Oil: Supply and Demand????
 

You've probably heard how supply and demans affects prices. For a while now I have heard economists say the price of oil is based largely on S&D....

Recently here in Ca the price of gas has been soaring and the news reports are saying demand is DOWN...but oil per barrel keeps going up

Re: Oil: Supply and Demand????
 

BINGO!

We have a winner!

Prax, it is greed pure & simple!

Up in Canada we have enoubh Oil over what we use that we export a million barrels a day to the US, yet we pay $5.35 a Canadian gallon for gas!

Re: Oil: Supply and Demand????
 

The price per barrel is actually an artificial bubble no different then the housing market was, or dot-com stocks were 8 years ago. There is no conspiracy to keep it high..... it is just the speculators driving it up, like they do in any other market that soars.

Re: Oil: Supply and Demand????
 

It is what it is. And it will not change soon.

Re: Oil: Supply and Demand????
 

The dirty little secret is that all of the "sympathetic" politicians are not truly interested in decreasing the price of gasoline, because the gasoline tax is a percentage of the price, so higher prices means increased tax revenue.

Also, a glut of oil does not necessarily equal a glut of gasoline. We have a shortage of refinery capacity and a host of localities that impose special blend requirements for emissions, which interrupts production and delivery schedules.

The effect of the futures speculators, while significant, is not the entirety of the issue. Supply and ever-increasing worldwide demand.

The irony is the number of people that believe confiscating cash from the oil companies will somehow help the little man in the street with his gasoline price problem. It will actually prevent oil companies from embarking on the already-questionable venture of launching new capital refinery projects.

Re: Oil: Supply and Demand????
 

Yep.

Re: Oil: Supply and Demand????
 

We have adequate refining process here in B.C.
In fact there are three major refineries in our Greater Vancouver area.

In B.C. that argument won't float.

Re: Oil: Supply and Demand????
 

That is not really adequate for your country though. And don't forget import and export.

Re: Oil: Supply and Demand????
 

That is just in B.C. There are many more Refineries around Canada.

Re: Oil: Supply and Demand????
 

Well of course there are Ron. But ya know the earth can never have enough resources because we have wasted so much.