Oil Prices, are they minipulated?

IronPriest · #1 12-20-2006, 09:21 AM

This might be something above all of our heads since this is a huge buisness, but I wanted to know what you guys think about Oil Prices. They say the reason for oil prices rising is due to demand??? Do you think this is the real reason or do you think Oil Companies know they have everyone by the balls and choose to raise the price as they see fit?

Also what are your thoughts on alternative fuels? I think we could of had an alternate source or a newer technology (electric cars) by now but the oil companies stood in the way of it coming out.

Maldoror · #2 12-20-2006, 01:48 PM

Oh man the reasons oil prices go up or down are really complex, at this point in history most product prices go up or down for more complex reasons than just supply and demand, but sincie most people wouldnt understand these reasons even if you took the time to explain them they are rarely explained. Anyway the economics behind oil prices are probably the most complex economics of any product on the trading markit, sincie it is such a huge commitity that is always going to sell very well then oil compenys have to consitere just about every factor on earth when decideding on what prices to set. I think when people bitch about the price of oil I dont think alot of them ever think about just how hard it is to make a profit off any given product without setting prices at an unreasnable level, you still have to make a profit but you cant price goge so that gives you a very slim margin where you can set your price at depending on what your competiter's price is the amount you can sell a product for and still make money is usally within a few cents. So in short are oil prices minipulated? Yes. Are they minipulated by five guys in a drak smokey room that are out to screw you? No. Oil prices are minipulated by the market, by the wethear, by the country where the compeny gets it, by OPEC, by other oil compenys, by demand, by suppily, and about a million other factors. Sure oil compenys make a billion dollers a day but if they had sold there oil for a few cents lesson the day they probably would have made nothing.

Necromancer · #3 12-20-2006, 01:51 PM

To quote South Park: "they have my balls in a vice grip".

Of course they're manipulated. I'm pretty sure the demand for oil isn't always at about mid afternoon on a Wednesday. That's when prices rise here. Around Wednesday/Thursday. Oil is bullshit.

Our government is going to give money to people who want to convert their cars to LPG gas (from fuel). Although factory gas cars are a fair bit better than converted gas cars. Eventually when everyone is on gas, fuel will go down slightly here, lol. Hopefully.

I just want a car that runs on seawater or something, lol. There's plenty of that!

Alfader · #4 12-20-2006, 01:59 PM

Quote:

Originally Posted by IronPriest

Also what are your thoughts on alternative fuels? I think we could of had an alternate source or a newer technology (electric cars) by now but the oil companies stood in the way of it coming out.

Well, scientists and students always try to come up with new ways to fuel cars, and there already are a few alternatives, such as electricity and hydrogen, but of course the oil companies stand in the way of it's breakthrough. In 50 years or so, we will have spend up all the oil, so we have to start using some of the alternatives pretty soon.

mischmetall · #5 12-20-2006, 02:46 PM

Yeah, it would become quite un-manageable if oil runs out. There are many alternate fuels but they can't really replace petrol/diesel fast.They can of course complement it, CNG, Compressed Natural Gas, for example, is already in good use here. All buses, taxis in the capital Delhi run on CNG, though the reason for introducing CNG was actually pollution control initially.

Sune · #6 12-20-2006, 02:50 PM

Actually my uncle is a professor at a university here in Denmark, and he was in the news because he helped develop an alternative system where there's a sort of cars/trains or whatever you wanna call them, that drive on rails in the air, and they should be pretty fast. As far as I know, they've already sold the system to some countries. I can't remember all the countries, but I believe India was one of them.

elcapitan · #7 12-20-2006, 06:31 PM

Although the topic of nuclear power is clearly over my head, I feel well-enough versed on the topic of economics to feel comfortable giving my opinion.
Personally, I am so sick of those free market advocates trickling their textbook theories into the debate of oil prices. This isn't fucking apples and bananas being bought at a local fruitstand, this is a multi-trillion dollar cartel of oil companies that directly (or indirectly, depending on your school of thought) collude prices by controlling supply. In any other industry, this type of activity is illegal, but because oil companies have us by the balls, we allow it. What they are doing isn't free market activity, so why do free market advocates, George Bush, and oil company executives continually expect us to believe that by interfering, it will somehow backfire? Bullshit! Oil companies may have us by the balls, but like any other industry, powerful customers force companies to make concessions so that they can patronize their business.
My theory is that if we decide to continue allowing oil companies to collude prices (which I don't stand for), then we must identify ourselves for what we are...extremely powerful customers that have the ability to bankrupt these companies...And either begin sanctioning them for manipulating prices, or form a united consumer front between the U.S., E.U., China, and anyone else who wants to join, which bargains with these companies for concessions or lower prices. Not to mention the obvious, that we need to quit using so much oil

Maldoror · #8 12-20-2006, 11:06 PM

Quote:

Originally Posted by Necromancer

To quote South Park: "they have my balls in a vice grip".

Of course they're manipulated. I'm pretty sure the demand for oil isn't always at about mid afternoon on a Wednesday. That's when prices rise here. Around Wednesday/Thursday. Oil is bullshit.

Our government is going to give money to people who want to convert their cars to LPG gas (from fuel). Although factory gas cars are a fair bit better than converted gas cars. Eventually when everyone is on gas, fuel will go down slightly here, lol. Hopefully.

I just want a car that runs on seawater or something, lol. There's plenty of that!

Really your goverment is giving people money to convert there cars to LPG? My dad owns an LPG company he would die of joy if our country did that. I work with him and have done a few of these type of conversons on state buses and what not, they are very very costly to do this and we dont even keep the stuff you need to do it in stock because no one ever wants to spend that kind of money, but LPG is alot more clean burning and cheaper to buy(as my dad is constently reminding me). Really though the only way to get oil companys to lower there prices is for them to have compitson that isnt another oil company, so yeah everyone needs to get cracking on alternitve fuels.

Necromancer · #9 12-21-2006, 01:59 AM

Quote:

Originally Posted by Maldoror

Quote:

Originally Posted by Necromancer

To quote South Park: "they have my balls in a vice grip".

Of course they're manipulated. I'm pretty sure the demand for oil isn't always at about mid afternoon on a Wednesday. That's when prices rise here. Around Wednesday/Thursday. Oil is bullshit.

Our government is going to give money to people who want to convert their cars to LPG gas (from fuel). Although factory gas cars are a fair bit better than converted gas cars. Eventually when everyone is on gas, fuel will go down slightly here, lol. Hopefully.

I just want a car that runs on seawater or something, lol. There's plenty of that!

Really your goverment is giving people money to convert there cars to LPG? My dad owns an LPG company he would die of joy if our country did that. I work with him and have done a few of these type of conversons on state buses and what not, they are very very costly to do this and we dont even keep the stuff you need to do it in stock because no one ever wants to spend that kind of money, but LPG is alot more clean burning and cheaper to buy(as my dad is constently reminding me). Really though the only way to get oil companys to lower there prices is for them to have compitson that isnt another oil company, so yeah everyone needs to get cracking on alternitve fuels.

Yep, our government will be giving $1000 towards each $5000 conversion. You should move to Australia and make a fortune, lol.

IronPriest · #10 12-21-2006, 06:42 AM

I really don't know much about economics so it's hard for me to have a strong opinion on this matter. I never heard of LPG until now... I feel bad for the Europeans, I was in Austria this summer and all their cars seem to be diesel which used to be cheaper than unleaded, looks like things have changed and now they are getting raped!
I'm looking forward to the next Presidential election here in America, of course the war in Iraq is going to be the number 1 issue but I believe alternative source of fuel will be a high discussion as well...not sure if that means anything will get done right away but at least its a major issue to the public and should demand action by the government....we'll wait and see.

Isn't there a South American Country running on Ethanol already...can't remember which country it was, but they already have gas stations already.