Anyone see the USA Today ariticle about the Saudis and oil supply??

Question

It appeared today ( 6/10) on and Saudi Information and Culutral Minister Iyad Mandai is quoted at saying" The kingdom will work to ensure there will be no"unwarranted and unnatural oil price hikes that could affect international economies, especially those of developing countries"....." There is no justification fo the current rise in prices.".....if this is true, then high gas prices must be due to the middle man- the oil companies!!!! What do you think???

Answer 1

It is market speculation that is driving oil prices.  Throw out all of the political banter.  Oil is a globally traded commodity traders in the commodities market in Chicago trade oil futures just like the  futures of a crop.  Traders buy the futures in hopes that the price will go up and they can sell for a profit before the barrel has been drilled.  It is not the oil companies setting the price of oil.  Oil companies are making record profits because they are  the ones drilling the oil.  They are expending the same effort to drill a $130 barrel as they were a $60 barrel.  One thing that is over looked with the record profits being made by the US oil companies is that much of the profit is from international drilling operations.  The oil companies are investigated by grandstanding politicians quite regularly and you hear about the investigations on the news, but you never hear about the results because the oil companies aren't found at fault.  The USA's fuel consumption is going up, but China and India's consumption is growing even faster all the while production hasn't increased, that is why oil prices are rising.  Say we pass a law that says oil can't sell for more that $100 a barrel but China and India are  still willing to pay $150.  The oil will go to China and India and we'll have a full fledged shortage.  aka the late70's.

Answer 2

Supply'n'demand. The oil companies are probably saying "look, if you Americans don't want to pay high prices for our oil, there are lots of places in the world who are happy and willing to pay higher. Its in our best interest, in the name of profits, to ship our gas elsewhere. Pay up, or stop buying - we're a business, not a charity."

Answer 3

I've been wondering for a while now why the price gouging is being allowed?  If there was a shortage would major oil companies be making record profits???  

You would think the presidential candidates would be speaking a little more about what they are going to do about this problem....

Answer 4

Supply and demand is c**p. Did the world start using 2 million barrels of oil a day over night. The answer is no. The fat cats just keep getting richer on the shoulders of the middle class again. The government should step in and stop the speculation that is going on. No one with any ties to the oil industry or the future price should say anything that might make the price of oil change.The next move is a new American revoultion. This time against the oil companies and the  fat cats that continue to give us a s******g.