Oil prices

[Rexell]

anyone knows why oil prices keep rising? oil rise everything also go up. papers and news keep citing different reasons. anyone here that can clear that doubt?

do u guys think that oil prices will fall significantly back to the previously stable level or will it continue to rise? i think it'll probably rise to a new level(maybe US$3 a barrel) and maintain there or drop a little bit.

 

[fat bear]

It will keep on going up one people in oil world getting smarter and richer. Those people in the big country cannot control already. Last time oil goes up the pimp more out to drop the pice now when they pump now the oil country sell higher. Whole world need to to run their country and their country cars. Heard that it will goes up to USD 200 per barrel at the end of this year. So people driving car think you all need to replan do you ready need a car???

 

[E93M3]

anyone knows why oil prices keep rising? oil rise everything also go up. papers and news keep citing different reasons. anyone here that can clear that doubt?

do u guys think that oil prices will fall significantly back to the previously stable level or will it continue to rise? i think it'll probably rise to a new level(maybe US$3 a barrel) and maintain there or drop a little bit.

I believe crude oil prices have reached the peak range now. I'm not saying that they will not continue to edge up another 10% to 15% but I don't see it hitting the USD 200/barrel level. There are many factors behind this such as the supply and demand numbers, production numbers etc, but one of the main reasons that caused the increase in crude oil prices is the weakening of the USD.

Without going into details all I can say is most commodities (including crude oil) are traded in the spot and futures market denominated in US dollars. In general commodities prices and the currencies (USD in this case) that they are traded in are negatively correlated.

As long as the USD keeps dropping (USD/SGD used to be at 1.6X a few yrs ago, nowadays it is around 1.3X), the crude oil prices will continue to rise given everything else constant. But I think the USD will start to pick up in the first half of 2009 if not by the end of this year because the Feds will raise interest rates gradually within the next 12 months.

 

[storm]

My take is USD wont not pick up so soon. Given the sub prime impact is still NOT totally understood and felt and measured, I think its still 1-2 years before things will settle down.

However, I believe the crude oil price increase is not just due to the USD reason. Until today, there's still alot of speculative elements that no1 has been able to find out in details. Given the supply (from OPEC) and demand (from consumers) didnt really change that much, what's the main reason for such a hugh price change. Speculation!

 

[lecher]

As long as the USD keeps dropping (USD/SGD used to be at 1.6X a few yrs ago, nowadays it is around 1.3X), the crude oil prices will continue to rise given everything else constant.

i'm no economics expert but just curious..... S$ is stronger now, hence, thought S$ would have exchange advantage. if crude oil is based on US$, then when S$/US$ was 1.6/1, with oil prices then at time assuming at US$ 100, we would be paying close to S$160 per barrel.

if now at US$ 140/barrel, then at S$/US$ of 1.35, it would be around S$189 or a 18% jump..... look at the petrol prices now ..... i still remembered shell 95 was going at S$1.45 not too long ago, now it's already S$2.17 if i'm not mistaken ..... that's close to 50% jump

 

[dysentry]

I agree with OPEC. It's due to cheap USD and geopolitical tensions.

But there's a more urgent problem of geology. I find good insight in this blog :
http://sgentropy.blogspot.com/2008/06/energy-for-unsustainable-growth.html

I support his view on building a steady-state economy instead of focusing on growth.

 

[Trout]

I agree with OPEC. It's due to cheap USD and geopolitical tensions.

But there's a more urgent problem of geology. I find good insight in this blog :
http://sgentropy.blogspot.com/2008/06/energy-for-unsustainable-growth.html

I support his view on building a steady-state economy instead of focusing on growth.

Global oil production has not kept apace with demand increases since 2004. There is essentially no spare capacity globally now.

Regards,
Trout

 

[Adidas]

cheap USD is just one of the reason that the prices is increasing.
those heavy usage countries like India,China,US and etc also contribute to the increase esp US.
who knows how much of oil/fuel that they have in their storage.

 

[Whats4]

I agree with OPEC. It's due to cheap USD and geopolitical tensions.

But there's a more urgent problem of geology. I find good insight in this blog :
http://sgentropy.blogspot.com/2008/06/energy-for-unsustainable-growth.html

I support his view on building a steady-state economy instead of focusing on growth.

use euro or pound to buy oil?

 

[Whats4]

Global oil production has not kept apace with demand increases since 2004. There is essentially no spare capacity globally now.

Regards,
Trout

shouldn't oil price increase consistently instead of huge increase within half a yr?

 

[Mighty Megatron]

use euro or pound to buy oil?

Good idea but what is the world going to do with all that amount of USD in circulation? Buy up assets in the US? Alot is at stake and I really hope they don't screw it up. I don't want to live thru the 2nd Great Depression.

 

[Mighty Megatron]

do u guys think that oil prices will fall significantly back to the previously stable level or will it continue to rise? i think it'll probably rise to a new level(maybe US$3 a barrel) and maintain there or drop a little bit.

Prices will only fall back when alternative energy sources become the norm which for some stupid reason is taking hell too long to develop.

 

[Lestat]

Speculators pushes the price of USD down, pushes the price of oil up.

Don't blame demand and supply. There's sufficient to go around. Just that people like to take advantage of this situation. Same thing for rice and corn.

 

[Mighty Megatron]

Speculators pushes the price of USD down, pushes the price of oil up.

Don't blame demand and supply. There's sufficient to go around. Just that people like to take advantage of this situation. Same thing for rice and corn.

Sufficient to go around yes but at what price? I strongly belief demand has indeed increased but oil producers are not too happy about the weak USD that they are getting paid in. :p

 

[Trout]

shouldn't oil price increase consistently instead of huge increase within half a yr?

Demand for oil is really not as elastic as you think. Essentially in the short term, you cannot really switch from oil to something else. Hence the sharp increase.

 

[Mighty Megatron]

Oil is the lifeblood of our enconomies we cannot do without...just yet. Just waiting for the day when we can do without oil. Damn it why won't our govt invest in solar power!

 

[lone_dog69]

Due to the rising Oil prices and other factors that increases the usage of my car, I have sold off my car and reverted back to taking the bus.

Sigh.

 

[storm]

Due to the rising Oil prices and other factors that increases the usage of my car, I have sold off my car and reverted back to taking the bus.

Sigh.

Hey bro, dont sigh. Tell yourself that you are making the right choice man.

Whats wrong with taking bus or mrt? Vehicles are supposed to be a tool to bring us from point A to point B. Like I always said, cars are not necessity. They are a form of luxury and liability.

Congrats for getting out fo the Rat Race!

 

[aakumu]

Hi bro,
Oil is the rich man games, out of our class.

My humble two cents.

 

[Ridler]

Due to the rising Oil prices and other factors that increases the usage of my car, I have sold off my car and reverted back to taking the bus.

Sigh.

Dun worry bro. If you dun own car in sg you will soon realised that you become richer than before.