Rising price of oil

[Kuya]

I've heard two different reasons for why oil prices are rising and i wanted to ask here which you guys have heard. I've heard:

1. Due to the revolutions in the Middle East, oil prices are rising because there is less oil being transported out of the Middle East given the instability in the region.

2. The other one is that the price of oil isn't rising because of a lack of supply but rather because of speculation. The comments and rumours that all the revolutions in the Middle East would cause a rise in price of oil has caused speculators to invest heavily in oil and therefore raising its price. Also given that oil is not or is barely regulated.

Which have you guys heard (or alternatively, what other reasons have you guys heard)?

[kuronosan]

I heard u liek mudkips


Oil prices are rising because companies are greedy assholes who want to exploit the market as much as they can before people realize this shit doesn't cost anything significant.

[dejet]

both, also last weeks spike was said to be linked to the close call shut down. How? no clue but thats what was on the news lol

[Souj]

Oil prices are rising because companies are greedy assholes who want to exploit the market as much as they can before people realize this shit doesn't cost anything significant.

The only answer. Everything else is just an excuse they use.
Except that it will still go on even after people realize that, because people still need oil products and no one else will sell for cheaper when they can keep it the same price or higher.

[Skjie]

Speculation. the Saudis are keeping the oil flowing, but people are still panicked.

[Melena]

I heard both as well. California always gets raped since our clean air regulations require a different blend so that + summer maintenance at our refineries = double fucking. Paid $4.17 this morning.

[Melchiah]

The EPA will not allow any more oil refineries to be built in America, which affects the supply. Remember, it's not just crude oil you're putting into your car. Also, oil speculators know we have to buy oil, and they know we'll pay whatever it costs to be able to drive to work.

[SwampdonkeyPLD]

I heard u liek mudkips


Oil prices are rising because companies are greedy assholes who want to exploit the market as much as they can before people realize this shit doesn't cost anything significant.

So before prices starting rising like this, they weren't greedy assholes. Only in the past couple of months?

I'm going with #1 and b/c of our own lack of drilling.

[Judai]

They were greedy assholes before but they get to use the middle east problems as an excuse to jack up rates even more.

[Correction]

The last reason I heard was that Europe (which gets a good chunk of its oil from North Africa/ME countries) is starting to buy more from sources that normally sell most of their oil to the U.S. to hedge against future instability, which directly causes higher prices to U.S. customers. Made sense to me.

[Fr34k]

I heard both as well. California always gets raped since our clean air regulations require a different blend so that + summer maintenance at our refineries = double fucking. Paid $4.17 this morning.

Hawaii hasn't been under $4.00 in over a month. We're at about $4.35 right now

[Alleya]

I'm going with #1 and b/c of our own lack of drilling.

I always hear this shit and it sounds like a retarded talking point, so I went looking.

Found lots of graphs showing production going down while imports go up, but not a single one of them plotted demand as well. THAT's the graph I'd like to see.

[Melena]

Hawaii hasn't been under $4.00 in over a month. We're at about $4.35 right now

I'm in a cheaper area. SF was pushing 4.30 a week or so ago. Hawaii and Alaska is usually about a nickel more then us at any given time.

[Melena]

So before prices starting rising like this, they weren't greedy assholes. Only in the past couple of months?

I'm going with #1 and b/c of our own lack of drilling.

I've been saying they were greedy bastards since I was unable to fill my gas tank for under ten bucks. I miss my .99 a gallon gas days.

[kuronosan]

So before prices starting rising like this, they weren't greedy assholes. Only in the past couple of months?

I'm going with #1 and b/c of our own lack of drilling.

Okay, I'll bite.

No, prices have been steadily climbing over the years because of one or more of the following reasons:

1) Dependence on foreign oil
2) Greedy assholes
3) People need gas to get to work
4) Greedy assholes know this and have no regulations imposing a price limit on gas
5) Greedy assholes like money, and will use whatever excuse they can to raise the price
6) Democrats and Republicans

Swamp, I love how your clear-cut Republicanisms have blinded you from the pure truth that Capitalism is a flawed system that encourages people to take advantage of everyone else to make a quick buck, regardless of the source. This is something that isn't even limited to oil. You can apply the above formula and substitute gas for anything major lately and you'll see a trend of "let's raise the price and make billions while everyone else suffers and takes it up the ass". Look at the job market. You have corporations blaming lack of spending as the reason the economy is down, yet nobody can spend money because they're either losing jobs or they don't want to buy the shitty product companies are putting out. Yet every day we're practically forced to buy a product we don't want (whether it's tangible, or a political candidate) because we have no alternative.

[Ashmada]

3. "A combination of both, but mostly 2".

Libyan production is IIRC shut down at the moment (but it's a very small portion of global oil production), and of course speculation will happen when major geopolitical events unfold.

Current prices in my area:

Diesel: 1,313 €/liter (7.17$/gallon)
Petrol 95: 1,506 €/l (8.22$/gallon)
Petrol 98: 1,538 €/l (8.4$/gallon)
LPG: 0,599 €/l (3.27$/gallon)

Obviously, more than half (54.75% on 95, IIRC) of that price is tax, so a small rise in the price of oil leads to a big increase at the pump.

[Headspace]

Does it matter?

Can't do shit about it.

[Penthesilea]

Sure you can, take public transportation or a bike or move close enough to your employment to walk.

[Headspace]

Shit man, that sounds pretty easy.

[kuronosan]

Sure you can, take public transportation or a bike or move close enough to your employment to walk.

Wow! If only ALL solutions were this easy!