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  1. #1
    Patrick Guest

    Default Oil prices a joke! Oil comanies get the last laugh!

    I find it hilarious how our leaders and OPEC leaders keep blaming the oil price increase on lack of supply. Come on! Did demand really increase that much over the past month or so? Is demand for heating oil skyrocketing right now because of a huge demand for it? I don't think so!!!!!

    The oil companies have these people and everyone else fooled, and our president and vice president know it.

    The only reason supply is decreasing is because oil companies are purposely decreasing their supply. Or instead, they're making people think supply is decreasing in order to raise prices. OPEC is a joke.

    Obviously Americans are ignorant to believe this crap.

    What do you guys think?

    -------------
    "PEC hikes output quota, oil prices soar

    By GEORGE JAHN
    Associated Press Writer

    ISFAHAN, Iran (AP) -- OPEC left the intense global thirst for oil unquenched on Wednesday when it raised its output quota by 2 percent, a symbolic gesture that will not add supply to the market. Oil prices climbed to a new high above $56 a barrel.

    Driven by fears of a supply crunch next winter, the Organization of Petroleum Exporting Countries agreed to immediately authorize the pumping of an extra half-million barrels of oil a day and to approve a similar boost later if prices do not fall.

    But the market took little comfort from OPEC's decision because the group is known to be already exceeding its production ceiling by about 700,000 barrels a day.

    Officials from Saudi Arabia and Kuwait stressed that more oil would be available soon, though. They said they will produce at least an additional 370,000 barrels a day by April.

    "The market has confused us," said Iranian oil minister Bijan Namdar Zangeneh. His Saudi counterpart Ali Naimi said: "Ask the market why prices went up."

    OPEC's decision to look to next winter and raise its quota just ahead of the Northern Hemisphere springtime - when demand normally falls - was unusual. It reflected concern about OPEC's ability to influence a stubbornly bullish market that has driven prices of benchmark light crude up about 33 percent this year alone.

    Gasoline prices are are also soaring, with the U.S. average now $2.06 a gallon.

    Edmund Dakouru, a Nigerian oil official, said "the extra oil will go a long way" toward meeting any concerns about next winter's supply.

    But others at the meeting suggested the decision was symbolic.

    "We're already all over quota," Algerian Oil Minister Chakib Khelil told reporters.

    The decision to boost output will officially raise the group's ceiling to an all-time high of 27.5 million barrels a day.

    But with Iraq - which is exempt from OPEC quotas while rebuilding - and quota-busting by other nations factored in, OPEC is already producing close to 29.5 million barrels.

    OPEC's president, Kuwaiti Oil Minister Sheik Ahmed Fahd Al Ahmed Al Sabah, said that at full capacity - and including Iraq - the oil-producer group could pump some 31 million barrels a day.

    But not all ministers agreed. Ahead of the meeting, Khelil said: "OPEC has reached its production limits."

    "If it came to a crunch, it has capacity for 1 million barrels," he said.

    Most analysts put OPEC's spare capacity between 1 million and 1.5 million barrels a day. But most of it is heavy oil from Saudi Arabia that is less desirable to refiners than the preferred "sweet" crude.

    "The market is very concerned that even the Saudis might be short of spare capacity by the end of the year," said Frederic Lasserre, head of commodities research at SG Securities in Paris.

    At some point the market would price oil so high that economies would begin to contract and demand would fall. Rampant inflation driven by high oil prices are also a potential concern.

    Violence in Iraq and production shortfalls elsewhere due to weather or labor unrest could worsen the scenario.

    "If we have any unforeseen disruptions, the world is going to be short of oil," said Lasserre. "We can easily imagine prices of $70 to $75 (per barrel) this year if we have such disruptions."

    The International Energy Agency, which monitors oil market conditions for the Organization of Economic Cooperation and Development, raised its forecasts for 2005 oil demand last week, drawing the picture of a market in which heavy consumption will continue to strain supply.

    Other factors pushing oil prices higher include the weak dollar, terrorism fears and increased speculation by hedge funds and other well-financed investors."

  2. #2
    Patrick Guest

    Default Re: Oil prices a joke! Oil comanies get the last laugh!

    Oh well, this will actually hurt oil companies in the long run. Higher prices will encourage exploration into alternative fuels, which will eventually spell the death for oil companies in the near future. Hope these oil companies don't plan to stick around for the long haul!

    Demand will decrease as more people start buying hybrids.

  3. Default Re: Oil prices a joke! Oil comanies get the last laugh!

    The big problem is that it's not just us; the Chinese are buying OPEC oil in zillion-barrel lots, and their demand curve isn't about to slacken.

  4. #4
    Patrick Guest

    Default Re: Oil prices a joke! Oil comanies get the last laugh!

    Quote Originally Posted by windowphobe
    The big problem is that it's not just us; the Chinese are buying OPEC oil in zillion-barrel lots, and their demand curve isn't about to slacken.
    Maybe KerrMcGee has the right idea. They're starting to drill in China. Who knows what type of oil reserves they have. Since they're Communist, no one has really been able to explore China's oil reserves. There may be hope that someday China can provide its own source of oil.

  5. #5

    Default Re: Oil prices a joke! Oil comanies get the last laugh!

    Quote Originally Posted by Patrick
    Oh well, this will actually hurt oil companies in the long run. Higher prices will encourage exploration into alternative fuels, which will eventually spell the death for oil companies in the near future. Hope these oil companies don't plan to stick around for the long haul!

    Demand will decrease as more people start buying hybrids.
    Not all of 'em. Companies like BP have invested very heavily in developing alternative fuel sources. It would be a good "sustainable" stock to invest in since the CEO actually seems to be interested in what happens 10-20 years from today.

  6. #6

    Default Re: Oil prices a joke! Oil comanies get the last laugh!

    Interesting that oil is at its highest inventory level since July '02, but the prices are also at record highs... what gives?

    There is some sort of collusion here that is interfering with the free market. I don't see the danger to the supply being higher than it was 2 years ago. It's smaller if anything else.



    Oil back above $ 54 amid threats
    Thursday, 31 March , 2005, 11:30

    Singapore: Oil prices rose in Asian trade today as the market braced for a threatened strike by Nigerian oil workers, dealers said.

    At 12:45 pm (0430 GMT), New York’s main contract, light sweet crude for delivery in May was up 33 cents at 54.32 dollars a barrel from 53.99 dollars in New York yesterday where it had finished 24 cents lower after a sharp rise in US inventory figures.

    "There were no nasty surprises," said Dave Ernsberger, Asia oil director at energy information giant Platts in Singapore. "People are breathing a sigh of relief."

    The US Department of Energy said yesterday in its weekly report that crude oil inventories rose 5.4 million barrels to 314.7 million in the week to March 25 -- much stronger than the 2.0 million barrel gain expected -- and after the previous weeks rise of 4.0 million.

    It was the biggest weekly increase in crude stocks since October, with inventories now at their highest level since July 2002.

    "The market remains well supplied with oil," analysts at the Sucden brokerage firm said.

    Ernsberger said a threatened strike by oil workers in Nigeria, Africa’s biggest oil exporter, was among the factors for today’s price increase.

    Nigerian oil unions on Wednesday said it would take a miracle to avert a nationwide strike after talks with government and oil majors on working conditions broke down.

    A three-day "warning strike" is due to begin on April 11 in protest at what the unions see as a creeping use of casual labour by international energy giants and the government.

  7. #7

    Default Re: Oil prices a joke! Oil comanies get the last laugh!

    This just in... crude inventories up for 8th straight week. Gasoline inventories down again.

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