Oil Goes Past 99 Dollars

[Issachar]

Crude oil prices rose above a record $99 per barrel Wednesday as worries about inadequate winter supplies in the Northern Hemisphere and news of refinery problems stoked bullish sentiment.
The declining U.S. dollar and speculation that the U.S. Federal Reserve will again cut interest rates also boosted prices. Some investors put their money into oil contracts, betting that gains in their price will offset dollar weakness. more (http://biz.yahoo.com/ap/071121/oil_prices.html)

Issachar

[watchingandwaiting]

The world consumes approximately 86 million barrels of oil per day and only produces about 84.4 million barrels per day. Oil is a finite resource ultimately. The laws of supply and demand always apply. The only thing that would cause the price of oil to come down would be if demand somehow decreased. And this is not likely to happen, at least any time soon. The U.S alone increases its demand for oil related products by 3 to 4 percent per year. China and India are increasing their demand much more than that per year. Hang on tight, we are in for a ride.

[CelticMist]

Woke up this morning with this very topic being discussed. Even though it has hit over $99.00 the average gas is still at $3.09 across the nation.

[Bernardd]

Holiday Travelers Hit the Road, Skies
Wednesday November 21, 8:17 am ET
By Samantha Gross, Associated Press Writer
With Turkey Beckoning, Travelers Hit the Road, Skies, Train Tracks; Record Numbers Expected

NEW YORK (AP) -- Millions of Americans showed up at airports and train stations early Wednesday in hopes of getting a jump on what was predicted to be the largest Thanksgiving pilgrimage ever -- despite rising gas prices and fears of air delays.

It's difficult to interpret this. I understand the rise in fuel prices is a "problem," yet people are still traveling...in record numbers?

[jds6958]

Holiday Travelers Hit the Road, Skies
Wednesday November 21, 8:17 am ET
By Samantha Gross, Associated Press Writer
With Turkey Beckoning, Travelers Hit the Road, Skies, Train Tracks; Record Numbers Expected

NEW YORK (AP) -- Millions of Americans showed up at airports and train stations early Wednesday in hopes of getting a jump on what was predicted to be the largest Thanksgiving pilgrimage ever -- despite rising gas prices and fears of air delays.

It's difficult to interpret this. I understand the rise in fuel prices is a "problem," yet people are still traveling...in record numbers?

I guess it may mean that people are expecting to cut elsewhere. People only make so much cash and have so much available credit. Food is rising fast as well and people need to eat. Energy/heating is needed too and that is going up as well, can't cut that either. I bet that restaurants are taking the hit and Christmas will be less, non-family visiting related travel should go down, and luxury purchases are down. That is where I would guess people are going to make some cuts...

[jds6958]

The world consumes approximately 86 million barrels of oil per day and only produces about 84.4 million barrels per day. Oil is a finite resource ultimately. The laws of supply and demand always apply. The only thing that would cause the price of oil to come down would be if demand somehow decreased. And this is not likely to happen, at least any time soon. The U.S alone increases its demand for oil related products by 3 to 4 percent per year. China and India are increasing their demand much more than that per year. Hang on tight, we are in for a ride.

Exactly! Price of oil will continue to rise until the world is willing to demand 84.4 million barrels of oil per day. The price will need to continue to rise to keep demand in check. Inventory reports just out show that inventory has dropped. Oil may even surge over $100 today...

[Bernardd]

Exactly! Price of oil will continue to rise until the world is willing to demand 84.4 million barrels of oil per day. The price will need to continue to rise to keep demand in check. Inventory reports just out show that inventory has dropped. Oil may even surge over $100 today...

Assuming that the world accepts and operates on Free Market principles, which is obviously not the case, specifically in the Far and Near East.

I think it's also important to realize that the increase in fuel prices is curbing the demand. Ultimately, there will be a nationwide effort to use other form of power, whether it's nuclear, coal, or whatever. But what's really impressive is that many of these alternative sources are ALREADY less expensive than oil. Hence, if the markets truly were free, we'd already be using less oil and subequently seeing the price drop as the consumers move away from crude to other, less expensive alternatives.

It's just a matter of time before public opinion (outrage?) opens the doors to the many avenues available (whether its contructing nuclear power plants, drilling in the Gulf of Mex and the Cali coast and in ANWR, etc.).

And I'm still shocked that an auto company hasn't come out with a regular car that gets over 100 mpg (or something to that effect). SUrely there are inventors tinkering around in their garages already desigining this stuff. Why do I get the impression that these visionaries are being hushed?

[CelticMist]

Holiday Travelers Hit the Road, Skies
Wednesday November 21, 8:17 am ET
By Samantha Gross, Associated Press Writer
With Turkey Beckoning, Travelers Hit the Road, Skies, Train Tracks; Record Numbers Expected

NEW YORK (AP) -- Millions of Americans showed up at airports and train stations early Wednesday in hopes of getting a jump on what was predicted to be the largest Thanksgiving pilgrimage ever -- despite rising gas prices and fears of air delays.

It's difficult to interpret this. I understand the rise in fuel prices is a "problem," yet people are still traveling...in record numbers?
Could it be they are wanting to get that last vacation trip in before they know they will be unable to do so once the increase is so high a bag of gold will buy a piece of bread (if that is how it goes)

[jds6958]

Assuming that the world accepts and operates on Free Market principles, which is obviously not the case, specifically in the Far and Near East.

I think it's also important to realize that the increase in fuel prices is curbing the demand. Ultimately, there will be a nationwide effort to use other form of power, whether it's nuclear, coal, or whatever. But what's really impressive is that many of these alternative sources are ALREADY less expensive than oil. Hence, if the markets truly were free, we'd already be using less oil and subequently seeing the price drop as the consumers move away from crude to other, less expensive alternatives.

It's just a matter of time before public opinion (outrage?) opens the doors to the many avenues available (whether its contructing nuclear power plants, drilling in the Gulf of Mex and the Cali coast and in ANWR, etc.).

And I'm still shocked that an auto company hasn't come out with a regular car that gets over 100 mpg (or something to that effect). SUrely there are inventors tinkering around in their garages already desigining this stuff. Why do I get the impression that these visionaries are being hushed?

Some great points there...I have been really looking into a solar option for my house...next year a company will be releasing solar panels that will cost only $2 per watt where it is $4-5 per watt now...a grid tie system would be best and you basicially use the power company as an unlimited battery backup. Then go and get an electric powered vehicle, there are a couple great ones already on the market, and bam!, no more dependence on oil....the options are already there, it is just not mainstream yet...1-2 years imho if we are not all raptured first...

[Bernardd]

Could it be they are wanting to get that last vacation trip in before they know they will be unable to do so once the increase is so high a bag of gold will buy a piece of bread (if that is how it goes)

I don't know if I agree with that. The article says the "record numbers" of people will be traveling. So I have to wonder, do people have more money this year? Are people purchasing less of something else to make up the difference?

If money is tight, we should expect to see a decline in vacations/recreational expenses and certainly not an increase.