How can oil be at its lowest price of the year and gasoline prices rise at the same time?
Yahoo had this: http://news.yahoo.com/s/ap/20061117/ap_on_bi_ge/oil_prices_51 and this: http://www.latimes.com/business/la-fi-gas14nov14,1,1475055.story?coll=la-headlines-business on its homepage news at the same time. I have heard election and Republican conspiracy theories but please don’t post a response like that without hard evidence.
March 2nd, 2010 at 9:53 pm
Oil is at its lowest as oil production is increased along the lines of OPEC with additional sources from Russia and the likes. In fact, oil prices by some estimates can go as low as $55 a barrel.
The concern is of driving global consumption without stopping to cool down the market. Husseini ( Aramco’s exploration department retired) believes that demand could cause irreplaceable reservoirs of the Middle East to become damaged through wanton overproduction.
”If you are ramping up production so fast and jump from high to higher to highest, and you’re not having enough time to do what needs to be done, to understand what needs to be done, then you can damage reservoirs,” he said. ”Systematic development is not just a matter of money. It’s a matter of reservoir dynamics, understanding what’s there, analyzing and understanding information. That’s where people come in, experience comes in. These are not universally available resources.”
As of gasoline prices:
A mix of stealth tax which the lay person can’t see it but is there nonetheless, to gradually curb lead emissions which is conflicted in the use in industry for refining and producing oil derivatives.
Existing subsidies that are often overlooked are also being swapped or removed to support other oil derivatives and enterprises, with a main cause of price revision on the index that is long overdue.
March 2nd, 2010 at 9:53 pm
Because the election is over.
March 2nd, 2010 at 9:53 pm
ask chinney