"The Real Reason Behind Record High Oil Prices"

[Marf]

http://www.marketoracle.co.uk/Article4793.html

[Apache]

ye gods, hope at last?

[james_tigerwoods]

A long, but good article. It'd be nice to see this picked up (and analysed) in the general press....

As a thought - I wonder what the true cost of getting, refining, etc oil is....

[rhinochopig]

If that's true then I hope those traders enjoy slow painful deaths.

[Road_Terrorist]

james_tigerwoods said:

A long, but good article. It'd be nice to see this picked up (and analysed) in the general press....

If it is it will just be buried somewhere in the business section that normal people dont read. It wont be anywhere near the front unless they can think of some alarmist angle to it, probably something about greedy bankers.

[wirralranger]

Well some one has to pay for the YANKS war on iraq........

[Marf]

wirralranger said:

Well some one has to pay for the YANKS war on iraq........

eh??

[danrc]

An interesting read - the thing that struck me was the global demand for Oil - 86million bpd. I had no idea it was so much!! And the good old US of A consumes 20mbpd! All these people in the media who say we are running out of oil have absolutly no idea what they are talking about - The new field in Brazil with 8 BILLION Barrels of easily accessible light crude says otherwise!

To sum up - the oil price is artificially high, pushed up by finanical institutions across the world. When will the growing public outrage change this? Would a backlash have any effect on the ever increasing price? Will we see $200 barrels or prices drop to a "reasonable" level of, say $90 a barrel. Is there any chance of another crash in oil prices which we saw in the early 90's where oil was at an all time low?

Sorry lots of questions (which probably can't be answered) but i'm interested in the mechanics which drive the global oil prices.

[SidewaysSid]

danrc said:

An interesting read - the thing that struck me was the global demand for Oil - 86million bpd. I had no idea it was so much!! And the good old US of A consumes 20mbpd! All these people in the media who say we are running out of oil have absolutly no idea what they are talking about - The new field in Brazil with 8 BILLION Barrels of easily accessible light crude says otherwise!

Don't know where you got the `easy` idea from. Sounds like a big find but will need something amazing to get at it...

http://www.economist.com/daily/news/displaystory.c...

[scotal]

Don't you trade something Mick, or am I confusing you with someone else?

[esselte]

danrc said:

An interesting read - the thing that struck me was the global demand for Oil - 86million bpd. I had no idea it was so much!! And the good old US of A consumes 20mbpd! All these people in the media who say we are running out of oil have absolutly no idea what they are talking about - The new field in Brazil with 8 BILLION Barrels of easily accessible light crude says otherwise!

To sum up - the oil price is artificially high, pushed up by finanical institutions across the world. When will the growing public outrage change this? Would a backlash have any effect on the ever increasing price? Will we see $200 barrels or prices drop to a "reasonable" level of, say $90 a barrel. Is there any chance of another crash in oil prices which we saw in the early 90's where oil was at an all time low?

Sorry lots of questions (which probably can't be answered) but i'm interested in the mechanics which drive the global oil prices.

Is my maths wrong? ...8 billion barrels is only 93 days supply at the 86million barrels a day useage?

[danrc]

SidewaysSid said:

danrc said:

An interesting read - the thing that struck me was the global demand for Oil - 86million bpd. I had no idea it was so much!! And the good old US of A consumes 20mbpd! All these people in the media who say we are running out of oil have absolutly no idea what they are talking about - The new field in Brazil with 8 BILLION Barrels of easily accessible light crude says otherwise!

Don't know where you got the `easy` idea from. Sounds like a big find but will need something amazing to get at it...

http://www.economist.com/daily/news/displaystory.c...

Ok, maybe easy is not the best word to use. The point i was getting at, was that the oil described off the coast of Brazil is "easier" to recover than reserves of tar sands for example. I know when i was offshore working on some odd ball wells we ran into problems. We were on a rig which was trying to drill underbalanced using new seperators so clean up the drilling fluid and then inject gas into the well - it didn't go too well (no pun intended)! Ultra deep water wells / deep reach wells are going to push forward the development of new technology which will benifit the whole industry.

Like i said, i am no expert and don't pretend to be. I'm just interested in the whole process.

[danrc]

esselte said:

danrc said:

An interesting read - the thing that struck me was the global demand for Oil - 86million bpd. I had no idea it was so much!! And the good old US of A consumes 20mbpd! All these people in the media who say we are running out of oil have absolutly no idea what they are talking about - The new field in Brazil with 8 BILLION Barrels of easily accessible light crude says otherwise!

To sum up - the oil price is artificially high, pushed up by finanical institutions across the world. When will the growing public outrage change this? Would a backlash have any effect on the ever increasing price? Will we see $200 barrels or prices drop to a "reasonable" level of, say $90 a barrel. Is there any chance of another crash in oil prices which we saw in the early 90's where oil was at an all time low?

Sorry lots of questions (which probably can't be answered) but i'm interested in the mechanics which drive the global oil prices.

Is my maths wrong? ...8 billion barrels is only 93 days supply at the 86million barrels a day useage?

Thats why i was shocked at the figure. I never did the maths though.

[choogh]

A few months ago, the cost of oil at Rastenura (spelling) Jetty, Saudi Arabia. Including all development cost, labour cost, maintence cost, transport costs etc etc etc.was circa $8 per barrel. they sell today at $130+
Good business..or what..Poor Arabs..

[Timmy33]

mickken said:

scotal said:

Don't you trade something Mick, or am I confusing you with someone else?

Airtime minutes.

I used to work in the city and have many oil trader mates. The money they are making is shocking!!

For someone with good timing and a large enough pair of testicles I reckon this could turn into the short trade of the decade though.

[scotal]

mickken said:

scotal said:

Don't you trade something Mick, or am I confusing you with someone else?

Airtime minutes.

I used to work in the city and have many oil trader mates. The money they are making is shocking!!

So if the networks became "full" and minutes became scarce, the market would rise, yes?
Presumably therefore, you would make money out of the situation? (I dont know if you are a broker or a trader, or even if the market is set up that way)
And that money would come from consumers who would have to pay more for their minutes?
So if the price of minutes to consumers doubled over, lets say a year, and people began complaining about it, would you cut your margins? donate a years profits to charity? Book the most expensive restaurant in town and buy yourself a new car, while quietly congratulating yourself on your business savvy and good fortune?


(I'm not saying its possible that that situation could arise, but trading a commodity, and then complaining about the fact that traders in another commodity are making money seems a bit daft. Same way that complaining that car dealers dont sell their stock at cost rather than making a profit out of it, is a bit daft IMHO, of course)

[tonyvid]

choogh said:

A few months ago, the cost of oil at Rastenura (spelling) Jetty, Saudi Arabia. Including all development cost, labour cost, maintence cost, transport costs etc etc etc.was circa $8 per barrel. they sell today at $130+
Good business..or what..Poor Arabs..

[s2art]

Just to mention that Gordo McBroon's additional tax on oil companies here had dissuaded them from investigating the west of Scotland much. There is believed to be useful amounts of oil and gas there, would have been useful with these prices.

[Marf]

mickken said:

It annoys me that the ignorant scrote on the street still blames China.

Or the Arabs, like anyone on here wouldnt sell a commodity in high demand for top dollar if they were sat on billions of barrels of it.

Edited by Marf on Thursday 22 May 16:37

[misterduncan]

Very interesting.

And as usual, a small minority of leeches are given a free license to suck money out of the rest of society in a risk free way.