Why are oil prices plunges and what is next?

Discussion in 'Energy' started by JimH52, Oct 25, 2008.

  1. JimH52
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    JimH52 Gold Member

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  2. Remey688
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    Remey688 Rookie

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    Prices go down and prices go up!
     
  3. Charles_Main
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    Charles_Main AR15 Owner

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    Falling demand and artificially high prices to begin with.

    Simple economics.
     
  4. bigdaddygtr
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    bigdaddygtr Senior Member

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    I think thats a big part, but I also believe that OPEC is releasing more oil in response to a probable Obama win and getting out of Iraq which they hate that we're there
     
  5. JimH52
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    JimH52 Gold Member

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    Yeah, we just ousted Saddam for them. Now we can leave.
     
  6. Toro
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    Toro Diamond Member

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    OPEC has little to do with it.

    They need the money and are pumping away.

    It was funny when Chavez said he'd cut 150k barrels. As if. When oil was at $145, they couldn't balance the budget. Now, he's in deep doodoo.
     
  7. JimH52
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    JimH52 Gold Member

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    Don't count on low oil prices for long. OPEC nations have budgeted for $80-90 a barrel of oil and as it plunges below that number, they will cut production until they are able to revive the price per barrel. $140 a barrel will return one day but hopefully we will be more prepared than before.
     
  8. bigbroodmaster
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    bigbroodmaster Member

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    OPEC is talking about artificially keeping the price of oil high by stockpiling it.
     
  9. dilloduck
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    dilloduck Diamond Member

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    The price of gas plummeted at the same time that the stock market did. Thank a speculator for screwing you. So much for the supply and demand theory of high gas prices. Now everyone who blamed big oil for this, raise you hands.
     
  10. bigbroodmaster
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    bigbroodmaster Member

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    The reason the price of gas and oil went down is because there isn't going to be as much demand for it. That's the point: there was a large demand for gas even a few months ago, and because of the economic crisis, that demand is starting to shore up. People are flying less, driving less, going on road trips less. That means less gas is being used, which means there is more of it available, and it isn't as desirable as it once was. That drives the price down.

    Supply and demand in action.
     

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