Crude Oil hits $81 a barrel.

[JoeMerchant]

Don't worry, President Hillary will fix things...... $10 says ALPA endorses her and she is elected.....

 

[PCL_128]

Don't worry, President Hillary will fix things...... $10 says ALPA endorses her and she is elected.....

I don't think so. When push comes to shove, I think the Dems will pick a different nominee. I'm thinking of voting Democrat this election cycle, but I won't vote for the Hilldabeast under any circumstanced. In the end, I think the Dems will realize her electability problems and go for a more likable candidate such as Edwards.

 

[IronCityBlue]

Actually, corrected for inflation, oil was higher priced (value) during the embargo in the early 80's. That being said were still looking at oil prices about 160% of what they were just three years ago. I would be surprised by oil topping $100 a barrell in the next three years. Wait till a hurricane rips a few dozen rigs out of the ground again......

Yeah but this sustained run up is supposedly based on hurricanes that haven't materialized, wars that haven't happened and speculation based future demand that makes the housing value speculation look rational. Nothing has tripled the cost of oil to punp out of the ground or refine, and the demand arguement is false because no one on earth is unable to get oil. Everyone is getting as much as they want, yet the price continues to rise based on what might happen. Well whatever it is, it hasn't happened during the entire time of the triple-qradrouple price run up. Its all speculation and fake futures, much like the false value home equity run up. It will collapse eventually.

Then again, when consumers display a willingness to keep consuming a product even at record high prices, why should price ever go down. Sure we need oil, but we don't all need to be driving 85 mph by ourselves in pick up trucks, but we still do.

 

[V-1]

Then again, when consumers display a willingness to keep consuming a product even at record high prices, why should price ever go down. Sure we need oil, but we don't all need to be driving 85 mph by ourselves in pick up trucks, but we still do.

There is intelligent life on Flightinfo.com...who knew?

 

[AC560]

Then again, when consumers display a willingness to keep consuming a product even at record high prices, why should price ever go down.

They find oil, drill a hole in the ground, pipe it to the Persian Gulf, load it into a ship, sail halfway around the world, unload it, pipe it to a refinery, refine it, ship it on a truck to a gas station, and then sell it at a profit and it is still about 5x's less expensive then a bottle of water purchased at the same gas station.

 

[COOPERVANE]

Then again, when consumers display a willingness to keep consuming a product even at record high prices, why should price ever go down. Sure we need oil, but we don't all need to be driving 85 mph by ourselves in pick up trucks, but we still do.

My favorite quote. From Mr. Ben Stein:

"When did it become a good idea in this country, for an 88 pound teenager to drive a 9000 pound vehicle 20 miles to the mall to buy a $2.00 tube of lipstick?"

 

[~~~^~~~]

Some bad oil news today. Saudia Arabia is talking about switching to the Euro. Kuwait already has made the switch.

What we are seeing is not a supply / demand problem. What we are seeing is the failure of the US Dollar to maintain its status as the benchmark of the World's economy.

The Canadian Dollar soared past the US Dollar today as well.

Bush has tried to buy popularity by both pushing an expansionary monetary policy and military spending. Like anyone who borrows beyond their means - sources of liquidity start to dry up. As the Dollar falls, fewer international investors want to invest here, which drives the dollar lower.

Our Nation's policies have been reckless. I've just started moving my money offshore and have been shocked at how good those investments are performing (in dollar terms). Of course, the fall of the Dollar makes it look better than it really is.

When the government does begin to restrain spending we probably will see deflation and devaluation spread further than what we see in real estate presently. Likely a good time to buy. After all, if my parents had bought Microsoft stock when Ford or Carter were president, I would be typing this from a mansion on the beach.

 

[IronCityBlue]

They find oil, drill a hole in the ground, pipe it to the Persian Gulf, load it into a ship, sail halfway around the world, unload it, pipe it to a refinery, refine it, ship it on a truck to a gas station, and then sell it at a profit and it is still about 5x's less expensive then a bottle of water purchased at the same gas station.

So by that logic, since oil is at least 10 times more difficult to get to the consumer than water (even the fancy kind) then oil should be 10 times more than the most expeisive bottled water? What are we talking here, $100 a gallon? $200? More? Right. They are just using phony hypotheticals to justify what's really going on; the consumer is willing to pay the current ammount (and then some), so they will charge that ammount.

As for the dollar collapse, while we all like to root for the home team and are proud of a high dollar, if we can keep inflation in check (even if it gets to the 10% range some day) by comparison we would be able to flood the world with trade goods again and suddenly China isn't so dominant. Our sky high dollar for so long was one of the many factors responsibile for the economic rise of the second and third worlds. Everything goes in cycles.

 

[tyuwerty]

Some bad oil news today. Saudia Arabia is talking about switching to the Euro.

Do you have a source for this? I am working in KSA and they keep saying that they won't change monetary policy.

I would like to read it myself as it would be good for the contract work here to be paid in EUR now.

 

[AC560]

So by that logic, since oil is at least 10 times more difficult to get to the consumer than water (even the fancy kind) then oil should be 10 times more than the most expeisive bottled water?

The logic is that oil is an incredibly good value for the price paid for it. A bottle of Evian water, not so much (unless apparently you fly for CO).