Tuesday, September 11, 2007

Article/News bit of the week

The Article/News clip of the week this week goes to this article : Oil prices hit all time-high
on CNNMoney.com.

I don't think that this article is particularly great other than the fact that it brings up the fact that we are a little too dependent on one slowly shrinking resource for our well-being.

The two portions of the article that bother me the most are the 1st and 3rd paragraphs:

1)"NEW YORK (AP) -- Oil prices rose to a new record settlement price Tuesday as traders turned their attention to Wednesday's government inventory report expected to show tight supplies and shrugged off OPEC's decision to boost output."


3)"Even factoring in OPEC's decision to increase oil production by 500,000 barrels per day starting Nov. 1, "supplies are tight," said Addison Armstrong, an analyst at TFS Energy Futures LLC."

Even as I struggle to optimistic but, it's disheartening when OPEC - (an organization that controls 2/3rds of the world's oil and 40% of the world's oil production) - tells the world that they plan to increase production - an act that generally causes gas prices to decrease.

And those running the show 'so-to-speak' over here in the U.S. decide we need to increase the price anyway!

here's another great quote about the increased 1.4 million barrels per day overall:

"This is a big number," Evans said, adding that it would take futures traders a while to digest its significance. "This is not something that the market's going to adjust to in a few minutes."
In other words, "Just because prices are going down for us big oil refining companies/oil investors doesn't mean we can figure out how the price should go down for the end user" - i.e., 'you' & 'me'. "We have to studies and run tests and (sigh) wait for the price to go back up again. so we can charge the end user more"

OK Reggie, Think positive thoughts - 'gas will soon be free' , 'oil companies will begin to care about their customers and the environment', 'they will finally free the scientist who claimed he could run a city for a day off one glass of water, from the cell they hid him in the early 90's"....ah much better.


zackattack said...

I'm seriously mad that your topic for today is more interesting than mine!

LOL! Well, OPEC may hurt the economy if prices go down. I know its sounds crazy, but maybe the shot callers have a point. You want to time the release of oil until the winter because we will need heat soon.
Usually gas prices go up in the summer because most folks are off work or take vacations, or just have extra money to spend.

I dunno man. It's all confusing to me.

Reggie, another kid with good credit said...

Yeah - I like google's corporate motto: 'don't be evil'

If only oil companies had the same motto.