Oil Demand Lowest in Fifteen Years — Oil Prices Are Rising
So much for supply and demand. Oil demand is at its lowest level since April 1997, and yet gas prices are higher than they’ve ever been at this time of year.
Speculators are the main culprit. The chief oil analyst for the Oil Price Information Service said:
“People are properly puzzled by the fact that we’re using less gas than we have in years, yet we’re paying more. We’ve seen about $11 billion of speculative money come in on the long side of gas futures. Each of the last three weeks we’ve seen a record net long position being taken.”
This is a Win Win Win for the Far Right. First, a few oil speculators will earn a huge fortune (maybe “earn” isn’t the right word). Second, higher gas prices could jeopardize the fragile economic recovery. This is bad news for Americans; Republicans on the other hand will be jumping for joy at the idea of making Obama look bad.
Best of all, the “Dril Heer Dril Now” inbreds will get all fired up. Them treehuggers won’t let us drill for oil. Hurry up and build that Keystone Oil Pipeline so we‘ll have billions of new jobs and we’ll never ever have to buy another drop of oil from the Middle East.
Fortunately for rightwing demagogues, you can fool ALL of the dunces ALL of the time.
Labels: oil demand low, Oil Price Information Service, oil prices rising, oil prices speculators
posted by Tom Harper @ 5:17 PM
23 Comments:
Yes, speculation is part of the problem, but supply and demand is still working. Refined oil products is our number one export. Put those exported products into our domestic market and you will see a drastic drop in gasoline prices. Oil corporations are mor interested in maximizing their profits than helping the American consumer.
Gee that's not what Nancy said
"We’ve seen about $11 billion of speculative money come in on the long side of gas futures. Each of the last three weeks we’ve seen a record net long position being taken.”
This is the exact right time to stage a consumer revolt by boycotting gasoline and diesel to the greatest extent possible. We could never back up the supply chain completely because too many people must commute to school and work, and use vehicles to keep small businesses going. But I'm sure if we could cut consumption even 45 percent for several weeks, a whole lot of speculators (a.k.a. greedy bastards) would lose billions on those long bets.
What Jerry says is true, but 45 percent of the U.S. market is oceans of fuel, and they couldn't sell it all off or even store it economically waiting things out.
Would that be sweet, or what?
Just wait until the transporter becomes a reality. But those uniforms, yeesh.
Every credible expert I can remember estimates that we could save 50% of our energy use by conservation alone. Where the fuck is conservation in Conservative?
I hate to say it but we probably need a big oil price shock right now. I feel like we're right on the cusp of converting big-time over to electric and truly high mileage hybrid vehicles. Hell, even BMW has a sports car now they claim gets 36 MPG.
Lisa, I swear, your man needs to chain you up in the kitchen. But before that happens, do you suppose you could talk to your wet dream former President? IIRC, he said something about jawboning those Saudis into turning on those spigots...
Actually, these dumbf*cks are going to render themselves obsolete if they keep it up. Solar is on the cusp of being as cost-efficient as petroleum. Not to mention the fact that it is going to get cheaper to make stuff here than it does to import it from China, even with the slave wages they pay the Chinese.
Only half the story there Tom. The speculators drive up the price, buy a hedge against a fall and when the price finally drops collect handsomely. A win win for them either way, while the rest of us get to pay the price.
They act like my Utility Company "You use too much energy, we have to raise prices to get you to use less. You save energy we have to raise prices to to 'break even"
This is one time they are not blaming it on "greedy Arabs"
Erik
Solar is on the cusp of being as cost-efficient as petroleum
Samuel-China already makes solar panels cheap. Where are our solar companies? Oh yeah taking tax payer dollars and then closing shop . Cash for clunkers,solar companies,GM. We sold Chrysler to a foreign company and what else? Oh yeah tax credits of 10,000 for the purchase of a Chevy Volt. So in other words it's like tax breaks to the rich isn't it?
Now we just stole more money from Social Security.
Then Obama takes a bow at Boeing the company he was trying to close down.
It's so ridiculous that there is no media scrutiny about it.
Lisa
Before you get on your high horse about Petroleum being cost efficient you should check how they are subsidized in the billions of dollar, still receive huge tax breaks and still raise their prices and get record profits
Plenty of Scrutiny about that. Where have you been?
Oh yeah! We talked about here and you replied with George Soros youtubes
Erik
Erik we are doing the same thing with Green Energy .
The oil companies only make a 4% GP. The profit is in volume plus 15% is federal tax.
So Obama tax breaks are good then,is what you are saying?
Or what is it you are saying?
Are you going to be saying "Big Green Energy" when they make all the profits and are taxpayer subsidized which they already are?
Jerry: Good point. A lot of the oil that everyone is clamoring to drill -- the Arctic, the tar sands -- is destined for export only. It won't help our supply at all. The Foxsuckers and talk radio shouters all manage to ignore that.
SW: Your consumer revolt idea is excellent. That would be sweet indeed.
Randal: Uh oh, not the uniforms.
Mr. C: You're right about conservation. Even little things like checking tire pressure regularly -- these simple easy steps make a hell of a difference in energy consumption.
J: Most of the time I'd agree that we need a huge oil price spike to wake everybody up. But right now with the economic recovery being so fragile, too much would be in jeopardy.
JR: I like both your predictions, about solar energy and the reduced cost of manufacturing things here.
Demeur: Speculating sounds like a great gig. Nice work if you can get it.
Erik: Yup, just like the utility companies. And the Post Office.
Rather than an oil price spike, what we really need is a gasoline price drop, a drop through the floor. That could be accomplished by not exporting gas, but dumping it on the domestic market. Of course oil corporation profits would take a hit so that will never happen, but it would be a big boost to the economy.
Once again, oil companies put their profits above country.
Lisa
There is no "Green Depletion Allowance" like there has been for Oil since before Nixon
Erik
Jerry, I think you nailed it. Great comment.
There are many reasons for the inflated price we pay for gasoline, but oil company and Wall Street greed rank at the very top. These arrogant rip-off bastards yank our price up and down as if we were their yoyos, which we are in their eyes.
The big price increase started after Cheney's secret meetings with oil executives at the beginning of Bush's first term. And then we saw gasoline prices rise to over $4 durning his terms.
It must be just an amazing coincidence.
The big price increase started after Cheney's secret meetings with oil executives at the beginning of Bush's first term. And then we saw gasoline prices rise to over $4 durning his terms.
It must be just an amazing coincidence.
I am now of the mind they will let gas go up as far as $5 so they can blame it on that kenyansocialistmuslimkittykiller in the White House. That way they can do a retry of drill baby drill for the lemmings of the fright wing. I know we ran out of toilet paper in one of the front bathrooms this morning and my husband was quick to blame it on Obama, like we always do for everything that goes wrong. It's become a running joke in the house. Toast burned it has to be Obama's secret monitoring of the toaster so it's his fault. Kitty litter hasn't been emptied, Obama's fault because my cats are not contributing to their keep, like the little socialists they are under Obama's watch.
That's funny, Jess. When something goes right do you give credit to the teabaggers?
@Jerry. Nah, it is way more fun to come up with inventive ways to blame Obama or Clinton for everything the way the fright wing does. Like they are the only two presidents have ever sat in the WH. Try it and you will get laughs from your family, trust me on this. The crazier you tie it all together, the funnier it is.
I just dropped a plate on the floor. Obviously it was Obama's fault. :)
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