Oil is almost at $80 a barrell

G

Grgeiger

Member
Joined
Dec 23, 2007
Messages
17
I am surprised the media isn't catching this.. Oil is going up at a rate of 2% every 6 hours or so. Sorry about spelling barrel wrong.. :)
 
Grgeiger said:
Do you believe EVERYTHING Baghdad Bob tells you?
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Baghdad_Bob.gif


Everything is fine. The infidels are not paying more dollars for oil. The paper money you're using is still very very good. I anticipate the price of Gold going much lower. You should listen to Fox and CNN they are telling the truth. Your President Obama was just awarded the Nobel Peach Prize and you should believe everything he says. The Federal Reserve should not be audited. They are definitely not in collusion with Goldman Sachs and JP Morgon to control the money of the world via the Federal Reserve OR the IMF. I would suggest you all get the swine flu shot too.
 
Today American refiners (Sonovo, Valero, etc) announced price fixing, uh I mean, announced a 10% reduction in refining production.

Meanwhile back @ the Casino on Wall Street...

Goldman Sachs upgraded Sonoco on better crack spreads, which of course = more profits... yotta yotta. Remember Sunoco announced last week or 2 it was shutting down it's Philadelphia refinery.

Niw what does that take refining capacity down to? 75% Oh I forgot, Sunoco's price fixing move on shutting down Philly will keep the false positive capacity above 80%.

Goldman Sachs and JP Morgan profit... as usual

BTW, JPM still own that 1.5 million tanker full of crude?

Gesus me and my laptop can see through all these antitrust bullshyt... where's the FTC and SEC?

Corporate Communism and save the Masters
 
I went ahead and ordered my heating oil today. $3.09. She said that was the same price for the last several months but next week it might change.
 
ctiger2 said:
baghdad_bob.gif


everything is fine. The infidels are not paying more dollars for oil. The paper money you're using is still very very good. I anticipate the price of gold going much lower. You should listen to fox and cnn they are telling the truth. Your president obama was just awarded the nobel peach prize and you should believe everything he says. The federal reserve should not be audited. They are definitely not in collusion with goldman sachs and jp morgon to control the money of the world via the federal reserve or the imf. I would suggest you all get the swine flu shot too.
Click to expand...

:d:d:d
 
Grgeiger said:
Oil is going up at a rate of 2% every 6 hours or so.
Click to expand...

this is not a very sharp move... sure, oil is up a bit, but it's nothing unusual to see oil up or down by 2% over a six hour time frame. oil has had much bigger moves both on the upside and downside over the last 2 years. i seem to recall days over the last two years where oil would be up or down by around 10% in a single day. and oil is still about 50% below its peak... so it's not like we're in panic mode all of a sudden because oil broke out to the upside, mostly as a result of a technical trading pattern IMO. oil at $78 isn't the end of the world. a rising oil price will create problems obviously, but the strength in oil is only due to weakness in the dollar. in fact, oil is still quite cheap at the moment. when the price of oil is measured in foreign currencies, oil is still very low and relatively stable in price... and priced in gold, oil is not all that expensive on a historical basis.

and even though i'm sure many people would disagree with this assessment... a high oil price is actually a positive thing for the strength of the dollar. despite all the recent rumours of moving away from the petro-dollar (like the article in the Independent), oil today is still sold in US dollars. that means that if a country wants to have oil, they have to have dollars. and if they think the price of oil is going to go up, that means that they'll have to hold more dollars in order to purchase that oil. This essentially backs the dollar by oil. Because when the dollar went off the gold standard, it went onto an oil standard. so a high oil price will increase the demand for dollars and act as a force to strengthen the dollar. so as the government and the fed print more money and debase the currency, this will cause the price of oil to rise, since you now require a greater quantity of dollars to buy that same barrel of oil. but this also means that foreign countries who want oil, also now need more dollars in order to purchase that oil... so they've got to go out and earn more dollars. this is not difficult because there are more dollars out there now to be earned... but as more and more dollars are printed, more and more of those printed dollars need to be collected for continue paying for the oil. The obvious problem with scheme is that the oil producing nations end up with all these dollars that are practically worthless.... because they don't really need to buy any oil, so there is not really anything the OPEC nations can buy with their dollars. they can buy goods from other countries in exchange for the dollars (since foreign countries need the dollars to buy more oil)... but these countries are already being flooded by the supply of newly printed dollars coming out of America. so the deal is that all these petro dollars that are collected from the global oil sales is that the dollars are loaned back to Americans in order to give them all this "credit" and finance the big government spending though buying the Treasury Bonds.

but back to rising oil prices for a second... if the price of oil were to rise today for factors unrelated to inflation... for instance, if there was a war against Iran and oil production and delivery got all messed up for a while.... this might double or triple the price of oil practically overnight. i think this outcome should fundamentally make the dollar stronger because now all of a sudden, there is about the same amount of dollars as there were yesterday, but because of the war, tomorrow i need 3x as many dollars to buy the same amout of oil, so therefore these countries need to scramble to buy more dollars. however, if the price of oil were to rise due to inflation... the dollar does not strenghten in this environment, but it will not lose as much value as it otherwise would because the extra demand for dollars that results will help to act as a force pushing the dollar higher.... i think ultimately, the inflation forces will win out and will push the dollar lower, but the extra demand from the petro-dollar does put some upword pressure so that the decline isn't as steep.
 
eric_cartman said:
this is not a very sharp move... sure, oil is up a bit, but it's nothing unusual to see oil up or down by 2% over a six hour time frame. oil has had much bigger moves both on the upside and downside over the last 2 years. i seem to recall days over the last two years where oil would be up or down by around 10% in a single day. and oil is still about 50% below its peak... so it's not like we're in panic mode all of a sudden because oil broke out to the upside, mostly as a result of a technical trading pattern IMO. oil at $78 isn't the end of the world. a rising oil price will create problems obviously, but the strength in oil is only due to weakness in the dollar. in fact, oil is still quite cheap at the moment. when the price of oil is measured in foreign currencies, oil is still very low and relatively stable in price... and priced in gold, oil is not all that expensive on a historical basis.

and even though i'm sure many people would disagree with this assessment... a high oil price is actually a positive thing for the strength of the dollar. despite all the recent rumours of moving away from the petro-dollar (like the article in the Independent), oil today is still sold in US dollars. that means that if a country wants to have oil, they have to have dollars. and if they think the price of oil is going to go up, that means that they'll have to hold more dollars in order to purchase that oil. This essentially backs the dollar by oil. Because when the dollar went off the gold standard, it went onto an oil standard. so a high oil price will increase the demand for dollars and act as a force to strengthen the dollar. so as the government and the fed print more money and debase the currency, this will cause the price of oil to rise, since you now require a greater quantity of dollars to buy that same barrel of oil. but this also means that foreign countries who want oil, also now need more dollars in order to purchase that oil... so they've got to go out and earn more dollars. this is not difficult because there are more dollars out there now to be earned... but as more and more dollars are printed, more and more of those printed dollars need to be collected for continue paying for the oil. The obvious problem with scheme is that the oil producing nations end up with all these dollars that are practically worthless.... because they don't really need to buy any oil, so there is not really anything the OPEC nations can buy with their dollars. they can buy goods from other countries in exchange for the dollars (since foreign countries need the dollars to buy more oil)... but these countries are already being flooded by the supply of newly printed dollars coming out of America. so the deal is that all these petro dollars that are collected from the global oil sales is that the dollars are loaned back to Americans in order to give them all this "credit" and finance the big government spending though buying the Treasury Bonds.

but back to rising oil prices for a second... if the price of oil were to rise today for factors unrelated to inflation... for instance, if there was a war against Iran and oil production and delivery got all messed up for a while.... this might double or triple the price of oil practically overnight. i think this outcome should fundamentally make the dollar stronger because now all of a sudden, there is about the same amount of dollars as there were yesterday, but because of the war, tomorrow i need 3x as many dollars to buy the same amout of oil, so therefore these countries need to scramble to buy more dollars. however, if the price of oil were to rise due to inflation... the dollar does not strenghten in this environment, but it will not lose as much value as it otherwise would because the extra demand for dollars that results will help to act as a force pushing the dollar higher.... i think ultimately, the inflation forces will win out and will push the dollar lower, but the extra demand from the petro-dollar does put some upword pressure so that the decline isn't as steep.
Click to expand...

Very intriguing to say the least.
 
Interesting

Interesting spin on the situation.. Does China REALLY want to see our Dollar go down the crapper?

We may not be the best friends with China, and we have grown to depend on China too much.. BUT also China depends on us as well.

Does China REALLY want to see our dollar go down the crapper?
 
Grgeiger said:
Interesting spin on the situation.. Does China REALLY want to see our Dollar go down the crapper?

We may not be the best friends with China, and we have grown to depend on China too much.. BUT also China depends on us as well.

Does China REALLY want to see our dollar go down the crapper?
Click to expand...

China depends on us for what, exactly?

Little pieces of paper with numbers on them? I don't think so.
 
true

Little pieces of paper with numbers on them? Do they still use paper? Or is it all just recorded on a hard drive somewhere?
 
tmosley said:
Little pieces of paper with numbers on them? I don't think so.
Click to expand...

but at the moment... you need those little pieces of paper to buy oil. The chinese can't buy oil with Yuan or Euros... they need to convert their Yuan or Euro into dollars, and then buy that oil with dollars.

but i think that the world has so many dollars that there's never going to be a scramble for dollars. i think there are so many dollars already out there that countries like China don't need to worry because they've got more than enough dollars to pay for the oil that they will need... and even if the price of oil were to rise dramatically... the Chinese have so many dollars that they'll still be able to afford plenty of oil, even if the oil price goes way up
 
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