Oil prices are a'comin' down!

[jbach36]

In today's ajc.com, the Saudi's are fearing that high oil prices could diminish the appetite for oil, and be bad for their country in the long run, so starting in June, they're going to start pumping an additional 200,000 barrels per day.

Still, let's not party too early. By July, production should be at 9.7 million barrels a day. A DAY! At 10 million barrels a day, we know the stuff is not going to last forever. I still say let's go to electric cars or something else while we can. Had we done that during the 70's, we wouldn't have had the same problem we're facing now. Let's not squander our chance this time.

jeff

[Actros617]

Just wait when we run out of crude oil, imagine gas price could go up to $9 or $10 bucks per/gal, angry protesters, car company looses money, increase in fuel looting,Crime rate increces, oil company falls, massive unemployment occures throught the world, and maybe just maybe another world wide economic crash...I am just saying...The worlds economic is based on oil and we have to kick the habbit of depending on the oil...

[H-townbenzoboy]

Here's a link to the article in its entirety.

http://www.ajc.com/search/content/shared-gen/ap/Finance_General/Saudi_Oil.html

[tompaah7503]

And here's the markets reaction to Saudis statements. +$2

[turbobenz]

Kind of funny how oil prices are actually not going down and we've seen two massive spikes in the price in the last month. Whats your idea of oil price coming down? The record so far is about 138. Its at 135 right now and have been stable within a few dollars for the last week. 3 dollars is not comming down. It is only a slight correction. Expect another 10 dollar spike within 1-2 weeks.



What sad is that their pushing their limit on output very hard thus extending the production plateau. This means a much harder crash. And it is not time to switch to electric toyotas. it is far to late for that and all energy has to come from somewhere. I say enjoy your OM617 while you still can because if you don't burn that gallon of diesel someone else will.

[awsrock]

I think that they should, overall, use that extra fuel for diesel because when you think of it, lowering diesel prices SHOULD essentially lower everything else that has gone up because of this. Even regular gasoline should go down a bit simply because it would cost less to ship it to the US, ship it to the station, etc.

But that could just be greed coming to my mind

[Dee8go]

Things like this typically get overdone because of fear, enthusiasm, irrational exhuberance, etc. I doubt oil will come down to anything close to what it was last year. Markets like this always get oversold and then correct. I'll be grateful for whatever little relief we DO get.

[G-Benz]

Ok...we don't have long lines at the pump, so the high fuel prices aren't a result of depleted supply...so why should ratcheting up production make any difference here?

[Dee8go]

That's a good point, Gee. I guess we should be thankful we can at least GET gas, even though it's very expensive.

[tompaah7503]

Demand continues to increase while supplies have flatted-out since 2005.
Meaning people wanting the oil are bidding it up higher, just like at auctions, because they want it that bad.

I don't see any outright nationwide oil shortages coming, prices will take care of that. OTOH what you already are seeing in the western world is oil consumption decrease (demand destruction).

Originally Posted by jbach36

production should be at 9.7 million barrels a day. A DAY! At 10 million barrels a day, we know the stuff is not going to last forever

Considering the size of the earth, 10 million barrels a day is a micro fraction of what it really holds. Think in the hundreds of trillions, not millions or billions.

[G-Benz]

Originally Posted by ForcedInduction

Considering the size of the earth, 10 million barrels a day is a micro fraction of what it really holds. Think in the hundreds of trillions, not millions or billions.

And how do we know that the earth has that much in obtainable oil deposits???

[Chris Bell]

Originally Posted by tompaah7503

And here's the markets reaction to Saudis statements. +$2

Now don't let reality get in the way of a nice daydream

[ps2cho]

Originally Posted by tompaah7503

Demand continues to increase while supplies have flatted-out since 2005.
Meaning people wanting the oil are bidding it up higher, just like at auctions, because they want it that bad.

I don't see any outright nationwide oil shortages coming, prices will take care of that. OTOH what you already are seeing in the western world is oil consumption decrease (demand destruction).

There is NO Supply and Demand problems. It is speculation alone. Demand has stayed the same.

This entire problem is media related. There may be some price gouging, but I'm not sure.

[raymr]

It's happened with electricity, oil, and gasoline. So when do natural gas customers start getting the big shaft??