Laughable to Some, Stocks Plunge as Gas Prices Jump Again: Up 17 Cents Overnight

[BAMAWV]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

[ssmith general]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

That was my point, it can only go so high til they lose money and it becomes a bear market and stablizes.  Happens over and over. 

People forget also, most of our oil comes from Canada.

[Chechem]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

That was my point, it can only go so high til they lose money and it becomes a bear market and stablizes.  Happens over and over. 

People forget also, most of our oil comes from Canada.

I understand, and that's a good point.  But the global market (gluttony) for oil has increased with the industrialization of China and improved economy of other developing countries.  We're still the top hog, of course.

[BAMAWV]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

That was my point, it can only go so high til they lose money and it becomes a bear market and stablizes.  Happens over and over. 

People forget also, most of our oil comes from Canada.

"Ohio is bracing for an oil boom as companies, led by Chesapeake, gobble up leases covering millions of acres in the eastern half of the state. While no one's yet proven the commercial potential of the Utica formation, an oil-rich layer of rock that underlies this area, some believe it will yield crude on par with the largest shale reservoirs in the U.S. and spark a Rust Belt resurrection."

[ssmith general]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

That was my point, it can only go so high til they lose money and it becomes a bear market and stablizes.  Happens over and over. 

People forget also, most of our oil comes from Canada.

"Ohio is bracing for an oil boom as companies, led by Chesapeake, gobble up leases covering millions of acres in the eastern half of the state. While no one's yet proven the commercial potential of the Utica formation, an oil-rich layer of rock that underlies this area, some believe it will yield crude on par with the largest shale reservoirs in the U.S. and spark a Rust Belt resurrection."

Pennsylvania is dealing with over 30,000 applications for new production wells.  The state wants 10%.  Once they reach an agreement thats gonna go too.  Plus WV. 

[BAMAWV]

You're forgetting that oil is a publicly traded future, the prices may spike, but will level back out.  Now, that could be pretty high, but 8 bucks is pushing it.   History repeats itself, if there is an oil crisis, the prices jump, drop, then stabilize at a higher level.

^ The same speculators that drive the price up, also drive it down.

That was my point, it can only go so high til they lose money and it becomes a bear market and stablizes.  Happens over and over. 

People forget also, most of our oil comes from Canada.

I understand, and that's a good point.  But the global market (gluttony) for oil has increased with the industrialization of China and improved economy of other developing countries.  We're still the top hog, of course.

Drilling and production technologies have brought down production costs and increased productivity immensely.

[cbbama99]

I fear a major storm on the horizon, and you all probably should too.

It doesn't matter if we don't get oil from Libya, because they contribute to the world's oil supply (around 2% I believe).  As such, if they suffer disruptions, everyone suffers.

Another problem is that the United States has no way to provide the amount of oil that we use on a daily basis.  Even if the infrastructure was already in place, I don't know that we could produce the required barrels of oil per day to satisfy our current demand.

The next domino I'm afraid of is Saudi Arabia.  Small elite ruling class, large lower class, high unemployment, rising food costs....sound familiar?  If Saudi Arabia were to descend into what has befallen Egypt, Somalia, Yemen, Bahrain, Libya, etc., then forget about $3 or $4 or even $5 gas.  Those of you that were around in the '70s will remember what it could be like.  Only this go-round, expect to wait in a gas line for hours for the privilege of paying $8 for a gallon of gas.

If fuel prices continue to rise, then food prices will rise as well due to the increased transportation costs.  Fuel prices go up, food prices go up, and then we'll have government budgets that are dependent on sales taxes and property tax revenues face massive shortfalls.  Then the federal government is affected, and, say, they curb welfare benefits.  Once enough dominos fall, we could be facing our own riots in the very near future.

It may seem crazy, but the pieces are in place for a global meltdown of epic proportions.

But on the bright side, I finally got that piece of popcorn wedged in between my back teeth out a little while ago. 

[LegalAcidity]

Yes, most of our oil does come from Canada, I believe.  But, the global oil market sets the price.  So, if 10% of the supply dried up due to war, civil strife, etc., then we'll see the result of that unless our oil comes from a different, closed-off system from the global market.

One good thing relative to our demand is about the only thing the government ever did in mandating MPG levels for automakers.  Not a huge factor, but probably more than "drop in a bucket" level.

The problem with our society today is that we are, more than ever, a "just in time" or JIT economy.  Your local drugstore doesn't stock weeks of medicine; they stock days, and if the truck doesn't show up, they run out.  Same for grocery stores.  Most of the vegetables and produce you buy don't come from a farm less than 50 miles away like it was 50 years ago.  Now, they come from the farthest reaches of the globe.  Even what was to be a temporary, albeit high "spike" in the price of oil could have crippling effects for our country.  Gas shoots up to $6 or $8 a gallon, which would likely have an exponential effect on the price of food due to the layers of transportation being stacked on top of each other (from farm to warehouse to store, for example).  You want to pay $20 per pound of ground beef?  $5 for an ear of corn?

Some in our society could afford it, at first.  But what about the rest that couldn't?  And what about the welfare state that depends on their EBT and WIC cards for food?  How far is that money going to go when bread is $5 a loaf?

High food prices + unemployment + dissatisfaction with government = riots.

[ricky023]

Who gives these speculators the power to raise these prices? It seems to me the govt. should have control and keep the prices lower or am I wrong in assuming that Govt. control of oil would be wrong? RTR!

[LegalAcidity]

Who gives these speculators the power to raise these prices? It seems to me the govt. should have control and keep the prices lower or am I wrong in assuming that Govt. control of oil would be wrong? RTR!

It's a publicly-traded commodity.  The market sets the prices.

[ricky023]

Who gives these speculators the power to raise these prices? It seems to me the govt. should have control and keep the prices lower or am I wrong in assuming that Govt. control of oil would be wrong? RTR!

It's a publicly-traded commodity.  The market sets the prices.

Thank you so much LegalAcidity. I certainly didn't know that so I have learn some valuable information now. RTR!

[BAMAWV]

As in all things, Obama pretends to know more about the oil business than people that do it for a living. He couldn't get one drop of gas to market if his life depended on it.
 

[ricky023]

All he can do is work on raising the price. If you go to Libya to fight why not get cheaper gas from them? RTR!

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