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Originally Posted by 88-31-10  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.
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.
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.
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
Who has the most to gain from the higher prices? Follow the money....... |
OK let me reword the part about China and India. You see there is only so much supply left in the world, Saudi Arabia is now tapping into its well of last resort which extremely expensive to tap just to maintain its output, Mexicos output is down 7.3% because of dwindling supply, Russia's output is down because of dwindling supply, it goes on and on like that. Couple this with insane policies limiting the US from extracting oil off its shore or in anwr or even accessing our own coal in parts of the US. Now couple all of that with two humongous countries with an immensely growing double digit appetite for fossil fuels and you have high fuel prices.