How can the price of oil shoot up over ';supply worries'; and then a few days later drop because...?

the ';supply worries'; dissipate?





I think all this gas price crap is just some kind of conspiracy...How can the price of oil shoot up over ';supply worries'; and then a few days later drop because...?
It's bul$h*t! the rich get richer and the poor stay poor.How can the price of oil shoot up over ';supply worries'; and then a few days later drop because...?
What they are telling you is a bunch of crap. Oil prices have to do with the value of the dollar. When the dollar is worth less, it takes more of those dollars to buy a gallon of gas. Thanks to our wonderful government and federal reserve, the dollar is almost done for, resulting in high gas prices. The reason the dollar has lost so much value is that whenever the government needs money, the government prints money out of thin air(Legal counterfeiting). Remember, our money is not backed by anything except our trust. The reason gas has wnt up in price so much these last few months is the release of the Economic stimulus plan. In order for our government to give us that money, they had to print it out of thin air. This resulted in inflation, thus raising gas prices. There is only one way to fix this. We have to abolish the federal reserve and put our currency back on the gold standard and have out money backed by gold and silver.
You'd be wrong, though. How, again, would it be a consipracy? The price of oil dropped 8 bucks because the dollar got stronger (that means that inflation worries are dropping as well). The price also had a lot to do with speculators that would jump on the price of oil, this caused it to rise, so many others got on board for the trip. When they realized inflation worries are softening, they probably sold their oil stock; prices go down. It's more inflation then it is supply worries.
There are many 'excuses' of why gas prices go up. Mostly it's just how people feel, like you said, it's supply 'worries', not actual reduction of supply, but perceived lack of supply. It happens on wall street all the time, prices go up and down on how people feel about something, a lack of confidence or some other BS excuse.
It is called greed.


On the part of the producers and those who speculate on the futures.


Conspiracy implies a hidden agenda.. they don't hide their greed, therefore no conspiracy.





But I get your point and I agree in principle.


Edit: You might be interested in knowing that two of the largest companies up here have been convicted of price fixing in one province. It will be interesting to see if any other government has the guts to stand up to them elsewhere.
The price of crude is due to:





1. Unregulated speculation in the US markets. The so-called ';Enron Loophole'; is responsible for this. It accounts for about 20% of the current prices.





2. The low value of the dollar. Crude is priced in US dollars on the global markets and the sellers need more dollars to maintain same revenue stream in their own currency. This accounts for about 80% of the current price fluctuations. This is simple Economics 101.





There are no shortages, just lots of hideously rich speculators.
Not more conspiracy! Anytime anything threatens the good of the people the stock market rises in this case raising the price of oil. When the bad time passes it gets lowered. It's not conspiracy but high rollers playing the stock market who knows what they are doing and getting rich off of it while we suffer.
There is a loophole being exploited by speculators, to drive up the price by bidding it up with no capital to back it up. It's a completely artificial market and has nothing to do with supply %26amp; demand. The loophole needs to be closed and oil will go back to about $65 a barrel.
what was your question?? haha...girls in bikinis asking serious questions totally short circuit this guys brain waves...lol





It's a crazy market out there right now is all I can say...like when talk of bombing irans nuke bomb labs surfaces in the media suddenly the supply worries raise their head...it's a very crazy unstable market
They are worried that supply may be interrupted by some sort of political event, like an attack on Iran by Israel, or attacks on oil infrastructure by Nigerian militants.
You are betting on oil futures. The price you are seeing is the price weeks and months in advance. I assure you there is no conspiracy.
It's normal speculation. Bad news causes the price to increase no news or good news cause it to decrease.
I agree, and I will bet you the price keeps dropping all the way to election day in November, because Big Oil doesn't want it to become an issue.
Read up on ''tulip mania'' Happened in Holland many years back One tulip bulb cost on average a years wages
It is odd that reserves have never been higher!