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Forum Post: Want to know why oil prices are high - here's some infor for you to read

Posted 2 years ago on Feb. 24, 2012, 7:08 p.m. EST by SteveKJR (-497)
This content is user submitted and not an official statement

The Commodity Exchange Act will give you some idea as to what's involved in Futures trading

http://www.cftc.gov/files/ogc/comex060601.pdf

This link will provide you with information on how oil is traded with other interesting links.

http://www.telegraph.co.uk/finance/newsbysector/energy/2790667/Oil-prices-The-complete-QandA.html

And we wonder why there is such a fluctuation when there is less demand.

26 Comments

26 Comments


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[-] 2 points by Nevada1 (3985) 2 years ago

Hi Steve, Thank you for post and links. Best Regards, Nevada

[-] 1 points by rayl (1007) 2 years ago

the price of gasoline in the us is almost 4 times cheaper than in the rest of the world. fyi

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[-] 1 points by rayl (1007) 2 years ago

it's subsidized by their government. where there are low prices there are subsidies, plain and simple, the us is no exception.

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[-] 1 points by rayl (1007) 2 years ago

the us has very low taxes on gas and gives the oil companies a lot of subsidies. if you look around the world you will see that our prices are not that bad in comparison.

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[-] 1 points by rayl (1007) 2 years ago

i'm not interested in either of the main parties. if you look closely you'll realize both are heavily influenced by big money and are not really interested in helping the majority of citizens in the country. the left-right political divide is just a scam to keep us nipping at each others tails instead of concentrating on our common concerns. where i live they already pay about $8 a gallon, so we've already experienced what you're going through. (we survived btw)

[-] 0 points by SteveKJR (-497) 2 years ago

So, we don't live in the rest of the world - we live here in the United States. How can you compare what's going on inside other countries with what's going on inside the United Staes? You can't

[-] 1 points by rayl (1007) 2 years ago

sure you can, there's absolutely no reason why you can't. you're not living in a bubble are you? americans must wake up to the fact that the superiority enjoyed by america after WW2 no longer exists. america is now just another country in the world irregardless of what the media propaganda tells us. the only thing superior about america is its whopping military budget with the wonderful wars the super patriots have started.

[-] 0 points by SteveKJR (-497) 2 years ago

How can you compare a country with 300 million people living in it to a country of at most 65 million people living it? You can't unless you "fudge numbers" like our government does.

[-] 1 points by rayl (1007) 2 years ago

steve there are countries that are much larger than the us, china for example. each country is unique but you can still compare them. what's the problem?

[-] 0 points by SteveKJR (-497) 2 years ago

No you can't because their life style is different, their wage structure is different, their government is different and they think differently then we do.

Of course that may change in the next 10 years or so.

With the exception of china there aren't any countries unless you combine them that are even close to the population of the United States

[-] 1 points by rayl (1007) 2 years ago

india is larger and indonesia is slightly smaller. there is absolutely no reason you can't compare all countries. by comparing you learn how they are similar and different, but this has nothing to do with the extremely low cost of gasoline in the us.

[-] 0 points by SteveKJR (-497) 2 years ago

Well then tell me why our gasoline prices are lower then theirs? What's the reason for it?

[-] 1 points by Spade2 (478) 2 years ago

Isn't it good that oil prices are so high? We can now switch to clean alternatives.

[-] 0 points by SteveKJR (-497) 2 years ago

Sure, lets shut the imports of oil off and then see how the "clean alternatives" will kick in. Ain't going to happen for another 20 years at best.

[-] 1 points by Mooks (1985) 2 years ago

Are you sure the demand for oil is going down? You would think with the emerging BRIC economies expanding so rapidly that the demand would continue to rise.

[-] 0 points by SteveKJR (-497) 2 years ago

Demand is going down for the people in this country. I think the news media wants everyone to believe that the reason prices are going up is because of demand by chna and India.

China is exploring for alternative fuel sources instead of using oil. It's all about the "futures market" and the hype about what's going on over in Iran.

If this country took the inititive to drill for oil 4 years ago we wouldn't have to worry about what's going on in Iran. Have you noticed how the prices of commodities in this country has risen by at least 50% within the last two years? Went to HD today to look at pricing up replacing the shingles on my house.

Two years ago they were going for $15.00 a squard today $34.00 a square - and that was the low price. Everything has gone up by at least 50%.

We need to be oil independent and build more nuclear plants so that this country can move in the direction of "electrical powered vehicles" along with other less polluting energy. Then when we reach that point, oil will no longer be an issue.

If we don't, 10 years from now when all this new electric technology comes out we will be having brown outs across the country.

[-] 1 points by Mooks (1985) 2 years ago

If the demand in the US is down these past few years, it is only because of the of poor economy.

http://205.254.135.24/totalenergy/data/annual/pdf/sec5_3031.pdf

That graph shows the general trend is an increase in consumption of oil, mainly for transportation, in the US.

And just do a Google Image search of Chinese oil consumption and look at all the graphs with the same general shape.

Worldwide demand for oil is clearly increasing and that is what the futures market is pricing into oil. Speculation can drive the price down just as it drives it up too. Look what happened to the price of oil when the economy started to sour (ie less demand for oil) back in 2008.

[-] -1 points by SteveKJR (-497) 2 years ago

Well, if we drilled and produced our oil instead of importing it, we wouldn't have that problem would we?

[-] 1 points by Mooks (1985) 2 years ago

Yes, that would indeed likely help bring the price down. Or at the very least, keep the money and jobs associated with extracting the oil from the ground here in the US.

[-] -1 points by BlackSun (275) from Agua León, BC 2 years ago

What"clean alternatives"? Are you saying they can supply this country with the majority of energy for industry,?

[-] 2 points by richardkentgates (3269) from Fort Walton Beach, FL 2 years ago

The possible was once impossible.

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[-] 0 points by newman (-58) 2 years ago

Obummer is the reason for the high gas prices