crude...

Quote from Thermactor:

People say demand keeps going up, well - demand hasn't gone up 42 percent like the price has, this is just naked profiteering.
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That's now how microeconomics works. There isn't a linear relationship between an increase in demand and increase in price. Everything is priced on the margin, the marginal buyer is obviously going to pay a lot more for something when he knows there is more demand than supply, than when there is more supply than demand. Right now, the oil market has more demand than supply. The only way to fix that is to either increase the price to lower demand or increase supply.

Problem with the oil market is that supply can't be increased because all the oil wells are being pumped out full bore and there is no spare capacity. That's why oil is going up everyday and is still cheap at $92+
 
Quote from dividend:

I will guess that they will push the crude price up higher until OPEC is forced to symbolically hike production. At which point the price tanks immediately.
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You guys don't get it. OPEC is pumping out all in can! Do you think the Saudis have this unlimited supply of oil that they can just turn the faucet and infinite amounts of oil just pop out? Demand isn't slowing down even at these prices, until demand goes down, oil will keep going up.

It is no longer a supply question, because OPEC can't supply enough to lower the price now. The only way price goes down is if demand meaningfully goes down (I'm not talking 2-3%, but 10-15%), and I don't think that happens until you get to $200-300 oil.
 
People,
prices don't go up

It's just USD crashing

Oil exchange creation that prices oil in Euros is imminent within 1-2 years

maybe even faster

A Europe won't be needed USD to buy oil
USD will be devalued 2-3 times within days

US consumer will loose its purchase power and demand for oil will decrease dramatically and prices too

But prices will decrease in Euros. US will have to earn Euros to buy oil
And with Exchange rate 3-5 dollars for Euro it won't be easy
 
i remembered 15 years ago, oil was so damn cheap that the mines in alberta were closed when i was staying there, can't imagine the price now, is it b/c the reserves in the world get consumed exponentially within such short time period or just the US dollar
 
The price of oil is going up a lot faster than the euro vs. the dollar. Oil went up $7, or 8% in 3 days last week! The dollar lost about 1% in that timespan. Oil is going up in any denomination.

Simple supply and demand problem we have. Geopolitics is the red herring for what the real problem is. Oil can't be pumped out any faster, and production has maxed out, and demand is still rising. It's a disaster slowly happening before our eyes, and alternative energy is way off in terms of economic feasibility to be of any help.

For the first time in modern history, the supply of energy in the world will be the limiting factor for economic growth.
 
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