[Newsbot]

Title: Is $100 oil coming soon?
Category: Business
Posted By: kitty
Date: 2009-05-25 04:16:13
Canadian

[stemmer]

I hope not. I heard on economist on the tv claim it really was the high price of oil that destroyed the global economy....

[ShepherdsDog]

It kept the oilsands profitable and busy.

[romanP]

It was unregulated banks that caused the economic crash. The banks had been furiously lending money to each other two years ago to try to prevent this from happening, but it was all for naught because you can't solve a problem with the same action that created it (ie lending money to solve a borrowing problem).

As for expensive oil, bring it on. We're Canadians, we can deal with it.

[Lemmy]

It's more complex than that. Many things caused the current economic crisis. If you want to boil it down to one BROAD thing, it's a pervasive culture of corporate entitlement across MANY industries, not just banking. It takes a "perfect storm" to do what we've done to our economy.

[Wally_Sconce]

If $100 oil is good for jobs, I am all for it,

[saturn_656]

It isn't good for my wallet...

[dino_bobba_renno]

stemmer stemmer:

I hope not. I heard on economist on the tv claim it really was the high price of oil that destroyed the global economy....

Well yes and no, ya oil at $150 wasn't the best thing for the economy but it wasn't just oil that was hyper inflated, it was everything. Steel, potash, coal, ... I would say gold but I wasn't keeping an eye on that so I'm not 100% sure about that but basically everything went through the roof. It was more to do with the investment end though than the actually companies involved in commodities. Futures and derivatives mainly.

One thing about though, you can bet you ass you haven't seen the last of the all mighty $100 barrel. When things recover you may even see it spike into the $200's if the regulators don't don't get their acts together.

[Schnek]

$1:

If $100 oil is good for jobs, I am all for it,

See that's the problem, were all for throwing our money at the problem to create jobs, but were sacrificing our monies to exacerbate a larger problem. We should not be forking our money over for ridiculous gas prices that break our banks while the oil companies sit and watch instead of smart, future investments and watch their wallets grow. Supply and Demand only works when there is responsibility in controlling the supply

[Lemmy]

That's because every commodity gets delievered on a truck. Gasoline is a cost. But what's more bothersome is the at-the-pump inflation, not the market inflation. When it was $130/br and we were payin' $1.30 a litre, that wasn't bothersome. But when we're being raped for $0.95/l when oil's at $55/br, then we have a clear case of conspiracy and collusion.

[dino_bobba_renno]

Lemmy Lemmy:

That's because every commodity gets delievered on a truck. Gasoline is an cost. But what's more bothersome is the at-the-pump inflation, not the market inflation. When it was $130/br and we were payin' $1.30 a litre, that wasn't bothersome. But when we're being raped for $0.95/l when oil's at $55/br, then we have a clear case of conspiracy and collusion.

Ummm, again ya but is really a conspiracy for a company to make as much as they can off the products they sell? I would say it morally wrong but that's the funny thing about business, there aren't to many morals that come between companies and profits.

Until there is a law stating that so and so can't charge xx amount for the products they sell it's just one of down sides of a capitalistic society.

Just be greatful water isn't in big demand. At least you can choose not to drive.

[Lemmy]

dino_bobba_renno dino_bobba_renno:

Ummm, again ya but is really a conspiracy for a company to make as much as they can off the products they sell? I would say it morally wrong but that's the funny thing about business, there aren't to many morals that come between companies and profits.

When multiple producers collude and fix prices, that is criminal, not amoral.

dino_bobba-renno dino_bobba-renno:

Until there is a law stating that so and so can't charge xx amount for the products they sell it's just one of down sides of a capitalistic society. Just be greatful water isn't in big demand. At least you can choose not to drive.

Competition laws are an ESSENTIAL element of an effective capitalistic market. That's not price control.

[dino_bobba_renno]

Lemmy Lemmy:

When multiple producers collude and fix prices, that is criminal, not amoral.

Competition laws are an ESSENTIAL element of an effective capitalistic market. That's not price control.

Well first off let me tell you that I'm not a big fan of higher than justified gas prices than the next guy even though I work in the patch. Ya sure I want to see a healthy price for oil (ie $80 to $100 a barrel) but I wouldn't go as far as to say that producers aren't getting their fair share.

If there are anti-trust laws on the books and a government bodies to oversee the implementation of those laws and the oil companies are still in your mind ripping people off then where do you think the real problem lies? You can get mad at the oil companies all you want but they'll just laugh and continue on. The real problem is with the regulations and their implementation or lack there of.

One thing I find funny though is just about everyone who companies about the price of gas has no problem going out and buying a 1/2 liter of water for 2 bucks. Over in Europe it's not uncommon to see fuel at twice the rate it's going for here. If anything fuel in North America has been under priced for quite some time.

[Lemmy]

dino_bobba_renno dino_bobba_renno:

If there are anti-trust laws on the books and a government bodies to oversee the implementation of those laws and the oil companies are still in your mind ripping people off then where do you think the real problem lies? You can get mad at the oil companies all you want but they'll just laugh and continue on. The real problem is with the regulations and their implementation or lack there of.

The problem is with the sense of corporate entitlement that the oil companies have. The problem is with their utter lack of any corportate good-citizenship. The very fact that they CAN continue to break laws and laugh at consumers is the issue.

dino_bobba_renno dino_bobba_renno:

One thing I find funny though is just about everyone who companies about the price of gas has no problem going out and buying a 1/2 liter of water for 2 bucks. Over in Europe it's not uncommon to see fuel at twice the rate it's going for here. If anything fuel in North America has been under priced for quite some time.

Apples and oranges. A litre of woodstain costs $15. The price at the pumps should be in a straight line with the price of crude. Oil at $50/br = $0.50/l, oil at $100/br = $1.00/l, oil at $150/br = $1.50/l. Anything else is collusion.

[commanderkai]

Lemmy Lemmy:

Apples and oranges. A litre of woodstain costs $15. The price at the pumps should be in a straight line with the price of crude. Oil at $50/br = $0.50/l, oil at $100/br = $1.00/l, oil at $150/br = $1.50/l. Anything else is collusion.

Now, not denying that refineries need to be built, and the existing ones need to be upgraded...but isn't that kind of a jump to say it needs to be a straight line? There are so many factors to consider, like delivery costs, taxes, and other variables that are added to the price?