Just a thought about the high price of oil

[INdemo]

Ok..Oil is traded on the commodities market..Any commodity broker will tell you that right now the market is off balance ..meaning that oil is the only item that is just going ballistic..all other commodities are pretty much staying the same except for a few cents up or down. Now with the oil contracts being so high everything else on the mercantile should be showing an incline as well if you would show everything on a graph..
But the fact is a commodity broker will not come forward and admit this because they are just making too damn much money..Simple proof that we are being gouged...

[liberal N proud]

1. What I can't figure out is, why the price of a quart of OIL doesn't change

:shrug:

[napi21]

2. OH wait...it will!!!

That qt on the shelf was probably package a year ago, and the retailer is giving you a bit of a break by not charging future charges, but what you will buy in six months from now is going to be much higher!

[Poppyseedman]

7. Actually, the real reason the oil for your car isn't going up yet

it's the production waste they can't use for fuels.

Plus it's such a small part of overall production, price is not affected as quickly.

[dipsydoodle]

6. I think it's due to

less refining and more stable stocks i.e. turnover isn't as fast as petrol or diesel. If you've got a Model A and you want some 4 gallons of non mulitgrade detergent free oil along with a few gallons of tractor oil for the steering box then just come and collect it for free - I'm just outside London. No - not London KY !

[INdemo]

9. Most motor oil now is synthetic blend

synthetic oil mixed with actual oil.The oil we use in our cars are actually made from the byproducts of the refining process..
See Bush's buddies are making money both ways..(talk about insider trading)..they speculate oil to go up and buy contracts then they turn around and buy short or speculate the price per brl. will go down. So when the oil price per barrel goes down they make money again...Talk about controlling the market ..its big time...We are at the mercy of these crooks.....And Bush Sr.,Bush Jr. and Cheney are just making millions..(oh that money is being buried in some account somewhere)

[BlueEyedSon]

3. Go look at copper, silver and gold, in that order

[Nickster]

4. I was just going to mention that, also natural gas futures now and from a

few months ago. Lots of skyrocketing futures all around.

[Poppyseedman]

5. Why?

Now with the oil contracts being so high everything else on the mercantile should be showing an incline as well if you would show everything on a graph..

Why would commodity markets like pork, beans, wheat and such go up because oil production is not meeting global demand?

OPEC sets oil production quotas, which have not changed since 2005. Demand continue to go up, price will follow.

Now if we started to consume mass qualities of beans that commodity price would raise also. If we do, time to buy stock in Beano

[dipsydoodle]

8. Surely it's crop failure

that would push up the price. In other words scarcity as is happenimg with oil. That's more likely than consumtion of beans increasing.

I do however take your point. Gold is going up for a different reason - more stable shelter from the US$.

[Poppyseedman]

10. Actually, oil scarcity is not really the issue........yet

Demand is outstripping production globally and even if OPEC decided to increase production, (which they have no reason to do so) there isn't the refinery capacity to meet demand to stabilize prices.

There are 11 mega production facilities going on line world wide by 2008 so price will eventually go done.

[Warren Stupidity]

11. "11 mega production facilities"?

Do you mean refining facilities? There certainly aren't 11 mega oilfields coming online that will replace the cheap oil coming out of the middle east.


Long term the price is going to continue to go up as new oil is both more expensive to extract than the cheap old oil it is replacing, and the increase in oil production at the source is unable to keep up with the increase in global demand.

While one reason that new refining capacity has not been built in recent years is that the refined products industry maximizes their profits by keeping refining capacity down, the other reason is that as production of crude peaks, new refineries will just be competing with each other for a slowly declining yearly quantity of raw material to refine.

[FloridaPat]

13. Everything depends on oil. By-products of oil fertilize crops. Gas

is used to fertilize, weed, and pick the crops. Then gas is used to get the food to market.

[trof]

17. and plastics

I think we use more oil to make containers than we burn in engines.

[Island Blue]

12. Something I heard on Stephanie Miller (I think it was) the other day.

It was one of those slap yourself in the head "Why didn't I think of that moments". We didn't go to war in Iraq so that oil would be more plentiful, we went to war in Iraq so that we could control it's supply, thus making it scarce and driving up prices at the oil companies (and Bush & Cheney's) pleasure. IMO this is even more evil (if that's possible) than going to war simply to get more oil.

[FloridaPat]

14. Plastic is made from oil. Just look at the throw-away plastic we use

every day when we buy something.

[Warren Stupidity]

15. Go to Europe and watch how they shop.

Mostly they bring their own reusable bags to the market. What a concept.

Long term we are going to have to re-urbanize our population. The whole government subsidized system of suburban sprawl is unsustainable. All those mega suburbs without any mass transit system ringing the cities of the south and west are doomed. Consider how our current system works when gas is $10/gallon or more. Not well, I'd say. On the other hand the farmers who planted crops of houses are going to be laughing when they plow that mess back into the ground after the great foreclosure.

[FloridaPat]

16. Been a long time since I've been in Europe. But I did go to Russia

about 10 years ago. No plastic anything. The items were behind the counter and you asked the nice sales person to see it because it wasn't wrapped in a large piece of plastic to stop you from sneaking it out of the store. Once bought, it went into the bag you brought with you. Sometimes it was wrapped in paper.

As a result of this - huge apartment complexes had one tiny little dumpster because there is so little waste. The streets are not filled with litter. There is no litter. The gov't had universal health insurance - but it was hard pressed to function because of lack of money. But a Russian, a Canadian, and me compared how much it costs to have a baby. Russia - $0. Canada - a couple hundred. US - $3500 at the time.

[trof]

18. Yup, no "paper or plastic?" there. Tote yer own tote.