JayS:
Not likely. Drilling = long term. Yes, itâs part of the solution, but even if Congress would have joined Bush and said âlets start drilling todayâ, which they didnât, new oil is 5 years out. The possibility of some new oil 5 years from now doesnât change the market $11 in 2 days.
The price dropped because our supplies are up (oil, gas and distilates), tension with Iran are down, and with the bleak economic outlook they expect US demand to drop.
That last one has me on edge. All this doomsday stuff came from Freddie/Fannie and IndyMac. Freddie/Fannie had all that trouble because some jackass leaked a government report showing the government was making plans in case Freddie/Fannie went bust. Everyone panicked and read that as âFreddie/Fannie are going to go bustâ, and all the lemmings jumped off the cliff. Now people are realizing that making these plans is what responsible governments do, even when they donât think itâs likely to happen. Freddie and Fannie stock is coming back as the lemmings that survived the fall climb back up the cliff.
IndyMacâs crash was one part getting sucked into the bank panic, and it would appear from the FBI investigation, one part internal fraud.
So if the market really isnât that bad, how long before the speculators jump back into oil when they speculate our demand isnât going to drop that much?
Ok, I was just parroting Mitch McConnell.
JayS
July 17, 2008, 11:20am
822
If it closes under $130, like it is now, I am going to lay down some serious rubber tonight.
JayS
July 17, 2008, 11:42am
824
And there in lies the problem. If gas prices drop, everyone uses more, and prices go back up.
Iâd like to see $3 regular unleaded come back. Itâs still high enough that people bitch and want to cut back, they still worry that if it goes up more they wonât be able to afford it so they buy reasonable vehicles, but it doesnât weigh so heavily on the economy.
JayS:
And there in lies the problem. If gas prices drop, everyone uses more, and prices go back up.
Iâd like to see $3 regular unleaded come back. Itâs still high enough that people bitch and want to cut back, they still worry that if it goes up more they wonât be able to afford it so they buy reasonable vehicles, but it doesnât weigh so heavily on the economy.
shit, you are right. We need to rally the tree huggers to buy more priuses so that can offset the fuel consumed by my hairy burnouts.
Fry
July 17, 2008, 12:20pm
829
Never thought Iâd be happy to see oil in the $120âs. Oh well. Itâll probably end the week at $150.
JEG
July 17, 2008, 12:24pm
830
yeah but what sucks is it could stay in the $120âs for a week and gas prices would still not really change. :tdown:
JayS
July 17, 2008, 12:53pm
832
Anyone want to make a wild ass guess what it does tomorrow?
$125
I hope:cool:
But honestly who knowsâŚ
JayS:
Burnout pics or ban.
I will need a camera man but might be able to pull through on that
Iâll drive a mile if you drive the rest of the way.
Prices are holding fairly steady today :tup:
$128.34 right nowâŚ
oil is going down and silver is staying steady. Win-Win for me.