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The Price Of Oil - Page 34

We've been holding pretty steady at $4.39 for a couple weeks now. With a 10cent discount that brings it down to $4.29. Heating fuel still hits hard - over $5.00. My husband is home today running black pipe for gas, but I doubt we get a furnace in before next Spring.

Oil Price The

I am thinking of getting a corn fed furnace. This would be a lot cheaper than spending all the money for gas. But the corn furnace is around 4 grand alone.

I hope that the price for crude oil keeps going down.

The Price Of Oil History & Civil Business Politics

I filled up at $4.15 today. There are a couple of places that are $4.05 but they charge a fee for using a debit card and that takes it up 45 cents on the total. I think that's rude, so I don't go there.

Here's the Big Five profits for 2Q08:
https://www.marketwatch.com/News/Story/Image

Edited: FarSeer on 2nd Aug, 2008 - 8:02pm

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$44 billon dollars just for the quarter. I think that goes to prove that the price of gas here could be a lot less. They are still raking in huge profits. I just do not understand how they can be so greedy. I guess the share holders are very happy.

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Yes, JUST 2nd quarter, and that's PROFIT after expenses, not total revenue generated. Amazing. Now, having said that, I understand that these big corporations are in the business to make money, not to be philanthropic in any way. Of course they want to make money! But I wonder how much longer they can sustain these prices, adding to our crashing economy, until something is done to stop what is essentially price gouging.... We'll see how it all turns out.

The Price Of Oil

I believe this whole thing has been fueled by both Oil Producing Nations and the fears of another war before Bush goes..thats with Iran..and the whole world is getting affected from it.. the industrial production has gone down all over the world..thus growth rate have plummeted as well...

But having said that...War is so badly needed by the US..as it will fund their industries..will get them work...

I think this whole things has been made up by the leaders of the developed countries primarily US to get their economy out of the economic depression they are in right now...

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The Price Oil - Page 34

Adamz, I think you're just another US hater. Oil is much bigger than the US and the US does not have control of all the world's oil. COme to think of it I believe you need to look a little closer at all the nations that generally are involved in controlling supply like Russia and the Middle East. Most of which are enemies to the US.

The Price Oil Politics Business Civil & History - Page 34

I am not going to tell you that they are all innocent because the lag after a oil price cut is slower than the near immediate impact of a oil price increase. However, it is a commodities market and fear of supplies being tight cause speculators to look at opportunities such as oil for a quick profit. The more the media tells you that a war here or a war there would jump the price of oil up to $200 a barrel, the more speculators you create. Speculators sounds like such a evil name...like these are bad people, but they really arent. Many speculators are hedge funds (now those are risky and attract people hungry for cash and quickly). However, there are many retirement funds, 401k's that are now investing into some commodities (remember this because they will be crying when the bubble burst and a few are left holding some contract at a loss and we will be talking about regulating them from using the futures market because they cannot pay the retirees). The profits from the oil companies is proof that it does not cost them that much to extract the oil plus a reasonable profit.

Speculators are just in it to make some cash and in some cases invest in what they see as a good deal and then get out, but what problems are they bringing to the market? The thing is that the speculators really aren't planning to use the oil. They just want to buy it, realize a profit and then get out or do it again. It is kind of like flipping houses or buying an extra of the hottest Christmas item and selling it quickly. But with the high levels of speculative investment, it is actually creating demand of oil for the speculation market. But wait, they dont really want the oil! Each contract is for 1000 barrels and there needs to be 1000 barrels to support the contract. So when there are huge numbers of speculators, it actually creates false demand. There will be a day of reconning for this as it is not regulated well.

If we really want the price to reflect a more true picture of the cost, then we need to shut down the futures markets on the stock exchanges for oil or at minimum regulate speculators to the point that they might decide it isn't worth speculating, then you will know what the cost really is. Estimates now on speculation put the number at approximately 66% of all contracts sold. Prior to the recent price increases of the last couple of year, the number was about 20%.

The oil companies could give a rebate or rather have their windfall profits taxed as Obama (says that oil companies should send people a $1000 check) has suggested. The idea of a oil company deciding who to send a check to is nothing short of ridiculous, so even if the oil company got taxed guess who would get the check...you got it - the federal government. Now that is even more ridiculous because entrusting the government to get your $1000 check to you will probably cost the US nearly that in beaurocratic red tape and dont be shocked if a few million of those dollars gets reassigned to some special interest project. In that end, people might get a check, the federal government sucked more money out of industry and squandered it and there will be less money available for investments by the oil companies.

If it were up to me, I would not tax the oil companies any more but I would threaten them with more taxes and give them a choice. Either pay us a windfall tax or reinvest what we would have taxed you into exploration and alternative forms or energy. Speculation needs to be regulated in order to stabilize the world economy...not just the US. In my opinion, speculation will pay a big price when the bottom drops out and the price of oil returns to realistic values...but until then...profit on! Just dont cry when you lose it all for your retirees...instituational investors.