Oil market may soon burst causing prices to tumble

[eds]

In a report published on the UK Telegraph, it was reported that Lehman Brothers predicts oil to fall to $83 per barrel next year with further declines in 2010.

"The build-up in supply is taking place at a time of cooling world demand. Recession in the US is expected to curb consumption by 300,000 b/d this year.

Lehman has trimmed its forecast for global growth from 1.5m b/d to 1.1m b/d, predicting a slide in prices to $83 next year and $70 to $80 in 2010 – still high by historical standards."

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/24/cnoil124.xml

Remember kids, the current market is being driven by a weak dollar. The price of oil at its current level is not due to market pressures but a weak dollar. Nobody, not even the Arabs, want oil this high. It will eventually fall back down to affordable levels. Just like housing, this boom will bust.

[Charles E. Peevyhouse]

More reason to buy that bigger SUV, I have been eyeing.

[RC12L4]

More reason to buy that bigger SUV, I have been eyeing.

"You should think about an electric, man"
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[Charles E. Peevyhouse]

;) RC12L4

Always suspected that you helped Al Gore author "An Inconvenient Truth" ;)

[RC12L4]

;) RC12L4

Always suspected that you helped Al Gore author "An Inconvenient Truth" ;)

"You leave Al Gore alone!!"
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[Charles E. Peevyhouse]

"You leave Al Gore alone!!"
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Now RC12L4, I do not buy your feigned indignation for one minute.

[eds]

Der Fuhrer Klinton said:

"I have a much broader base to build a winning coalition on," she said in an interview with USA TODAY. As evidence, Clinton cited an Associated Press article "that found how Sen. Obama's support among working, hard-working Americans, white Americans, is weakening again, and how whites in both states who had not completed college were supporting me."

http://www.usatoday.com/news/politics/election2008/2008-05-07-clintoninterview_N.htm

So many ways to go with this...I'll just leave it for the readers to decide...

[RC12L4]

Der Fuhrer Klinton said:

"I have a much broader base to build a winning coalition on," she said in an interview with USA TODAY. As evidence, Clinton cited an Associated Press article "that found how Sen. Obama's support among working, hard-working Americans, white Americans, is weakening again, and how whites in both states who had not completed college were supporting me."

http://www.usatoday.com/news/politics/election2008/2008-05-07-clintoninterview_N.htm

So many ways to go with this...I'll just leave it for the readers to decide...

"Is she trying to imply that dumb white people don't like me?"
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[Charles E. Peevyhouse]

You got my vote OBAMA


http://members.cox.net/blank.man/bill%20murray.jpg

[eds]

I think she's saying that hard working uneducated white Americans vote for Clinton. Which makes no sense to me...

[collie]

It makes sense for her to say white uneducated voters will vote for her because she lost the black vote by comments interpreted by many as being racist. So, she continues to play the race card in the sense that she has implied white uneducated voters are redneck bigots. Apparently they aren't as stupid as she thought, given the results in Indianna.

[Common Sense]

A person doesn't have to white or a redneck to be a bigot. I believe too many people will say one thing but do something entirely different in private. Does that make them a closet bigot or a hypocrite?

Webster dictionary (note the date)
bigot


bigot
Main Entry: big·ot
Pronunciation: \ˈbi-gət\
Function: noun
Etymology: French, hypocrite, bigot
Date: 1660
: a person obstinately or intolerantly devoted to his or her own opinions and prejudices; especially : one who regards or treats the members of a group with hatred and intolerance

[eds]

Those closet bigot hypocrites just might be on a PTO somewhere in CT. Watch out! :)

[eds]

Viva Mexico!

http://static.20minutos.es/img/2008/05/06/807186.jpg?v=20080506115953

Bush siempre tiene razon!

[eds]

http://www.time.com/time/business/article/0,8599,1809724,00.html?xid=feed-cnn-topics

Looks like gas prices are falling. Demand is going down and that is making the price go down.

[Golden Gooch]

These are the alternative feuled cars that I am acute (aware ) of ; Toyota Prius , Ford Focus , Honda Accord and others . end of the list
"You should think about an electric, man"
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[Modica]

Maybe someone can explain why after the price of a barrel of oil went down to around $127.00 the price went up 5 cents at most of the stations in the area. I think I remember that when a barrel of oil was that price, the price at the pump was just below $4 a gallon at the pump. Now the oil companies will say that it takes time for the price to reflect at the pump, but that only seems to apply when the price goes down on a barrel of oil, when the price of a barrel of oil spikes the price seems to go up at the pump immediately. Seems strange. Anyhow, I am not sure whether the high prices are a bad thing, because I drive much less now and it seems like I have more money in my pocket than I ever have. If others are doing the same I have a feeling that the economy will suffer. I stay home more and don't spend money on leisure activities. So what is good for me and others like me, isn't so good for the economy.

[Anna]

Modica, My understanding is that we're not even paying $110.00 / barrel prices. There is a lag. This is why prices will probably hit $5.00 by the end of summer. Oil has to drop to about $100.00 before we see a change going in the opposite direction. Don't hold your breath. :(

[RC12L4]

It's my understanding when the fueling stations purchase gas from oil companies they are not buying it at the current price for a barrel. Fueling stations prepay for their fuel, this is why you can see the oil company deliver the gas in the morning and the fueling station will increase their price later that same day because they have to earn enough money to prepay for their next order, there is a lag on the price of gas at the pump.

The best way to make the price of fuel drop is to use it less.

If I'm wrong on what I've stated please correct me.

[eds]

The Brent price of crude oil is only about 40% of the cost of the gas. A third is taxes. So that's about 70-75% of the cost. The remaining 25-30% is delivery charges and refinement. The spot price of the refined product includes the cost of refinement but not delivery. Delivery is added to that price later because delivery is done through contracted services of truckers. Some companies have their own fleet so this is not always 100% the case. Bottom line though, no matter who delivers, delivery cost money.

Delivery charges go up for the delivery because unfortunately it takes fuel to deliver fuel. Diesel fuel that is. Delivery is not necessarily done by the same company that sells or refines the gas, as I mentioned. So all long the way you have these middle men. How many middle men there are will depend on who the filling station is. The price of diesel, the refined product, is going up at a faster rate than the crude oil is going down due to other factors, which I described. The further away from the base of delivery the filling station is, the more expensive that station will be compared to other stations. That is why some stations in the same town cost more.

Different towns and different stations have different taxes they impose, mainly property taxes. A station with higher property taxes will also have higher prices. But this usually is not what drives the day to day changes.

Essentially what drives the net difference is the total cost of the fuel. The difference between the reduced priced crude oil and the higher transportation cost due to diesel refinement increases came out to five cents higher despite the price of the crude oil going down. Just because Brent price of crude goes down, does not mean the refined product's spot price will go down due to the other factors I mentioned besides the crude oil itself.

[eds]

Almost forgot...you also need to consider the dollar's value in which that oil is denominated. Which is to say that if the dollar gets weaker the price of oil goes up. It takes more dollars to buy that same oil. That factor also is figured into the overall cost. There is not a one-to-one relationship between the Brent and the spot price. You have many variables to consider each one creating a net effect.

[RC12L4]

Almost forgot...you also need to consider the dollar's value in which that oil is denominated. Which is to say that if the dollar gets weaker the price of oil goes up. It takes more dollars to buy that same oil. That factor also is figured into the overall cost. There is not a one-to-one relationship between the Brent and the spot price. You have many variables to consider each one creating a net effect.

You and your facts, don't you know that type of stuff confuses the emotional posters on this board. Now stop it.

[Modica]

As I said before, it really doesn't have much of an effect on me, because I don't go out as much as I once did and have found other things to do that I have found to be more satisfying that won't drain my bank account. Now if others have done the same, and are not say going out to eat or shopping as much for big and small items, then I would guess that is why our economy is getting closer to recession. I did think it was amusing that the price of a barrel of oil went down when it was announced that there was a congressional investigation into the rising price of gasoline. Also my father owned several gas stations for almost 30 years, and I know that as soon as the price of a barrel started to go up, we would see that price jump as soon as our next delivery. So the lag is not that much. But we did always notice that if the price of a barrel went down, it did take alot longer for us to notice the difference.

[eds]

Yes. But do you know what the air speed velocity of a unladen swallow is?

[Man in the Middle]

African, or European, EDS? :D

[Chriss P]

Have gas prices ever known to drop once they have reached a certain level. I think a oil market crash is delusional.

I cant lose; because if Im wrong I pay less for gas. I hope I am wrong.

I don't see the demand going down until the world as a whole
changes its ways extremely.

[eds]

Or we run out of money.

[Marc Syrah]

Ran out of Money...
He saw that one coming!