Oil prices climb to three-month high

"Crude-oil prices charged to a three-month high above $66 a barrel Tuesday amid growing unease about the possibility of sanctions against Iran, OPEC's second-largest producer, because of its nuclear ambitions." ... "Analysts also said recent attacks on oil facilities in Nigeria - Africa's leading oil exporter and the fifth-biggest source of U.S. oil imports - were supporting crude's rise. Amid the rising violence in Nigeria, Royal Dutch Shell PLC said it was forced to slash output there by another 115,000 barrels per day, bringing total production cuts to 221,000 barrels per day." ... "Negotiators were working Tuesday to free four foreigners held hostage in the nation's southern oil region as militants claiming to hold the captives said they would target oil installations if their demands were not met within days."

Well, I think the oil prices will get higher than this, this is just the beginning i think. Although i admit it is all getting ridicoulously high
The oil prices will rise ALOT the upcoming years, Unless we find a massive amount of oil somewhere in the seas, or just on the land
But i highly doubt that ¬¬
Anyways, i can't really say alot on this article
What are your opinions/suggestions?


- MB

Well,
In New Zealand our prices are the highest they have every been on record.
And 6 months ago when the prices were dropping again, i said... this is sooo going to get worse.
And it has, even if we find more vast amounts of oil, that dosent mean its going to be cheap, its gong to be hard to get too and that means the companies are going to have to pay alot of money to cash in.. predictions arnt good for the prices in the future.
I watched a documentry a while ago about oil peak. It wasn't so much the fact of runing out of oil but running out of cheap and abundent oil, so $50 a litre in 10 or 20 years isnt going to sound so strange anymore.
Oil companies are gonna milk it for all its worth, there has to be a massive influx in cost before the inevitible dry stage.
Thats my thoughts

[edit on 15-4-2006 by Apoplexy123]

For one month, my oil bill to heat my house was $400.00 and it was MILD!

I'm going to have the fireplace cleaned out (there's another few hundred) and that will be my source for next winter.

Pretty soon i'll be going to the bogs and steal all the cranberrys and make that my only source of food. Its either heat or food or meds.


We are down to one car and try not to go anywhere. Isnt it pathetic?

Could the rising price of oil have anything to do with the possible attack on Iran?? I read in a paper this week that oil reserves are at a all time high. I know we are getting close to huricane season in the States but why should that effect the rest of the world. Here in Canada our prices are as high as I can remember but we have Alberta which sits on a very large oil field. So we should have lots of fuel you would think!! I think it might have something to do with things getting heated with Iran..

Originally posted by PLUMBER1
Could the rising price of oil have anything to do with the possible attack on Iran?? I read in a paper this week that oil reserves are at a all time high.

Well, I think it has. iran is rising the oil prices to let's say ''threaten'' the US and all the other countries to NOT attack them
So, it's all going on very badly.
iran is threatening to rise the oil price if any country attacks iran
So, the US (bush) won't attack iran, if iran didn't use oil as a weapon
The US (bush) probably attacked iran a long time ago
So, Iran can (and probably will) attack all the other countries, including the US) without the other country striking back, because iran shall rise the oil prices again (and it is already high, around the 66 $ a barrel). And now Iran has nuclear technology... Things are getting worse
So, Iran is the puppeteer right now, Bush is maybe saying like: Iran is no threat to us, we're gonna ttack them and the oil shall be ours etc.
But thats all bluff

Originally posted by PLUMBER1
I know we are getting close to huricane season in the States but why should that effect the rest of the world. Here in Canada our prices are as high as I can remember but we have Alberta which sits on a very large oil field. So we should have lots of fuel you would think!!

Well, i really don't know why it effects the whole world, I've heard america also has some ''secret'' oil supply in the seas... But i doubt that
Well, there in alberta, I think the goverment grabs it all and uses it for themselves, They are desperate these days...

Originally posted by PLUMBER1
I think it might have something to do with things getting heated with Iran..

I also think that to, As i said before, There are rumors that the US has a massive amout of oil somewere in the seas
And as you said, Maybe it has something to do with Iran..


- MB





[edit on 15-4-2006 by meridian_blood_29387423]

I think most of the western world dosen't have oil supplies, so if were scalping off the middle east everything that effects them will effect us.
Plus were living in the days of a Global economy.
And as far as Iran .. just imagine the chaos when america attacks,,, (which they will).
Oil prices will surge even higher, I mean Iran has more oil than you can imagine.

poor us

Originally posted by Apoplexy123
I think most of the western world dosen't have oil supplies, so if were scalping off the middle east everything that effects them will effect us.
Plus were living in the days of a Global economy.
And as far as Iran .. just imagine the chaos when america attacks,,, (which they will).

Well, you are rght that the western world doesn't have oil supplies, atleast not alot. But, i don't think america will attack iran. As you may know, Iran is using oil as a weapon in this ''silent war'' so IF america attacks iran and destroys it with the oil supplies... Well then we would have a majot problem, just as you said
So i don't think America will attack Iran
Whoah..

Originally posted by Apoplexy123
Oil prices will surge even higher, I mean Iran has more oil than you can imagine.

Indeed, you are right, I think that the upcoming couple of years will have a huge effect on our world.


- MB

Originally posted by Apoplexy123
Well,
In New Zealand our prices are the highest they have every been on record.
And 6 months ago when the prices were dropping again, i said... this is sooo going to get worse.
And it has, even if we find more vast amounts of oil, that dosent mean its going to be cheap, its gong to be hard to get too and that means the companies are going to have to pay alot of money to cash in.. predictions arnt good for the prices in the future.
I watched a documentry a while ago about oil peak. It wasn't so much the fact of runing out of oil but running out of cheap and abundent oil, so $50 a litre in 10 or 20 years isnt going to sound so strange anymore.
Oil companies are gonna milk it for all its worth, there has to be a massive influx in cost before the inevitible dry stage.
Thats my thoughts

And indeed, you are right. But the highest prices on record there in New Zealand... What are the prices over there now? I'm interested in it
But anyways, in here to... we also have the highest oil price ever recorder here in The Netherlands
As i said before, The upcoming years are going to have a huge effect on this world, and i'm not only talking about oil


- MB

Originally posted by dgtempe

For one month, my oil bill to heat my house was $400.00 and it was MILD!

I'm going to have the fireplace cleaned out (there's another few hundred) and that will be my source for next winter.

Pretty soon i'll be going to the bogs and steal all the cranberrys and make that my only source of food. Its either heat or food or meds.

We are down to one car and try not to go anywhere. Isnt it pathetic?

$ 400.00 ! Whoah man, The price is getting very high indeed
Man. And now you're talking about stealing (made me laugh a little)
I think that in the future. people will even kill eachother for a barrel of oil
Some people here in my town are already getting aggressive about it
Think of it, The weather is hot there are everywere wars, there is almost no clean water... you want to go on a ride, or drink some water out of a pond, but suddenly your neighbour jumps out of the window with a shotgun and killing you so you wont drink the water he wants, or killing you for a barrel of oil...
Kinda scary thought...

- MB

Hey meridian_blood_29387423

I too have contemplated that exact senario.
People having to form little communities to survive, can't trust anyone cause they probly gonna stab you for your bottle of evian.

And Oil wil be more valuable than diamonds.
You could probly steal supplies and sell it off yourself... and you would probly be killed as soon as somone knew where they could find you.

Originally posted by Apoplexy123
And Oil wil be more valuable than diamonds.
You could probly steal supplies and sell it off yourself... and you would probly be killed as soon as somone knew where they could find you.

Well Apoplexy, I completely agree with you. Really, as i said before, in the future ... nobody can BUY oil anymore, nobody can drink save water anymore, without getting shot by the once-friendly neighboor
It will be a total chaos

Originally posted by Apoplexy123
I too have contemplated that exact senario.
People having to form little communities to survive, can't trust anyone cause they probly gonna stab you for your bottle of evian.

Yes yes! Exactly!, you understand it.
If i were you, i would prepare yourself a little for the near future, people are already getting paranoid, crazy and mad.
*sigh*


- MB

I dont know about this whole oil shortage thing. I think the goverments of the free world are in on it. I here about the oil fields in alberta,off newfoundland in Iraq, the gulf coast I just dont think there really is a shortage. The oil companies are the reason for the shortage they could produce a lot more gas than what they do but wh bother if the general public thing there is a shortage they will bye intothe whole price increases. The goverments wont do anything because the higher the price of gas the more tax they get. If the government would stand up to these companies and take control of the amount of gas being produced per day the price would drop big time. These companies are making bilions a year. I would really like to see what it costs to produce 1 gallon or litre of gas.

Originally posted by PLUMBER1
Could the rising price of oil have anything to do with the possible attack on Iran??

I heard a specialist of the oil trade, on the radio, saying that 1/3 of the price of the crude is pure speculation, it is in a way normal, since it is traded on the stock exchange, therefore they are people speculating on the price (up or down).

So anything that has to do with geopolitics, scarsity of the product, higher demand (summer comming, huricane season, etc.), all that will influence the price.

Yes yes! Exactly!, you understand it.
If i were you, i would prepare yourself a little for the near future, people are already getting paranoid, crazy and mad.
*sigh*


- MB

Well meridian_blood_29387423, I have stated preparing. You know this theory about the world chaos and anarchy used to be a somthing i'd think about when I was quite stoned and looking at the fire place. But this developed over the past few years into what I think is a peachy reality of what the future hold for a world with nothing to support itself.

So as i was saying i stated stocking up on some supplies but it's kinda like... well waht does one need, SO I'm gonna satrt a thread on this topic, but so far I have heaps of knives, a crossbow and a cooker that runs on meths or fulelight or any falmmable substence i suppose...except oil

But you would have to consider food, toliet, heat... WOHHHH man i'm getting heaps of crazy ideas.... I'm gonna satrt this topic.. I hope you take a look man.

The main reason for oil prices being as high as they are, is not so much a question of supply but refining capabilities. The world doesn't pump crude out of the ground, into a tanker, to the gas station, and into our cars. It has to be refined into a lighter state, without so much "gunk". In America there is literally a bottleneck in refining capabilities, wherein we can import as much crude oil as we'd like, but lack the capacity to refine abundant amounts into gasoline/diesel/etc. Demand is increasing, while supply (of refined fuel) remains at a near constant. Higher prices.
Gasoline will not run out for, at the least, a few decades from now. When it does, you will not wake up one day in a mad max world, hooligans piecing together cars and fighting for gasoline and water. That's not to say don't prepare. Personally, I would like to convert to biodiesel this summer, if all goes to plan. Next summer, I'll break ground on a greenhouse. There are things we can do to prepare for the future, whatever it may hold. But all you need to know is:

I heard a specialist of the oil trade, on the radio, saying that 1/3 of the price of the crude is pure speculation, it is in a way normal, since it is traded on the stock exchange, therefore they are people speculating on the price (up or down).

So anything that has to do with geopolitics, scarsity of the product, higher demand (summer comming, huricane season, etc.), all that will influence the price.

Yes oil is traded on a futures exchange and because of the Iran situation traders are nervous to sell or go short. That leaves buyers. More buyers = higher prices. One can make money betting on a price rise (going long or buying contracts) or betting on a price fall, going short (selling futures contracts, even if you don't own any)

This is why the price swings so much. It's a big gambling game between Bulls and Bears. Bad news, such as Iran, hurricanes, etc, tend to send the bulls raging and the bears bailing. Price goes up.

Good news comes and the bulls lose confidence and get nervous. The bears look to make money by selling short, price goes down. The way shorting works is sorta like this. You sell a contract at $69.00. Basically that contract was loaned to you. You have to buy it back at a later date. In this case you are hoping for the price to fall. Let's saw three days later its at $67.00. You buy back at $67 making $2 on the contract which is around $2000 profit. On the other hand. Let's say three days goes buy and bombs rain over Iran. Oil exports stop and the bulls charge through, taking the price up to $76. If you sold at $69 you are at a loss of $7000.

This is why after Hurricane katrina we saw oil go up over $70. With the gulf coast so battered and the LOOP damaged would you want to sell short? A month or so goes buy and it appears we're okay on supply. This calmed down the bulls and gave the bears something to look forward to. We saw it go from $70 back down around $56 before the end of the year.

Very intriguing stuff. Unfortunately it effects everyone

Originally posted by Apoplexy123

Well meridian_blood_29387423, I have stated preparing. You know this theory about the world chaos and anarchy used to be a somthing i'd think about when I was quite stoned and looking at the fire place. But this developed over the past few years into what I think is a peachy reality of what the future hold for a world with nothing to support itself.

So as i was saying i stated stocking up on some supplies but it's kinda like... well waht does one need, SO I'm gonna satrt a thread on this topic, but so far I have heaps of knives, a crossbow and a cooker that runs on meths or fulelight or any falmmable substence i suppose...except oil

But you would have to consider food, toliet, heat... WOHHHH man i'm getting heaps of crazy ideas.... I'm gonna satrt this topic.. I hope you take a look man.

Whoah, Seems you are pretty well prepared man. And thats good thing to!
As i said before, some people are ALREADY getting kinda wacky, Some people here in town are all paranoid about it. And its sometimes annoying
But they're atleast prepared for the future, I think.

But, I think toilets and showers 'nd stuff will be the last thing to think of in the future. I mean, people are already getting crazy
If nobody reacts fast, i think we MIGHT have a big problem..
Yo!


- MB

Originally posted by PLUMBER1
I dont know about this whole oil shortage thing. I think the goverments of the free world are in on it. I here about the oil fields in alberta,off newfoundland in Iraq, the gulf coast I just dont think there really is a shortage. The oil companies are the reason for the shortage they could produce a lot more gas than what they do but wh bother if the general public thing there is a shortage they will bye intothe whole price increases. The goverments wont do anything because the higher the price of gas the more tax they get. If the government would stand up to these companies and take control of the amount of gas being produced per day the price would drop big time. These companies are making bilions a year. I would really like to see what it costs to produce 1 gallon or litre of gas.

Well actually, we're not so short on oil. I think we might have enough oil for the upcoming decades, bus Iran is using it as a weapon, against the US. and as you may know, The US is not the bestest friend of Iran.
But further in this 'case' i can't say alot more on your reply, In some way, i agree with you...


- MB

Originally posted by Apoplexy123
I think most of the western world dosen't have oil supplies

ONE little thing apoplexy123, the western world actually has oil supplies
But not in a large amount, as Iran
And when desperate times come, THEN they'll use those supplies they got in the west. Thats atleast what I think...


- MB

Originally posted by PopeyeFAFL
So anything that has to do with geopolitics, scarsity of the product, higher demand (summer comming, huricane season, etc.), all that will influence the price.

Well PopeyeFAFL, As you said that the summer is coming, and the hurricane season is coming, Indeed, that will have a great influence on the prices, and that also means the world. I'm just wondering what will happen... just hope no hurricane will come..


- MB