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I'm hearing a report on the radio that oil is down $5 a

barrel. Interesting, if it holds, that's $11 a barrell since the President's news conference. I also saw reports that the decline yesterday was due to banks selling off their oil futures positions.

It looks like serious talk about finding additional oil and other energy within the US has a profound effect on the price. Interesting also that the banks may be responsible for increases in both oil and other commodity (food?) prices.

Why Congress has allowed banks to participate in commodity price speculation, such as oil and food, is a mystery to me. It simply opens up another area of potential loss for the banks in an area where they lack competence. What is Congress thinking?

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My thought.

In reply to: I'm hearing a report on the radio that oil is down $5 a

If you see the pattern the price rebounds on thursday and friday, falls monday, tuesday and sometimes wednesday. Wait a few weeks to see if this holds true.
Bob

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Commidity price speculation

In reply to: I'm hearing a report on the radio that oil is down $5 a

Seems to me the term is business speak for a form of legalized gambling. But the effect of it isn't left in the casino and felt only among the gamblers. I believe one of the original concepts...that of providing a guaranteed price for necessities so that producers could stay in business...isn't all bad. But stuff that gets shuffled around on paper waiting for the pricing "sweet spot" to release for sale to the general public doesn't seem to fit the notion of true supply and demand as the driving force behind production and price.

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RE: What is Congress thinking?

In reply to: I'm hearing a report on the radio that oil is down $5 a

AND

the banks in an area where they lack competence (another area?)

Congress isn't thinking AND the banks aren't competent.....

The President says one thing....Benake says another.....

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(NT) Bernanke

In reply to: RE: What is Congress thinking?

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Just say "Bankie"

In reply to: Bernanke

People look up and correct me that's its Bernanke."

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you saw reports.....

In reply to: I'm hearing a report on the radio that oil is down $5 a

maybe a link or two?

in the meantime:

Oil prices tumbled Wednesday, extending a steep and unusually volatile slide into a second day, after the government reported a surprising spike in U.S. crude and gasoline supplies.

Oil prices tumbled Tuesday as U.S. stocks sold off amid worries about the nation's economic health.

Oil fell back from a record trading high Friday after tensions with Iran, the possibility of renewed violence in Nigeria and a planned labor strike in Brazil raised fears of threats to supplies.

Oil prices set a new record near $146 a barrel Friday, boosted by concerns over possible disruption of tight global supplies amid tensions over Iran's launch of test missiles and the threatened renewal of oil-related violence in Nigeria.

World energy needs will spike by more than 50 percent by 2030 but adequate oil reserves, conservation and new methods of recovery mean supply will keep pace with demand, the Organization of Petroleum Exporting Countries said Thursday.

Oil prices rebounded slightly Wednesday in Asia after tumbling more than $5 in the previous session, as traders worried about the health of the global economy cashed in gains from the recent rally.


.,

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Right, let's see a link...

In reply to: you saw reports.....

To something you heard on the radio. That would be a nice trick.

Meanwhile...

Energy: Oil prices tumbled another $4.14 Wednesday, settling at $134.60. That drop comes after oil plunged more than $6 a barrel Tuesday - the biggest one-day drop in 17 years.

The U.S. Energy Information Administration's weekly stockpile report showed that crude supplies rose by 3 million barrels for the week, when analysts were looking for a drop of 3 million barrels.

The average price of regular unleaded gasoline rose to a an all-time high of $4.114 a gallon, according to a daily survey from motorist advocacy group AAA.

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(NT) The radio has different news?

In reply to: Right, let's see a link...

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Events change as the day goes on....

In reply to: The radio has different news?

don't insult your intelligence by pretending you didn't understand

I heard the birds chirping this morning. Sorry, no link.

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Response

In reply to: Events change as the day goes on....

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that's what i said....

In reply to: Right, let's see a link...

after Kiddpeat posted:
I'm hearing a report on the radio and I also saw reports....

seems reasonable to me to ask for a link for a report seen


.,

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Just for the record. I saw an item on my Yahoo home

In reply to: that's what i said....

page necessary, but cannot locate it today. I don't know if the article still exists. The article was striking since it quoted an observer as saying that it looked like a large bank, or many banks, were clearing their futures positions.

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OI like this...

In reply to: as of 16 hours ago

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I complained?

In reply to: OI like this...

Where?

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Not you specifically.

In reply to: I complained?

Many do. Whiners.

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Economy downturn

In reply to: I'm hearing a report on the radio that oil is down $5 a

Once the need is reduced as business and the economy in general reduce it needs, thus oil demand is lessen. Selling futures in the opposite direction was to be expected. Its just a correction, but only the next months will tell just how bad/good it is. Willy Happy

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If the trend continues

In reply to: I'm hearing a report on the radio that oil is down $5 a

...... and the price per gallon returns to a more acceptable sum, it won't take long for us to return to our gas-guzzling ways as we did after the fuel shortage circa 30 years ago.

That's what we do.

Angeline
Speakeasy Moderator

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Ever notice...

In reply to: If the trend continues

Those countries where gas is very high, they drive small cars, motorbikes and pedal bikes alot. They came to reason it was the only thing they could do if they wanted to get anywhere. Further, they have far better public modes of transport. I think we have another "wake-up call" if we're ever going to lick this thing. Oh well...back to the pump. -----Willy Happy

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You are on target!

In reply to: Ever notice...

We paid about $2.20 a litrefor gas in Ireland in 1986 and beyond. I understand that was fairly average for European countries. Sure, they didn't have to commute to work as far, had a better public transportation system available to more people, more fuel efficient cars, more bicycles, more walking.

I also think that the continuing success goes to the credit of the various governmental leaderships and their foresight's . Ours said, "Well, the shortage is over, so no need to conserve any more."

Angeline
Speakeasy Moderator

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Ummmmmmmmmm, I think the government taxes on fuel

In reply to: You are on target!

in Europe have a lot to do with the prices there. That doesn't mean we need to follow in their tracks.

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Note that Norway, which is a big exporter of oil.....

In reply to: Ummmmmmmmmm, I think the government taxes on fuel

has the highest prices. All the other exporters have very low prices. Norway is financing everything with energy taxes.

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Not many roads

In reply to: Note that Norway, which is a big exporter of oil.....

They also don't have that many people which in turn provide the taxes and/or monies. Further, any road they build has to be carefully considered as its rock or snow to go through at any given time plus plain cold to include up/down roads(mountains). -----Willy Happy

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European fuel taxes

In reply to: Ummmmmmmmmm, I think the government taxes on fuel

Many European countriesTemplate:Such as the UK, France, Italy use a high fuel tax to decrease dependence on fossil fuels (that often have to be imported), reduce traffic and reduce pollution

http://en.wikipedia.org/wiki/Fuel_tax

My state levies 21.4
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Ummmmmmmmm, If you commute in a car for several hours

In reply to: European fuel taxes

a day in California, how will higher taxes "decrease dependence on fossil fuels (that often have to be imported), reduce traffic and reduce pollution"? My guess is that, unless you want the real estate market to collapse further than it already has, higher taxes would do none of the above. They would simply further impoverish the people making that commute while enriching government.

Impoverishing citizens while enriching government is not good public policy. That's especially true when the citizens lack alternatives. What should be done instead is to develop attractive alternatives that citizens can choose in their own best interests. We should, however, work to develop more domestic sources of fossil fuels. That will reduce our dependence on imported fuels while continuing to use technologies that improve, protect, and preserve people's lives.

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Dunno, Angeline.

In reply to: If the trend continues

...... and the price per gallon returns to a more acceptable sum, it won't take long for us to return to our gas-guzzling ways as we did after the fuel shortage circa 30 years ago.

That's what we do.


Maybe not this time: http://finance.comcast.net/www/news.html?WSJ=1&x=http://www.comcast.net/news/articles/finance/2008/07/16/SB121617183225056575/

The appeal of fuel efficiency is moving beyond the new-car market and creating a run on small used cars.

Used economy cars that once could be difficult for dealers to move -- the Ford Focus and Chevrolet Aveo, for instance -- are now flying off the lots, and prices are rising. In May and June, the 10 used cars with the fastest-rising prices, according to J.D. Power & Associates, included the Hyundai Elantra, up almost 9% from the year-earlier period, and the Kia Spectra, up nearly 8%. A few years ago, the list was dominated by larger, more luxurious cars like the Lexus LS Series.

Some used cars' prices are even approaching the levels of new models. The average 2006 Honda Civic costs $16,118, or 86% of what a new 2008 model costs. The average price of a used 2006 BMW Mini Cooper is about 81% of what a new model costs. And the long-sought-after Toyota Prius costs 87% of the new-model price. Typically, three-year-old used cars cost between 50% and 60% of their new equivalents' prices.

Sustained high gasoline prices are pushing more drivers out of their gas-guzzling SUVs and into what were once called "econoboxes." But because economy models haven't been big sellers for the past few years, car makers have built relatively few of them. The resulting tight supply and strong demand have driven up prices.


I think that this time, the message has been taken to heart - and people realize that while we can't drill and conserve our way to energy independence, it's a good start in the short run: http://www.naplesnews.com/news/2008/jun/26/poll-74-percent-support-offshore-oil-drilling-us/

Three in four likely voters ? 74 percent ? support offshore drilling for oil in U.S. coastal waters and more than half (59 percent) also favor drilling for oil in the Alaska National Wildlife Refuge, a new Zogby International telephone poll shows.

A majority of likely voters across the political spectrum support offshore oil drilling, with vast majorities of Republicans (90 percent) and independents (75 percent) in favor of drilling for oil off U.S. coastal waters more than half of Democrats (58 percent) also said they favor offshore drilling. Republicans (80 percent) and political independents (57 percent) are much more likely to favor drilling for oil in ANWR than Democrats (40 percent).

The telephone survey of 1,113 likely voters nationwide was conducted June 12-14, and carries a margin of error of plus or minus 3.0 percentage points.


We will see, we will see....
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I can see

In reply to: Dunno, Angeline.

.... that oil is certainly crucial for many manufactured products in our modern society, but the battle cry for drilling is focused on gasoline for our automobiles.

Detroit automakers refused to see the handwriting on the wall, and et Japan take the lead in fuel efficiency, emission control, crash safety seat belts, catalytic converters, and every other advance , claiming "too high of a cost due to re-tooling". US steel mills refused to update their plants for too long. (The Nissan plant nearby still is union-free.)

Europe took to conservation (they import much more than we do), small cars, use of public transportation, nuclear, hydro and wind power. They didn't sit on their hands for 30 years making vague promises.

Maybe our memories won't be as short. I hope not.

Angeline
Speakeasy Moderator

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Oil under $130/barrel today...

In reply to: I'm hearing a report on the radio that oil is down $5 a

Can it go on? Stand by.

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