The Price of Oil

[mirror]

Is this going to be the week from hell as far as oil prices are concerned?

It certainly looks omnious.

Oil, Gas May Soar as Storm Shuts U.S. Gulf Production

[mirror]

The price of oil is already at $70.80

This is bound to start having some major effect on our economy.

Oil Soars to Record as Hurricane Shuts U.S. Gulf Production

[B. Max]

I'm surprised that the activity in the patch at this time is not that great. In fact it seems a little slow. All the rain we've had must have something to do with it.

[mirror]

Oil Tops $70 As Katrina Nears Louisiana

Hurricane Katrina took dead aim on America's oil and refinery operations Monday, shutting down an estimated 1 million barrels of refining capacity and sharply curbing offshore production in the region.The area targeted by Katrina is crucial to the United States' energy infrastructure _ offshore oil and gas production, import terminals, pipeline networks and numerous refining operations throughout southern Louisiana and Mississippi.

The Category 5 storm was still churning in the Gulf of Mexico but was on a path to hit New Orleans early Monday.

Last September, Hurricane Ivan also swept across the region causing heavy damage and reducing the region's output for months.

Katrina's winds were fiercer.

Oil companies evacuated workers and shut down more than 600,000 barrels of daily production in the Gulf. Refiners closed down more than 1 million barrels of refining output by Sunday, but that amount could be higher because not every producer reports data, said Peter Beutel, an oil analyst with Cameron Hanover.

"This is the big one," he said. "This is unmitigated, bad news for consumers."

Along with oil and gas futures spiking Monday, natural gas was up. The "out of control" buying is spurred by the prospect that the region's numerous refineries could be idled for weeks by flooding, power outages, or both, Beutel said.

The U.S. has ample crude oil supplies, even if major hurricane destruction trims Gulf oil output and foreign imports, but refining capacity is extraordinarily tight. As a result, prices for gasoline, heating oil, jet fuel and other products have flirted with records and could go even higher this week.

"If this thing knocks out significant quantities of refining capacity ... we're going to be in deep, dark trouble," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York.

If this is really as bad as the weather experts that track these hurricanes are forcasting this really could blow the lid off the price of oil.

[mirror]

Is this a good time to short oil?

Forbes predicts oil will drop to $35 within a year

[Toro]

Is this a good time to short oil?

Forbes predicts oil will drop to $35 within a year

No.

[Big Blue Machine]

It seems everytime a worker gets sick at an oil refinery, the price of oil goes up by a $1.50. Oil prices will come down. My dad has the theory that someone is profiteering because there has been more than enough oil coming to the world, yet we are pricing high prices. But that's my dad.

[Toro]

It seems everytime a worker gets sick at an oil refinery, the price of oil goes up by a $1.50. Oil prices will come down. My dad has the theory that someone is profiteering because there has been more than enough oil coming to the world, yet we are pricing high prices. But that's my dad.

Though I'm sure your father is a wise man, he is incorrect on that point. Demand is substantially outstripping supply. Plus, the price of crude is in a very persistant uptrend. We are no where near a top.

[mirror]

No Quick Fix for Gulf Oil Operations

There certainly does not appear to be any light at the end of the tunnel at least in the forseeable future.

In hindsight it seems not that wise to have located all those refineries in a known hurricane prone area.

Why don't they relocate those refineries elsewhere?

[mirror]

Hurricane raises fears of global energy crisis

Now the serious ramifications begin in the aftermath of Katrina. Things should be all right in the West. Ontario & Quebec I'm not so sure about.

[mcqueen625]

As far as I know Prince Edward Island is the only Province that has had the balls to regualte gasoline prices and now Wilson's Fuels of Halifax is refusing to ship gas to the island province because they say they are losing money. In my Province, of New Brunswick, the provincail government is in the pocket of Irving, and refuses to take any action to insure that people are not being gouged at the pumps. Irving Oil Ltd. owns and operates one of the largest, most modern oil refinery's in North America, and weild's enormous clout with our politicians. This family is rated amoung the top richest families in the world.

Maybe it is time for other provinces to step up to the plate and regulate the prices at the pumps for not only gasoline, but for heating oil. Maybe it is time to institute a regulation similar to what they have state-side and that is an oil refiner cannot own retail outlets in the same market as they own refining capacity, because it is simply too easy to manipulate prices through wholesale. In Irving's case they own the refinery, they wholesale the gasoline not only to their own retail stations but to most other's as well, and they retail a product that the price has been set by themselves all the way through, with no government oversight, and that is simply wrong, wrong, wrong!

[Chimera]

I recently heard it third hand (purportedly from a Petro-Can exec) that Petro Canada actually has enough gas in stock for two full years!!

Knowing what happens to gas left in my lawnmower over winter, I kinda find this hard to believe, but.....

[mirror]

Deliveries Falter Amid Reports of Dry Gas Pumps

Americans might want to consider staying home this weekend. Talk about a nation GATE or spoiled.

A while back while I was in Switzerland there were having a referendum on whether or not to shut down the highways and roads on Sundays except for emergency vehicles and public transportation.

Canada needs to go back to being closed on Sundays and we might do well to similiarily consider closing our roads on Sundays as well. This would help with global warming, pollution, and gas supplies rather than be forced into some kind of rationing down the road.

[cybercoma]

Deliveries Falter Amid Reports of Dry Gas Pumps

Americans might want to consider staying home this weekend. Talk about a nation GATE or spoiled.

A while back while I was in Switzerland there were having a referendum on whether or not to shut down the highways and roads on Sundays except for emergency vehicles and public transportation.

Canada needs to go back to being closed on Sundays and we might do well to similiarily consider closing our roads on Sundays as well. This would help with global warming, pollution, and gas supplies rather than be forced into some kind of rationing down the road.

<{POST_SNAPBACK}>

Close the roads and highways on Sunday, you're kidding right? haha

[Toro]

Reports are that most gas stations have run out of gas here in Tallahassee. My wife went by two stations today with no prices on their displays. She asked why, and she was told that there was no gas in the city.

[mirror]

Close the roads and highways on Sunday, you're kidding right? haha

It may not be by choice.

Toro

Good luck with your gas shortage situation there. To not be able to readily acquire fuel for your vehicle must be disconcerting.

[Renegade]

So lets say the all the provinces decide to set the maximium price for gas.. Now let's also say that the price of gas continues to rise and the market price is above the maximium.

For a short while, people celebrate as they are getting gas at a below market price. Pretty soon the companies who own and control the gas decide that there is not enough to be gained by selling to Canada and they ship their gas elsewhere where the selling price reflects the market price. So pretty soon thereafter, Canada has gas shortages, and the same people formely celebrating, are now rioting and would happily buy gas at any price.

[Toro]

Thanks mirror.

Got word yesterday that something was going to happen so go fill up, which we did. I imagine this will straighten itself out the next few days.

[August1991]

Canada needs to go back to being closed on Sundays and we might do well to similiarily consider closing our roads on Sundays as well. This would help with global warming, pollution, and gas supplies rather than be forced into some kind of rationing down the road.

I've got a better idea. I think everyone should stop driving for at least two days per week, not just one day. Furthermore, I wouldn't insist that one of those days be Sunday. I suspect people have a better idea about what days are most convenient for not driving - one of them may or may not be Sunday. In addition, it seems kind of wasteful to have a vast highway infrastructure sitting idle for one day. If we spread the non-driving days around, there would be less road congestion.

Now then, how could we ensure that people actually avoid driving for two days each week? Well, at 1.35 per litre, believe me, people are already driving less.

The very best way to conserve gasoline is to let the market decide the price of gasoline. With a high price, each person decides how best to conserve it.

As far as I know Prince Edward Island is the only Province that has had the balls to regualte gasoline prices and now Wilson's Fuels of Halifax is refusing to ship gas to the island province because they say they are losing money. In my Province, of New Brunswick, the provincail government is in the pocket of Irving, and refuses to take any action to insure that people are not being gouged at the pumps. Irving Oil Ltd. owns and operates one of the largest, most modern oil refinery's in North America, and weild's enormous clout with our politicians. This family is rated amoung the top richest families in the world.

Maybe it is time for other provinces to step up to the plate and regulate the prices at the pumps for not only gasoline, but for heating oil. Maybe it is time to institute a regulation similar to what they have state-side and that is an oil refiner cannot own retail outlets in the same market as they own refining capacity, because it is simply too easy to manipulate prices through wholesale. In Irving's case they own the refinery, they wholesale the gasoline not only to their own retail stations but to most other's as well, and they retail a product that the price has been set by themselves all the way through, with no government oversight, and that is simply wrong, wrong, wrong!

Are you suggesting that the NB government should regulate the price of gasoline when, as you say, the NB government is in the pocket of Irving? What would that achieve?

Is the problem in NB a lack of government regulation or is it indeed something else?