Larry Asks The Experts on TFL

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ernest2

New member
Dear TFL Experts: While this question has little to do with firearms---except for how it could adversly affect the cost of your favorite gun lub--- does any one here know why desiel fuel and home heating oil have
jumped from 79 cents a gallon (Sept. 1999)to
$2.20 a gallon Feb. 18 ,2000???

Did we just nuke all the oil fields or are the Arabs getting more greedy than usual and
doing a nasty price gouge to us or what?

Any one knows, I would appreciate a couple of lines in a reply here. Thanks. ernest2

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-They call 'em POLUTE-TICIANS because they POLUTE the MINDS
of OUR CHILDERN with their ANTI firearm RIGHTS SOCIALIST
political agendas. We of the older generations know B.S.
when we hear it.
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In 2000, we must become politically active in
support of gun rights or we WILL LOSE the right
& the freedom.
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NO FATE BUT WHAT WE MAKE!!!
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Every year,over 2 million Americans use firearms
not to take live but to preserve life,....limb & family
.Gun Control Democrats would prefer that they are all disarmed
and helpless and die victims of felony violence,instead.

Protect your gun rights, go to:
http://home.xnet.com/~gizmonic/TheMarch.html
and sign up as a helper or attendee or state organizer.
ernest2, Conn. CAN opp. "Do What You Can"!
http://thematrix.acmecity.com/digital/237/cansite/can.html
 
I think the OPEC countries are supposed to be limiting the amount of crude production to drive up the price, something about over consumption during the winter & they're sticking to their set production amounts instead of increasing. Although whether or not that is true is anyone's guess, with all the BS that floats around in the news who knows.
 
Price gouge...OPEC cut back production to drive up the price.

We have a bundle in the SOR (Strategic oil reserve) and could easily drop our prices back down with our own oil...but no!

Greenspan is against that. And the enviro-liberals would rather we spend away our personal earnings from the good economy rather than start pumping domestically again.

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"Quis custodiet ipsos custodes" RKBA!
 
Yeah its called slip it to the American public while our employees in Washington sit back and let it happen, Maybe we will get a
little lip service from El Presidante.


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Help Stamp Out Gun Ignorance.



[This message has been edited by loknload (edited February 19, 2000).]
 
This happens twice a year, without fail. Heating oil in the winter and gasoline in the spring/summer. Every time, the oil companies claim, "we weren't anticipating such consumption." You'd figure after these many years they'd anticipate, unless it's just the money they're anticipating.

[This message has been edited by Destructo6 (edited February 18, 2000).]
 
Saddam Hussein is contained. Iran is behaving itself. OPEC feels safe in limiting production to get the prices up. They realize their supplies are finite so why squander it at cheap prices?
 
No offense guys, but I don't think we've got that much to complain about as far as prices. It's not nearly as bad as Europe or Asia even now. I hate paying it too but I thought we believed in free enterprise? Well, we have to accept the effects we don't like too, and one of the side effects of free enterprise is that some people will charge higher prices when they're the only game in town.

As for the SOR, it's my understanding that it really is a Strategic reserve, meaning it's for an emergency like war, or the nuking of the middle East, etc.--not price-fixing.

If you REALLY want to make a significant cut without starting a war with OPEC countries and without dipping into the SOR (and maybe getting caught with our pants down later) why don't we all start making noise about the energy taxes? I've heard it claimed that the Federal and State taxes together double the price of of a barrel of oil, though I don't know that for sure.
 
Gwinny, I think the problem with a tax cut is that the Oil companies boost the price and reap the benefits. If I'm not mistaken, I believe that happened last year in California. By the way, its $2.10 a Gallon (premium) in some areas of CA now.

If you can bear the loss, now would be a good time to part with any classics or musclecars you may have lying around. Unless anyone knows how to retrofit a two ton 1960 Tbird for electric.

Or buy a motorcycle (Harley), and tell your wife how much you'll be saving in gas ;)
 
I'm not into the conspiracy thing, but look how well the rise in oil prices benefits Mr. Bill and the Demos as we go into the political season: I heard the other day that the Presiden had "released" some amount of money to help folks out in the east who can't afford the high cost of home heating oil afford it. Wish he would release some funds back to me, too. Also, there is talk of use of the Strategic Reserves(as mentioned above) to improve supply and therefore lower prices. This is why the socialists will usually win, they can buy more voters than the Republichickens. Man, I'm looking hard at that Libertarian platform...

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When the wicked spring as the grass, and when all the workers of iniquity do flourish; IT IS that they shall be destroyed forever...Psalms 92.7

[This message has been edited by Jhp147 (edited February 19, 2000).]

[This message has been edited by Jhp147 (edited February 19, 2000).]
 
Your right glockguy,Like I said above this is nothing more then a gouge the American scheme and the useless Washtonians sit back
and let it happen. But this country can pass out billions upon billions to these third world extorionists.
Time to take a Blood Pressure Pill..........

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Help Stamp Out Gun Ignorance.
 
Hi all. New poster, don't mean to ruffle feathers, but there is such a thing as supply and demand. We tend to drive non - fuel efficient cars without carpooling and the like ( I'm guilty of both, BTW) and so there is more demand. Don't mean this as a green message or anything, just the way I see it. Oh, and Hi all, really enjoy this site.
Rob



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Rob
From the Committee to Use Proffesional Politicians as Lab Animals
 
If you are not looking for a conspiracy, it is a function of supply and demand.
There are two causes, each of which will have an effect.
The first cause is Accumulation. During accumulation, large market forces ("Strong hands") begin buying the underlying commodity, or the futures contract, or both.
As they do this slowly, so as not to reveal thier intentions, prices move in a narrow sideways range, were you looking at a price chart. This accumulation drys up supply, which increases demand. Prices will then rise.
Once prices have risen to a suitable level for these "Strong hands", They begin a phase of Distribution.
During distribution, these same "strong hands" are looking to reverse thier market positions, i.e., sell the underlying commodity and short the futures market.
Distribution, looking at a price chart, is a wide sideways range of prices after an extended rise. Distribution increases supply, which reduces demand. Prices will then fall.
If you can control the production and dispersion of an underlying commodity, and have the capital to enter the futures markets, the world is your oyster.
Hope this helps.
11xray

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Audemus jura nostra defendere
 
<pipedream>
Maybe we could withdraw military aid to Saudi Arabia and a few others, just to see if it has any effect on oil prices.
</pipedream>
<reality>
Sure, good idea, Einstein.
</reality>

Welcome to the forums, Crobrun.
 
if we withdrew our forces from the middle east I dont think things would be effect at all. Last I heard when the king or whatever he is in Saudi, his son's are going to kick us out of there. And the word was while I was there that they(sons) have been talking with Iraqi officals. And I also heard that we might go to a skelton crew over in Kuwait. Every one thinks that Saddom (sp) is some bad guy, but I talked with people and they said that when they were over there(Iraq) when we were friends with the Iraqi's that Iraq was the best Middle East country to visit due to the fact that it was like America. Also the Kuwaits, were warned 3 times by the Iraqis to quit drilling under Iraq's soil, after the third warning, Iraq did what they had to.. So I ask, who is the bad guy over there?
 
There have been more refinery closures/explosions/accidents in the past two months than in the previous 5 years combined. FIVE refineries shut down last week alone.

Many of these failures are Y2K-related (embedded systems), but since NO corporate insurance ANYWHERE covers Y2K failures, they will NEVER be admitted as the cause, and are declared as "Force Majeure" (acts of God) events.

There are stats to backup the refinery closures, and if anyone's interested, I'll go dig them up.
 
There are several factors on the price increases in refined products, all reasonably well-publicized. Stratfor.com has quite a bit of background, among others.

To keep it simple, back early last year, Venezuela worked with OPEC and Norway to hold production quotas as OPEC had set up in late 1998. Their target price was around $28 or so per barrel.

The US entered the fall of 1999 somewhat lower than usual in its gasoline inventory. You, I, and Mommy drove around more than usual during the summer...With crude prices rising from around $12/bbl to $29/bbl, "new" gasoline costs more.

This winter has been colder than usual in the northeastern US. So, since heating oil is the least-produced refined product anyway, and the oil companies don't want un-marketable heating oil sitting around all summer, heating oil supplies got drawn down more than expected. And with crude oil rising from $12 to $29...Got the picture?

Plain old supply and demand. OPEC believes that anything over around $28 per barrel is "destabilizing". If prices stay around the high $29s, they will increase production. The recent past success of OPEC/Venezuela's program has had Mexico working with them...

The Strategic Petroleum Reserve is just that: Strategic. With only some 500 million barrels, it's a drop in the bucket against our 70-billion-bbl annual import.

The cost of imported oil is around 2/3 of the US trade deficit of (roughly) 300 Billion simoleons per year. We import some 60% of our petroleum usage.

Wuz I still living around a city, and commuting, I'd be in something like a Honda Civic CRS or equivalent, for daily use.

If oil prices hold, you can expect increases in freight and in plastics and a lot of other stuff derived from "petrochemicals".

Hope this helps, Art
 
Dennis, I was wondering about Y2K related stuff. I think others here are also right regarding the law of supply and demand. But if Y2K is decreasing the supply, we can forsee that the prices are going to continue to rise as demand in the U.S. certainly is not going to decrease.

I would very much like to see your stats, if it is not too much trouble. -- Denise (DeniseC from M.H. board)
 
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