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Gas prices have been creeping up lately so this news comes at a shock. This is just my opinion and I might be totally wrong...If this article is true, the recent rise in gas prices shows the impact of the financial markets (investments in commodities futures) on commodities.

Supply and demand, or is it how much can we squeeze out of them and get by with it?

I just wish the Fed's would stick a $1.00 a gallon tax on gas and cut that amount back on the income tax. It's time everyone start paying the real costs of the Feds and what they're voting on.

Gas prices have been creeping up lately so this news comes at a shock. This is just my opinion and I might be totally wrong...If this article is true, the recent rise in gas prices shows the impact of the financial markets (investments in commodities futures) on commodities......Boom!

Supply and demand has very little to do with oil prices.
The Saudis actually control the oil market. Their cost is so low, they can be profitable at below $40 a barrel.
They started this price collapse to kill American shale oil production, Canadian oil production and Arctic drilling.

The Saudis actually control the oil market. Their cost is so low, they can be profitable at below $40 a barrel.
They started this price collapse to kill American shale oil production, Canadian oil production and Arctic drilling.

The Saudis admit they could charge more and get it, but the higher prices spur competition which takes a part of their market share they may never get back. That's exactly what happen with shale oil production, at $100 a barrel shale oil production became profitable, it caught the Saudis off guard, they spent $100 of millions scaring everyone of the "dangers" with shale oil but the public didn't buy it...so the Saudis had to lower oil prices to make shale oil non profitable. Once the shale oil producers go bankrupt, expect the Saudis to raise the price while watching competitors to determine when they need to lower it again.

RealJustme wrote:

The Saudis actually control the oil market. Their cost is so low, they can be profitable at below $40 a barrel.
They started this price collapse to kill American shale oil production, Canadian oil production and Arctic drilling.

The Saudis admit they could charge more and get it, but the higher prices spur competition which takes a part of their market share they may never get back. That's exactly what happen with shale oil production, at $100 a barrel shale oil production became profitable, it caught the Saudis off guard, they spent $100 of millions scaring everyone of the "dangers" with shale oil but the public didn't buy it...so the Saudis had to lower oil prices to make shale oil non profitable. Once the shale oil producers go bankrupt, expect the Saudis to raise the price while watching competitors to determine when they need to lower it again.

This is Justme's justification to construct the Keystone pipeline.

Putting more oil on the open market will increase prices!!!

:lol:

Well, oil be darned.

WTI and Brent crashed again today.

Yup!

With low oil prices, build the pipeline and the oil will flow!

LMAO