[Pops]

$this->bbcode_second_pass_quote('GoIllini', 'E')dit: I think a lively debate is helpful and necessary for PeakOil.

[Hughj]

Pops, I'm not purposely trying to annoy you. I am posting to an "open discussion" section of the forum.
Please advise me as to what topics are unwelcome in this section, and I will avoid them.
I did't see an appropriate thread to post this to, so I created one.

Hugh

[Pops]

How about
the-crude-oil-price-watch-thread-t56331-60.html

[Hughj]

If that's where you want it, feel free to move it.

Hugh

[Hughj]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('GoIllini', 'E')dit: I think a lively debate is helpful and necessary for PeakOil.

[AgentR11]

Need to get the "merge thread" buttons warmed up again. Too many new threads; and it takes alot to get me to complain!

On the topic... We are at the point of inflexibility in supply, and demand periodically smacking its head on it; causing the elevated price. Temporarily raising the supply sealing by adding SPR drawdowns gives everyone room to relax and stretch. It could also be very bad, if the missing production doesn't return before the end of the drawdown; the economy won't be bumping its head on the ceiling at the point; it'll be doing a face plant into the lintel as they walk back into the room with the lowered ceiling.

I like to avoid face plants when possible.

[pedalling_faster]

this is typical of commodity markets, the downtick to $89.90-something, from a base price for the day of $91.

what it makes me think about is the oil-gold ratio.

Saudi Arabia was recently trash-talking Iran, talking about how the Saudi's would raise output to decrease prices to hurt Iran. though how hurt would Iran be, with 100 billion barrels ?

in any case, to me it is something that the Saudi's are willing to accept 91 increasingly worthless US $ for 1 real barrel of oil.

when oil was $110 & gold was at $1540 - the gold-oil ratio was 14.0 ... approximately.

now, with oil @ $90 & gold at $1500, the gold-oil ratio is 16.5

gold is buying more oil. since gold can't be used to do real work, and oil can, somehow that seems significant.

in the face of huge demand for both gold & oil, this week at least, it was easier for TPTB to manipulate oil down, providing the illusion of increased value for the US$. until you consider the gold-oil ratio.

in summary, i'm not sure what conclusion to draw.

interesting to watch, though !

[GoIllini]

$this->bbcode_second_pass_quote('pedalling_faster', 'S')audi Arabia was recently trash-talking Iran, talking about how the Saudi's would raise output to decrease prices to hurt Iran. though how hurt would Iran be, with 100 billion barrels ?

[rangerone314]

$this->bbcode_second_pass_quote('Hughj', '')$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('GoIllini', 'E')dit: I think a lively debate is helpful and necessary for PeakOil.

[quadzillajim]

I think it's a smart political move by Obama. Open up the spr get the price of oil farther down, that gets the price of gas farther down, which puts more money in the pockets of your average American. People spend more, economy starts moving unemployement drops. Obama gets a second term .

[Rod_Cloutier]

This is how they react to a MINOR DISRUPTION. What is their plan when geological depletion can no longer be hidden from the public eye? Do they have a plan?

Will they launch a nuclear war to kill off the 'excess' population to try to maintain a 'boutique' economy forever? Hope the nuclear winter will in some way offset global warming?

What will they do when its not 2 million barrels of oil a day from Libya that's missing; but 10 million barrels of oil a day missing from all sources? Collapse has not been pretty so far.

[Outcast_Searcher]

This is doing the exact OPPOSITE of what should be happening, in terms of the markets sending the correct price signals to energy consumers.

I'm going to pick on the U.S. here, since we have a terrible gas tax policy compared to the first world overall.

If Obama is going to inject 30 million barrels of liquidity into the U.S. when things (oil prices and/or the economy) get a little inconvenient, it just hastens the day oil gets even more expensive due to people making brilliant decisions like buying high mileage vehicles because they are "more convenient".

We SHOULD be raising gasoline taxes over time to encourage people to use oil (and by competitive price pressures) other energy forms more wisely. This time to let the electric and hybrid car, efficient solar power, etc. ramp up is really important. How about a quarter a year increase (each year for several years and then see where we are) for starters? How about using the money to repair our crumbling roads/bridges. If it gets to be "too much" -- fine, how about deficit reduction or even paying down some debt?

But no, let's do the opposite, since printing money endlessly is a game investors are catching on to, and after all, we need a stronger economy to ensure the dems get re-elected so we can continue to grow our social programs as fast as possible!

Yeah, that's the ticket. Then they'll insist we need 30% or 35% of GDP in government to "fix" everything.

[Pops]

I kinda think O has pulled all the levers he's got and nothing has worked.

I think I heard some head say no president has been reelected with unemployment this high. Whether this is a transparent election ploy or legitimate plan to stimulate the economy, the country is hurting for jobs and he'll get the blame.

Unfortunately for whoever came up with this lever, the banker will again get the benefit. A contango has already set up after the futures market had been flat (near month at the same price as the 11 month) so traders are in effect buying the government subsidized cheap oil and storing it to sell after the release is complete.

http://www.businessinsider.com/contango ... ase-2011-6

[rangerone314]

$this->bbcode_second_pass_quote('Pops', 'I') kinda think O has pulled all the levers he's got and nothing has worked.

I think I heard some head say no president has been reelected with unemployment this high. Whether this is a transparent election ploy or legitimate plan to stimulate the economy, the country is hurting for jobs and he'll get the blame.

Unfortunately for whoever came up with this lever, the banker will again get the benefit. A contango has already set up after the futures market had been flat (near month at the same price as the 11 month) so traders are in effect buying the government subsidized cheap oil and storing it to sell after the release is complete.

http://www.businessinsider.com/contango ... ase-2011-6

[bratticus]

$this->bbcode_second_pass_quote('Repent', 'W')ill they launch a nuclear war to kill off the 'excess' population to try to maintain a 'boutique' economy forever

[Quinny]

Do you think unemployment will ever drop below 7.2%?

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('Pops', 'I') kinda think O has pulled all the levers he's got and nothing has worked.

I think I heard some head say no president has been reelected with unemployment this high. Whether this is a transparent election ploy or legitimate plan to stimulate the economy, the country is hurting for jobs and he'll get the blame.

Unfortunately for whoever came up with this lever, the banker will again get the benefit. A contango has already set up after the futures market had been flat (near month at the same price as the 11 month) so traders are in effect buying the government subsidized cheap oil and storing it to sell after the release is complete.

http://www.businessinsider.com/contango ... ase-2011-6

[AgentR11]

$this->bbcode_second_pass_quote('Repent', 'W')ill they launch a nuclear war to kill off the 'excess' population to try to maintain a 'boutique' economy forever? Hope the nuclear winter will in some way offset global warming?

[AgentR11]

$this->bbcode_second_pass_quote('Pops', 's')o traders are in effect buying the government subsidized cheap oil and storing it to sell after the release is complete.