ChiefsPlanet

ChiefsPlanet (http://www.chiefsplanet.com/BB/index.php)
-   Washington DC and The Holy Land (http://www.chiefsplanet.com/BB/forumdisplay.php?f=30)
-   -   Economics Why haven't oil prices dropped like a rock? (http://www.chiefsplanet.com/BB/showthread.php?t=269520)

KC native 01-31-2013 06:36 PM

Quote:

Originally Posted by RaiderH8r (Post 9368626)
Marathon and Conoco just spun off their downstream assets and Valero is still a thriving independent refiner.

ROFL Valero?

Quote:

Valero Energy Corporation is a Fortune 500 international manufacturer and a marketer of transportation fuels, other petrochemical products, and power that is based in San Antonio, Texas, United States.[1] The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm. Valero is also one of the United States' largest retail operators with approximately 6,800 retail and branded wholesale outlets in the United States, Canada, United Kingdom, and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco brands.[2]

RaiderH8r 01-31-2013 06:45 PM

Quote:

Originally Posted by KC native (Post 9368630)
Just because it can be recovered, doesn't make it cheap. But carry on, acting like extracting oil at a loss will lower oil prices is brilliant.

I think you have fully missed my point. Crude oil is a global market with a multitude of variables acting on it. I used the natural gas market to demonstrate that a regional commodity, removing a number of variables that come into play in a global commodity market, demonstrates that increased product has, in fact, yielded a lower price and that the domestic energy commodity market does work.

Most companies are doing project valuations based on roughly $70 crude so they still have a ways to go before hitting bottom. Sure, there may be those going at $75 but not many going in for the projects based on $90 oil. They got flexed out.

Generally the cure for low prices is low prices and the cure for high prices is high prices. The system, when left to operate, usually works.

RaiderH8r 01-31-2013 06:48 PM

Quote:

Originally Posted by KC native (Post 9368640)
ROFL Valero?

Yes. They are an independent. The term applies to the IRS classification meaning, simply, they are not a fully, vertically integrated company like the Exxons of the world. They are buying crude from third parties to refine and distribute.

You can stop being a dickhead any time now Taco.

Taco John 01-31-2013 08:12 PM

>Why haven't oil prices dropped like a rock?

For one reason, people will pay the prices.

Deberg_1990 01-31-2013 08:31 PM

Wheres Donger been?

Hammock Parties 01-31-2013 09:48 PM

Your Fuhrer has no prize, Direckshun.

http://eurokulture.missouri.edu/wp-c...obama-nazi.jpg

loochy 01-31-2013 09:52 PM

Quote:

Originally Posted by Taco John (Post 9368789)
>Why haven't oil prices dropped like a rock?

For one reason, people will pay the prices.

THis is pretty much it. Demand hasn't slowed, so why should the price?

CoMoChief 02-01-2013 07:12 AM

Quote:

Originally Posted by Direckshun (Post 9367032)
Not really.

http://www.google.com/finance/chart?...kc&chs=500x110

The dollar is also projected to strengthen against the Euro over the next four years.

dude stf

CoMoChief 02-01-2013 07:13 AM

Quote:

Originally Posted by petegz28 (Post 9367267)
I have said this time and time again ...

weak $ = high oil and commodity prices

biiiiingo

Saul Good 02-01-2013 07:17 AM

Quote:

Originally Posted by Taco John (Post 9368789)
>Why haven't oil prices dropped like a rock?

For one reason, people will pay the prices.

That's not really accurate. People would always have paid the prices, but there are other market forces that kept the price down.

BigMeatballDave 02-01-2013 07:29 AM

Obamacare

BigMeatballDave 02-01-2013 07:35 AM

I suppose it is still Bush's fault.

bsp4444 02-01-2013 08:04 AM

Quote:

Originally Posted by loochy (Post 9369059)
THis is pretty much it. Demand hasn't slowed, so why should the price?

Then why the drop in price last quarter last year?

Radar Chief 02-01-2013 08:32 AM

Quote:

Originally Posted by Deberg_1990 (Post 9368831)
Wheres Donger been?

I know, right? This is obvious trolling for him.

petegz28 02-01-2013 08:40 AM

Quote:

Originally Posted by bsp4444 (Post 9369584)
Then why the drop in price last quarter last year?

Seasonal factors. Coming off of the "summer blends" which cost a lot more to make is one reason gas prices tend to drop over the fall and winter months and start to rise again in late winter, early spring.


All times are GMT -6. The time now is 10:05 AM.

Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2018, vBulletin Solutions, Inc.