The price of Oil Tops $67 Per Barrel how long until it reaches $70, $80, $90 or $100? Anyone want to make predictions or bets on how high the price of a barrel of oil or a gallon of regular will reach in California this summer? Thomas Friedman author of The World is Flat: A Brief History of the Twenty-first Century is rooting for Mahmood Ahmadi nejad to go blinkers and for oil to shoot up to $100 a barrel.

http://news.yahoo.com/s/ap/20060330/ap_on_bi_ge/oil_prices;_ylt=AnILgv8hPleqQ2NTYGPN0ahu24cA;_ylu= X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

it'll hit 70 before summer. soon to be seen. Hummer for sale 10 bucks. hang on folks only 2 more years of oilmen to go. (unless we impeach in 07)

Do you honestly believe that George Bush being President is what drives the price of oil?

it'll hit 70 before summer. soon to be seen. Hummer for sale 10 bucks. hang on folks only 2 more years of oilmen to go. (unless we impeach in 07)


I have no doubt the price will hit $70 by summer time. I wonder how long till $80, $90 and $100? I wonder if it's a lot closer than most of us might think?

Do you honestly believe that George Bush being President is what drives the price of oil?

Directly or indirectly? I don't think any of us think he's literally sitting in the Oval Office setting the price of oil.

The price of Oil Tops $67 Per Barrel how long until it reaches $70, $80, $90 or $100? Anyone want to make predictions or bets on how high the price of a barrel of oil or a gallon of regular will reach in California this summer? Thomas Friedman author of The World is Flat: A Brief History of the Twenty-first Century is rooting for Mahmood Ahmadi nejad to go blinkers and for oil to shoot up to $100 a barrel.

http://news.yahoo.com/s/ap/20060330/ap_on_bi_ge/oil_prices;_ylt=AnILgv8hPleqQ2NTYGPN0ahu24cA;_ylu= X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

Now there's a rational pair to draw to.

I wouldn't look for $100 barrel oil anytime soon. But if you want to get hot under your collar about it, have a good time.

From your favorite dumb@ass nitwit,
xxxooo

Do you honestly believe that George Bush being President is what drives the price of oil?

Quite frankly, yes.

The war in Iraq is a drain on oil supplies. The fact that Bush said b4 he became pres that oil was priced too low. The fact that he does nothing to mitigate the supply/price as other presidents b4 him have. Yes, the cost of energy/oil is directly related to Bush's inaction.

Oil WAS priced too low. a number of factors have combined to elevate the price, the largest bring international consumption.

Do you honestly believe that George Bush being President is what drives the price of oil?
Yes. I heard a piece on the radio last week where they were talking about how the actions of the US govt./Bush Admin. has been the single most disruptive entity in the world today when it comes to destabilizing the price of oil.

Let me guess, "Air America," Michael Moore?

but I wouldn't be surprised if you see a short term drop around the mid terms. I wouldn't expect it to be above $75 my the end of the year.....barring a major catastrophie

And yes, the invasion of Iraq has had an impact on oil prices, since Iraq is still not back to 55% of pre war production levels.

The increased destabilization of the entire middle east as a result of US actions has had an impact on driving up oil prices.

And Katrina's effect on gulf oil production and the transportation infrastructure along the gulf coast has put pressure on price.

And finally, increased demand by China has had an impact.

My take is that each of these have contributed equally to the rise in prices.

Len

Let me guess, "Air America," Michael Moore?
Can't remember where I heard it...

It's true though, no? Haven't the actions of the Bush Admin been the major destabilizing force for petrol prices lately?

CNBC said there's going be big dislocations later this spring as the refiners switch from MTBE to ethanol as an gas additive- don't know why they gotta add stupid additives but must be Bush's fault hes the prez. That's ok I only drive 100 miles a month but did remember fillup the tank today and stock up the stp.

Now there's a rational pair to draw to.

I wouldn't look for $100 barrel oil anytime soon. But if you want to get hot under your collar about it, have a good time.

From your favorite dumb@ass nitwit,
xxxooo

Are you okay Mr. Moneyman? Your posts in the past couple of threads I have read are really Jump the Sharklike...in a way that I have not seen before. I have not seen you be this way, sarcastically dismissing a 2 time pulitzer prize winner and in the other thread portraying the worst stereotypical impressions of the "left" in this country. Do you miss Old Ed? I know his sense of levity helped keep people from going like gangbusters to their respective corners at times...

As someone with your economic background I find it strange that you would be dismissive of possible 100 dollar a barrel gas prices...after all...all it seems to take now for the price to go up 10 dollars over night is a shake of the magic 8 ball.

but I wouldn't be surprised if you see a short term drop around the mid terms. I wouldn't expect it to be above $75 my the end of the year.....barring a major catastrophie

And yes, the invasion of Iraq has had an impact on oil prices, since Iraq is still not back to 55% of pre war production levels.

The increased destabilization of the entire middle east as a result of US actions has had an impact on driving up oil prices.

And Katrina's effect on gulf oil production and the transportation infrastructure along the gulf coast has put pressure on price.

And finally, increased demand by China has had an impact.

My take is that each of these have contributed equally to the rise in prices.

Len


Len,

We may not agree about drunks in Texas but I think we agree on this. The caveat "barring a major catastrophie" is an important one. With the China and India's ever increasing consumption, the situations with Iran, Nigeria and Venezuela it seems that the uncomfortably high probability of another hurly burly hurricane season or a major terrorist attack on oil supply flow in the ME make $80 or $90 a barrel oil is real possibility. My gut tells me I'll see regular going for at least $3.25 per gallon in SoCal this summer. I wonder if we'll see $4.00 per gallon gas by 2010?

CNBC said there's going be big dislocations later this spring as the refiners switch from MTBE to ethanol as an gas additive- don't know why they gotta add stupid additives but must be Bush's fault hes the prez. That's ok I only drive 100 miles a month but did remember fillup the tank today and stock up the stp.

So could that cause a 4-5% price jump at the pump? Even if it only amounts to a 2% increase it's all the more reason to anticipate $3.25 per gallon regular in SoCal this summer.
We'll be lucky if we don't have any refinery fires this summer to top it off to $3.50.

Katrina didn't do US production any good and it's almost hurricaan season again. Costs are going to go where they are going to go and the only options we are going to have is to use less.

The price of Oil Tops $67 Per Barrel how long until it reaches $70, $80, $90 or $100? Anyone want to make predictions or bets on how high the price of a barrel of oil or a gallon of regular will reach in California this summer? Thomas Friedman author of The World is Flat: A Brief History of the Twenty-first Century is rooting for Mahmood Ahmadi nejad to go blinkers and for oil to shoot up to $100 a barrel.

http://news.yahoo.com/s/ap/20060330/ap_on_bi_ge/oil_prices;_ylt=AnILgv8hPleqQ2NTYGPN0ahu24cA;_ylu= X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--


I graduated from high school in 1974, right around the time of the first oil crisis.
As a result I became an exploration geophysicist. By the time I graduated from college in 78, there were projections of $80/bbl oil for the mid 1980s. It obviously didn't happen. Actually oil, and subsequently gasoline, have not kept up with inflation. I compared tuition from when I entered college to what it would cost today, and if gasoline had risen as much as tuition, we would be paying $9/gallon. I have been out of the oil industry for 20 years now, so I'm not biased in favor of the oil companies. Just curious, how much is everyone paying per gallon for Starbucks, or bottled water?

Are you okay Mr. Moneyman? Your posts in the past couple of threads I have read are really Jump the Sharklike...in a way that I have not seen before. I have not seen you be this way, sarcastically dismissing a 2 time pulitzer prize winner and in the other thread portraying the worst stereotypical impressions of the "left" in this country. Do you miss Old Ed? I know his sense of levity helped keep people from going like gangbusters to their respective corners at times...

As someone with your economic background I find it strange that you would be dismissive of possible 100 dollar a barrel gas prices...after all...all it seems to take now for the price to go up 10 dollars over night is a shake of the magic 8 ball.


He's just got his undies in a bundle because I don't run trough the streets proclaiming my atheist immorality. I don't think oil will reach $100 per barrel for while either but I think spikes up to $80 even $90 a barrel are real possibility in the next two to three years. Throw in another two or three more Cat. 3, 4 or 5 hurricanes in the Gulf this summer in tandem with a Ahmadinejad tantrum it could be reality by August. ...and Tom Friedman is not only an irrational 2 time Pulitzer Prize winner; he's a 3 time Pulitzer Prize winner which means he's totally nuts.

Katrina didn't do US production any good and it's almost hurricaan season again. Costs are going to go where they are going to go and the only options we are going to have is to use less.


Well we can agree on that. When it's $3.50 or $4.00 per gallon we won't have much choice. Alternative energy will be the next tech. boom it's only a matter of timing.

I graduated from high school in 1974, right around the time of the first oil crisis.
As a result I became an exploration geophysicist. By the time I graduated from college in 78, there were projections of $80/bbl oil for the mid 1980s. It obviously didn't happen. Actually oil, and subsequently gasoline, have not kept up with inflation. I compared tuition from when I entered college to what it would cost today, and if gasoline had risen as much as tuition, we would be paying $9/gallon. I have been out of the oil industry for 20 years now, so I'm not biased in favor of the oil companies. Just curious, how much is everyone paying per gallon for Starbucks, or bottled water?


My uncle went through the exact same thing as you did. He studied geology at McMaster University and graduated around 77 or 78 and tried to get job in the oil business. I remember when he stayed with us when he was interviewing at Standard Oil in Chicago. He's been a manager at a pulp mill for about 20 years now. If you're implying that these increases won't be sustained I have to disagree with you because the difference this time is China and India. The Starbucks or bottled water comparison is pointless because we don't consume tens of gallons of Starbucks or bottled water in our household each week. We don't need tens of gallons of Starbucks or bottled water each week to conduct our business.

Tell him to dust off the old diploma, geologists and petroleum engineers are at a premium right now.

Tell him to dust off the old diploma, geologists and petroleum engineers are at a premium right now.


Oh I thinks he's pretty settled down now where he's at. He lives way up in Dryden Ontario and his wife who's from there has been a school teacher there for many years. That ship has sailed.

Are you okay Mr. Moneyman? Your posts in the past couple of threads I have read are really Jump the Sharklike...in a way that I have not seen before. I have not seen you be this way, sarcastically dismissing a 2 time pulitzer prize winner and in the other thread portraying the worst stereotypical impressions of the "left" in this country. Do you miss Old Ed? I know his sense of levity helped keep people from going like gangbusters to their respective corners at times...

As someone with your economic background I find it strange that you would be dismissive of possible 100 dollar a barrel gas prices...after all...all it seems to take now for the price to go up 10 dollars over night is a shake of the magic 8 ball.

I don't believe I've jumped the shark at all. And, thanks to this forum, I actually know what jump the shark is! Amazing what we learn at PO.

Every day I hear market prognosticators say the Dow will go to 15,000 in the next two years. I also hear market prognosticators say it will collapse to 7,000 in the next two years. I hear similar predictions about oil prices, except that those are almost exclusively on the same side my good friend rocco is warning us about. What I've found in my many years in the business of money is that extreme predicitions are rarely, if ever, right. A jump to $100 per barrel of oil is a nearly 50% increase, and the sources I consider to be knowledgeable about these kinds of things don't use that number at all. Short term price movements can be sharp, but they tend to be short lived as well. I am not dismissive of economic change, but just in extremism in the interpretation of the data.

Second has to do wth Dr. Friedman. Just because he's won two Pulitzer prizes doesn't mean that I have to agree with him. In fact, on a professional level, I disagree with the conclusions that he draws on a regular basis. In his writings that reach the mainstream press, his worldview is, in my opinion, completely upside down. Yasser Arafat won a Nobel Peace prize, yet I didn't agree with him, either.

Finally, as to the stereotypical impresions of the "left", I don't have to do much to verify that they are real. Sometime take a step back and read the loving words from my other good friends, like spyderman (your pal), svend, my newest best friend rocco, and then my all time favorite drive-by poster Cory and you will see that I really don't have to do anyhting to prove that those stereotypes have a basis in reality.

I do miss OldEd. I didn't agree with him, but his arguments, like yours, came from a rational foundation, tinged with Kentucky color - and oft times Kentucky bourbon. Those others I mentioned are graduates of the "I hate George Bush / Republicans: Yeah, me too" school. Some of them graduated magna cum louder. So I've decided to join the fray, call things as I see them, and suffer the indignance of those who would call me a dumb@ss nitwit.

But thanks for your concern.:)

Fair enough. But I would say that in defense of Tom Friedman and his multiple Pulitzers...unlike Nobel (at least at times)...the Pulitzer is still a merit based award.

Have you heard about the Lou Dobbs/Tom Friedman feud? Fun stuff...for you economist/financial types.

Fair enough. But I would say that in defense of Tom Friedman and his multiple Pulitzers...unlike Nobel (at least at times)...the Pulitzer is still a merit based award.

Have you heard about the Lou Dobbs/Tom Friedman feud? Fun stuff...for you economist/financial types.


Oh YEAH, they don't like each other at ALL......it's kinda funny from an outsider perspective.

Oh YEAH, they don't like each other at ALL......it's kinda funny from an outsider perspective.

Tom Calling Lou a Blithering Idiot...has been my favorite. (Although I side with Lou Dobbs more often than Tom)

CNBC said there's going be big dislocations later this spring as the refiners switch from MTBE to ethanol as an gas additive- don't know why they gotta add stupid additives but must be Bush's fault hes the prez. That's ok I only drive 100 miles a month but did remember fillup the tank today and stock up the stp.
Can't help but wonder what ethanol will do to the price of corn. I do love my corn... :p

Fair enough. But I would say that in defense of Tom Friedman and his multiple Pulitzers...unlike Nobel (at least at times)...the Pulitzer is still a merit based award.

Have you heard about the Lou Dobbs/Tom Friedman feud? Fun stuff...for you economist/financial types.


Hey, what about me! Am I un-defendable? ;)

Tom Calling Lou a Blithering Idiot...has been my favorite. (Although I side with Lou Dobbs more often than Tom)


You should have seen it when I called moneyman a "dumb@ss nitwit". :)

Wanted to bring this thread back to life. I read everyone's posts thoroughly, and I reasoned that while oil supplies certainly haven't dwindled, refining capacity hasn't dropped off any in the last 3 months, and the whole "switchover to MTBE" couldn't possible be accounting for the 40-60 cent increases we have observed here locally in the past month.

While the oil companies pour 92 octane over each other's heads in celebration of record profits, where is the matching "rising costs" that should accompany this "market" driven rise in price? Huh? Anybody?

Show me where market forces are causing these overnight 20 cent increases, and I'll personally kiss your ass. I will put on chapstick, pucker up, and smooch your chammy'd deriere. It's not market forces: It's opportunism, greed, and a systematic gouging of the public that won't stop until the American people say it stops.

it'll hit 70 before summer. soon to be seen. Hummer for sale 10 bucks. hang on folks only 2 more years of oilmen to go. (unless we impeach in 07)


70 this summer? ...more like within the next two weeks if not tomorrow. 33 months until next pres. inauguration in January 2009. ...so it might as well be 3 years.

Per barrell prices are set on speculation....speculation about where prices are going.

So far....Iraq production is coming up to speed slower than expected = pressure on supply
China & India continue to increase their demand = Pressure on demand
Fear about disruption of supply from Iran due to possible sanctions/military action = pressure on prices.
US is increasing strategic reserves back to pre Katrina levels = Pressure on demand
Gulf Coast production is coming up slowly = Pressure on supply.

These are just a few....but there is more than enough reasons that the price continues to rise.

Len

Now there's a rational pair to draw to.

I wouldn't look for $100 barrel oil anytime soon. But if you want to get hot under your collar about it, have a good time.

From your favorite dumb@ass nitwit,
xxxooo
You couldn't be so right, you are our "favorite dumb@ss nitwit."

Per barrell prices are set on speculation....speculation about where prices are going.

So far....Iraq production is coming up to speed slower than expected = pressure on supply
China & India continue to increase their demand = Pressure on demand
Fear about disruption of supply from Iran due to possible sanctions/military action = pressure on prices.
US is increasing strategic reserves back to pre Katrina levels = Pressure on demand
Gulf Coast production is coming up slowly = Pressure on supply.

These are just a few....but there is more than enough reasons that the price continues to rise.

Len


and the latest news out of Iran helped push those speculatively driven prices up to $69.50/barrel today.

Len,

The oil industry learned that if they don't build anymore refineries, and consumption continues to rise, the price will continue to rise.

Of course, there was that artificial spike in the price soon after Katrina that just seemed to linger for months and months... And then the record profits for a legal monopoly, not being kept in check by our corrupt government.

Are the reasons real or artificial that seem to be leading to record profits?

But please, don't make these men swear to tell the truth when they testify to Congress!

Len, ya forgot one other reason there's pressure on demand, the Iraq war. BTW, the price of gas in Iraq went up 10 fold since we invaded. Hmm, something doesn't smell right in Baghdad.

To you and rocco. I was writing Thomas Friedman and thinking Paul Krugman. I admire and respect Thomas Friedman, although I don't always agree with him. He is one of those authors I like to read because he challenges my assumptions and makes me think about why I believe what I believe.

I realized what I had done just a day or so ago when I read a Friedman column in the Denver Post. Then it clicked in my brain, and I immediately thought "S**t! I've got to go back to PO and admit I was wr.... w&^ng... w*#@g..... mistaken in my identification of the individual. There, I said it.

On the other hand, if you and rocco will agree to replace Thomas Friedman with Paul Krugman, we can get over this ugly incident.

Sorry for the mistake. I should have been more attentive to the details.:o

Len,

The oil industry learned that if they don't build anymore refineries, and consumption continues to rise, the price will continue to rise.



it's called capitalism.......God I love America

Len

it's called capitalism.......God I love America

Len


Just shows the damage a legal monopoly can do to a capitalist society. When you have a legal monopoly that goes uncheck by the government they abuse their position of power resulting in record profits.

Can't help but wonder what ethanol will do to the price of corn. I do love my corn... :p

if the damn farmers start gouging us with high corn prices the govt better get rid of all the subsidies they give them--The state of Iowa is just as artificial as any city once you factor in the subsidies. Iowa is the most developed state in the Union--the smallest amount of pre-existing nature of any state--as artificial as any large city.

To you and rocco. I was writing Thomas Friedman and thinking Paul Krugman.

I knew you think Krugman is an a** and was almost sure that you were mistaking the two when I read your earlier post.

if the damn farmers start gouging us with high corn prices the govt better get rid of all the subsidies they give them--The state of Iowa is just as artificial as any city once you factor in the subsidies. Iowa is the most developed state in the Union--the smallest amount of pre-existing nature of any state--as artificial as any large city.


We're paying farmers not to grow corn right now. That's insane. And it's a different type of corn... you wouldn't really enjoy eating the corn they use for ethinol. one of the girls I work with grew up on a farm in Iowa, and said that her dad would plant whatever type of corn that was ou the outside of thie corn fields, so if people stole their corn, they'd get the nasty stuff.



joe

Just shows the damage a legal monopoly can do to a capitalist society. When you have a legal monopoly that goes uncheck by the government they abuse their position of power resulting in record profits.

there are many competing Oil & Gas companies.

Len

if the damn farmers start gouging us with high corn prices the govt better get rid of all the subsidies they give them--The state of Iowa is just as artificial as any city once you factor in the subsidies. Iowa is the most developed state in the Union--the smallest amount of pre-existing nature of any state--as artificial as any large city.

Been listening to Fresh Air? Yesterday's segment on food was quite interesting.

Been listening to Fresh Air? Yesterday's segment on food was quite interesting.

Yeah that's where I got most of that from. Libbie media and all. ;)

We're paying farmers not to grow corn right now. That's insane. And it's a different type of corn... you wouldn't really enjoy eating the corn they use for ethinol. one of the girls I work with grew up on a farm in Iowa, and said that her dad would plant whatever type of corn that was ou the outside of thie corn fields, so if people stole their corn, they'd get the nasty stuff.



joe

yeah...I grew up in Iowa...most of it is what they call feed or field corn can't remember which--not the sweet corn that is so delicious to eat in the summer. Used to feed cattle and other animals that we eat mostly.

there are many competing Oil & Gas companies.

Len

Lenny,

I'll be very disappointed if you're trying to tell me that the energy/oil industry isn't a monopoly.

Please say it isn't so?

Lenny,

I'll be very disappointed if you're trying to tell me that the energy/oil industry isn't a monopoly.

Please say it isn't so?

It's an oligopoly. See the definition here:

http://dictionary.reference.com/search?q=oligopoly

Many of the same problems exist, but oligopolies don't always drive up prices. The airline industry is an oligopoly, and they have been lowering prices enough to drive many into bankruptcy. Car industry is another oligopoly with severe price competition.

Silas

It's an oligopoly. See the definition here:

http://dictionary.reference.com/search?q=oligopoly

Many of the same problems exist, but oligopolies don't always drive up prices. The airline industry is an oligopoly, and they have been lowering prices enough to drive many into bankruptcy. Car industry is another oligopoly with severe price competition.

Silas

You beat me to it.

The oil companies behave like any Capitalist market with high entry barriers and rational participants who know that if they operate within a reasonable band, they will prosper.

Len

Thanks for the correction Silas!

An oligopoli is worse.

The oil industry is an oligopoly.

Your gas station is an example of monopolistic competition. Although, I think it's an illusion to some degree. How are the products truly differentiated? Gas is gas, and everyone offers at least three grades. They try to differentiate but it's bs.

You beat me to it.

The oil companies behave like any Capitalist market with high entry barriers and rational participants who know that if they operate within a reasonable band, they will prosper.

Len

The real question is, how could the airline and auto industries be losing money hand over fist? The answer: irrational participants competing on price, when there is no reason to. If the CEOs of airlines were smart, we'd all be paying 2-3 times as much for domestic travel, with extremely high levels of service. And we probably wouldn't complain half as much as we do now when they don't give us a 10 cent bag of peanuts.

Spydie, what do you think the government's responsibility is towards business? Should it always benefit the consumer? Should it regulate that they don't damage people/places, but otherwise leave the market alone? I've never found an easy answer on this one...

Silas

Great question Silas!

When dealing with natural resources, that tend to have monopolistic tendencies, there is a huge need for gov't oversight/regulation. Deregulation of the energy markets hasn't realized any cost savings to the consumer. In fact, it allowed Enron to happen.

When you turn on your electicity, do you get to choose among three different providers? No. This was how they pulled the wool over the public's eyes. There's no incentive for the gas cos to build new refineries. This is where you need government influence.

When it comes to standard business, no. Although, I would make one exception to this. Wal-Mart. IMO, there's more of a need to break up Wal-Mart then there ever was a reason to bust up Ma Bell.

In the airline industry, the barriers to entry for the short hop carriers is pretty low......consequently, as soon as a route gets profitible, a small start up jumps in. In addition, these smallcarriers costs are lower because of lower employee benefits.

The auto industry got caught by foreign competitors who had significantly lower costs (again, mainly employees as well as quality processes. Consequently they were more profitible at lower prices with better quality......a bad recipe.

The oil industry is a hard market to crack. Plus the ultimate dominant suppliers manipulate supply and prices more than any ofthese co's could.

Len

The real question is, how could the airline and auto industries be losing money hand over fist? The answer: irrational participants competing on price, when there is no reason to. If the CEOs of airlines were smart, we'd all be paying 2-3 times as much for domestic travel, with extremely high levels of service. And we probably wouldn't complain half as much as we do now when they don't give us a 10 cent bag of peanuts.



Price elasticity of demand. If airlines raise prices too much, consumer/business travel will drop off. Considering almost the entire industry is in bankruptcy, they can't afford to have a drop off in traffic. If they aren't filling the seats, they aren't meeting their lease/loan/payroll obligations. Raise prices and people will look elsewhere. Business travel was their bread and butter. Corporations have leased their own private jets. Technology has provided businesses with the ability to video conference their long distance meetings. People will get in their cars. Ease of substitution.

but I wouldn't be surprised if you see a short term drop around the mid terms. I wouldn't expect it to be above $75 my the end of the year.....barring a major catastrophie

And yes, the invasion of Iraq has had an impact on oil prices, since Iraq is still not back to 55% of pre war production levels.

The increased destabilization of the entire middle east as a result of US actions has had an impact on driving up oil prices.

And Katrina's effect on gulf oil production and the transportation infrastructure along the gulf coast has put pressure on price.

And finally, increased demand by China has had an impact.

My take is that each of these have contributed equally to the rise in prices.

Len


Len, your reply is entirely too intellegent and thought out....

you should know people would rather have a scapegoat than plausible reasons things are the way they are. ;)

Price elasticity of demand. If airlines raise prices too much, consumer/business travel will drop off. Considering almost the entire industry is in bankruptcy, they can't afford to have a drop off in traffic. If they aren't filling the seats, they aren't meeting their lease/loan/payroll obligations. Raise prices and people will look elsewhere. Business travel was their bread and butter. Corporations have leased their own private jets. Technology has provided businesses with the ability to video conference their long distance meetings. People will get in their cars. Ease of substitution.

In my view, the problem with the airline industry is that they keep getting bailed out by the government. They have gotten how much, billions since 9/11 (and I think billions before that)? There is no way for a profitable airline to compete on price with one that sets prices so low that they need to get bailed out by the government. If there are airlines that get rewards for operating poorly then there is no incentive to be fiscally responsible and actually try to stay out of the red.

http://news.yahoo.com/s/ap/20060418/ap_on_bi_ge/oil_prices

Oil Prices Settle Above $71 a Barrel

By BRAD FOSS, AP Business Writer

WASHINGTON - Oil prices settled at a new high above $71 a barrel Tuesday as supply threats around the world overshadowed a new report from OPEC forecasting weakening global demand.

There was no fresh catalyst for Tuesday's buying, but analysts said the market psychology would likely remain bullish until there is some resolution to a variety of geopolitical uncertainties, particularly the West's nuclear dispute with
Iran and output disruptions in Nigeria.

Global Insight oil analyst Kevin Lindemer said the slowing consumption growth and swelling inventories of crude oil in the United States would typically help pull down prices, but "all of that is getting swamped right now by Iran and Nigeria."

http://news.yahoo.com/s/ap/20060418/ap_on_bi_ge/oil_prices


ok, anyone willing to say when it will hit 80......Hurricane season is coming, Iran is flirting with Nukes, Nigeria is teetering........

How long do we stay attached to the teat of big oil?

[ I'll answer my own question. As long as oil men are setting US policy. ]

Friggin' annoying thing is the prices are fake, at least in the supply and demand sense. It's just everyone bidding the futures up because of every boogeyman that may lurk in the closet. Even if nothing officially happens, as long as the traders continue to think the market is going to go to the Iranian Nukes, Venezuelan Nationalistic nuttso, or Nigeria up in a ball of flames the prices are going to remain much higher than they should be.

Yes, we need to separate from big oil, but as long as we have presidents who made their fortunes off of it and others who are driven by the lobbyists it isn't going to happen too soon. It'll take a complete and utter disaster in larger magnitude than the 1970's.

right on Svend. when W is done w'ere just going tobe deep in debt and 8 plus years behind in getting where we need to be. Rotate Corn and Soybeans (Corn depletes Nitrogen while Soybeans put it back) for ethanol and biodiesel respectively. get our farmers back to work. Grow Sugar cane in the South for the same and help LA recover economically. Put people to work in alt fuel processing, create all the alt technologies and then export it to the world. Oil is a dying industry, why don't we act like REAL Americans and be ahead of the curve like we used to? Sometime in the future folks will be needing this stuff why don't we become the OPEC of the BioFuel age to come?
Instead we'll fatten our buddies pockets and then give them tax dollars to play catch up.

Friggin' annoying thing is the prices are fake, at least in the supply and demand sense. It's just everyone bidding the futures up because of every boogeyman that may lurk in the closet. Even if nothing officially happens, as long as the traders continue to think the market is going to go to the Iranian Nukes, Venezuelan Nationalistic nuttso, or Nigeria up in a ball of flames the prices are going to remain much higher than they should be.

Yes, we need to separate from big oil, but as long as we have presidents who made their fortunes off of it and others who are driven by the lobbyists it isn't going to happen too soon. It'll take a complete and utter disaster in larger magnitude than the 1970's.


I just listened to an analyst who pointed out that supplies a much tighter now than they were during the situation during the 1970's. $80 per within the next six months seems inevitable with all the potentially real or perceived risks stacking the deck.

will get impeached in 2007 so maybe they are trying to fill the coffers in advance.

Since $80 pbl is just around the corner this summer. Looks like $90 by the fall.

C'mon MoneyMan, please impart some more of your "wisdom." LOL.

Up and up it goes and where it will stop nobody knows...


http://news.yahoo.com/s/ap/20060419/ap_on_bi_ge/oil_prices_54;_ylt=AtYSs_95YIK7n4xTnjIxQmmAsnsA;_y lu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

Oil Prices Settle Above $72 a Barrel

By BRAD FOSS, AP Business Writer

WASHINGTON - Oil prices leapt above $72 a barrel Wednesday, settling at a record high for the third straight day after a government report showed shrinking U.S. gasoline supplies and traders focused on nuclear tensions between Iran and the international community.

Supply constraints in Iraq, Nigeria and the Gulf of Mexico are also pushing oil prices higher, and analysts are predicting more pain at the pump for motorists, who so far appear to be only lightly tapping the brakes on demand.

Light sweet crude for May delivery climbed as high as $72.40 a barrel, before settling at $72.17 on the New York Mercantile Exchange, an increase of 82 cents from the previous day. The contract had risen as high as $71.60 on Tuesday.

...higher and...

http://news.yahoo.com/s/ap/20060421/ap_on_bi_ge/oil_prices;_ylt=AlrW_tfdKp6tPex6FjnyCRms0NUE;_ylu= X3oDMTA3bGI2aDNqBHNlYwM3NDk-

Oil Reaches New High of $75 a Barrel

By MADLEN READ, AP Business Writer

NEW YORK - Crude-oil prices reached a new record of $75 a barrel Friday amid concern about Iran's nuclear ambitions and declining U.S. gasoline stocks.

U.S. pump prices also kept rising, with the average price of a gallon of unleaded regular gasoline at $2.855, up 3 cents from a day earlier and more than 60 cents higher than a year ago, according to AAA's daily fuel gauge report.

Analysts say oil prices are likely to climb higher in the weeks ahead as worries grow about how international pressure on Iran,
OPEC's No. 2 oil producer, will affect its crude output. Rebel disruptions of oil production in Nigeria also pose a risk to world supplies.

below $63 a barrel after reaching $78.40 in July. Might it do much to lubricate the re-election of incumbent US congressional representatives?

below $63 a barrel after reaching $78.40 in July Might it do much to lubricate the re-election of incumbent US congressional representatives?

As my wife said to me on our ride yesterday, oil executives are rational actors and work to maximize their outcomes. They know which side of the bread their butter is spread.

equal a savings at the pump of 1/3rd? just as there was no good math explaining the hike, there is no good math explaining the drop.
what is sad is all they did was drop it back to the high price it was before the gouging and consumers are saying "$2.50 a gallon, sweet!"

Yes, interesting. I'm waiting to see what the price of gas will be Wednesday, November 8th.:wink:

Deek

I want it to reach $100 per barrel by the end of the year. That means less SUVs and pickup trucks on the road and more reasons to pick up cycling. Heck, I wouldn't be disappointed if it reached $200 per barrel. The higher the better as far as I am concerned. Anyone for $300 per barrel?

:thumbsup: :thumbsup: :thumbsup:

below $63 a barrel after reaching $78.40 in July. Might it do much to lubricate the re-election of incumbent US congressional representatives?

a 19% percent drop in the barrel price but with thenindustry still facing the same expenditures (fixing the gulf platforms, BPs little mess in Alaska) that they said were driving the price up equals a 33% drop at the pump.