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The big coming oil glut = fuel crash

Fritzo

Fritzo

Lifer
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when demand is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
 
Originally posted by: Fritzo
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when supply is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
Click to expand...

That's how supply and demand works. When supply goes down, prices go up. Oil production is being slowed to increase the price.
 
Originally posted by: JTsyo
Originally posted by: Fritzo
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when supply is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
Click to expand...

That's how supply and demand works. When supply goes down, prices go up. Oil production is being slowed to increase the price.
Click to expand...

This. Because it's the whole point of the thread. Artificial supply and demand lead to very drastic results (ie Crashing).
 
carbon-CON tax will pump it up to 5.00 gal or more. (cap/trade scam). and greatly increase gas/electric home utility bill. More then likely double or more what you now pay for home gas/electric. And that's just the starting point. Every year the cap gets lowered, fuel prices go up.
 
Originally posted by: Lotheron
Originally posted by: JTsyo
Originally posted by: Fritzo
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when supply is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
Click to expand...

That's how supply and demand works. When supply goes down, prices go up. Oil production is being slowed to increase the price.
Click to expand...

This. Because it's the whole point of the thread. Artificial supply and demand lead to very drastic results (ie Crashing).
Click to expand...

The demand has diminished due to the recession and the supply has been artificially reduced. The problem is that supply won't be increased, meaning that a price crash is unlikely.
 
You could add up all the oil sitting in all the tankers around the world and it adds up to ONE DAY of global consumption.
The glut of oil isn't there , and the price crash has delayed or sh1t-canned investments in oil feilds, so speculators are jumping on the bus for the next price rally.

I changed over some mutual funds to oil and gas funds back when it was $50 a barrel.
 
Oil is harder to get at (more expensive), more difficult to refine (more expensive), found in smaller pockets (less efficient to extract) and we are through over half the known reserves and globalization is occuring.

Regardles of prices now, where do you all think prices will be in 10 years when we have gone through 70% of the known reserves? Moving off fossil fuels is the only thing that will prevent a mass extinction of human beings.
 
I dunno. Fritzo correctly predicted the last oil-price crash, so I wouldn't be surprised if he's right about this one as well.
 
The supply and demand argument would work if the people that actually use oil were the ones driving demand and its price. Unfortunately, it's really a bunch of traders and institutions trying to make a buck and the rest of us get to pick up the tab.
 
Add to your reasons for cost increases refinery slow-downs. The major refineries have cut back on production to help keep prices artificially high to increase profits.
 
Originally posted by: JTsyo
Originally posted by: Fritzo
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when supply is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
Click to expand...

That's how supply and demand works. When supply goes down, prices go up. Oil production is being slowed to increase the price.
Click to expand...

Sorry, that was a typo, it should have been "demand is down". I fixed the OP.
 
Originally posted by: Lotheron
Originally posted by: JTsyo
Originally posted by: Fritzo
Just tossing this out there to see if I'm right down the road, but when you stray away from the supply/demand model, bad things happen.

Prices for oil are being held artificially high right now, despite demand dropping for the first time in 30 years. Tankers full of oil are piling up on the US shores, and refineries have cut back production by 7% to hold off on supply.

So, why are oil prices going up when supply is down? Because of price fixing by an unheard of alliance between mid-east states and speculators (which pretty much caused $4/gallon gas last year). If any of your investments/funds deal with oil, be careful. I'm looking for a price crash in the industry by the end of the year.
Click to expand...

That's how supply and demand works. When supply goes down, prices go up. Oil production is being slowed to increase the price.
Click to expand...

This. Because it's the whole point of the thread. Artificial supply and demand lead to very drastic results (ie Crashing).
Click to expand...

No, it doesn't. Debeers (or however you speelz it) has been controlling the diamond market for decades. Diamons are extremely common but they're held back from the market. There IS a demand for them, just like there IS a demand for oil, but if you match the supply to the demand and can keep it steady, you can keep the price up indefinitely.
 
Originally posted by: Capt Caveman
Why don't you go post this over in Dave McOwen's forum? I'm sure he'll be excited to discuss this with you.
Click to expand...

Dave has a forum? Is that why I haven't seen him around in a long time.
 
Originally posted by: herkulease
Originally posted by: Capt Caveman
Why don't you go post this over in Dave McOwen's forum? I'm sure he'll be excited to discuss this with you.
Click to expand...

Dave has a forum? Is that why I haven't seen him around in a long time.
Click to expand...

Dave is literally the only person who posts on his forum. You haven't seen him around because he was permanently banned from Anandtech a while ago.
 
Originally posted by: IGBT
carbon-CON tax will pump it up to 5.00 gal or more. (cap/trade scam). and greatly increase gas/electric home utility bill. More then likely double or more what you now pay for home gas/electric. And that's just the starting point. Every year the cap gets lowered, fuel prices go up.
Click to expand...
Wow, it's like the Anti-Harvey.


 
Some guy in Saudi Arabia who controls the prices decided to add another 3.4 billion extension to his house, and redo all his windows (all 3,425 of them) so someone has to pay for that right? 😛
 
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