Soooo.... $10/gal gas anyone?

MADRID (Reuters) - OPEC could not replace lost Iranian output should Tehran carry out its threat to stop oil exports if attacked, OPEC President Chakib Khelil said on Tuesday.

"It's obvious that if you curtail 4 million barrels per day (bpd) from the market, you are going to have a big problem. I don't see who can replace that, including OPEC," Khelil told a news conference in Madrid.

Khelil said the perceived threat of conflict had helped to drive oil prices higher, although he said the main reason for crude near $143 a barrel was the weakness of the U.S. dollar.

"Unless we address those causes we're not going to see low oil prices ... We need to do something about geopolitics. We need to do something about the dollar," Khelil, who is also Algeria's oil minister, said.

Fears that Iran, OPEC's second largest producer and the world's fourth biggest producer, could retaliate by disrupting oil exports if attacked by Israel or the United States over its nuclear program have weighed on the oil market for months.

The depreciation of the U.S. dollar was another big factor, Khelil said, adding that its impact on the oil price was even greater.

Oil, like most commodities, is priced in dollars and most commodity prices have rallied to make up for the drop in the value of the currency used to price them.

The dollar has fallen sharply against the euro and a basket of currencies as the U.S. Federal Reserve has slashed interest rates this year to shore up the financial system and the wider economy from a credit crunch triggered by crisis involving sub-prime mortgages.

Khelil said oil prices would probably rise again if the European Central Bank raised interest rates on Thursday because the euro would strengthen against the U.S. Continued...

http://uk.reuters.com/article/businessIndustry/idUKWLA572420080702

Soooo.... $10/gal gas anyone?

MADRID (Reuters) - OPEC could not replace lost Iranian output should Tehran carry out its threat to stop oil exports if attacked, OPEC President Chakib Khelil said on Tuesday.

"It's obvious that if you curtail 4 million barrels per day (bpd) from the market, you are going to have a big problem. I don't see who can replace that, including OPEC," Khelil told a news conference in Madrid.

Khelil said the perceived threat of conflict had helped to drive oil prices higher, although he said the main reason for crude near $143 a barrel was the weakness of the U.S. dollar.

"Unless we address those causes we're not going to see low oil prices ... We need to do something about geopolitics. We need to do something about the dollar," Khelil, who is also Algeria's oil minister, said.

Fears that Iran, OPEC's second largest producer and the world's fourth biggest producer, could retaliate by disrupting oil exports if attacked by Israel or the United States over its nuclear program have weighed on the oil market for months.

The depreciation of the U.S. dollar was another big factor, Khelil said, adding that its impact on the oil price was even greater.

Oil, like most commodities, is priced in dollars and most commodity prices have rallied to make up for the drop in the value of the currency used to price them.

The dollar has fallen sharply against the euro and a basket of currencies as the U.S. Federal Reserve has slashed interest rates this year to shore up the financial system and the wider economy from a credit crunch triggered by crisis involving sub-prime mortgages.

Khelil said oil prices would probably rise again if the European Central Bank raised interest rates on Thursday because the euro would strengthen against the U.S. Continued...

http://uk.reuters.com/article/businessIndustry/idUKWLA572420080702


I am getting sick of Iran...Let's just take them over thru force, make them the 51st state, secure an instant domestic oil supply (in someone else's backyard) and stabilize the Iran/Israel tensions at the same time. Problem solved. Maybe Bush can pull this off prior to leaving.:biglaugh:

And you can't just bomb the nuke facilities either...you have to dismantle their ability to impede oil traffic in the gulf.

Not to worry.

Barack Obama will make nice to Iran and they will end their hatreds,

dismantle the Shahab 3s and shut down their nuclear centrifuges. :rolleyes:

All will be well.

Unless of course he "changes" his mind.

Let's just take them over thru force

WORKING GREAT IN IRAQ!
MISSION ACCOMPLISHED!

...you have to dismantle their ability to impede oil traffic in the gulf.

Complicated for sure with mining of shipping lanes.

Maybe Bush can pull this off prior to leaving.:biglaugh:

I don't know...thats a tad more complicated than looking to see which shoe says "L" and which shoe says "R"

I don't know...thats a tad more complicated than looking to see which shoe says "L" and which shoe says "R"

:lama::rotf3:

natural gas and electric is going up 20% in RI as of yesterday.. aaarrrrg/ :(

you know even if US companies got complete control of a lot of those oil fields in the middle east or drilled up a bunch offshore and in ANWR, all the oil still goes into the global market for trade, so it's not like it would be directly beneficial to us as consumers, it would A LOT more beneficial to anyone who holds stock in oil companies though
the US would have to get to a point where ALL it's oil came from it's own resources so we could break away from the foreign market.
That would take more than just a few wars I imagine.

Everyone calm down. Obama will save us. Hope and Change go a long way with oil speculators and arabs.:hihi:

Everyone calm down. Obama will save us. Hope and Change go a long way with oil speculators and arabs.:hihi:

good point... everything is going so well now, why would anyone want change????;)

you know even if US companies got complete control of a lot of those oil fields in the middle east or drilled up a bunch offshore and in ANWAR, all the oil still goes into the global market for trade, so it's not like it would be directly beneficial to us as consumers, it would A LOT more beneficial to anyone who holds stock in oil companies though
the US would have to get to a point where ALL it's oil came from it's own resources so we could break away from the foreign market.
That would take more than just a few wars I imagine.

That's why many countries with large reserves have been nationalizing their resources.

-spence

good point... everything is going so well now, why would anyone want change????;)

Zac is getting political....uh oh :splat:

hmmm interesting, you mean not putting their oil into the market? ohh nevermind, you mean like Venezuela? Unfortunately, even in the US did have the reserves I think it's a lost cause.

This is what happens when I don't fish for a month.....http://img40.imageshack.us/img40/3444/crazy1no.gif

I normally try to stay out of this stuff... and I am not an Obama supporter.

But what option do we have at this point? Who can support another 4 years of policy that even closely resembles what we have been going through for the past 8????

You think the economy is bad now - wait until people have to deal with heating bills this winter.

This is what happens when I don't fish for a month.....http://img40.imageshack.us/img40/3444/crazy1no.gif

I normally try to stay out of this stuff... and I am not an Obama supporter.

But what option do we have at this point? Who can support another 4 years of policy that even closely resembles what we have been going through for the past 8????

I have too much respect for you to see you get pulled into this......:spin:

You think the economy is bad now - wait until people have to deal with heating bills this winter.



You are right... I think many can tough out the gas for the family car during the summer but heat in the winter is a must. A lot of families in up state NY, and through out Northern NE will freeze to death this year as burring $5+ oil is not an option for most. You will see make shift wood burning stoves light many a house on fire and people will indeed die.
They got what they wanted...high prices, panic and despair around the election. Congrats.

They got what they wanted...high prices, panic and despair around the election. Congrats.

Thank the speculators who keep driving it up out of greed.
Mostly wall street types in our own country.

They got what they wanted...high prices, panic and despair around the election. Congrats.
Who's "they"...unless you mean...

THE LIBERALS? :deer:

I'm assuming you voted last election for President Bush? The ticket who claimed a vote for John Kerry would bring another terrorist attack? No panic and despair there, no sir eee bob.

Imagine if you will a US Government controlled only by the fair minded, tough handed and fiscally responsible Republican party...oh, I guess we had that for 4 years. In return we got bigger government, perhaps an unwinable war, trillions more in National debt and on and on.

-spence

I'm not on the side of attacking Iran, however... They do not have the ability to stop the flow of oil in that region. It would be suicide to try. We would crush them. And have a reason to do it. They are rattiling sabers and that just might get them a slap. Not to smart if you ask me. Iran is a threat to stability in the area.

We would crush them.

You mean like we did in Iraq?

MISSION ACCOMPLISHED!

They do not have the ability to stop the flow of oil in that region.
They don't need to stop the flow of oil. Simply a good disruption would make 140 bucks a barrel seem cheap.

Iran wouldn't come out in the open and attack, they'd do it by proxy and covertly just like they've been fighting us in Palestine.

At the same time they'd be clammoring for peace in public, and doing everything to obfuscate their real behavior. This would give just enough pause to make the decision to attack Iran a lot more complicated.

-spence

I know what your saying Spence. Hopefully there are people in charge at the time who will do what has to be done and not fall for Irans BS.

And by the way likwid, we did oust Saddam and his army in the blink of an eye. I'm pretty sure even Bush new it would take a long time before the whole thing would be over. You just hear what you want to hear. If it's anti American and anti Bush you jump right on the band wagon.

Sorry. I posted that under my son's name.

I'm pretty sure even Bush new it would take a long time before the whole thing would be over.
B.S.

My good friend (A republican) and I talked about this last night.
His take:
Either A. they lied to us about why we went in to Iraq.
or B. They were wrong and wont admit it.

He couldnt decide which was worse.

Iran scares the crap out of me. If we go in there it will be an even worse situation than Iraq. Meanwhile Afghanistan, where we probably should be in full force, is sliding further downhill...

I think the administration thought that by now U.S. oil companies would be in control of Iraqi oil reserves and the spigot would be wide open to meet global demand.

Play back the speaches Bush gave after 9/11 and leading up to war. Play back what he said after Suddam was ousted. He made it very clear that this would be a long haul. I recall things a little different then you guys. We all wondered if America had the stomach for a war that would last years and years. I guess we know the answer to that. Glad this generation wasn't in charge during World War I and II.

You might want to check the start and stop dates for the two world wars.

oh man, don't know why I am getting involved but:
the funny thing is Bush DID say that the war on terrorism would be a long-haul, but if we were really that concerned about terrorism, why aren't we more invovled with Afghanistan? why can we pull Saddam out of a goddam hole in the ground, but we can't find Bin Laden?
it's all very interesting to me.

You might want to check the start and stop dates for the two world wars.

ya good point, we've already exceeded WWII with Iraq

Buckman;
War on terror = Long Haul
War in Iraq = 'Mission Accomplished?'

If we end up with cheaper oil from Iraq, the war looks a lot better.

so true, you know, if that were to happen miraculously in the next few months and Bush said "just kidding about terrorism, it was about the oil control all along and now the world is better because oil is cheaper"
I would be a lot happier too, you know I could care less if Bush and his cronies make all the money, as long as it makes things cheaper for us!

The oil wont be much cheaper even when it starts flowing out Iraq. Relatively inelastic demand and a weak dollar will ensure a gallon of gas stays well above 3.50 for the short term. Once they raise interests rates on the Euro, were going to see another run up in price on a barrel of oil. Does not look like there will be much in way of relief anytime soon.

I'm not just talking time, and you know it. We are still in Korea,Vietnam,and Germany. We are involved in Afghanistan, heavily involved, maybe you experts can tell me the amount of involvment you are looking for. What's so interesting about Bin Laden not being caught yet. That idiot Bush pulling off another con lke 9/11?

We are still in Korea,Vietnam,and Germany.

And none of those places have the JAM blowing people up for the hell of it.

I'm not just talking time, and you know it. We are still in Korea,Vietnam,and Germany. We are involved in Afghanistan, heavily involved, maybe you experts can tell me the amount of involvment you are looking for. What's so interesting about Bin Laden not being caught yet. That idiot Bush pulling off another con lke 9/11?
I don't think anyone, including Barak Obama, has any issue with the USA being heavily involved in the Middle East to protect our interests over the long haul and assert ourselves.

But to claim Bush made is clear to the American people that Iraq would be a long drawn out event is really intellectually dishonest. They made is painfully clear that this was a pretty straightforward mission which wasn't going to cost all that much. That the Iraqi people were basically just waiting for us to remove Saddam so they could get on with being our friends...

When the lack of planning started to be obvious, they kept clear from pragmatic policy in favor of election rhetoric, insisting we "stay the course" and steadfastly refusing to confront reality with reason.

Bush put the survival of the GOP ahead of our troops and their mission. History will not be kind to GWB.

-spence

ok, there are 32,000 troops in Afghanistan compared with about 150,000 in Iraq, I would say that's not as heavily involved

You might want to check the start and stop dates for the two world wars.

ha! nice one Joe.

The folks in the whitehouse now are simply lobbyists who were voted in.. they are wolves in sheeps clothing. If you look at what they have done these past few years you will see that they have systematicly dismantled anything that was hindering coerperate profits for the good of the people- they loosened refinery restrictions so the oil companies could make more money, they loosened restrictions on logging, what ever they could do to help corperations make more money was the highest priority- the war in Iraq- im not even going there..
Sure, they pander to the christian base and talk the talk, but in the end, none of them give two craps about you or me or any one.