Nice.... Greed!

At least you know all of the oil profits are benefitting a good cause...

http://www.msnbc.msn.com/id/21758940/

Lifter

This article doesn't make sense to me. If the problem with high prices are due to the REFINING of oil in the US, then why is the world price of OIL expensive. In other words, the oil is high even BEFORE it is refined. Doesn't make any sense.

Oil is high because of speculation / investing. Our behaviors haven't changed; hence, oil is really worth $120 per barrel. Otherwise, we would have dramatically changed our behaviors.

-Fatty

I don't understand it either. However, my limited understanding is that the $120/barrel price is oil futures . . . i.e., the impact of those high oil prices are delayed.

If gasoline goes up to $4, $5, or $6 bucks a gallon this summer, you can bet that behavior will be changed. For myself, I'm already there. Not so much for driving around town, but I'm no longer keen to drive the gas-hog pickup truck 120 miles to the lake for a weekend fishing trip, for example.

I too, have to claim ignorance in fully understanding how oil prices are set. But it seems to me that this borders on criminal. The only spending thats up in the US as we slide head first into a recession is on gas, and thats because we are forced to. People are running out of money over speculation and oil companies fattening their pockets with billion dollar profits. Airlines are failing and merging because of this. Is there any recourse to keep consumers from being gouged?

Oil is traded in dollars. Dollars are worth less than they used to be. Therefore they buy less oil.

Or something like that, from what I am told.

Oh, and another thing. Check your 401Ks or other portfolios. I'd be surprised if most of us don't have oil stocks.

Food for thought.

Interesting read, although I'm a subscriber, as painful as it may be, to the views espoused by Matt Simmons. He offers a heavy dose of reality that needs to be considered by all those in the airline biz.

http://www.youtube.com/watch?v=4IwtAQzrfiw

Fatty,

I don't know if speculation tells the whole story. I'm going really butcher some stuff so bear with me.

In the 70's and 80's there weren't as many people at the "auction". The same group of people bid on the same (or so) supply of a "warehouse" full of the same "item". Over time this auction has become popular so more people (China, India, far east ...) are bidding. The bigger group is more competitive than a smaller group and each wants their steady supply. You need to buy your "item" when your refinery is ready for the next batch but the guy next to you is doing the same. There is no shortage in the supply but more people need it right now!! Hence the auction price goes up.

I bet some economist is rolling over in their grave over that explaination. Sorry.

SC

Is it because most investors are moving toward investments such as oil and gold, which is driving up the price?