Oil has DOUBLED in price since the US-led invasion..

..of Iraq!

Quote:

Oil has still almost doubled from the end of 2003, adding 42 percent in the past year, and earlier today climbed as high as $64.27 a barrel.

source

Doesn't bother me one bit. I don't drive (be grateful for that everybody) and I have wood burning fireplaces and an electric stove.

..of Iraq!

Quote:

Oil has still almost doubled from the end of 2003, adding 42 percent in the past year, and earlier today climbed as high as $64.27 a barrel.

source

You seem to forget that the price of oil is controlled by the American public and their obsession for gas guzzling SUVs and PICKUP TRUCKS.

You see, we really don't use much more oil than we used, as a nation, in 2003. Without an increase in demand, there shouldn't be an increase in price.

Except that the price of oil really isn't based on demand; it is based upon stability of supply and futures. What this basically means is that the Iraq war has destabilized the region sufficiently that the oil companies and traders are scared that the whole supply will be cut off; this makes the prices skyrocket for what is left.

Updated on 8/9/2005 - 11:00:00 AM EST
Diesel Jumps to $2.407; Price is Close to All-Time High
Gasoline Hits Record; West Coast Diesel Soars More Than 20 Cents

The average price of U.S. retail diesel rose 5.9 cents to $2.407 a gallon, just 0.1 cent behind the all-time record set July 11, and gasoline prices surged to a record high, the Department of Energy reported Monday.

The national average gasoline price rose 7.7 cents to $2.368 a gallon, 4 cents over the $2.328 record also set July 11, DOE said following its weekly survey of filling stations.

While regional diesel average prices rose in all five regions surveyed, they were led by huge spikes in the West Coast and in California, which DOE breaks out separately from the national regions.

The West Coast average jumped 20.7 cents to $2.801, while California's leaped 28.6 cents to $2.943 a gallon. Since May 30, the West Coast price has risen 48.4 cents and California's has soared 57.6 cents.

Regional gasoline price increases were led by the Midwest, up 11 cents to $2.329, and Gulf Coast, which rose a dime to $2.282, DOE said.

The national average diesel price increase was the second straight following two weeks of declines. The national average price has risen in 22 of 32 weeks this year, with the low price of $1.934 set on Jan. 10.

The national average price for trucking's main fuel is 59.3 cents over this time last year, adding $118.60 to the cost of a 200-gallon big-rig fill-up over the same week last year.

The West Coast diesel price is 77.1 cents over last year, which would add $154.20 to a fill-up, while California's price, 83 cents higher, would add $166 more to a trucker's bill for a fill-up this year.

The Gulf Coast region had the lowest average price, at $2.323 a gallon, up 4.4 cents from last week. The Midwest also rose 4.4 cents, to $2.336.

The East Coast diesel average rose 3 cents, the smallest weekly increase of the regions, to $2.386, and the Rocky Mountain price rose 6.5 cents to $2.486.

Each week DOE surveys 350 filling stations to compile a national snapshot retail price.

By Transport Topics

Cy wrote:

You see, we really don't use much more oil than we used, as a nation, in 2003. Without an increase in demand, there shouldn't be an increase in price.

This is a contradiction........how much is......"not much more"?

Cy wrote:

Except that the price of oil really isn't based on demand; it is based upon stability of supply and futures. What this basically means is that the Iraq war has destabilized the region sufficiently that the oil companies and traders are scared that the whole supply will be cut off; this makes the prices skyrocket for what is left.

Hmmmm.....last time I looked the law of supply and demand was still king........

WASHINGTON - Oil prices jumped $1 a barrel to a new high Monday after the death of Saudi Arabia's King Fahd raised concerns about the kingdom's long-term political stability. The rally, which faded late in the day, also stemmed from traders' skittishness about U.S. refinery glitches and Iran's nuclear program

Maybe in your arrogant but rather elementary understanding of economics you forgot that supply and demand occasionally plays second fiddle to political instability, social unrest and speculative tendancies of volitile commodities.

Quote:

You seem to forget that the price of oil is controlled by the American public and their obsession for gas guzzling SUVs and PICKUP TRUCKS.

This is completely untrue. You have the model backwards.

You see, we really don't use much more oil than we used, as a nation, in 2003. Without an increase in demand, there shouldn't be an increase in price.

Except that the price of oil really isn't based on demand; it is based upon stability of supply and futures. What this basically means is that the Iraq war has destabilized the region sufficiently that the oil companies and traders are scared that the whole supply will be cut off; this makes the prices skyrocket for what is left.

There is no doubt that oil companies, who are traditional allies of the Bushco., are making money hand over fist off of this war; Exxon-mobil profited over 7 BILLION dollars in the first quarter of this year.

Sturgis, I thought I would politely remind you that I am still awaiting a single piece of the 'reams of evidence' in the thread about torture. I'm sure you are digging to find just the right one, but I'd love to see anything you can drag up.

And, although I salute your lack of car usage, I sure hope you don't use any plastic; because the prices on that have gone up as well. Where did you think it came from?

Cycloptichorn

Candidone wrote:

Maybe in your arrogant but rather elementary understanding of economics you forgot that supply and demand occasionally plays second fiddle to political instability, social unrest and speculative tendancies of volitile commodities.

For certain I am no economist but since the man who is most wrong, most often(Paul Krugman) is also an economist, my lack of education in this mystic arena, should not disqualify me from making a "common sense" judgement about supply and demand.

What you say about the above forces is, in your words, "OCCASIONALLY" true but they always fade into the background after a brief flight as a meteor.
Supply and demand has historically comminated the majority of the time.

Ray,

Do you understand how the price of oil is set, and what it is based upon? I'd like to hear ya explain it to me in simple words.

Cycloptichorn

Cycloptichorn wrote:

Ray,

Do you understand how the price of oil is set, and what it is based upon? I'd like to hear ya explain it to me in simple words.

Cycloptichorn

Yeah......George Bush gets together with Karl Rove and.................

Sturgis wrote:

Doesn't bother me one bit. I don't drive (be grateful for that everybody) and I have wood burning fireplaces and an electric stove.

and the world revolves around you of course.

Doesn't bother me one bit. I don't drive (be grateful for that everybody) and I have wood burning fireplaces and an electric stove.