DS Gas Price Excuse Tracker for reasons that gas prices increase:
1. Winter months, heating
2. Hurricane in Gulf of Mexico
3. Manufacturing demands by industrial nations, i.e. China
4. Americans and SUVs
5. Market speculation
6. March and April "pressures on refineries"
7. Tensions in Middle East
8. A whale died in the Atlantic
9. A turtle sneezed in the Pacific
10. Global warming
11. Pollen levels
12. Jupiter's red spot
13. The dog ate it.
14. Gas prices take a while to come down because the stations are still selling what they bought at the higher prices
15. Gas prices take no time at all to skyrocket overnight, because reason #14 doesn't apply the other way around.
16. Oil up to pay for alternative resource research
17. Because OPEC says so!
18. A special summer blend is more expensive than the winter blend, as it uses special ingredients! But I thought it was higher in the winter because of the heating demands?
19. Summer vacation, kids are off! And since they all drive cars, this makes total sense! (I guess all the school buses were running on pixie dust)
20. Memorial Day weekend and Independence Day, even tho it's still May and that's in July.
21. Weak dollar causing gas prices to rise
22. Strong dollar gets it back under $80
23. Fuel supply shortage (because OPEC cut the supply in half, right?)
24. Dollar against the Euro
25. See #1 - winter heating, as it got cold in some parts of the U.S. in October, thanks to...global warming?
*NEW*
26. Libya. It's all about Libya
27. No it's not, says Saudi Arabia. Everything is fine. Not sure why the high prices.
28. Gas station owners raise the prices ahead of time, expecting oil prices to go up. But then that means #14 can't be true!
29. Because of the unrest in Libya, more countries are buying from Algeria and Nigeria, which is where the U.S buy its oil from!
30. Benchmark broken, price of oil not related to price at the pump.
31. Gas prices lag behind oil prices by two of weeks, putting refiners in tight spot.
32. Because Deniers refuse to tackle Global Warming.
33. Saudi cutting back oil because market is flooded w/oil, no reason for high $.
34. "Hiring spree" means more people are using gas to drive to work!
35. River flood COULD cause disruptions, so we'd better raise it just in case.
36. Greece. Since oil dropped during the Greek riots, then following the same logic - that means demand must have plummeted. Therefore, Greece is the largest importer of oil due to all that manufacturing...forget China or the U.S.
37. Any sort of clash in Egypt is totally a legitimate reason for oil price increase.
Thursday, June 9, 2011
"Saudi Arabia is trying to put more oil on the market, but no-one is buying it
"There is plenty of oil on the market. Stocks are very high....."
After Wednesday's meeting fell apart, leading OPEC member Saudi Arabia, holder of most of the world's surplus oil production capacity, said it would provide as much oil as the market needed.
"Saudi Arabia is trying to put more oil on the market, but no-one is buying it," Badri said.
Iran and the upsurge in political tension associated with this year's Arab world unrest was again seen by analysts as the root cause of Wednesday's OPEC upheaval.
The second biggest OPEC member after Saudi Arabia, Iran is the leading price "hawk," which favors expensive oil, while Saudi Arabia has typically acted to moderate prices.
http://www.reuters.com/article/2011/06/09/us-opec-idUSTRE7582C620110609
(Reuters) - Economics, rather than politics was behind the collapse of this week's OPEC talks and the group as a whole would act if it grew worried about oil supplies running short, a top OPEC official said on Thursday.
The Organization of the Petroleum Exporting Countries met for the first time this year on Wednesday and for the first time in around a decade failed to make a decision on output policy.
"Now we are unhappy that we did not reach a decision but this is not the end of the world," OPEC Secretary General Abdullah al-Badri told Reuters. "It was not political, it was really an economic situation."
"Of course, for the past six years we have enjoyed a very relaxed atmosphere, now we have some tension. I hope we will overcome it."
Numbers compiled at the OPEC headquarters in Vienna had implied the market needed around 2 million barrels per day (bpd) more oil for the third quarter of this year and 1.5 million bpd for the fourth quarter, Badri told a World Economic Forum conference.
But he said some of the 12 members of OPEC had different numbers and were unable to agree on any need for more oil, even though oil prices are trading far above $100 a barrel.
For now he said the market was comfortably supplied.
"There is plenty of oil on the market. Stocks are very high, about three days above the five-year average," Badri said.
"We have to watch the market very carefully. If we see the market is imbalanced or some drastic things happen, we will alert our member countries."
SAUDI BARRELS NOT WANTED?
After Wednesday's meeting fell apart, leading OPEC member Saudi Arabia, holder of most of the world's surplus oil production capacity, said it would provide as much oil as the market needed.
"Saudi Arabia is trying to put more oil on the market, but no-one is buying it," Badri said.
He said over the course of OPEC's 50-year history, OPEC meetings had failed to reach agreement before. One instance was in 2000 when Iran refused to sign up to a decision and reacted to what it saw as undue U.S. pressure for more oil.
Iran and the upsurge in political tension associated with this year's Arab world unrest was again seen by analysts as the root cause of Wednesday's OPEC upheaval.
The second biggest OPEC member after Saudi Arabia, Iran is the leading price "hawk," which favors expensive oil, while Saudi Arabia has typically acted to moderate prices.
Badri would not be drawn on a precise price target, saying OPEC no longer had one, but he implied the need for relatively high prices.
The range previously backed by OPEC of around $75-$85 had, he said, been made obsolete by rising inflation, notably higher food costs.
Arab world unrest had added a roughly $15-$20 a barrel premium, he said, and also repeated his long-held criticism of speculation and taxes, arguing they boosted international futures prices and prices at the pump, respectively.
"The G7 (Group of Seven industrialized nations) is making more money from our exports than the member countries. When prices go up, if we increase production, they should increase tax," he said.
This year's oil price rally to a high above $127 a barrel for Brent in April piled the pressure on OPEC to raise formally an output target last revised in December 2008.
Badri said he had received a telephone call from Nobuo Tanaka, head of the International Energy Agency, before the OPEC meeting.
Badri referred to Tanaka as "my friend," but said: "I wish they (the IEA) would stop talking to us before the meetings."
After Wednesday's meeting fell apart, leading OPEC member Saudi Arabia, holder of most of the world's surplus oil production capacity, said it would provide as much oil as the market needed.
"Saudi Arabia is trying to put more oil on the market, but no-one is buying it," Badri said.
Iran and the upsurge in political tension associated with this year's Arab world unrest was again seen by analysts as the root cause of Wednesday's OPEC upheaval.
The second biggest OPEC member after Saudi Arabia, Iran is the leading price "hawk," which favors expensive oil, while Saudi Arabia has typically acted to moderate prices.
http://www.reuters.com/article/2011/06/09/us-opec-idUSTRE7582C620110609
(Reuters) - Economics, rather than politics was behind the collapse of this week's OPEC talks and the group as a whole would act if it grew worried about oil supplies running short, a top OPEC official said on Thursday.
The Organization of the Petroleum Exporting Countries met for the first time this year on Wednesday and for the first time in around a decade failed to make a decision on output policy.
"Now we are unhappy that we did not reach a decision but this is not the end of the world," OPEC Secretary General Abdullah al-Badri told Reuters. "It was not political, it was really an economic situation."
"Of course, for the past six years we have enjoyed a very relaxed atmosphere, now we have some tension. I hope we will overcome it."
Numbers compiled at the OPEC headquarters in Vienna had implied the market needed around 2 million barrels per day (bpd) more oil for the third quarter of this year and 1.5 million bpd for the fourth quarter, Badri told a World Economic Forum conference.
But he said some of the 12 members of OPEC had different numbers and were unable to agree on any need for more oil, even though oil prices are trading far above $100 a barrel.
For now he said the market was comfortably supplied.
"There is plenty of oil on the market. Stocks are very high, about three days above the five-year average," Badri said.
"We have to watch the market very carefully. If we see the market is imbalanced or some drastic things happen, we will alert our member countries."
SAUDI BARRELS NOT WANTED?
After Wednesday's meeting fell apart, leading OPEC member Saudi Arabia, holder of most of the world's surplus oil production capacity, said it would provide as much oil as the market needed.
"Saudi Arabia is trying to put more oil on the market, but no-one is buying it," Badri said.
He said over the course of OPEC's 50-year history, OPEC meetings had failed to reach agreement before. One instance was in 2000 when Iran refused to sign up to a decision and reacted to what it saw as undue U.S. pressure for more oil.
Iran and the upsurge in political tension associated with this year's Arab world unrest was again seen by analysts as the root cause of Wednesday's OPEC upheaval.
The second biggest OPEC member after Saudi Arabia, Iran is the leading price "hawk," which favors expensive oil, while Saudi Arabia has typically acted to moderate prices.
Badri would not be drawn on a precise price target, saying OPEC no longer had one, but he implied the need for relatively high prices.
The range previously backed by OPEC of around $75-$85 had, he said, been made obsolete by rising inflation, notably higher food costs.
Arab world unrest had added a roughly $15-$20 a barrel premium, he said, and also repeated his long-held criticism of speculation and taxes, arguing they boosted international futures prices and prices at the pump, respectively.
"The G7 (Group of Seven industrialized nations) is making more money from our exports than the member countries. When prices go up, if we increase production, they should increase tax," he said.
This year's oil price rally to a high above $127 a barrel for Brent in April piled the pressure on OPEC to raise formally an output target last revised in December 2008.
Badri said he had received a telephone call from Nobuo Tanaka, head of the International Energy Agency, before the OPEC meeting.
Badri referred to Tanaka as "my friend," but said: "I wish they (the IEA) would stop talking to us before the meetings."
Wednesday, June 8, 2011
OIL UP IMMEDIATELY on OPEC Announcement
OPEC says it could not reach an agreement to raise production (because there is no need to increase production, the market is already flooded w/over-abundance), and instantly oil returns to over $100 a barrel and still rising.
http://money.cnn.com/2011/06/08/markets/opec_oil_production/index.htm?iid=HP_LN
Can anyone use any of the excuses we have been tracking (see the DS Excuse Tracker)to explain this? Did the supply of oil just plummet at the time of this press release? Did world demand just suddenly increase ten fold within minutes? Was there a currency devaluation of dramatic proportions within minutes of this press release? Did a new war just break out within minutes of this press release?
The answer is no. No such coincidence. No such excuse.
Pure speculation on Wall Street.....with the threat of raised production not to occur, let the speculation and buying of oil shares (without having to take actual possession of the purchases) begin.
Article:
NEW YORK (CNNMoney) -- Oil prices breached the $100-a-barrel mark Wednesday after OPEC said it could not reach an agreement about raising crude production.
U.S. crude jumped $1.70, or 1.7%, to $100.81 a barrel. Oil prices were trading down about $1 just before the OPEC announcement. The price of brent crude - the European benchmark - rose 1.2% to $118.20 a barrel.
OPEC's quarterly meeting was widely watched by analysts. The cartel had been under intense pressure to raise production as oil prices approached $120 a barrel last month.
But cartel members were unable to reach a decision to do that, with at least three members reportedly holding steadfast against any production increase. OPEC ministers said they'll take another three months before considering any increase in oil output, according to CNN.
http://money.cnn.com/2011/06/08/markets/opec_oil_production/index.htm?iid=HP_LN
Can anyone use any of the excuses we have been tracking (see the DS Excuse Tracker)to explain this? Did the supply of oil just plummet at the time of this press release? Did world demand just suddenly increase ten fold within minutes? Was there a currency devaluation of dramatic proportions within minutes of this press release? Did a new war just break out within minutes of this press release?
The answer is no. No such coincidence. No such excuse.
Pure speculation on Wall Street.....with the threat of raised production not to occur, let the speculation and buying of oil shares (without having to take actual possession of the purchases) begin.
Article:
NEW YORK (CNNMoney) -- Oil prices breached the $100-a-barrel mark Wednesday after OPEC said it could not reach an agreement about raising crude production.
U.S. crude jumped $1.70, or 1.7%, to $100.81 a barrel. Oil prices were trading down about $1 just before the OPEC announcement. The price of brent crude - the European benchmark - rose 1.2% to $118.20 a barrel.
OPEC's quarterly meeting was widely watched by analysts. The cartel had been under intense pressure to raise production as oil prices approached $120 a barrel last month.
But cartel members were unable to reach a decision to do that, with at least three members reportedly holding steadfast against any production increase. OPEC ministers said they'll take another three months before considering any increase in oil output, according to CNN.
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