Oil over $51 Barrel - Need for Refineries

Discussion in 'Commodity Futures' started by limitdown, Apr 18, 2004.

  1. They are publically stating that the world price for a standard barrel of oil will top $51 in a short period of time, and well into next year.

    They are saying that because China came online, the world demand has absorbed supplies to the extent that the US (usually the largest customer) has had to suffer more expensive supplies.

    A few solutions are:

    Building more Refineries, just on a smaller scale and in strategic locations throughout the coastal regions of the country so that the price at the pump will not be so radically effected as it has been.

    Helping China to discover more sources of energy in their desert regions.

    Bringing online more hybrid vehicles and making it advantageous to change from existing to newer automobile formats.

    Let's open this discussion up to the forum.....
  2. Hey:
    In my opinion, the refinery issue, the state requirement for specific additives, maintenance schedules, OPEC quotas, etc are all just a scam to justify elevated pricing at the retail level. I believe the big players (corporate and government) control the agenda. As a result, I believe that as we move nearer to the US presidential election, we will see that somehow pricing drops. This will be explained away by folks who are "authorities" and have good reasons to offer (discovery of new sources, addition of new refineries, end of maintenance season, OPEC members cheating on quotas, etc) This will happen just in time to try to get President Bush re-elected, and it will have to happen against the backdrop of an improving economy (jobs reports) and stock markets (S&P trading tonight at 1131 and change). Can't wait to dig this post up in 4-5 months to see whether I was right. Best Regards, Steve46

    P.S. by the way limitdown, your comments about China are valid however I believe China's economy is overheating and will need to be controlled by changes to the currency within 6 months. If that happens, we may see an impact on demand (decreasing) as China's businesses find it more difficult to obtain capital.
  3. It's really hard to reason with more refineries. What happened to the conservation movement of the late 70's/early 80's?
    Instead. the government's policy the last few years has been that it's good to be buying gas-guzzling vehicles as long as it keeps the economy going!
    The American highway is a JOKE!
    It's full of these monsters. Usually with 1 person inside.
    Have you been to Europe lately? A lot more economical vehicles over there, and they're stylish to beat!
    You don't feel the need to get a monster truck yourself because they're practically not available. (Of course, they wouldn't fit in many of their streets) but that's another issue.

    When was the last time you saw a TV commercial encouraging people to use less energy?
    They have such things against smoking, forest fires, drugs. Why not energy? Because it may shrink the economy for a little while?
  4. jables66


    Price of crude is actually going to the mid 20's. Cover your longs, and go short.
  5. OK then, I will get a man right on that in the morning. Thanks.
  6. You had to have seen woodward on 60 minutes. He pretty much said the same thing. He focused on the saudi's agreeing to boost production in the fall just in time for the election, as payment for nixing saddam. so when this recent upsurge speedily declines we can all fawn over the bushies.
  7. Bingo!!! You guys are sharp today. In fact the government gave huge tax breaks to suv's that were over 6,000 lbs. Hmmmmmm
  8. Maybe it's because it is the only thing *not* made in China nowadays?

  9. damir00

    damir00 Guest

    oil hasn't been going up in price, the dollar has been going down in value. there is nothing going on here beyond the white house's weak dollar policy - which is why they want everyone distracted and talking about saudis and refineries and g-d only knows what else - anything but the falling dollar.

    in euroland they're paying the same price for a barrel oil as they were 2 years ago.
  10. Are you suggesting the US should strive for a "command and control economy" or should we tax fuels so the price is around $1 per liter as it is in Europe. Either of those changes will make the US more like Europe.

    #10     Apr 19, 2004