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Originally Posted by aft_lizard01  Its been explained many times on this board, now if you choose to ignore the explanations then so be it: |
Oh I wouldn't say I ignore the explanations Lizzy. I may disagree with them, but I don't ignore them. I really do enjoy seeing the different responses given though. They really run the gamut.
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Originally Posted by aft_lizard01 Supply and demand, India and Chinas economies are creating far greater demand than what can be outputted. |
This is the most common explanation given and the one I find the hardest to believe. If the demand is greater than the supply, somewhere, somebody can't buy oil. I don't believe that to be the case. I think you can buy all the oil you want. Provided you have the money to do so.
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Originally Posted by aft_lizard01 Commodity market speculating on said demand, raising prices to the stratosphere.: |
This statement here comes the closet to the real reason we're getting raped. Market speculators are using the
percieved supply and demand horseshit story to run prices through the roof and get rich doing so.
Same thing happened with electricity in California in 2000. First the markets were deregulated. Then the citizens were told how the increase in computers and servers had created a huge demand for electric power. Electricity was in short supply. Rolling blackouts followed. Prices skyrocketed to levels never seen before or since. $2000.00+ per megawatt/hour. Turned out to be market manipulation. Me thinks the same thing is going on with oil.
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Originally Posted by aft_lizard01 Weak dollar. Which only can account for roughly 1/3 of the price increases. |
Not sure of the mechanisms/effects of weak dollars on oil price. Did read a blurb about investors putting dollars in oil commodities to protect them against a weakening dollar. Not sure if that leads to a 33% increase though
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Originally Posted by aft_lizard01 There are other reasons but those are the big three, fuel prices ARE NOT SET by the the Oil companies. |
Who has the most to gain from the higher prices? Follow the money.......