What's your opinion on oil prices?

As with most things today, there is no truth... merely opinions that we are lucky to have backed by some sort of link. Even some links are not acceptable.





So which do you prefer.. SPECULATORS or SUPPLY?What's your opinion on oil prices?
There is no credible source that would say that speculation isn't behind the current price spike.





There are, however, the same bullish people you meet in every bull market that like to cheer that market on, and those people will claim that while current fundamentals may not justify the spike, future fundamentals justify it.





In the dot com market bubble, there were those who said that GAAP accounting wasn't needed and even companies who hadn't booked a dollar in real revenue had future values of billions (and not all of those claims were wrong..., but most of those claims were wrong).





With the collateralized debt bubble, you had people saying that we had reached a new paradigm with real estate and other asset backed paper and that the more traditional fundamentals no longer applied thanks to new financial instruments like sub-prime mortgages, and we are still going through the collapse of that bubble.





And now there are bulls that say we have reached a new paradigm where the market builds in future fundamentals and that more traditional near-term fundamentals mean nothing.





It's too predictable what is going to happen eventually.What's your opinion on oil prices?
The problem is some of both. You can deal with speculators but supply will never be satisfied in today's world. Even drilling in Alaska and off the coasts will just be a drop in the bucket. The world isn't running out of oil though, it is running out of cheap oil. There is plenty of oil in tar sands and oil shale, the problem is it is expensive to get it out. Oil must remain at a high price in order to have incentive to produce it from those sources. In the end the high prices will be good for us. If will force us to develop new technologies to satisfy our energy needs. It will just be a painful process to have to live through to get there.
You cannot ignore the rapid rise in oil/gasoline consumption in India, China, Russia and Brazil. Current consumption is exceeding supply and threatens to continue to rise at very large annual rates.





But as in most matters, speculators have contributed to a certain percentage in the rise in the world price per barrel of crude oil, just as a weak American dollar has. How much we can't know until someone like Congressman Waxman does a thorough investigation into the trading of oil futures in NY and beyond. (This is a global phenomenon, not one simply particular to America.)
In 1999 the congress and then president Clinton (Republican congress) made it possible to speculate on oil with just 5% committed to backing up the speculation - that has enabled businesses to sell options and securities against 20x the oil they actually have - not good. Reign that in immediately and the price will drop.





Second increase production - just say we're going to increase production and it will have a positive impact on prices in the market place.
It's just a commodity like any other, like orange juice. Actually gas prices haven't gone up at all in real dollars. We get used to a dollar figure in our mind and then go nuts when it changes, but again, in real dollars gas is roughly the same price as it has been historically. We are being severely effected by the emergence of capitalist systems in China and India and new free countries of eastern Europe who are suddenly producing which of course requires energy, in this case, oil. Speculation is there, but there are as many people with money on oil going lower as there are with oil going higher so that pretty much removes the blame from speculators. You will see oil PLUMMET soon.
The oil problem is due to two problems.





1. Oil is traded in US dollars. The more the dollar drops in value, the higher the 'in kind' value of oil will go up.





2. Phil Gram deregulated the commodities market. There is no oversight government department. So speculators/ commodities owners figured out they could run up the price on the market, and force he consumer to pay the price.





This first ran its course with electricity and Enron. Enron were electric brokers that ran up the price... and you know how that story ended. Phil Gram's wife had worked there.





Now the same tacit is being use by oil industry insiders (brokers and companies). are running up the price for profit.
Oil prices are steadily increases from a few areas, speculators and supply just being two of them. It doesn't help that the value of the dollar has steadily decreased. Considering that oil is bought/sold based on the dollar, it takes more dollars to buy the same amount of crude.
I think that the oil prices have not yet peaked. there is yet some room to go further and it will be only then that the people of world will recognize the truth that we, the world, should reduce our demand. Also other source of energy should be tapped.





I suggest If valency of atoms of different materials can be balanced by some experimenting scientist must be able to find an alternate for oil.
Both. In my mind there is no doubt that both are seriously affecting the oil market. The demand for oil, though it has dropped is still at record highs from developing countries such as India and China and the oil speculators saw this coming and bought into it and have continually manipulated the market to make oil higher.
the oil bubble is alot like the housing bubble. speculators were in both. Housing took 15 years to burst , now? Oil will do same. supply will help bring oil down if we drill, not fast ,but will help eventually.. Hope we don't have to bail out oil speculators like the housing ones! more nuclear power will help in 7 or 8 years if we build now.
Those prices need to go down because its getting to the point that its too expensive just to go to work, drive your kids to school, sports practice, etc. Drilling offshore would at least allow temporary relief so that we can find alternative fuels without escalating prices forcing people to choose between eating or going to work.
They are high enough..But we all know they will continue to go higher, and us ';poor folks';, will continue to get poorer. Be thankful if you live near the grocer, or where you are employed. Sooner or later, we all will be doing more walking.
more supply = lower prices


less supply = higher prices.





It worked in the 70's when we built the Alaskan Pipeline.





Since its completion in 1977, the pipeline has transported over 15 billion barrels of oil.
SPECULATORS





with a ';little'; supply problem.





Here is the answer:
It is supply and demand. With China and India going through an industrial revolution they are consuming exponentially more oil then a few decades ago.





The only solution is to curb out dependence
We need to quit using corn for ethanol------start drilling and innovating new technology.-----supply
They are too high!