chelseafan Posted January 3, 2008 Report Share Posted January 3, 2008 And Water. We shoudl get all cars to run on water...loads of that stuff around. Water consists of Hydrogen, a combustable element so surely there is something in that. Love to know what will happen when the oil runs out. Link to comment Share on other sites More sharing options...
Torneyboy Posted January 4, 2008 Report Share Posted January 4, 2008 As it will....solar? Link to comment Share on other sites More sharing options...
coops Posted January 4, 2008 Report Share Posted January 4, 2008 They buy commodity futures contracts in the markets to guard against price swings. Farmers with any size of crop do the same thing. If you're counting on getting $1 a bushel for your corn and you harvest in the fall, the farmer buys or sells a future commodity contract in corn at a price that locks in his profit if the market goes against him. If it does, he makes money off the contract, if not, he lets it expire harmlessly. Its an insurance policy. So they buy this insurance policy for free? errrr, no. Although hopeless US airline will bleat about oil prices while Singapore airlines makes profits... Sometimes I wonder whether people think plastic grows on trees. ooops Link to comment Share on other sites More sharing options...
chelseafan Posted January 4, 2008 Report Share Posted January 4, 2008 Futures is a dangerous game. Whilst your right, there is money to be made, it can backfire too. My company buys end product Petrol for their petrol forecourts. Now we buy X amount at a time which will generally last for 3 months. If we buy low and the price go's up, great, we watch our competitors raising their forecourt prices whilst we are able to maintain our curent price, however, the reverse is also true. If the price go's down, we have to cut our price to the consumer to remain comeptitve but making a huge loss in the process. Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted January 5, 2008 Report Share Posted January 5, 2008 Ecconomics, simple Supply and Demand is what is driving the costs up not the oil companies. Political uncertainties are just a small part on the overall. Sure. It's supply and demand. For most commodities and services. However, seemingly knowledgeable oil industry sources quoted in an LA Times featured article a few weeks ago said that supply and demand were NOT a factor in the relatively recent run-up in prices. (Talking about the last 5 years or so.) So, the economic factor is left to manipulation and/or greed and failure of the governments to establish price controls. HH Link to comment Share on other sites More sharing options...
bust Posted January 5, 2008 Author Report Share Posted January 5, 2008 Ecconomics, simple Supply and Demand is what is driving the costs up not the oil companies. Political uncertainties are just a small part on the overall. Couldn't disagree further. Simple supply and demand in a perfect world.....but hey we all know we don't live in one of them. Supply and demand is constant in reality. But once you manipulate the supply through political situations you then play the dominant roll in pricing. Link to comment Share on other sites More sharing options...
chelseafan Posted January 5, 2008 Report Share Posted January 5, 2008 I disagree, 10 years ago I would say supply and demand was fairly constant or at a smaller incremental growth, but look at the new boys on the block China and India who are putting added strain on the reserves. The demand has increased exponentially over the past 10 or so years which has surely had a major bearing on the cost of oil. In most industries, the more you order the cheaper the price (bulk discount), oil however is a finite resource and so price will remain on a consistant slope upwards. Link to comment Share on other sites More sharing options...
shygye Posted January 5, 2008 Report Share Posted January 5, 2008 Disagree! Oil is a commodity. The price can go up or down and has done just that over the years. I remember oil hitting like $40 before dropping to $18. People in the industry do not believe $100 oil will last. Otherwise you would see companies around the world investing in coal diesel or gasification. This was done in South Africa during the oil embargo and Germany during the War. Link to comment Share on other sites More sharing options...
Old Hippie Posted January 5, 2008 Report Share Posted January 5, 2008 I thought the price was based on Speculation, and nothing more...? Link to comment Share on other sites More sharing options...
chelseafan Posted January 5, 2008 Report Share Posted January 5, 2008 Disagree! Oil is a commodity. The price can go up or down and has done just that over the years. I remember oil hitting like $40 before dropping to $18. People in the industry do not believe $100 oil will last. Otherwise you would see companies around the world investing in coal diesel or gasification. This was done in South Africa during the oil embargo and Germany during the War. That was the past, but as demand increases, why should the price drop off? Link to comment Share on other sites More sharing options...
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