With the price of oil rising about a dollar a day, what's the breaking point?

The way oil is trading, it’s been outperforming nearly every other investment vehicle.

What is the breaking point? What are the long-term effects?

Will oil prices ever go below 0/barrel?

8 Responses to “With the price of oil rising about a dollar a day, what's the breaking point?”

  1. united9198 Says:

    The law of supply and demand cannot be defeated. It can be temporarily suspended as it is right now, but it will rule in the end.

    Supply and demand is not currently setting the price of oil. Speculation is doing that. Along with speculation comes manipulation.

    History books are full of examples of times when speculation and manipulation seemed to be creating a new paradigm. They were not and eventually supply and demand came back into play.

    The oil producers have the product. They want and need to sell it. When the price gets high enough to affect the buyer’s willingness to keep buying, sales slow down. Eventually someone who has a greater need or desire to sell more product will cut the selling price in hopes of stimulating the buyer. Classic economics that will kick in at some point.

    My hope is that the speculators get toasted with oil just like they did with silver, dot.com stocks, savings and loans, real-estate, and sub-prime mortagages.

    It is not a matter of if this will happen, it is only a matter of when.

  2. Growl Says:

    Above $500

  3. John S Says:

    When we blow the Arabs off the map , those greedy bastards.

  4. Eclipse Says:

    ok so in England we pay $2 a litre, how much do you pay?

    stop complaining!!

  5. Ed M Says:

    the break will happen when we find a way to destroy OPEC.

  6. mighty i Says:

    i tell what…..the breaking point is ur WALLET! straight in ur pocket my friend!

  7. freakazoid Says:

    Breaking point can happen one of two ways, one way it will happen is when the depletion of oil forevermore hits the news OR new politics bringing reform on old laws or writing new laws could reign it in somehow. Good luck on that.

    No, it will never go below 100 again, not unless someone gets strong-armed with a new law, watch for that–otherwise no. It will rise till it falls off the cliff like that little yodeling fool on the Price Is Right.

  8. a m Says:

    I saw something on the History channel over the weekend about this, and in this, what struck me the most was the projected cost of gas per gallon if a barrell reaches $150..the cost per gallon is said to be $8.00 per gallon, so to fill up a SUV will cost $200.00 a week, and $ $80-100.00 for fuel effecient cars. There is no way that we will be able to handle this. business are closing down, so therefore ppl loosing jobs, foreclosusres are at record highs and increases every week. Families, not just people…but entire families are becoming homeless. Workers are not getting any raises, because companies cannot afford to. What we as people of the US are going to have to do, is to sit still as much as we can, this will flood the market with oil, and those who are buying oil futures will loose, and will have to sell at a lower cost, and they will loose millions. We have to make a statement, and this may be the only way to do it, it will also tell the government, that we are not going to stand for this kind og price gouging at the pumps. Yes we have to have it, so that we can get to work, so that we can earn money to pay for the gas. It is getting awful, because people and children are going to be starving, because they will not be able to afford food. I see a Depression coming, and the government is doing nothing, and they can, our politicians…the democratic congress are doing nothing. I suggest sitting still and use no more gas that you have to, to go back adn forth to work.