Oil Rises to $135 A Barrel

[Stealth Hunter]

http://money.cnn.com/2008/05/22/news...ion=2008052217

Anyone want to place bets that it hits $150 by mid June? We're in bad shape... and I'm really starting to fear a recession. We're definitely going to suffer one if this keeps up, and when it hits, it's going to be horrid.

[Skybird]

when I said some months ago that I could imagine it crossing the 200$-mark, I did not imagine that it possibly would happen so fast.

For historic reference: oil price before the Iraq war: below 30 $US. highest oil price ever reached before 2003: around 36 $US.

[August]

Originally Posted by Skybird

For historic reference: oil price before the Iraq war: below 30 $US. highest oil price ever reached before 2003: around 36 $US.

More historical reference:

Price before Skybird came to this forum: Below $30 US. Price of oil when Skybird reached 10k posts, over $100. Think about it...

[STEED]

This is very bad news for our fishermen as the cost of diesel is out of control. Yes us Brits will be hit hard as the cost of fish & chips is going to see a big rise.

[Onkel Neal]

So, you are saying the war in Iraq isn't about getting cheap oil after all?

Originally Posted by Skybird

when I said some months ago that I could imagine it crossing the 200$-mark, I did not imagine that it possibly would happen so fast.

For historic reference: oil price before the Iraq war: below 30 $US. highest oil price ever reached before 2003: around 36 $US.

[jpm1]

Originally Posted by STEED

This is very bad news for our fishermen as the cost of diesel is out of control. Yes us Brits will be hit hard as the cost of fish & chips is going to see a big rise.

same in France . why vegetable oil isn't allowed .?

[Skybird]

Originally Posted by Neal Stevens

So, you are saying the war in Iraq isn't about getting cheap oil after all?

Taking your wording precisely, and not more and less than your wording above - I never said that. I mentioned interests of corporations to become dominant players in Iraq, and a strategic interst of the US to be in vital control of the international distribution patterns of oil flow. Cheap oil I never mentioned, never, nowhere.

Before the war, the pil price was expected to be stable for the next 10-12 years at around 30-38 $US - and that already included factors like the growing demand for oil in India and China. But then came the Iraq war, and then came the speculators. the rest is history.

P.S. i also repeatedly said the Iraq war is counterproductive. when saiyng htat, of course the increased breeding of terrorist it prouced, and the alienation of other states and the international communitx and europe from the US were meant. but as we know today, regarding oil deals the Iraq war was counterproductive as well.

[Catfish]

Hello,
i have heard that especially Diesel fuel becomes more expensive because of the United States do not produce enough of it and import it ? It now costs as much as "Super", or 4 star fuel here in Germany , someone from Royal Dutch Shell told me. I cannot imagine that, US trucks sure run with Diesel fuel, but - anyone ?
Greetings,
Catfish

[joegrundman]

I was just reading a reason article suggesting that a major reason for this price spike is the dfalling value of the dollar. that is, because oil is traded in dollars and the global oil exporters do not want to see their revenues slashed because of the loss of dollar value, prices increase.

It goes on to talk more about speculators compounding this effect too, but the effects of speculation is something i do not understand

it also mentions geopolitical uncertainty, but this level of uncertainty has not increased at such a rate to account for all of the sudden change in oil prices

http://www.reason.com/news/show/125414.html

[August]

Interesting bit from your link Joe.

Whenever you begin to hear market gurus decree that "this time it's different," as we did during the dot-com bubble and the housing bubble, that's a sure sign of danger in the market. Naturally, proponents of the peak oil theory claim that the recent run up in prices is evidence that the end is nigh. Evans responds, "Fears of peak oil are what this market has in common with the 1980s, not what is different." Recall that during the "oil crisis" of the 1970s when oil prices were as high as they are today, U.S. oil consumption declined by 13 percent between 1973 and 1983. The higher prices of the 1970s led eventually to an oil glut and prices fell to about $10 a barrel by 1986.

[Schroeder]

Maybe it's time to produce cars that don't need 8l per 100km/60miles any more or start driving in a more responsible way.

Everybody is complaining about the oil price but did you see any guy buying a car with less power/fuel consumption or change his driving style to a more economic way?

Here in Germany people are still more concerned about having a lot of hp than fuel efficiency and we are still driving with the pedal to the floor (there is no speed limit on some parts of the German Highways).

So obviously petrol is still not expensive enough to be a real factor in private life (It sure looks differently for companies that need petrol).

[August]

Originally Posted by Schroeder

Everybody is complaining about the oil price but did you see any guy buying a car with less power/fuel consumption or change his driving style to a more economic way?

I have. A couple people at work have gotten those Honda Prius's (sp?) and several of them ride motorcycles when weather permits. I have even moved within walking distance so my vehicle stays in the garage all week long unless i need to run to the store or something.

Change like that takes time though...

[SUBMAN1]

Originally Posted by August

More historical reference:

Price before Skybird came to this forum: Below $30 US. Price of oil when Skybird reached 10k posts, over $100. Think about it...

Same analogy. Good post August.

-S

[DeepIron]

http://www.reuters.com/article/GCA-O...34470220080523

http://www.motortrend.com/roadtests/...ive/index.html

Yeah, I can see the message is getting through to the auto manufacturers... Check the mpg rating...

Well, it guess if you're rich enough to buy one, you're rich enough not to worry about buying the fuel for it...

[PeriscopeDepth]

And every time oil goes up $10, it costs the USAF (read US taxpayer) alone $610 Million.

http://www.reuters.com/article/rbssI...42443120080523

PD