GM Inside News Forum banner
1 - 20 of 48 Posts

·
Banned
Joined
·
6,653 Posts
Discussion Starter · #1 ·
Oil falls as global demand concerns re-emerge

SINGAPORE (AP) - Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.

Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46.
...
The Organization of Petroleum Exporting Countries is scheduled to meet Sept. 9 and has indicated it may take action to defend the $100 a barrel level.

In an unrelated (?) story...

Merrill Lynch and Capgemini release 12th annual World Wealth Report

INTERNATIONAL. Driven by market capitalisation growth in emerging economies, the wealth of the world’s high net worth individuals (HNWIs ) increased 9.4% to US$40.7 trillion in 2007, according to the 12th annual World Wealth Report, released today by Merrill Lynch and Capgemini. The number of HNWIs in the world increased 6.0% in 2007 to 10.1 million, the number of ultra high net worth individuals (Ultra-HNWIs ) increased by 8.8%, and for the first time in the history of the report, the average assets held by HNWIs exceeded US$4 million. In the Middle East, the HNWI population had the highest gains, expanding by 15.6% with a 17.5% gain in wealth.

The number of HNWI’s in the UAE now stands at 79,000, up from 68,000 in 2006, with a combined total wealth of US$91 billion. The number of HNWI’s in Saudi Arabia now stands at 101,000, up from 90,000 in 2006, with a combined total wealth of US$182 billion.
 

·
Registered
Joined
·
2,209 Posts
There is still no reason to justify why the cost of oil has increased severely over the past 8-10 months and $100 a barrel is still no bargain considering what it was trading at only a few years ago. Bubble finally bursting?
 

·
Registered
Joined
·
1,062 Posts
There is still no reason to justify why the cost of oil has increased severely over the past 8-10 months and $100 a barrel is still no bargain considering what it was trading at only a few years ago. Bubble finally bursting?
Id say this is a good sign of the oil bubble bursting. There really is no other explanation.
 

·
Registered
Joined
·
1,358 Posts
Except there is one problem. Price of gas at the pumps hasn't dropped a damn penny. Up here in Canada at least they haven't. They are still selling gas at the same prices when oil was $130 a barrel.
 

·
Registered
Joined
·
1,105 Posts
"Defend $100"
Aren't these the same *******s that, a few years ago, were saying they would work to keep the price around $30?
 

·
Registered
Joined
·
3,730 Posts
Except there is one problem. Price of gas at the pumps hasn't dropped a damn penny. Up here in Canada at least they haven't. They are still selling gas at the same prices when oil was $130 a barrel.
The commodity traded is a "future". The $106/bbl is for October delivery. If it keeps dropping, fuel will be pretty cheap again (relatively) in the coming months.
 

·
Registered
Joined
·
907 Posts
Fuel prices are starting to come down here but now that Big Oil and the guy/gal at the station selling it know that people will pay higher numbers, dont expect big falls in the price of fuel. If oil closes today around $100/barrel gas should be IIRC $3.15/gal. Now do you think the station owner is going to cut $.40 to $.90 per gallon from their bottom line. NOPE. Fuel will be high until people just stop buying it as much as they have in the past. That has started but will it continue? Who knows...
 

·
Registered
Joined
·
3,994 Posts
GM can't let cheaper oil distract it from its mission of creating world-class smaller, more fuel-efficient vehicles and propulsion systems.

We'll always be one natural disaster or regional conflict away from speculator panic, so GM must innovate and deliver, then repeat.
 

·
Registered
Joined
·
906 Posts
Fuel prices are starting to come down here but now that Big Oil and the guy/gal at the station selling it know that people will pay higher numbers, dont expect big falls in the price of fuel. If oil closes today around $100/barrel gas should be IIRC $3.15/gal. Now do you think the station owner is going to cut $.40 to $.90 per gallon from their bottom line. NOPE. Fuel will be high until people just stop buying it as much as they have in the past. That has started but will it continue? Who knows...
Yeah, gas has only gone down 4 cents a liter on a $40 oil drop, how cheap does oil have to be in order to get back to $.75 a liter gas?
 

·
Registered
Joined
·
1,988 Posts
but....but......the experts said we would be paying more than $5.00 a gallon for gas by the end of summer and $200 a barrel for oil by the end of the year..... could the "experts" possibly be WRONG?????
 

·
Registered
Joined
·
170 Posts
i'm ok with them "defending" $100, if that means keeping the purchase price artificially high to bank into a fund to draw from so that if/when the price jumps again, the fund will cash out and keep prices steady and we don't have to deal with these wild fluctuations ever again. letting the price drop like a rock is almost as dangerous as it rising at a ridiculous rate for a commodity that's so core to our society in general.
 

·
Registered
Joined
·
274 Posts
Fuel prices are starting to come down here but now that Big Oil and the guy/gal at the station selling it know that people will pay higher numbers, dont expect big falls in the price of fuel. If oil closes today around $100/barrel gas should be IIRC $3.15/gal. Now do you think the station owner is going to cut $.40 to $.90 per gallon from their bottom line. NOPE. Fuel will be high until people just stop buying it as much as they have in the past. That has started but will it continue? Who knows...
Don't think for a minute that gas station owners are profiting from these high prices. They are suffering because people aren't buying that coffee or soda when the go in to pay. Gas stations have gone out of business because of the high prices. Gas has never been much of a money maker for retailers, only the parent companies, in fact, most store owners don't even control the price they charge due to the way they but the gasoline.
 

·
Registered
Joined
·
168 Posts
"Defend $100"
Aren't these the same *******s that, a few years ago, were saying they would work to keep the price around $30?
Exactly the same thing I was thinking. A few short years back, OPEC was attempting to hold $30 a barrel pricing as the price was falling. This whole thing of huge spikes in oil and gas is disgusting. And now we've shot well over that $30 price.
 

·
Registered
Joined
·
2,081 Posts
this is why GM wants to go slow on this rush to small cars because most of the car buyers out there will go back to "big" cars and trucks as the gasoline comes down in price. it may go back up but when it is down people will go back to the bigger cars because anyone with a family needs one. my grandsons hockey goalie bag is so large it will not even fit in the trunk of my 2004 impala that we have to haul it in the back of the pickup or the van. gasoline should be close to $3.00 to $3.50 a gallon allowing for inflation and that is were it will settle out.
 

·
Registered
Joined
·
4,660 Posts
but....but......the experts said we would be paying more than $5.00 a gallon for gas by the end of summer and $200 a barrel for oil by the end of the year..... could the "experts" possibly be WRONG?????
Funny you should mention that because mark my words, proponents of the "other" fuels will claim victory because oil prices are held in check due to use/development of bio-fuels. :yup:
 

·
Registered
Joined
·
2,791 Posts
Yeah, but if price goes to 150 today, then the next second prices go up at the pump precisely because it is a "future."


The commodity traded is a "future". The $106/bbl is for October delivery. If it keeps dropping, fuel will be pretty cheap again (relatively) in the coming months.
 

·
Registered
Joined
·
2,791 Posts
and don't forget China OMG!, India, and Brazil; and New Orleans sinking, and the threat of Iran, Georgia and NATO vs. Russia, what are we gonna do with all that exploding demand that by the holy infallible and just law of supply and demand means that oil has to cost 300 next month.


but....but......the experts said we would be paying more than $5.00 a gallon for gas by the end of summer and $200 a barrel for oil by the end of the year..... could the "experts" possibly be WRONG?????
 

·
Registered
Joined
·
1,535 Posts
Except there is one problem. Price of gas at the pumps hasn't dropped a damn penny. Up here in Canada at least they haven't. They are still selling gas at the same prices when oil was $130 a barrel.
You can thank a dollar that has dropped in value. A few months agao, the Loonie was at par with the US greenback, yet today, that loonie is just worth ~93 cents.
 

·
Registered
Joined
·
1,790 Posts
I really don't think that the American public as a whole will go back to the large SUVs and Trucks of the past, even if gas went down to an "impossible to imagine again" value of $2.50/gallon.

The public knows now and understands just how volatile oil prices are. Why would we all run back to our Chevy dealers and trade in our Cobalts and Aveos for a Tahoe or Suburban when oil could skyrocket to $200/barrel over night because some politician could make a crude remark about invading a Middle Eastern country?

The other thing to look at is inflation. Due to the weak dollar along with the price of fuel, the cost of living has gone up equal to if not greater than yearly salary increases as a whole. People will NOT want to get back into a fuel devouring truck when they can stay in their small cars and take the extra money saved in gas, even at $2.50 and put it back into savings or spending it on "fun" items.

The "Daycation" is here to stay.

Living here in New York State we hear a lot about how the Thruway Authority is pissing and moaning about how much less money they brought in this summer due to the decline in traffic and hence the lack of toll dollars being brought in. Well guess what NYSTA, high gas prices along with the fact that you require me to pay almost $10 to go from one end of the state to the other, ONE WAY, has made me VERY content to stay at home and find things to do locally.
 
1 - 20 of 48 Posts
Top