Oil Prices

[geb9696]

With oil prices at an all time high and about to cross over the $100 a barrel mark for light sweet crude do you think commodities prices continue to rise? I think we may see $120 a barrel soon if the US dollar continues to slid.

[Syngenetic]

It's not the U.S Dollars. The fact is, we are using millions of gallons of barrels each day. Almost every person has 1 car in U.S and there is more demand than supply.

[eharvester]

It's high because of our meddling in the Middle East.

[Cattraknoff]

It's high because the powers that be wish it to be high.

[Gwendl]

Actually the recent climb to $100 a barrel was forced by one trader who wanted to become famous by being the first to buy oil at that price. The high prices in general though relate to nervous investors who jump everytime something in the oil industry goes awry. It could be a mideast disagreement, an oil refinery shut down, or just about anything. While it has little to do with the slide of the dollar directly, such a slide makes it seem to cost more than just what you see on the pump. Also, a slide could cause oil producing countries to switch to the euro which would have a very bad effect on the US dollar and the economy.

[bizwiz]

The way things are looking right now oil prices are actually going down because of the fears of a US recession. I wish it will go down even without a recession because gas prices are very expensive these days.

[Gwendl]

Yes, oil prices are going down as the US is driving less, thus pulling down the demand for oil. I have to wonder how Hugo Chavez's cutting off of oil to Exxon and Mobil will affect the prices.

[Mitch]

Well, it probably won't affect the prices too, too much. I live Alberta and we have plenty of oil, and we'll probably be quite glad to send a bunch down to the states :D

[Cattraknoff]

If a recession occurs, which is quite likely at this point, the buying power of the US dollar will drop significantly, thus raising the prices for oil (and everything else) regardless. The result is massive inflation, with no wage hikes to compensate.

[hideip]

The high oil prices are caused by speculation on Wall Street and also whats going on in China and India right now. Currently their economies are booming and they are in much demand for oil supplies. The cheap price of oil in the 90s ($10-20ish a barrel)which caused huge economic booms around the World, are long gone.

[ronit3746]

The U.S. is strongly committed to protecting Gulf oil, although only about 10% of oil used in the U.S. is imported from the region. During the cold war, U.S. strategy was primarily aimed at ensuring that Gulf oil did not fall into hostile hands. Gulf oil was and remains important because of its impact on the global economy. U.S. competitors in Europe and Japan depend much more on Gulf oil than the U.S. does: 30% of European oil imports and nearly 80% of Japan’s come from the Gulf. The U.S. exerts significant influence on these countries through control of Gulf oil.

[Aurimas]

Prices are high becouse there is war in mid east

[oboehart]

You're all going to hate me, but I think it would be good if the oil prices just kept on rising.
The fact is, in the West, we are consuming far more than is neccessary. For example: in the school parking lot near my house, nearly all of the vehicles are SUVs or trucks. These are TEACHERS!! They don't need to be driving gas-guzzling vehicles, yet they choose to anyways, because they can. And I understand that some people need to drive to make a living, but perhaps we could create a system where these people got tax reductions (that is, more tax reductions than they already receive).
I don't know...I think that we're going in the wrong direction, and in a world revolving around money, the rise in gas prices is one of the best ways we can create the ideological mind shift required to turn things around.

[Cattraknoff]

Oil prices are going to keep rising. Most projections see prices hitting $140-150 by the summer, $180 or more within a few years.

Oil production is dropping, and demand is barely below supply. This can be attributed to many factors, namely many new oil fields not being developed as they should be, coupled with falling production in older fields.

Oil companies sure as hell aren't complaining at this point. More likely they're laughing all the way to the bank.

Oh, by the way, increased prices won't cause a substantial dent in demand. Given the fact that the supposed-scarcity (which is made real by aforementioned factors) of oil, people will buy it as much as they can, for fear that they won't be able to in the future.

[Locke]

Oil prices are going to keep rising. Most projections see prices hitting $140-150 by the summer, $180 or more within a few years.

Oil production is dropping, and demand is barely below supply. This can be attributed to many factors, namely many new oil fields not being developed as they should be, coupled with falling production in older fields.

Oil companies sure as hell aren't complaining at this point. More likely they're laughing all the way to the bank.

Oh, by the way, increased prices won't cause a substantial dent in demand. Given the fact that the supposed-scarcity (which is made real by aforementioned factors) of oil, people will buy it as much as they can, for fear that they won't be able to in the future.

There has been speculation that the prices are the product of future scarcity, and not of current shortage. Supply seems still to be sufficient.

[Cattraknoff]

There has been speculation that the prices are the product of future scarcity, and not of current shortage. Supply seems still to be sufficient.

The difference between supply and demand is increasingly minute, and since many new oil fields aren't being developed, coupled with increasing demand in developing nations, as well as decreased supply in many oil-producing nations, we'll end up with a growing shortage. The result will be a strain on most economies, but first and foremost it will limit developing nations from continuing to expand their industry and economy (poor nations after all will not be able to outbid developed economies; free and "fair" trade for the win?).