Climbing fuel prices

deltamrey wrote: Well lets see - the government: Provided rail rights of way, airports, interstate highways, nuclear power plants, the internet, fiber optics, jet aircraft, space based systems, ......long very impressive list.

pretty much all by strong arming and bullying the people in the way or had the original idea.

Back to climbing fuel prices: Today oil prices backed off on news that other oil producers will step up production quotas lost by the Libyan revolution. Presumably that ought to ease fuel prices at home.

Rockdoc Franz wrote: Back to climbing fuel prices: Today oil prices backed off on news that other oil producers will step up production quotas lost by the Libyan revolution. Presumably that ought to ease fuel prices at home.

Franz, do you think OPEC has the spare capacity.

Franz - why when oil is heading for $150/barrel would any source raise production just to keep us happy (US have made a bargain with the oil devils - we pay the price).........oh No you really are not too familiar with the markets.

Rockdoc Franz wrote: Back to climbing fuel prices: Today oil prices backed off on news that other oil producers will step up production quotas lost by the Libyan revolution. Presumably that ought to ease fuel prices at home.

I won't be holding my breath on this one.

Saudi Arabia has increased it's production capacity for the past two decades. So it alone has the capacity to meet supply demands in the absence of Libyan production. Other Opec members also are not a full production, hence they too can add to the supply chain. One of the main interests of OPEC is not to let oil prices get too high. If oil prices go unchecked, there is an adverse affect on the global economy. see http://wallstreetpit.com/64035-will-hig ... al-economy

If OPEC were short sighted, they could cut production and create artificial shortages and thereby raise oil prices to astronomic levels. OPEC leaders are savvy enough not to cut their won throat. Instead, they will bleed the world to death over the long haul, all the time investing their returns in other sectors and thereby insuring they will gain increasingly greater control on global markets.

deltamrey wrote: Franz - why when oil is heading for $150/barrel would any source raise production just to keep us happy (US have made a bargain with the oil devils - we pay the price).........oh No you really are not too familiar with the markets.

This view is far too egotistical. None of the major oil producers are that interested in our well being. They are interested in themselves and this is why they will increase production.

May have already been posted but here it is in a nutshell, where the US oil comes form.

http://www.consumerenergyreport.com/res ... -oil-from/

Why does Middle eastern oil prices dictate what we pay for?

It does not directly. Regardless of where oil comes from it is a traded commodity and if there is a perception among the traders that expected supplies will be interrupted, they get antsy and begin bidding up the price of oil. The price goes up regardless of where the potential supply disruption takes place in the world. Commodity traders always try to anticipate what will happen. Sometimes oil spikes take place erroneously because their anticipation does not materialize.