The Era of "easy oil" is over

beingjdc

neilsc99 wrote: »

but it also dropped to $130 a barrel ealry this week....why dont they report this ? Becuase the media love doom and gloom

Eh? It was (ironically since it made them look even more stupid than usual) the front page story of today's Express.

m00m00

beingjdc wrote: »

Eh? It was (ironically since it made them look even more stupid than usual) the front page story of today's Express.

well a story like this on the front page of the express is the clearest sign I can think of that the opposite is actually happening

how long until the $150 barrel ....


that $200 barrel predicted doesn't seem so ludicrous now, and I can see it being more likely to hit $200 than $100

meanmachine_2

beingjdc wrote: »

Eh? It was (ironically since it made them look even more stupid than usual) the front page story of today's Express.

Yes, another classic from the World's Greatest Newspaper.

"Wah wah, oil dropped in price to $124 dollars for a day, where's our cheap petrol? And what would Diana say?!!!!!! And by the way, house prices are still soaring compared to, er some time in the Dickensian period".

Generali

m00m00 wrote: »

well a story like this on the front page of the express is the clearest sign I can think of that the opposite is actually happening

how long until the $150 barrel ....


that $200 barrel predicted doesn't seem so ludicrous now, and I can see it being more likely to hit $200 than $100

Let us not forget that the more expensive oil becomes, the more supply becomes possible (eg Canadian tar sands, recovering oil from 'exhausted' fields).

My feeling is that oil in terms of euro and possibly pounds will become cheaper again. $100+/barrel oil is a spike in price rather than a one-off re-pricing.

neverdespairgirl

posh*spice wrote: »

Oh carp - just when the worst looked to be over $138 pb:eek: ...crash,bang, wallop:o

My personal feeling is that this is a bit of a bubble, rather than being a cast-iron supply and demand or peak oil issue (at the moment, that doesn't mean I think oil will last forever, or anything!)

neverdespairgirl

Generali wrote: »

Let us not forget that the more expensive oil becomes, the more supply becomes possible (eg Canadian tar sands, recovering oil from 'exhausted' fields). .

Oh was saying that too - there is apparently a lot of potential to get oil from bitumin (sp?) in Israel, but it's expensive.

m00m00

I have absolutely no doubts it's not a supply issue, rather a speculative issue, caused in no small part by helicopter Ben, and his lax attitude to money supply

beingjdc

m00m00 wrote: »

I have absolutely no doubts it's not a supply issue, rather a speculative issue, caused in no small part by helicopter Ben, and his lax attitude to money supply

You can't speculate long-term in something that's expensive to store and regularly consumed. People would notice enormous lakes of oil hiding around the place waiting to be sold for a profit. It's not like city centre flats...

Lax money supply, fair point, but that's different from speculation, that's just flat out inflation.

posh*spice

So firstly, do you think the Americans made a massive mistake reducing interest rates? and so quickly? Has this weakened the dollar so much, that this has pushed up the cost of oil ?

Should the US raise interest rates? Maybe just a quarter %? and maybe consider reducing taxes instead?

BACKFRMTHEEDGE

m00m00 wrote: »

I have absolutely no doubts it's not a supply issue, rather a speculative issue, caused in no small part by helicopter Ben, and his lax attitude to money supply

Hi

Not so sure about this:-

There are some who do thinks it's a demand issue:-

The market ``is underpinned by demand, which is totally different than 1973 and 1979'' when supply cuts caused prices to surge, said Ray Carbone, president of Paramount Options Inc. in New York. Oil's rise is linked to ``supply and demand. Nobody wants to admit it. Too bad.'' Quote BLOOMBERGS today