Ahmadinejad: Oil is too cheap http://www.upi.com/NewsTrack/Top_News/2008/04/19/ahmadinejad_oil_prices_should_be_higher/4613/
Hell, I only live a mile or so from work, but with my gas guzzler, I'm seriously considering riding a bike to work...Well, then I remembered I live in Texas and the summer heat would melt my tires... I do think this is getting ridiculous... btw, I thought when calculating inflation, they didn't include food and fuel as they were considered "non-core"...I know when were up for our cost of living adjustment, these are not included in that adjustment...
It already hit 4 bucks for mid-grade in SoCal. $3.95 for regular in Irvine. Will there be rioting if it inches towards 5? edit: insane beat me to it.
Time to start letting oil out of our reserves to bring the prices down. Southwest Louisiana has the second largest oil reserve in America... Texans better start being nice to us Cajuns.
welp, if we want to see these prices down, we got to start using our reserves and then start "roughnecking" again. I am only 23, so I don't remember those times, but I do know it created jobs out the butt along the South in Texas, and Louisiana. When everyone starts buying their oil from Southwest Louisiana, it will help out Louisiana whom suffered greatly from the Hurricanes, we need the help and America needs the oil. Lets start using our own got damn oil!
Im already seeing $3.50 a gallon for reg. I remember when gas was .79 cents a gallon not to long ago.
Regular unleaded was, IIRC, .89 when I started driving in 1989. I recently saw a graph that showed that regular unleaded was $1.50 a gallon in 2005, before Katrina.
In the other oil thread I metioned a private exploration company I invested in and we are drilling the hell out of Southwest Lousiana..and the women there. Seriously, our little bitty company has drilled 40 wells there in 3 years, 24 are producing and 4 or 5 others are waiting on some type of completion or pipeline connection. I can't imagine harder labor than roughnecking though.
I have long been an oil bull in previous discussions on this topic in saying that prices were fundamentally justified, but current oil levels are very much being driven by US dollar inflation and the financial markets. Having said that, the problem that is leading to continued higher and higher prices is that all of the growth in oil demand today is occurring in emerging markets such as the Middle East, China, and India which all subsidize the use of petroleum products domestically. Therefore, their consumers are not feeling the pain of higher oil prices as much as they should and they are not cutting back on demand as they theoretically should. Ironically enough, given all the screaming and shouting from politicians for the Chinese government to allow the renmibi to float for trade reasons, the Chinese government's decision to allow the renmibi to appreciate significantly this year has made the oil situation much worse since the cost of oil in local currency terms hasn't risen as much. Demand destruction is occurring in the US this year but the rest of the world is largely picking up the slack, which is allowing for continued tight margins and allowing for speculators to drive the price of oil higher. Further, European consumers aren't feeling the pain as much either since their fuel is priced in Euros. In Euro terms the price of oil hasn't increased nearly as much as in US dollar terms and therefore they have not cut their demand accordingly either. Unfortunately, with the US dollar falling apart as much as it has across the board, it is making the situation worse and allowing speculators to drive the market higher in the meantime with no reasonable demand response allowing prices to fall.
Oil has gone up 5x in 6 years. I don't think demand has gone up 5x. Oil will crash like every other bubble just don't know when. I would love short some right now, but might want to wait till it hits 125 or 130.
