Wednesday, July 23, 2008

the pigs trough is empty, time to find another commodity to rape

Why have oil prices been falling?

Oil prices have risen to record levels in recent weeks, with traders in London and New York paying more than $147 a barrel for crude oil at its peak on 11 July........................this article claims that the recent falls are just a "correction" and that demand for oil is still high in China. I don't buy it. Oil is on its way down.. and just wait until the north Alaskan oilfields start to produce.. now lets see this "correction" cascade down to the petrol pumps.

Posted by george monsoon @ 03:01 PM (1127 views)
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10 thoughts on “the pigs trough is empty, time to find another commodity to rape

  • Whostolemyendowment says:

    Oil is historically overpriced – driven up by speculation…..now as demand falls due to high costs (and your average joe feels the pain) – the speculators will be sitting on a lot of oil futures they need to cash in…..so a price correction down is long overdue. As for other commodities to rape……I think everything is just about robbed out…..so price adjustments across the board.

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  • Although the demand for oil is greater now than it was 10 years ago there is a disturbing correlation between the various bank bail outs and the explosion in oil prices. was the bail out money just being pumped into oil and now the banks are taking the profits?

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  • Fuel is cheap! 37p a litre! its the tax on top of a tax thats the rip off, but i suppose someone has to pay for all are illegal migrant friends to live in council houses build for british people.

    But then again its all about money! and energy suppresion!
    http://www.aph.gov.au/SENATE/committee/rrat_ctte/completed_inquiries/2004-07/oil_supply/submissions/sub08.pdf

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  • whiteknight says:

    No…. surely not.

    It’s one rule for you and whatever they want the rules to be for them.

    Calls the balls.

    See you at 250

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  • Most of the remaining reserves are in areas which are hard to drill and extract and/or are heavy crude, which not only is more difficult and much more expensive to refine (and less productive) but also can only be processed in a small percentage of the worlds refineries. Just because new reserves are coming on tap it doesn’t mean they will help lower the price! Hardly any new refineries are being built in the west due to public opposition (that’s right, public) so it will not get any easier to process heavy crude. Plus, why should we expect the Arabs to invest billions in massive new infrastructure when we keep telling them we don’t want it in future because we are going green?

    High oil prices are here to stay. Live with it.

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  • Dead Spider says:

    “wait until the north Alaskan oilfields start to produce” .

    But that’s quite a wait though .

    A good few years .

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  • Mr Mickey, yes it seems there was a correlation. When banks lend money, they do so in the expectation of future growth – just as when people borrow money, they do so in the expectation that in future they will be able to pay it back. However the reality of Peak Oil means that future growth stops (and it will eventually turn negative, i.e. shrinkage not growth); so banks are no longer willing to lend out money. I don’t think anyone in the banking sector has thought it out quite like that, but the economic indicators that they watch so closely (growth, disposable income, inflation) are in fact just proxies for the oil price.

    Note that in the early 1990s Japan went through a property crash and a depression, despite oil prices being low. So perhaps the correlation is less strong than we think.

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  • like the property bubble, there is a commodity bubble. Money needs to be invested somewhere.where will the next bubble be?

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  • This is the bottom. As oil gets cheaper, US interest rates will go up. The dollar will get stronger from here due to speculation legislation. Time to short gold me thinks. The UK is still in trouble though.

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  • sold 2 rent 1 says:

    John Smith,

    Interesting PDF doc

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