Oil hit's record $74 a barrel

Oil has hit a record $74 a barrel amidst concerns about Iran's nucleur issue.

news.yahoo.com...

My question is, is the economy ready for continued inflated crude prices?

If it's $74 at the moment, waht will happen if there is a military conflict in the gulf? Surely we can expect prices to exceed $100 a barrel?

Apart from higher prices at the pump for the average consumer, surely this will effect prices for all consumables from food products to daipers?

How will this effect our economy and the average persons standard of living?

It seems petroluem companies have been investigated alternative fuel sources...is it too little too late?

It has already become almost too expensive to drive to work...what of the future?

Originally posted by kojac
Oil has hit a record $74 a barrel amidst concerns about Iran's nucleur issue.

news.yahoo.com...

My question is, is the economy ready for continued inflated crude prices?

If it's $74 at the moment, waht will happen if there is a military conflict in the gulf? Surely we can expect prices to exceed $100 a barrel?

Apart from higher prices at the pump for the average consumer, surely this will effect prices for all consumables from food products to daipers?

How will this effect our economy and the average persons standard of living?

It seems petroluem companies have been investigated alternative fuel sources...is it too little too late?

It has already become almost too expensive to drive to work...what of the future?

if there is another nilitary conflict in the gulf. look for oil to be 150 minimum.

I see the biggest impact being grocery store prices/stock.

When it costs more to ship a truck full of cabbage 100 miles than you can hope to make from the sale of the cabbage, the cabbage is deemed unprofitable and it doesn't get shipped.

If that happens with enough necessities...

I think people with any shred of survival instinct ought to be securing a supply of food and water that is unconnected to the fuel-reliant infrastructure we all take for granted. Some areas of the country simply cannot feed themselves without massive amounts of food imports (on a daily basis, like NY, NY for instance, the truck traffic is astounding, but people gotta eat).

Costs are going to rise through the roof to keep wealthy people fed, and what then?

If you are prepared and nothing happens, no big loss. If you are unprepared, with a fridge full of condiments, and any disruption of the supply chain occurs, what then? Borrow, beg, and steal, probably in that order too.

So then civil unrest develops, as people seen as hoarding food are targetted by mobs, looting breaks out, and so on and so forth. Not fun.

It probably won't come down to that, but it behooves us all to account for the possibility that we won't be so lucky. Complacency is a serious problem for any society like ours, where 99.5% of the population has television and a mattress, but less than half are fully literate and able to decipher a food label - nevermind perform complex functions like survival planning. :shk:

An old episode of South Park comes to mind, the one where the old folks (AARP) take over the town and rely on Country Kitchen Buffet to supply them. When the buffet is closed, the old folks starve to death, laying about outside the buffet, exhausted from pounding on the doors and clawing at the boarded up windows.

The point is, how many people in this country could reasonably be expected to die outside the supermarket, or laying in the empty aisles, if one day the trucks just stopped running. After a few weeks, would there literally be people laying around in piles, waiting for someone to bring them food in a nice refrigerated truck?

It's terribly unfunny and funny at the same time..funny that...

The disaster relief agencies can't even get water and MREs to a half dozen states in one region, nevermind ALL the states at approximately the same time. It's not looking good.

Now is a good time to be invested in livestock, I'll say that much...

I was listening to the Ed Schultz show coming home from work today and there was a lady trucker who was talking about how these fuel costs are causing all the indy shops to close down. She said her friends were dropping like flies. She made a bunch of interesting points about how tolls are increasing as well. Truckers cant keep on like this and something has to give. Look for grocery prices to skyrocket soon She was ragging on Bush which i found to be amusing as well Tighten your belts people...

if there is another nilitary conflict in the gulf. look for oil to be 150 minimum.

If this is the case, what type of real world increase in the price of food products and the like can we expect?

I suppose it's difficult to predict...

What if this whole thing is just some ruse pulled of by the powers that be. Iran is playing into the current war-mongering montra of the US much to eagerly. What if this is some sort of oil-price manipulating scheme to bribe or otherwise pay off Iran, and the other oil producing countries, for some sort of long term strategy. Helps that the US big oil companies also post record profits.

We are battling terrorists, greed from within our country and from other nations. This oil price rise could do tremendous damage to this nation and others. Forgive me for being politically incorrect, but the Muslim nations of the middle east realize that without oil we are not a mighty nation. They know if they keep rasing oil they will bring us to our knees economically.

Originally posted by WyrdeOne
I see the biggest impact being grocery store prices/stock.

When it costs more to ship a truck full of cabbage 100 miles than you can hope to make from the sale of the cabbage, the cabbage is deemed unprofitable and it doesn't get shipped.

If that happens with enough necessities...

I think people with any shred of survival instinct ought to be securing a supply of food and water that is unconnected to the fuel-reliant infrastructure we all take for granted. Some areas of the country simply cannot feed themselves without massive amounts of food imports (on a daily basis, like NY, NY for instance, the truck traffic is astounding, but people gotta eat).
Costs are going to rise through the roof to keep wealthy people fed, and what then?


The disaster relief agencies can't even get water and MREs to a half dozen states in one region, nevermind ALL the states at approximately the same time. It's not looking good.

Now is a good time to be invested in livestock, I'll say that much...

Well, I have about 4,000 bushels of corn in the bins. Maybe I need to keep it to make cornmeal........or maybe ethanol(about 10,000gals.). I have cows,at least I can eat for a while. People need to remember that the increase in food prices does not all go to the farmer that produces it.

[edit on 19-4-2006 by MBF]

agreed. just a question is your petrol up aswell as mine is over here??
they have to be connected

The local news tonight showed gas prices in New York state at about $3.69 a gallon, and one gas station in particular was up to $4.50 a gallon until their local news stations pointed it out. They quickly lowered it to fall in line with the rest of the gas stations.

One word:

OUCH!

JDub

Over here we pay about two to three australian dollars a ltr. im not sure what the dif is though i heared by the year two thousand ten we will be paying about
5 dollars a litre . how ridiculouse .

Originally posted by Omega85
Over here we pay about two to three australian dollars a ltr. im not sure what the dif is though i heared by the year two thousand ten we will be paying about
5 dollars a litre . how ridiculouse .

Hey There Omega85 your paying 2 to three dollars a litre in Queensland?? We up to around $1.40 per litre down south here in Melbourne, mind you I haven't really been game to go and look today

Now that it's gone up to $74.00 a barrel I don't think I want to.

yes true that its so bad.. i think i will be investing in a scooter or something soon enough

Over here we pay about two to three australian dollars a ltr

O.K Omega, i don't know what part of Australia you claim to be posting from or whether you drive....but two to three dollars a litre?

finance.news.com.au...

As i said, i don't know where your posting from, but the rest of the country is looking at $1.40 a litre and believe me, that's bad enough..

The topic though is what would be the effect on our economy and standard of living if the M.E crisis pushes the price of crude up to above $100 or perhaps even as high as $150US a barrel.

Sounds like exactly the kind of international crisis that could prompt a N.W.O.

I smell something fishy...

P.S i am posting from Queensland..

[edit on 12/06/2005 by kojac]

well im not sure about this last few weeks but its definetly been up there .
and it will only get worse i think

Originally posted by kojac


O.K Omega, i don't know what part of Australia you claim to be posting from or whether you drive....but two to three dollars a litre?

P.S i am posting from Queensland..

[edit on 12/06/2005 by kojac]

I can't figure that one out myself Surely it wouldn't be that expensive out west would it??

Back to your original topic though, as far as Australia is concerned, I would say no.! Our economy can't handle anymore rising fuel costs, we couldn't handle it last year, when Katrina hit let alone it going above $100.00 a barrel.
You know as well as I do that we are such a spread out country, people have to drive large distances to work and such (in a lot of cases)

Of course Howard won't take any of the taxes off
I mean people aren't asking for the excise to come off, just the rediculous GST.
I think your right about the Internationl Crisis, whether it will bring about a New World Order or not, I don't really know.
Something big is about to go down though, well at least thats the feeling I get.

LINK

Speaking to other South American leaders, Chavez said his conflict with Washington is rooted in the U.S. thirst to control oil. He said the Americans will be denied that in Venezuela, which is the world's fifth-largest oil exporter and one of the biggest suppliers to the U.S. market.

If the United States attacks, Chavez said, "We won't have any other alternative - blow up our own oil fields - but they aren't going to take that oil."

If this dude falls over the edge mentally and sets fire to their oil wells, imagine what it would do to oil prices.

JDub

We can let oil control us or we invest our time and energy in other fuels and alternatives. And let's not listen to the naysayers, who say oil is the only viable choice. Group them together with the other naysayers and let them naysay to themselves, so we can move on with our business of freeing ourselves from the enslavement of oil.

And let the greedy folks in the oil industry fall, as well as President Oil, oops, I meant President Boil, pardon me, Petrol Bush, aw heck, President Bush.

Troy

It certainly seems realistic that prices will continue to rise...

here is a story suggesting prices are likely to rise to over $80 a barrel over summer..

While in this scottish editorial it suggests we could hit $100 a barrel by the end of the year...

.............scary

Price in UK is now up to roughly £5 a gallon, which is roughly $8.90 US dollars or $12 Dollars Aus.

I'd be happy at what your paying