Quote:
Originally Posted by BadassHo
excellent. chavez was bitching about oil prices being to high also.
i think that oil countries are worried that too high of oil prices will force the world to find ways to live without using so much oil, and will find ways to run without oil, fucking over the oil producing nations.
they need to lower prices, then after we get used to cheap oil, raise them again to begin the next rapefest of the world.
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Higher prices can and will price the oil producers out of the fuel market because right now we all know that this price hike is resulting in a rapid race for the next big thing to take the place of gas/oil for our vehicles. Fuel Cells that not only power your car but can be used to power things in your home are right around the corner. Petroleum is still needed for the manufacturing of tons of common everyday items but take out the vehicles gas/oil consumption and the oil producing countries are going to take a huge hit. I imagine they are sweating the future just a bit.
Oil speculators are one of the major culprits driving up oil prices. All these speculators do is get a written agreement at today's oil per barrel price that they can get at a later date if they want to. A legislative bill that requires these speculators to take direct shipment of the product they want at today's price would in large stop most speculators from doing what they're doing. If they buy 1000 barrels today at $135 only on paper so technically they have increased the demand. If they were required to take delivery of this 1000 barrels most of the speculators wouldn't have a storage facility to do this. At least the small time guys which are the bulk of the speculators would be forced out thus decreasing demand and price.
The US is consuming less oil then it did 5 years ago but a few other countries are using more. The worlds total demand has stayed about the same. I believe speculators and a weaker dollar are the major reasons for the sharp spike in price. Speculators do this same thing on a variety of products like wheat, corn, etc to cause price increases. The difference is that we don't have to have corn to live and function. We can eat beans instead until corn prices come back down. Oil has no readily available alternative at this time.
The speculators need to be put in place and forced to take delivery of the goods they are acting like they want to have.