Understand Oil Prices

[Mary]

Supply and demand are not the only influence on oil prices. They are buying and selling futures. Futures require speculation. If its May and the Hurricanes forecast comes out and it says that we are going to have 20 major variances oil on the market shoots up. Nothing has happened,no one even knows for sure.  Selling futures is a way of hedging risk for oil companies/drillers.
Just this week OPEC came out and said oil will hit $200/barrel this summer. They don't know this but they would sure like it. So they let the comment out for the public traders get nervous and lo and behold oil prices increase.

Also the weak dollar and china and India's huge increases in demand are affecting oil prices. Oil is a worldwide markets. if the US drills more who says that the market will decline for sure? Not to mention that if we drill more oil OPEC will decrease production and oil supply will remain the same.

I don't agree with or disagree with domestic drilling. I totally agree that we need more refinery's. 90% of our refinery's are very old. We need more.

[Elmo-Ytown]

I don't understand the declining supply, exactly which part of the supply is declining?

[ytowner]

The Oil Companies buy oil at wholesale prices; and currently Gasoline Prices on the NY Mecantile Exchance are at $3.39. Next you must tack on the local, state, and federal gas taxes, which right now total about 45-50 cents perhaps. In the end, oil companies make just 5 cents per gallon!

So perhaps the idiots in Congress should stop accusing oil companies of gouging. I am as upset as all of you are in regards to oil, but it is not the oil companies fault, it is due to the increased demand as supply has fallen. The oil companies made it quite clear to Congress yesterday that it is Congress' fault that there is not more supply available in this country. Over the past decade, the oil companies have invested millions into technology to pinpoint billions upon billions of barrels of oil in Alaska, the Rockies, and the Gulf of Mexico, but the Democrats and some environmental Republicans have said no to drilling in these locations.

So here's a thought. Stop blaming the President on this, he supports drilling domestically like I do. Back in the 90s, the GOP Congress passed a bill to build new refineries and drill in new spots, but Clinton vetoed. Hell he is part to blame as is every Congressmen from each side of the aisle that does not support drilling in this country.

Polls in Alaska have Alaskans in support of drilling in ANWAR at 78%!!! They realize it, but we have freaking tree huggers that give money to the Democrats which is why they are against it.

Folks:
More Refineries=More Construction Jobs
More Refineries=More Oil Jobs
More Refineries=Oil Companies get to spend their record profits..

That's straight talk with a bit of opinion towards the end. Spin it anyway you want it, but it is compulsory that we begin to drill in these locations before we paying $8 bucks a gallon.