Oil feel below $94.00 a barrel,now how long before the price adjusts?

[Grumpy Old Man]

I dont understand what you meant by that....what does plastic have to do with it............im just trying to learn...not questioning your answer

Plastic, paint, pharmacuticals, fertilizer, ink, roads, and everything that is manufactured is either made from or has to have a perto product to be made.

Plastic is a major cause of oil prices being high. Think about everything plastic that you see. Cell phones, computers, your telephone and all the cords attached to the phone from the very start of your conversation from LA to NY... A lot of plastic just for the covering on the wire. Now think about every package that is sent with peanuts or bubble wrap. Then look at everything that is painted. All petro products.
look online for the uses of crude oil. The charts are in some cases 25 or more years old, so they say gasoline and raods. But think about all the shingles in one major city they too are made from "tar"

The nthe damn doo gooders screwed us by not allowing us to build refineries in the US we rely on S America to sell us gasoline.

 

[Arabian]

Supply is up and demand is also down. Supply is expected to continue to increase due to massive capital expenditures by the big oil companies. The are not going to cut production infact when the price goes down historically they are known to overproduce to try to increase their ROI. With oil there are also other influences such as hedge funds and the dollar which is what the price of a barrell of oil is pegged to. So if the dollar strenghtens then the price of oil declines for the US.
Gas is more tied to domestic refining like grumpy said, to greed and to bullshit regulations about how the fuel is blended for each state. My girlfriend works for a trucking brokerage co so she is dealing with the price of moving goods accross the country all day long. That is the latest burden on inflation but with the price of oil dropping it has gotten a lot better. Unfortunately Ike spun that around and it will be interesting to see how fast these refineries can gear back up to full production...

Great post

 

[goin on 4T]

Plastic, paint, pharmacuticals, fertilizer, ink, roads, and everything that is manufactured is either made from or has to have a perto product to be made.

Plastic is a major cause of oil prices being high. Think about everything plastic that you see. Cell phones, computers, your telephone and all the cords attached to the phone from the very start of your conversation from LA to NY... A lot of plastic just for the covering on the wire. Now think about every package that is sent with peanuts or bubble wrap. Then look at everything that is painted. All petro products.
look online for the uses of crude oil. The charts are in some cases 25 or more years old, so they say gasoline and raods. But think about all the shingles in one major city they too are made from "tar"

The nthe damn doo gooders screwed us by not allowing us to build refineries in the US we rely on S America to sell us gasoline.

Grump:
Very true and just think with all the automakers scrambling to make autos even lighter they are using even more oil in the plactics and the composites they will be using in the future...

 

[drsketch]

the chinese government should be dismantled.. they treat their people way worse than iraq treated anybody.

 

[EnderJE]

Grump:
Very true and just think with all the automakers scrambling to make autos even lighter they are using even more oil in the plactics and the composites they will be using in the future...

I wonder how much R/D is spent on developing non-oil based composites.

 

[goin on 4T]

I am involved in a company that has some cool aluminum composites, strenght of steel or titanium, wear resistant, we add B4C(boron carbide) the third hardest substance know to man and make cool light weight parts. Problem is we are so small right now.

 

[billfred]

Supply is up and demand is also down. Supply is expected to continue to increase due to massive capital expenditures by the big oil companies. The are not going to cut production infact when the price goes down historically they are known to overproduce to try to increase their ROI. With oil there are also other influences such as hedge funds and the dollar which is what the price of a barrell of oil is pegged to. So if the dollar strenghtens then the price of oil declines for the US.
Gas is more tied to domestic refining like grumpy said, to greed and to bullshit regulations about how the fuel is blended for each state. My girlfriend works for a trucking brokerage co so she is dealing with the price of moving goods accross the country all day long. That is the latest burden on inflation but with the price of oil dropping it has gotten a lot better. Unfortunately Ike spun that around and it will be interesting to see how fast these refineries can gear back up to full production...

Supply of oil has not increased since 2005 despite there being outstanding economics in the E&P industry. There really just is not enough rigs, pipe or services to increase production much more than the natural decline.

Demand is down but not buy much. This is a traders move - traders pushed prices too high and now they are going to push them too low. I predict we will see prices back in the $100+ range before too long.

Gasoline prices are going to be high for a bit because 25% of the nations refineries are shut down right now. That will take a huge chunk out of inventories and a few weeks to get that all sorted through the market.

 

[Creepusmaximus]

Today the price per barrel fell below $94.00 , how long before the market adjusts.. if the market does not adjust give your opinion as to why?

What exactly do you mean? Price of gas? You're really looking at 2 months for the sub $100 oil to work it's way through to the fuel prices. Prices will drop some but it takes a while.

If you mean the stock market there is choas is the streets today. AIG is a buy. That company is worth real money unlike LEH which was just F'ed.

 

[EnderJE]

I am involved in a company that has some cool aluminum composites, strenght of steel or titanium, wear resistant, we add B4C(boron carbide) the third hardest substance know to man and make cool light weight parts. Problem is we are so small right now.

Dude! PM me the name. I'll invest!

 

[goin on 4T]

Supply of oil has not increased since 2005 despite there being outstanding economics in the E&P industry. There really just is not enough rigs, pipe or services to increase production much more than the natural decline. There has been significant investment in increasing oil production globally, it hasn't hit the market yet but it is comming ant the traders know it.

Demand is down but not buy much. This is a traders move - traders pushed prices too high and now they are going to push them too low. I predict we will see prices back in the $100+ range before too long.Demand is not down much today, however traders are working with what they see for the future and that is ugly. Demand falling

Gasoline prices are going to be high for a bit because 25% of the nations refineries are shut down right now. That will take a huge chunk out of inventories and a few weeks to get that all sorted through the market.

True