Oil prices have largest single day hike
There are times when I feel that I’m blogging about the same things day after day. Then there are days like today. News galore.
I think that we will find out in the next 2 - 4 years that this was nothing. Just like the 70’s. This is artificial. These high oil prices are high just because greedy men want to make more money. That’s my guess but what do I know.
From NYT:
Oil jumped more than $10 a barrel today to a new record above $139, sending financial markets tumbling. The Dow Jones industrial average closed down nearly 400 points.
Further jolting the economic and political landscape just as the general election season begins, the nation’s unemployment rate shot skyward last month to 5.5 percent, the biggest leap in more than two decades. (more…)
Not to put too fine a point on it, but when demand goes up and supply flattens or declines, prices rise. People in China, India and everywhere else want to live like Americans, and lots of them can now afford to. They require the same oil that gives us such a high standard of living, and there’s essentially a bidding war going on. We’ve also just about reached the peak level of oil production the world is ever going to see. There is some speculation in oil markets that adds a price premium, but it’s mostly in reaction to the fundamental imbalance in supply and demand that is only going to get worse. There is no upper limit on the price of a barrel of oil, and most of us need to get used to getting by with less.
Sonja Ebron
blackEnergy
I see this as a good thing. I see people staying at home with their families instead of driving around. I see people conserving and rethinking and asking themselves “Is it necessary?” The price will come down some and if people keep the conservative ways everyone will benefit. last summer the car companies and President Bush were outraged at the prospect of congress setting a MPG limit on “their” vehicles. But they will go out of business if they don’t act quickly. If they would have done this before instead of fighting congress then they wouldn’t be losing out to the japanese car companies. It will help get some of the most polluting gas hungry vehicles off the road. This energy situation is hitting everyone equally. Even though some are hurt worse than others. It is still effecting everyone. Not like the war where only some people are paying the price. This will make the country jump into developing more environmentally friendly solutions. Bush and his anti control and anti limits have made this mess along with the rest of us. It will take a strong leader to come and tell the masses to restructure your lifestyle and it will be for the better. The truth hurts sometimes but we will get cleaner air and more energy efficient. For the long run it wil be good. Reminds me of the suffering in the depression. America got through it and we became a stronger nation. But we must all do our part.