Rumsfeld lols

[Hey Bubu]

Think Progress » Rumsfeld Unveils New Justification For Iraq War: High Gas Prices

The fact of the matter is - if Saddam Hussein were still in power in Iraq, he would be rolling in petrol dollars. Think of the price of oil today. He would have so much money. And he would be seeing the Iranians interested in a nuclear program, he would be seeing the North Koreans developing a nuclear program, and he’d say well why shouldn’t he - and he would. So we’re fortunate that he’s gone.

[Croix]

the price of oil today is what it is because of the war on terrorism.

you cant justify something like that

[johnny861]

Sounds a bit out of context...

[Nyteshade]

Actually, we may see a huge drop in gas prices soon. I think the article is a little TOO optimistic but it's worth a read.

Star-Telegram | 09/19/2006 | Big drop in gasoline prices predicted

WASHINGTON - The recent sharp drop in the global price of crude oil could mark the start of a huge sell-off that returns gasoline prices to lows not seen since the late 1990s -- perhaps as low as 1999's $1.15 a gallon.

"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now they appear to be poised for a dramatic plunge, he tells McClatchy Newspapers.

Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 record high close of $78.03 a barrel. Contracts for October delivery of oil settled Monday at $63.80, up 47 cents, on the New York Mercantile Exchange. Oil prices are expected to keep falling in the weeks and months ahead, just as natural gas prices have over the past year. Here's why.

For two years, oil prices rose because the world's oil producers have struggled to keep pace with growing demand, particularly from China and India. Spare oil-production capacity grew so tight that market players feared that any production disruption could create shortages. Fear of disruption focused on fighting in Nigeria, tensions over Iran's nuclear program, the Israel-Lebanon conflict that might engulf oil-producing neighbors, and the prospect of more hurricane destruction in the Gulf of Mexico.

Oil traders bet that such worrisome developments would drive up the future price of oil. Oil is traded in contracts for future delivery, and companies that take physical delivery of oil are just a small part of total trading. Financial players, such as large pension and commodities funds, are the big traders, and they're seeking profits. They've sunk $105 billion or more into oil futures in recent years, according to Verleger. Their bets that oil prices would rise bid up the price.

That led users of oil to create stockpiles as cushions against supply disruptions and higher prices. Now inventories of oil are approaching bloated 1990 levels.

With fear of supply disruptions ebbing, oil prices began sliding. There's already anecdotal evidence of oil companies chartering tankers to store excess oil.

"If we continue to build inventories, and if we have a warm winter like we had last winter, you could see a large fall in the price of oil," said Gary Pokoik, who manages Hedge Ventures Energy in Los Angeles, an energy hedge fund.

Should oil traders fear that this downward price spiral will get worse and run for the exits by selling off their futures contracts, it's not unthinkable that oil prices could return to $15 or less a barrel, at least temporarily, Verleger said. That could mean gasoline prices as low as $1.15 per gallon.

It's already happened with natural gas, which suffered a price meltdown, tumbling from a post-hurricane high of $15.38 per 1,000 cubic feet to Monday's $4.94 price.

[Dionysos]

Originally Posted by Nyteshade

Actually, we may see a huge drop in gas prices soon. I think the article is a little TOO optimistic but it's worth a read.

Star-Telegram | 09/19/2006 | Big drop in gasoline prices predicted

Prices usually drop around this time of year, but they'll rebound eventually when people start cranking up their heaters. I think the article exaggerates too, but it's good to see some of the speculators fleeing the market.

[elNastioBananaHando]

*Inserts Mission Accomplished Banner here*

[johnny861]

well, there goes the drive for alternative fuels...

For a time, It was strangely appealing to overhear rednecks in a bar compare and contrast the different bio-diesel grains they use to fuel their trucks...

[zerojunkie]

What's funny about that? Where did Saddam get his money from again???

[johnny861]

Originally Posted by zerojunkie

What's funny about that? Where did Saddam get his money from again???

60% of the industrialized nations on the planet...

[PETA]

Originally Posted by Croix

the price of oil today is what it is because of the war on terrorism.

you cant justify something like that

Not exactly.

Supply and demand determine prices. Gulf oil production got hit hard after the hurricane but the bigger problem was that world supply remained relatively steady while demand jumped huge in China and India. With more consumers fightiong over the same amount of oil the seller can demand a higher price.

Now, war fucks up markets. It is undeniable that oil purchasers speculate and when they are worried that supply will get cut off ( due to war) there is a rush on purchasing... and.... higher demand with static supply pushes price up.

So, war in general fucks with the cost of oil. Trade functions more smoothly and cheaply in times of peace.