uncertainty.

I suspect that by next summer we will see prices in some areas for regular unleaded approaching $4.00 per gallon.

I also have to admit that I am not entirely sure that higher gas prices are necessarily bad. As prices increase, it will create a disincentive for consumers to continue purchasing vehicles which are not fuel efficient.

 

a well written and succinct account of the higher oil prices.

 

^^ I agree, thanks for that.

 

As hyped as i am about the next gen NSX, i think honda made a poor desicion in developing a v10 to run strictly on gas. With the eventual depletion of the oil in east and the remaining small amounts of the "sweet crude" sitting in china, i feel as though companies need to switch more focus on that of electric power or hydrogen, becuase there is very little future left in crude oil. The last gen NSX was a benchmark, so should this one

 

Yeah i filled her up @3.30 a gallon. Its part of the reason I CROSSED out an American Muscle car as my next purchase.