Crude Oil Prices: Reasonable or Ridiculous?
Post 1 of 45
Is the price of Crude Oil going crazy? Many experts expect the price to reach US$100 per barrel before the end of 2007. This could have a dramatic impact on the lives of billions of people worldwide.
How do you think this will affect you and your business? Do you think the rising prices will leave a big hole in your pocket or are we panicking for no good reason? Is the price reasonable or ridiculous?
27 Nov 2007 18:42
Post 2 of 45
Replying to [Admin]:the first problem ,the price of ocean charge will go up ,customer from abroad would pay more money ,But it will affect our benefit,because of save cost and keep good sell,customer would bargain more with supplier.
30 Nov 2007 00:42
Post 3 of 45
Replying to [Admin]:
Price based on the theory of Supply and Demand.
According to surveys, the estimated original recoverable oil in the earth as 2,330 billion barrels. A recent study by Colin Campbell indicates that 90% has been discovered and 50% has been produced.
The world consumes 4 barrels of its reserves for every new barrel discovered. That means the consumption is 22 Gb/year to only 6 Gb being discovered, which leads to the current depletion of 2.2% per year. The gap is moving from surplus reserves to deficit, in 2050. The survey was taken in 1999, which did not include China and India to be the upcoming oil consumer. Adding these two countries, the date for the last drop of oil coming out of the well could be even shorter.
Other factors are not taken into consideration for the survey; factors such as oil spills, wars and natural disasters such as earthquakes and plates movements.
In short, we are running out of the Black Gold, that once was abundant, and the time is hastening. This is the main cause of the rising crude oil price. However, some psychological, political and greed may cause the price to shoot off its peak, instead of a gradual rise.
Street Smart
Price based on the theory of Supply and Demand.
According to surveys, the estimated original recoverable oil in the earth as 2,330 billion barrels. A recent study by Colin Campbell indicates that 90% has been discovered and 50% has been produced.
The world consumes 4 barrels of its reserves for every new barrel discovered. That means the consumption is 22 Gb/year to only 6 Gb being discovered, which leads to the current depletion of 2.2% per year. The gap is moving from surplus reserves to deficit, in 2050. The survey was taken in 1999, which did not include China and India to be the upcoming oil consumer. Adding these two countries, the date for the last drop of oil coming out of the well could be even shorter.
Other factors are not taken into consideration for the survey; factors such as oil spills, wars and natural disasters such as earthquakes and plates movements.
In short, we are running out of the Black Gold, that once was abundant, and the time is hastening. This is the main cause of the rising crude oil price. However, some psychological, political and greed may cause the price to shoot off its peak, instead of a gradual rise.
Street Smart
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30 Nov 2007 23:59
Post 4 of 45
Replying to [Street Smart]:Dear SS, Once again thank you for the gr8 insight about the topic.
There are several factors affecting the hike, but what will be the next move of OPEC.
There are several factors affecting the hike, but what will be the next move of OPEC.
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01 Dec 2007 01:25
Post 5 of 45
Replying to [Admin]: There should be Some evil guys of the industry or government are hidened to dominat the prices of Crude Oil, waving and stealing surplus profit among the market uncertainties I suppose.. However my opinion is that, both the government and community should be worried about the consumers worldwide, being relatively harmonious to share each day on the globe.
01 Dec 2007 18:34
Post 6 of 45
Replying to [Admin]:
Sure it is radiculous. The increasing of Crude Oil has influence all the field of our daily life.
As the price of Crude Oil goes up, it affects transportation obviously, it make the freight cost increase, as a result, the price of every commodities in our daily life have changed indirectly, it makes unfair while the salary of most of labors don't make any changed.
It is also do affact of International Trade, as all prices of the products are going up as a result of the freight increases, it sure make the International trade not easy as before. It will reduce the world trade volumn.
Sure it is radiculous. The increasing of Crude Oil has influence all the field of our daily life.
As the price of Crude Oil goes up, it affects transportation obviously, it make the freight cost increase, as a result, the price of every commodities in our daily life have changed indirectly, it makes unfair while the salary of most of labors don't make any changed.
It is also do affact of International Trade, as all prices of the products are going up as a result of the freight increases, it sure make the International trade not easy as before. It will reduce the world trade volumn.
02 Dec 2007 00:16
Post 7 of 45
Replying to [Admin]:
Oil is the back bone of any industry.Due to the rise of oil prices,the price of all items will go up becuse they are moved from one place to another.Shipping prices will increase too.
Oil is the back bone of any industry.Due to the rise of oil prices,the price of all items will go up becuse they are moved from one place to another.Shipping prices will increase too.
02 Dec 2007 13:38
Post 8 of 45
Replying to [Admin]:
BAF
it can waste you more money![[em5]](http://img.alibaba.com/images/eng/style/icon/emoticons_angry.gif)
BAF
it can waste you more money
02 Dec 2007 23:49
Post 9 of 45
Replying to [Admin]:
I believe the prices of crude oil reaching $100 per barrel is excessive, but not ridiculous. It's going to go up over time with inflation anyway.
What's ridiculous is how the oil companies are using this as an excuse to continually raise fuel prices increasing their profit margins many times over.
Here in the US the major oil companies have recorded record profits for the past few years. They could lower their prices and still have huge profits but they just keep raising them and taking in more and more money.
The price of gasoline here in Northern California is at almost $4 per gallon. That is incredible considering that gas was less that $1.50 per gallon just 7 years ago. It cost me almost $80 per week in fuel just to drive to and from work.
This not only effects us at the gas pump but when we buy products and services. Fuel is the one commodity that effects every product and industry on earth. When fuel goes up in price we pay more for shipping and production among other things.
It's not ridiculous that crude oil has gone up' it's ridiculous that everyone is using it as an opportunity to over inflate their margins.
I believe the prices of crude oil reaching $100 per barrel is excessive, but not ridiculous. It's going to go up over time with inflation anyway.
What's ridiculous is how the oil companies are using this as an excuse to continually raise fuel prices increasing their profit margins many times over.
Here in the US the major oil companies have recorded record profits for the past few years. They could lower their prices and still have huge profits but they just keep raising them and taking in more and more money.
The price of gasoline here in Northern California is at almost $4 per gallon. That is incredible considering that gas was less that $1.50 per gallon just 7 years ago. It cost me almost $80 per week in fuel just to drive to and from work.
This not only effects us at the gas pump but when we buy products and services. Fuel is the one commodity that effects every product and industry on earth. When fuel goes up in price we pay more for shipping and production among other things.
It's not ridiculous that crude oil has gone up' it's ridiculous that everyone is using it as an opportunity to over inflate their margins.
03 Dec 2007 15:52
Post 10 of 45
Replying to [Cali Rugger]:
Landmarks of oil prices over the two decades.
1983, April 7, $30.17 to the $30 level.
1990, Oct. 9, $40.40 to the $40 level.
2004, Oct. 1, $50.12 to the $50 level
2005, Jun. 27, $60.54 to the $60 level
2006, April 17, $70.14 to the $70 level
2007, Sept. 13, $80.09 to the $80 level
2007, Oct. 25, $90.46 to the $90 level peaks at $95 per barrel.
All references are in US Dollars, and price per barrel.
Acts of man - war.
1973 - Yom Kippo war in the middle east gave rise to the Crude Oil prices breaking the $20 per barrel benchmark for the first time, when OPEC decided to use Oil as a weapon against their enemies.
2004 Spring, Sadam Hussain invaded Kuwait, caused the Oil price to break the $40 barrier. Nation-wide labour unrest, and strikes caused disruption of crude oil supplies from South America.
Political:
Iran has threatened to use Oil as weapon to counter the threats of the US and EU on her nuclear program.
Disasters:
Mexico Oil Platform fire cuts 422 bpd oil output. Shell Oil sands unit fire cuts off the supply of oil from Nov 20, 2007.
Hurricane storms in the Gulf of Mexico disrupt supplies from the offshore stations.
Increased Demands
The awaken Asian Dragons, mainly China and India industrial revolution and uprising economy create the m with affordable access to motor vehicles, air travels and central home heating during the cold winter, put a tremendous strain on the supply chain.
The Crude Oil Price chart below, shows the increase over the decade. There are two increases in 2007, one in September 13, and one in October 25. In the previous decade, the rise was over 7 years, 4 and once every year from 2004 to 2006.
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Reference: http://www.wtrg.com/prices.htm
Street Smart
Landmarks of oil prices over the two decades.
1983, April 7, $30.17 to the $30 level.
1990, Oct. 9, $40.40 to the $40 level.
2004, Oct. 1, $50.12 to the $50 level
2005, Jun. 27, $60.54 to the $60 level
2006, April 17, $70.14 to the $70 level
2007, Sept. 13, $80.09 to the $80 level
2007, Oct. 25, $90.46 to the $90 level peaks at $95 per barrel.
All references are in US Dollars, and price per barrel.
Acts of man - war.
1973 - Yom Kippo war in the middle east gave rise to the Crude Oil prices breaking the $20 per barrel benchmark for the first time, when OPEC decided to use Oil as a weapon against their enemies.
2004 Spring, Sadam Hussain invaded Kuwait, caused the Oil price to break the $40 barrier. Nation-wide labour unrest, and strikes caused disruption of crude oil supplies from South America.
Political:
Iran has threatened to use Oil as weapon to counter the threats of the US and EU on her nuclear program.
Disasters:
Mexico Oil Platform fire cuts 422 bpd oil output. Shell Oil sands unit fire cuts off the supply of oil from Nov 20, 2007.
Hurricane storms in the Gulf of Mexico disrupt supplies from the offshore stations.
Increased Demands
The awaken Asian Dragons, mainly China and India industrial revolution and uprising economy create the m with affordable access to motor vehicles, air travels and central home heating during the cold winter, put a tremendous strain on the supply chain.
The Crude Oil Price chart below, shows the increase over the decade. There are two increases in 2007, one in September 13, and one in October 25. In the previous decade, the rise was over 7 years, 4 and once every year from 2004 to 2006.
Reference: http://www.wtrg.com/prices.htm
Street Smart
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About Our Company
Tijit Pte Ltd
Motto: Digital is our name : Portable is our game
Tijit provides service and supply to Marine Shipping Industry both here in Singapore and abroad focused on portable instruments.
We provide Customer Service for...
More
04 Dec 2007 17:14
Post 11 of 45
Replying to [grigo]:![[em19]](http://img.alibaba.com/images/eng/style/icon/emoticons_great.gif)
thank you, grigo, it is a good example. in my opinion, i think it is ok to increase the crude oil price, but it should be acceptable to most of the ordinary people, or our daily life will be affected. besides, for the foreign trade companies, price increasing may not be a goods bews for them. oil price increased means their cost of the exported commodities goes higher, but, for many foreign businessmen do not understand such sitauation in chiina, it is more difficult for Chinese exporters to communicate and persuade their potential customers. so the increasing of the crude oil prices may somehow slow down China's exportation.
thank you, grigo, it is a good example. in my opinion, i think it is ok to increase the crude oil price, but it should be acceptable to most of the ordinary people, or our daily life will be affected. besides, for the foreign trade companies, price increasing may not be a goods bews for them. oil price increased means their cost of the exported commodities goes higher, but, for many foreign businessmen do not understand such sitauation in chiina, it is more difficult for Chinese exporters to communicate and persuade their potential customers. so the increasing of the crude oil prices may somehow slow down China's exportation.
07 Dec 2007 17:42