1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

And Why Wouldn't Oil Rise?

Discussion in 'Sports and News' started by Pete Incaviglia, Aug 11, 2008.

  1. Pete Incaviglia

    Pete Incaviglia Active Member

    Still don't think speculators are to blame for rising oil prices — at least in (major) part?


    And I quote:
    Oil's been falling despite the fire. But the war, which hasn't damaged the pipeline, has made it rise. Go figure.
  2. slappy4428

    slappy4428 Active Member

    It's an election year.
  3. hondo

    hondo Well-Known Member

    Because if you had read further, or other articles, you would have found out that only 1 percent of the world's oil goes through that pipeline.
  4. Pete Incaviglia

    Pete Incaviglia Active Member

    Even worse. One percent is "jeopardy" or "at risk" because of the conflict. Yet it's on the rise.

    So, when a fire disabled the pipeline that carries one percent of the world's oil, the price was falling. When a war broke out and didn't disrupt the pipeline that carries one percent of the world's oil, prices rose.
  5. hondo

    hondo Well-Known Member

  6. Pete Incaviglia

    Pete Incaviglia Active Member

    I'm saying, neither pipeline have been damaged by the war, although both are within the area. And the one that was damaged, was damaged weeks ago and nothing changed. Now, all of a sudden, with war, but still no damage done and no stoppage, the price is rising.
  7. The Big Ragu

    The Big Ragu Moderator Staff Member

    We are in a worldwide recession. Demand is tapering off, which is why the price has come down some.

    Oil is still headed to $200 a barrel. A year and a half seemed likely at the beginning of this year, but it could be a little longer depending on how long the world economy is in a slump. Economies will cycle back up, demand will increase and the price will continue its ascent.

    Ultimately, this is going to be a supply story, as in they can't pump enough of the stuff to meet increasing demand, even if they tried (and they don't).

    Looking at the price of oil on a day by day, or week by week or month by month basis misses the long-term trend, which is that the price is only heading much higher unless the world finds a cheaper primary energy source and no longer needs oil.
  8. dixiehack

    dixiehack Well-Known Member

    Part of what is being priced in now is the threat of conflict spreading to the wider region.
  9. joe_schmoe

    joe_schmoe Active Member

    Except for one thing...the price didn't rise. It rose from the low of the day, but it opened the day at 115.20. it ended the day at 114.45. If that's rising then I'm lost.
    Sure it went below 113 and went back up on the day, but it does something similar every single day, as does the Dow and the NASDAQ. The price rises and falls during the day.
  10. Boom_70

    Boom_70 Well-Known Member

    Hey Ragu I hope you shorted oil in past couple of week. If so you have made a small fortune.
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    Nope. But I am not smart enough to predict week-by-week moves. Long-term, lasting trends are much easier to spot.
  12. Football_Bat

    Football_Bat Well-Known Member

    Maybe we should invade Iran after all, at this rate.
Draft saved Draft deleted

Share This Page