• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

You want lower energy prices?

A

AccruedExpenditure

Diamond Member
Yes. I said it. The price of oil isn't due to some new shortage or peak oil. The recent run up is pure speculation. A barrel of crude, based on fundementals should be trading at the 30-35 dollar a barrel range.

You want lower prices... pop this bubble. Like a pimple its going to hurt as we apply pressure, but eventually all this pus and irrational exuberance will come gushing out... So everyone call your broker and buy oil on the spot and futures market.
 
Originally posted by: AccruedExpenditure
Yes. I said it. The price of oil isn't due to some new shortage or peak oil. The recent run up is pure speculation. A barrel of crude, based on fundementals should be trading at the 30-35 dollar a barrel range.

You want lower prices... pop this bubble. Like a pimple its going to hurt as we apply pressure, but eventually all this pus and irrational exuberance will come gushing out... So everyone call your broke and buy oil on the spot and futures market.
Click to expand...

what the hell are you talking about? The global demand for oil is up (china and other developing countries have a lot to do with it). You're a fool if you think that the demand will drop off dramatically after some arbitrary point...
 
Originally posted by: halik
Originally posted by: AccruedExpenditure
Yes. I said it. The price of oil isn't due to some new shortage or peak oil. The recent run up is pure speculation. A barrel of crude, based on fundementals should be trading at the 30-35 dollar a barrel range.

You want lower prices... pop this bubble. Like a pimple its going to hurt as we apply pressure, but eventually all this pus and irrational exuberance will come gushing out... So everyone call your broke and buy oil on the spot and futures market.
Click to expand...

what the hell are you talking about? The global demand for oil is up (china and other developing countries have a lot to do with it). You're a fool if you think that the demand will drop off dramatically after some arbitrary point...
Click to expand...

I never said demand would drop, all I'm saying is that the spread between demand as a precentage of supply hasn't change that significantly since the mid 1990's. We've been able to increase production, find new oil fields at the same rate as oil demand... The only that has changed between now and the late 90's when we saw 12 dollar a barrel oil is this "terror threat." But even with that, oil shouldn't be cost as much as it does today given that projected capacity increases for the next 5 years will be to meet or exceed projected demand increases.

I don't have the papers infront of me for direct citations, but I've been doing academic research for my dissertation on the pricing and here are some sources i'm basing my claims on.

M Ye, J Zyren, J Shore - International Advances in Economic Research, 2002
F Asche, O Gjolberg, T Volker - Energy Economics, 2003
TE Day, CM Lewis - The Journal of Business, 2004
JP Angelier, H Saadi - Russian Economic Trends, 2002
O SECRETARIAT - OPEC Review, 2004
 
demand is growing at roughly 2% per year worldwide, supply is still not pushed to the limit, as most refineries are only running ~90% and could jack it up with no problem. as far a pumping, we could easily pump more now, traders are bidding it up on speculation of future supply shortages
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top