Let's talk OPEC.

[TNDemo]

I saw a Gallup poll on how people perceive the current prices as compared to other times they were high in the past and said most do not feel we are in a crisis. I know that gas prices have risen and fallen through the years and people are just expecting them to go back down before long. I started pondering about what happens if they don't go back down. I heard that OPEC had cut production which made me think about reasons why, besides the obvious price gouging. One scenario that I considered was that since OPEC was full of Arab countries and we have managed to enrage virtually every Arab in the world, could this be a calculated means to strangle the economy of the US? Could this just be a taste of what is to come? If gas prices stay this high or go higher for any real length of time it will seriously impact what is left of our economy. Anybody know any more about this than me?

[smartass]

1. Well, I know that the war was about Iraq wanting to switch to paying

in Euro dollars. America didn't like it because EU would become too powerful and America would lose money. Iraq was to come off sanctions in a year and Sadaam had committed to the Euro dollar. By america controlling the middle east oil, America would have influence over OPEC. That's all I can add.

[Kong]

7. Lowest Refindery Utilization In Years

The American Petroleum Institute reported on 3/16 that US refinery utilization was at 88.9% This is the lowest rate since the week of February 4, 1997.

There is plenty of crude oil in storage, it just not being made into gasoline. Also, the Government is holding plenty of oil, in fact about 1/3 of the increase on oil cost world-wide during the last year can be attributed to the Bush adminstration's rush to fill the strategic petroleum reserve.

Folks, we are being screwed, that's all there is to it.

[gWbush is Mabus]

2. that is why we have our hands in

Kuwait
Iraq
Quatar
Saudi Arabia

etc.

[lectrobyte]

4. "Good point, then why isn't the gas cheaper?"

he asked sarcastically. I mean, why aren't reporters asking Bush about this? I figure if we invade foreign countries, the least we can get for our 100 billion a year is some cheap gas, he continued, even more sarcastically.

[lectrobyte]

3. price could be a symptom of "peak oil"...

google up that term and you'll find more than you want to know about the Hubbert Curve, etc. Supposedly prices are high because of decreased production and lack of refinery capacity here in the U.S. I'm also wondering if the current state of the dollar is not a factor as well.

[smartass]

5. I saw that O'Reilly was lamenting the high price of gas. Smells like

a Bush set up.

[JCMach1]

6. current price is also about the WEAK dollar.

It really cuts into revenues because everything is priced to dollars. Even many of the currencies are pegged to the dollar.

The dollar is around 20-25% weaker than it was just one year ago... of course, that will affect pricing.

[Kong]

8. Also

Yes, the weak dollar has a lot to do with it but there are two other factors as well.

First is that Bush is hell bent on filling the SPR. That alone has caused about a third of the increase in cost of crude world wide.

The second, and more important, is that as of 3/16 API is reporting that refinery utilization was at 88.9%. That is the lowest level since the week of 2/4/97. Supply and demand, if you aren't making it there is less supply. Normally for this time of year refinery utilization would be ramping up towards it summertime norm of 97%~98%.

Kong