Max, I'm sorry, but you'll forever be my oil/gas expert on this board... forever more. D&D. Replicant City.
Adjusted for inflation, gas prices aren't that high. http://inflationdata.com/inflation/images/charts/Oil/Gasoline_inflation_chart.htm
The media is really lying to everyone when they talk about record gas prices. Inflation is a pretty steady 3% a year. So everything equal prices would still go up "record amounts" regardless of whatever was going on in the world. Just like movie tickets. They always say "it broke such a such records" but the truth is, Gone with the Wind is still, I think, the most successful movie of all time.
Oil prices today are result of a huge demand spike and the lack of refinery capacity and infrastructure to meet the demand. In the long run commodity prices will always revert to marginal cost. Therefore the 2010-2012 outlook per barrel should be around $45. You want lower marginal costs?? Let Exxon, Shell etc. have more access to oil as 85% of the worlds oil is controlled by nations and thats like having the efficiency of the DPS or the Post Office versus the quick drive-thru efficient mcdonalds.
wouldn't that be the price of gas? lack of refinery capacity would mean there would be a glut of oil that can't be refined just sitting out there, right? i'm seriously asking...
That's what I am thinking too. Gas goes up because the refineries can't make anymore gas because they are down. Therefore the gas that is being used isn't replaced with stocks but why does oil go up too? Refineries are down so they aren't using and putting out oil. Barges and tankers have no where to put the oil they are carrying. Oil fields have stockpiles waiting for shipment. There is an influx of oil in the market. Why does it go up too?
Definitely thinking about investing in a bike. I just paid 3.49...this is absurd. Once again, and I know this has been brought up before...but how exactly do we get gas prices down? Please dont tell me, demand needs to go down...listen, most people do not have a choice, people have to get gas. Does anyone see us realistically drilling in the US soon? Also, I agree with what some others have said..oil companies are gouging us...they know we need it and use the war or whatever as an excuse. Yet they're making record profits.
Refineries shut down in collusion to bring up prices and bring record profits? D&D. Dream and Yao... Replicant Fantasy.
another one reduced output yesterday. that's pretty fishy. it seems like there is an inordinate number of them down.
in the chronicle yesterday, an article stated that gasoline supply, not oil, is actually expected to be today when the reports come out. but even though actual supply is up, there are fears about the oil flow out of nigeria.
yeah..if i remember correctly they were saying gasoline futures were selling higher in spite of higher inventories.
