The Official Gas Price Discussion Thread
I need to steal me an oil pump in the middle east
03-07-2011, 10:40 AM
#765
Moderator
iTrader: (3)
$3.69 for 93 here.
03-07-2011, 11:07 AM
#766
Moderator
Regional Coordinator (Southeast)
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03-07-2011, 11:18 AM
#769
Moderator
iTrader: (3)
03-07-2011, 01:59 PM
#772
The sizzle in the Steak
So you think $105/ barrel of oil is crazy....how bout $200 / barrel
Saudi Arabia's `Day of Rage' Lures Record Bets on $200 Oil
http://www.bloomberg.com/news/2011-0...rt-of-day.html
A potential for this to get very, very ugly.
To the point where we will all wish for $5/gal gas.
Options traders are betting more than ever that crude oil is heading to $200 a barrel as some websites call for a “Day of Rage” in Saudi Arabia and anti- government protests spread in the Middle East and North Africa.
The CHART OF THE DAY shows open interest, or the number of outstanding contracts, for “call” options to buy New York crude for June delivery at $200 a barrel. The number has escalated, along with crude futures, to the highest since the options started trading in July 2009 amid worsening civil unrest in Libya and rare demonstrations in Saudi Arabia.
“If you look at the volatility and increase in money for call options in the last month or so, it does suggest that market participants are now more worried about the upside,” said Yingxi Yu, a Singapore-based commodity analyst with Barclays Plc. “People are also quite concerned about protests spreading across different parts of the region.”
Saudi Arabia produced 9.71 million barrels a day in 2009, one-third of OPEC output and almost six times as much as Libya, according to BP Plc’s Statistical Review of World Energy. Websites have called for a nationwide “Day of Rage” on March 11 and March 20, Human Rights Watch said Feb 28. Protests in five of the kingdom’s eight immediate neighbors have prompted King Abdullah to boost spending on housing, social welfare and education to curb unrest in his country.
“The price of oil is going to go up, whether you like it to or don’t,” said Juerg Kiener, chief investment officer at Swiss Asia Capital Ltd. in Singapore. “If Saudi Arabia fails, then I say you have a fire in the house. They gave out $30 billion of money so maybe they’ll buy time. But I don’t see the problems disappearing.”
Call options grant the holder the right, but not the obligation, to buy a security at an agreed price before a set date. The $200 June New York crude options expire May 17. Oil rose to $106.45 a barrel today, the highest intraday price since Sept. 29, 2008
The CHART OF THE DAY shows open interest, or the number of outstanding contracts, for “call” options to buy New York crude for June delivery at $200 a barrel. The number has escalated, along with crude futures, to the highest since the options started trading in July 2009 amid worsening civil unrest in Libya and rare demonstrations in Saudi Arabia.
“If you look at the volatility and increase in money for call options in the last month or so, it does suggest that market participants are now more worried about the upside,” said Yingxi Yu, a Singapore-based commodity analyst with Barclays Plc. “People are also quite concerned about protests spreading across different parts of the region.”
Saudi Arabia produced 9.71 million barrels a day in 2009, one-third of OPEC output and almost six times as much as Libya, according to BP Plc’s Statistical Review of World Energy. Websites have called for a nationwide “Day of Rage” on March 11 and March 20, Human Rights Watch said Feb 28. Protests in five of the kingdom’s eight immediate neighbors have prompted King Abdullah to boost spending on housing, social welfare and education to curb unrest in his country.
“The price of oil is going to go up, whether you like it to or don’t,” said Juerg Kiener, chief investment officer at Swiss Asia Capital Ltd. in Singapore. “If Saudi Arabia fails, then I say you have a fire in the house. They gave out $30 billion of money so maybe they’ll buy time. But I don’t see the problems disappearing.”
Call options grant the holder the right, but not the obligation, to buy a security at an agreed price before a set date. The $200 June New York crude options expire May 17. Oil rose to $106.45 a barrel today, the highest intraday price since Sept. 29, 2008
A potential for this to get very, very ugly.
To the point where we will all wish for $5/gal gas.
03-07-2011, 02:49 PM
#773
All About Trance
Oil Crisis of 1973 redeux?
03-07-2011, 03:06 PM
#775
Evil Mazda Driver
$200 a barrel would equal $6.50 - $7.50 a gallon. That would absolutely destroy the economy and (I think) would send us back into another recession.
Edit: For me, $7 a gallon would be around $90 if I filled at 1/4 tank like usual. However, if I let it run down to the light, it would cost $105. Guess I'll be pulling the bicycle out again.
Edit: For me, $7 a gallon would be around $90 if I filled at 1/4 tank like usual. However, if I let it run down to the light, it would cost $105. Guess I'll be pulling the bicycle out again.
Last edited by PortlandRL; 03-07-2011 at 03:11 PM.
03-07-2011, 03:29 PM
#776
The sizzle in the Steak
One would wish the impact would be that small.
This would be the worst possible scenario.
More than likely the price at the pump would translate to higher...perhaps $10/gal.
The bigger issue would be if the oil price went to $200/ barrel, perhaps the entire global economy would collapse.
Which depending on outcomes would lead to WWIII.
When the worldwide economy hits the wall, with oil prices through the roof, and perhaps oil in limited supply it will effect EVERYTHING....can you imagine the price of food?!?!?
Massive hyper-inflation in large parts of the world....chaos, riots, anarchy....wars.
All the people who were cheering for so called "democracy" in the middle east with Tunisia, Egypt, Libya....etc.....need their heads examined.
This would be the worst possible scenario.
$200 a barrel would equal $6.50 - $7.50 a gallon. That would absolutely destroy the economy and (I think) would send us back into another recession.
Edit: For me, $7 a gallon would be around $90 if I filled at 1/4 tank like usual. However, if I let it run down to the light, it would cost $105. Guess I'll be pulling the bicycle out again.
Edit: For me, $7 a gallon would be around $90 if I filled at 1/4 tank like usual. However, if I let it run down to the light, it would cost $105. Guess I'll be pulling the bicycle out again.
The bigger issue would be if the oil price went to $200/ barrel, perhaps the entire global economy would collapse.
Which depending on outcomes would lead to WWIII.
When the worldwide economy hits the wall, with oil prices through the roof, and perhaps oil in limited supply it will effect EVERYTHING....can you imagine the price of food?!?!?
Massive hyper-inflation in large parts of the world....chaos, riots, anarchy....wars.
All the people who were cheering for so called "democracy" in the middle east with Tunisia, Egypt, Libya....etc.....need their heads examined.
03-07-2011, 03:39 PM
#777
Fahrvergnügen'd
Perhaps if it got that bad, the world governments would get together and end oil speculation and just tie it to actual supply v. demand.
Because $200/bl oil has no correlation to actual supply.
Because $200/bl oil has no correlation to actual supply.
03-07-2011, 03:47 PM
#778
The sizzle in the Steak
Well, it would correlate to supply if radicals took control of a country say Saudi Arabia, and oil production slowed/stopped.
03-07-2011, 04:05 PM
#779
God damn. Right when I was about to sell my car too...
03-07-2011, 04:37 PM
#781
The sizzle in the Steak
Libya is #18 on the list of world oil producers....they go into unrest/revolution mode and the price of oil as we have seen "skyrockets".
That's when #18 goes into slow-down/uncertainty production mode.
Saudi Arabia is #2 on the list of world oil producers.
Can you imagine what would happen if Saudi Arabia went the way of Libya....
It's 12% is a MASSIVE number.
03-07-2011, 04:45 PM
#782
Fahrvergnügen'd
Saudi's are beginning to pay out like crazy NOW...as in recent days, to help avoid the protests and potential revolution.
Libya is #18 on the list of world oil producers....they go into unrest/revolution mode and the price of oil as we have seen "skyrockets".
That's when #18 goes into slow-down/uncertainty production mode.
Saudi Arabia is #2 on the list of world oil producers.
Can you imagine what would happen if Saudi Arabia went the way of Libya....
It's 12% is a MASSIVE number.
Libya is #18 on the list of world oil producers....they go into unrest/revolution mode and the price of oil as we have seen "skyrockets".
That's when #18 goes into slow-down/uncertainty production mode.
Saudi Arabia is #2 on the list of world oil producers.
Can you imagine what would happen if Saudi Arabia went the way of Libya....
It's 12% is a MASSIVE number.
We allow this shit to go on because ... why?
03-07-2011, 05:01 PM
#783
What is the point of speculators anyway? Clearly they get paid enough to the point where they don't give a crap about gas going up by a dollar or more a gallon, but really, what are they there for?
03-07-2011, 05:35 PM
#784
The sizzle in the Steak
Well here's my issue ... I don't disagree with you but we're not talking about actual oil shortages like the OPEC bullshit in the 70s. We're talking about douchebags behind computer terminals monkeying with the price of oil simply because they can.
We allow this shit to go on because ... why?
We allow this shit to go on because ... why?
Makes sense to me
A cut in the supply under revolution is a strong possibility.
03-07-2011, 05:50 PM
#785
Fahrvergnügen'd
I'm just saying I think it's bullshit.
03-07-2011, 05:53 PM
#786
The sizzle in the Steak
Well here's my issue ... I don't disagree with you but we're not talking about actual oil shortages like the OPEC bullshit in the 70s. We're talking about douchebags behind computer terminals monkeying with the price of oil simply because they can.
We allow this shit to go on because ... why?
We allow this shit to go on because ... why?
If you stop speculation in the U.S., then traders will trade in other exchange markets...London and the like.
If you stop speculation world wide, traders will more than likely find each other and trade. Without an open market, one would not no the true worth of a barrel of oil, and prices could get crazy out of control. Prices would take huge swings because nobody would know the value of oil at any given moment in time.
03-07-2011, 05:56 PM
#787
Fahrvergnügen'd
You guys both realize that they get it wrong from time to time to....and they take it in the shorts....see summer of 2008, and the following late summer into fall-winter crash in the price of oil. Those who speculated at the top got hammered........extremely hard as the price of oil tumbled as the economy crashed.
If you stop speculation in the U.S., then traders will trade in other exchange markets...London and the like.
If you stop speculation world wide, traders will more than likely find each other and trade. Without an open market, one would not no the true worth of a barrel of oil, and prices could get crazy out of control. Prices would take huge swings because nobody would know the value of oil at any given moment in time.
If you stop speculation in the U.S., then traders will trade in other exchange markets...London and the like.
If you stop speculation world wide, traders will more than likely find each other and trade. Without an open market, one would not no the true worth of a barrel of oil, and prices could get crazy out of control. Prices would take huge swings because nobody would know the value of oil at any given moment in time.
03-07-2011, 05:56 PM
#788
The sizzle in the Steak
"The China Man is not the issue!"
Seriously now.....I want Unicorns and rainbows too.
Point is reality and commodity trading is there for a reason.
Sure, perhaps speculators could be forced to put up more money on their calls, but in the end, the speculation will remain, and to an extent is needed.
03-07-2011, 05:56 PM
#789
The sizzle in the Steak
03-07-2011, 07:21 PM
#792
Fahrvergnügen'd
If gas gets that expensive, I'm not driving anywhere except to the store for groceries. I'll have to start doing chat porn with Russian chicks because it'll be cheaper than driving somewhere to meet a chick on a date
you know the shit storm that would occur when people panic when they see that? Even if it was something that only existed in a photochop, people would freak. 
03-08-2011, 06:27 AM
#796
Bent = #1
03-08-2011, 11:36 AM
#798
Registered but harmless
Join Date: Aug 2005
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Age: 59
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This morning, I paid $4 per gallon for premium at a 76 station in mid-Los Angeles. 
The Mobil & Chevron stations on the other corners were charging $4.16 per gallon for premium.
The Mobil & Chevron stations on the other corners were charging $4.16 per gallon for premium.
