Oil falls again: Is the bubble bursting?

[jkennedy293]

Originally Posted by RamJet502

I was under the impression that inflation raised the price of commodities like oil.

It does. When the dollar is weak, investors put their money into commodities, because they don't lose "real" value like the dollar would.

[Wolfman01]

Originally Posted by jkennedy293

Lifting the offshore drilling ban does nothing for today's price because it wil take 5-10 years for those platforms to come online. And the dollar will only start recovering once the Treasury starts raising interest rates.

Then you know nothing about how the speculator market works.
Future product availability has plenty of input into speculator pricing.

[Stéphane Dumas]

I wonder if the increasing popularity of biofuels like biodiesel and the upcoming cellulosic ethanol and new sources like aglae might play a part as well? These biofuels might came a competitor.

[joemac]

4) My family went on vacation and we used nothing but B100 biodiesel.

[milton112c]

I dont like how oil only dropped 47 cents today...if the bubble was really popping, i think we'd see a bigger drop than that to continue the huge slide

[Family Man]

Originally Posted by Wolfman01

Then you know nothing about how the speculator market works.
Future product availability has plenty of input into speculator pricing.

While I agree with your comment, I really doubt Bush's comment has had anything to do with it. Most economists have stated that it should have little impact on the price of oil today. Remember, only Bush agreed to drilling offshore - Congress still needs to pass law permitting offshore drilling, so in effect, Bush's gesture is only symbolic...

[T-Type]

Originally Posted by Family Man

While I agree with your comment, I really doubt Bush's comment has had anything to do with it. Most economists have stated that it should have little impact on the price of oil today. Remember, only Bush agreed to drilling offshore - Congress still needs to pass law permitting offshore drilling, so in effect, Bush's gesture is only symbolic...

Family Man beat me to it. Bush's lifting of the ban is only symbolic. Now Congress has to do something about it and I don't think that's gonna happen. One would think that a speculator is smart enough to know that, but you never know.

[steverino]

Cool. I think I'll buy a HUMMER tomorrow or maybe one of the 10 Pontiac G8's sitting on the nearby dealer's lot

[vcs2600]

Originally Posted by T-Type

Family Man beat me to it. Bush's lifting of the ban is only symbolic. Now Congress has to do something about it and I don't think that's gonna happen. One would think that a speculator is smart enough to know that, but you never know.

I think there's a good chance that Obama will come out for a limited drilling plan, depending on gas prices going into September. The drilling ban is popular in California and other true blue states, but it's a loser everywhere else.

[63GrandSport001]

lifting the ban on off shore drilling isn't really going to do much except for give China an even bigger supply of oil.

[FireFox89]

Originally Posted by BrickTamland

As much as I like hearing this news, if someone in Iran cuts a loud fart, oil futures will take sudden, dramatic rise. I bet many of us knew the bubble would burst sometime, but we can not celebrate yet. The selfish douchebags, I mean speculators, are not going to give up on oil after just a few days of lower trading.

Kinda funny, but so very true..at almost to a point that vague unfounded hearsay will send price per barrel up $10-15.

[SlySy]

Originally Posted by Wolfman01

Then you know nothing about how the speculator market works.
Future product availability has plenty of input into speculator pricing.

Thanx, that is what I was trying to get at, from a speculation point of view. Speculation is a significant part of what is happening now.

[mbukukanyau]

I want it down to 10...

[ChevyRacing48]

Originally Posted by Evo69

There is no oil shortage to speak of yet oil costs has soared triple digits in percentage and price which is total BS in the worst way.

I'm an engineer at a very large multi national oil company IE. multi multi billion dollar net profits (not going to state which one) and there is somewhat of an oil shortage - just look at the new drilling stats. Also, the Saudi's don't have as much oil as they lead you on to believe and want the price of oil high to top of their slush funds as much as possible. This is where speculation helps them out - which they are no doubt probally behind.

Don't quote me on the exact stats, but this is a ballpark figure, but 98% of the worlds oil comes from 48 or so oil producing countries and currently 33 of those countries are either at their peak or past it. I think to date, the world has consumed along the lines of 48 trillion barrels of oil.

Really, only Allberta Canada (Saskatchewan as well if they can ever get at it - see BQI's homepage http://www.oilsandsquest.com/) is the big one that has yet to scratch it's surface, dirty oil or not, we are going to need it. This is exactly why so many countries and oil companies are investing in the oil sands - because they have nowhere else to go. BP's (British Petroleum) reluctance to invest in the oil sands for numerous years took a major change when they earlier this year announced a joint venture with a Canadian oil company to have a 50/50 share in a oil sands lease speaks volumes. Heck even Total Energy - a very large French energy company has a large lease there now and has billions of dollars invested to begin the construction of an upgrader in Alberta.

I find it very interesting how Exxon can have record profits, yet their stock is going down. It's all on output, which is going down, so their stock goes down. They pay their exectutive in options, which is why there are a handful of large oil companies buying up their own stock.

I don't think oil needs to be this high, but I wouldn't bet on it going down. The more India and China get introduced to the western way of life, the more demand for oil there will be. Almost everything is derived from petroleum.

[TJ95GAGT]

Originally Posted by jkennedy293

Lifting the offshore drilling ban does nothing for today's price because it wil take 5-10 years for those platforms to come online. And the dollar will only start recovering once the Treasury starts raising interest rates.

Well technically the potential of not having enough oil in the future does nothing for today but yet we're paying high prices because of a potential issue that NO ONE knows if it will happen. I seem to remember oil going up due to a weatherman saying that coming hurricane season was going to bad.... didn't pan out that way but we paid anyway and had no significant storms. Sure Bush's comments may not have had MUCH effect, but its in the back of investors minds now that more supply is potentially coming in 5-15yrs, just like the potential for the no one knows when the oil supply will really become tight.