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Help me understand the price of crude oil

Discussion in 'BBS Hangout: Debate & Discussion' started by nolimitnp, Jun 20, 2014.

  1. nolimitnp

    nolimitnp Contributing Member

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    I read we export more than we import? Why? I know not all oil is created equally as far as refining before its made into gasoline and some is harder to reach than other. But it can't be cheap to ship oil across and ocean using oil in the long run. Or maybe it is. It is also doesn't seem to have much to do with supply and demand. It's gone up for a few hurricanes, but only in the SouthEast. When the entire Syria situation was happening, I was hearing it could reach $5 a gallon. Other than that, I got nothing. Also the US and Afghanistan were the only 2 countries not to join the Kyoto Protocol in 1998 out of 192 countries. Can it really be coincidence Afghanistan is a gateway to the Caspian Sea? And why do the oil companies get subsidies? Is it as obvious as it looks to me and nothing more than price backed with military power?
     
  2. ScolaIsBallin

    ScolaIsBallin Member

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    We export more than we import because the U.S. is about to be the #1 oil producing country in the world.
     
  3. nolimitnp

    nolimitnp Contributing Member

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    So why aren't we using it ourselves? How efficient is it to ship oil across an ocean? Is ours of such bad quality it's cheaper to export, or do we not refine it?
     
  4. ScolaIsBallin

    ScolaIsBallin Member

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    When prices go up it's based on speculation. When prices go down, it's based on what is already known. "Fracking" and "shale gas" is leading to the emergence of the U.S. as a top oil producing country so hopefully we won't need to be importing any oil soon.
     
  5. Dairy Ashford

    Dairy Ashford Member

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    People with drills export, people with refineries import. Balance is based on cost relative to price, shipping companies price based on relative spread between pickup and drop-off points. I wouldn't try to quantify that other stuff without an econ degree and a Bloomberg Terminal.
     
  6. ScolaIsBallin

    ScolaIsBallin Member

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    There's lots of refineries just in the Houston area alone. League city, Texas City, Baytown etc have many refineries. We refine most of our oil
     
  7. nolimitnp

    nolimitnp Contributing Member

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    I haven't seen it below $3 for probably 10 years now, faster than inflation anyway. Speculation of what? War? And why would a profitable company need subsidies?

    I guess you do need a fancy degree to understand, like investing in derivatives.
     
  8. RedRedemption

    RedRedemption Contributing Member

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    http://online.wsj.com/articles/why-the-u-s-needs-to-lift-the-ban-on-oil-exports-1403133535

    Most of the oil we get aren't a match for a majority of the refineries in the US that are built to refine heavy crude oil.
     
  9. Rocket River

    Rocket River Member

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    By and large . . .seems like alot of 'supply and demand' pricing
    has been reduced to speculation and guestimation.

    They set a price . . .then make up some bull**** to justify it.

    Rocket River
     
  10. Rocket River

    Rocket River Member

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    Deriviatives are basically like a Ponzi Scheme from what I deemed of it.
    Pushing papers and numbers around to obscure the fact that you have no true product to back up the money . .. no colateral .. not true value

    Rocket River
    Our Economy is run on Smoke and Mirrors.
     
  11. CometsWin

    CometsWin Breaker Breaker One Nine

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    Yes, oil is a commodity. People **** with the price to profit. The manipulation is intentional.
     
  12. Dairy Ashford

    Dairy Ashford Member

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    Industrialization of BRIC and Frontier/Next 11 countries. Funny thing about fancy degrees are their curriculum and books can usually be found online, for the cost of an attention span.
     
  13. Commodore

    Commodore Contributing Member

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    simple, inflation

    money supply is increasing, so dollars are worth less and everything costs more
     
  14. CometsWin

    CometsWin Breaker Breaker One Nine

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    Laughable
     
  15. Supermac34

    Supermac34 President, Von Wafer Fan Club

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    He's actually half right. Oil prices are priced by the US Dollar world wide. The relative value of the dollar has been pretty low for a while now, so oil prices increase as the value of the dollar decreases. You can see the correlation when there is an up tic in the value of the dollar, usually you'll see a downward trend in oil.

    It is not the only reason oil is priced at current prices, but it is a contributing factor.
     
  16. CometsWin

    CometsWin Breaker Breaker One Nine

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    Inflation is a contributing factor for the price of everything. It's not the reason you're paying $3.50 a gallon for gas when 10 years ago you were paying $1.30.
     
  17. Classic

    Classic Member

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    Lol, wrong

    http://thinkprogress.org/report/koch-oil-speculation/

    http://www.dailykos.com/story/2011/03/08/953945/-Wall-Street-Deregulation-and-the-Price-of-Gas

    Repeal the Commodity Futures Modernization Act of 2000 and gas drops to $2 a gallon. It's an artificially propped up bubble passed on Clinton's watch thanks to that ******* Phil Gramm.

    If I were elected president I'd undo this legislation under executive order my first day in office.
     
  18. Commodore

    Commodore Contributing Member

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    you would undo legislation with an executive order?
     
  19. Refman

    Refman Contributing Member

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    Yep...just like the current administration, he would utilize the drive through window of governance.
     
  20. Classic

    Classic Member

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    Legislation that is a money grab for the few at the detriment of everyone else?

    Absolutely.

    The current minimum wage conversation would be absolved to a point as well.
     

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