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Oil going even higher?


sundaynfl
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Open civil war in Libya, violence in Egypt yesterday, violence in Arabia today.....

 

Yes, I think its safe to assume that the price of oil is going up.

 

This is going to get worse before it gets better.

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Open civil war in Libya, violence in Egypt yesterday, violence in Arabia today.....

 

Yes, I think its safe to assume that the price of oil is going up.

 

This is going to get worse before it gets better.

 

 

IT WONT BE LONG!!!!!!!!!

 

(someone had to say it)

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If the violence escalates in Saudi Arabia, it will be interseting to see how involved Obama will get. So far it's been hands off in Libya with the exception of a naval presence.

 

Considering how much military hardware that the US sells to Saudi Arabia, as well as a LOT of training for their armed forces, this will not bode well when all the US-based weaponry we sell to them gets used on the populace.

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Considering how much military hardware that the US sells to Saudi Arabia, as well as a LOT of training for their armed forces, this will not bode well when all the US-based weaponry we sell to them gets used on the populace.

 

Better that they use it against the populace than us.. or worse Israel.

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Better that they use it against the populace than us.. or worse Israel.

 

They wont use it against Isreal, or we wouldnt sell it to them.

 

They dont have the capability to use it against us, not what we sell them.

 

But if they royal family (which we actively support, BTW) falls and the US gets blamed for arming and supporting the gubment that goes after civilians, whatever gubmnet comes to take its place might not be as friendly towards the US, especially on oil prices.

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They wont use it against Isreal, or we wouldnt sell it to them.

 

They dont have the capability to use it against us, not what we sell them.

 

But if they royal family (which we actively support, BTW) falls and the US gets blamed for arming and supporting the gubment that goes after civilians, whatever gubmnet comes to take its place might not be as friendly towards the US, especially on oil prices.

 

 

I guess I wasn't clear, I know they wouldn't go after Israel, but Israel has the biggest interest in the regions stability.

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We should just let all this play out. A lot of good could come of all the unrest but if we try to interfere, I can see the whole thing blowing up in our faces.

 

Agreed; Since setting the World record for the largest sheet of glass is out of the question!

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I can't wait to see certain people in power defend the rich with more tax cuts when the poor won't be able to afford gas anymore.

 

Too bad this admin is in bed with the oil industry and will do nothing to help lower oil prices. It sounds like they may be willing to tap the strategic reserves, but I guess they're willing to wait until their fat cat cronies in the oil industry can have a few months of $4 gas.

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Too bad this admin is in bed with the oil industry and will do nothing to help lower oil prices. It sounds like they may be willing to tap the strategic reserves, but I guess they're willing to wait until their fat cat cronies in the oil industry can have a few months of $4 gas.

Are you serious? People like you are usually uniformly opposed to government interference in anything to do with the market, yet you want the government to interfere with market driven gasoline prices? :wacko:

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I've mentioned these points once before in a discussion over oil before.

 

1) Daily oil price changes do not accurately reflect daily gasoline price changes. They are related but it is important to note that gasoline sold today was created with oil bought 3 to 6 months ago.

 

2) American oil companies can affect the oil price slightly but do not have as much influence on the price as foreign producers do. This is evidenced by the effect of organizations like OPEC (~40% of the world's oil supply) can have on the price due to artificial manipulation of supply as well as countries like Libya, who produce roughly 2% of the world's oil, who are experiencing civil unrest, also driving up the price.

 

3) Crude costs are anywhere from 40-70% of the cost of gasoline. You can expect to pay anywhere from 15-30% in taxes (federal, state and even municipal). You pay anywhere from 6-15% to the refinery in both costs and their profit. Finally, you also pay for hauling, pipeline fees and marketing; anywhere from 5 - 13%. Remember that the retailer also needs to take his cut for pump usage, storage fees and profit but this can vary greatly or even be non-existant depending on where you get your gas.

 

4) Gasoline, like oil, is price-location as well as price-grade dependent. WTI (West Texas Intermediate) is a typical benchmark for oil price. What this means is that is the price for a certain grade of oil (sweet intermediate) at a certain location (in West Texas). Any change in grade or location affects the price up or down. What this means to you is that if your state is farther away from a refinery than most, you can expect an uptick in your gas price. And the higher the gas price is, the more it costs to get the gas to you. Self-fulfilling prophecy of sorts. Secondly, if you live in a state that has restrictions on grade and quality of fuels, you can also expect those costs to be passed onto you.

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