OPEC upset over low gas prices -

[David Thorn]

OPEC wants to raise the price of oil again and they do that by cutting the supply. That is something that is obvious to anybody with half a brain. In the world of business the people who have money are the people who want to make more and they do anything in their power to make more. For the people who run OPEC, the way to more money is the price of oil.

The real complaint should be with the local distributers who feel that just the words cutting supply gives them the fear of supply so they raise their prices. When OPEC says that they are raising prices the average people feel it fast yet when the price drops or when supply is high, the distributors take their time to lower the price of oil.

The way for people to show the distributors how we feel is by cutting them out by doing such things like using the Hybread cars. The problem with that is that the car companies still have deals with the big oil distributers so that the auto manufactures do not make as many hybreads as the demand is forcing people to get normal automobiles thus giving the oil companies money.

And the country with the largest supply of oil in OPEC being the United States "good ally" Saudi Arabia, you can expect that the United States will be the country that gets hit the hardest by the increasing prices. But that is not suprising being that a true ally of the US, Israel suspects that Saudi Arabia uses at least part of the money that it gets from the oil for terrorism. What we by using oil are doing then is sponsoring terror.

Gas is already $3/gal. here...

Watch out: Here comes $4 gasoline
Prices were supposed to peak below $3 a gallon, but refinery problems, strong demand could push them much higher.
April 26 2007

Gasoline prices, already above $3 a gallon in some states, could charge higher this summer and hit $4 a gallon in some locations, according to one industry expert. Pump prices were supposed to peak below $3 a gallon this May, then drop off before the summer driving season got into full swing, according to the Energy Department's price forecast. Well, we're not even out of April yet, and the nationwide average price for a gallon of unleaded regular has hit $2.87.

One big factor driving prices: gasoline inventories continue to fall. After a promising one-week boost in refining activity, the latest report Wednesday actually shows refining activity falling. And demand is already soaring, before the summer driving season is in full swing. What this means for prices is obvious, and to most drivers it is not good news.

"More and more communities are going to see gasoline that approaches or exceeds $4 a gallon," said John Kilduff, an energy analyst at Man Financial in New York. "Where we're currently at with prices, that's a given." While geopolitical tensions have driven up the cost of crude oil, which accounts for about half the cost of a gallon of gas, refinery problems here in the United States are also to blame for the price jump.

MORE

[Martin]

Its all ridiculous, political crap. The Oil Leaders are probably already discussing plans for prices next winter.

It doesnt need to be this high. It shouldnt be this high.

Chuck Schumer gonna look into gas prices...

Sen. Schumer Promises Probe Into Rising Gas Prices
May 7, 2007 - Gasoline prices have reached a record nationwide average of $3.07 a gallon, nearly 20 cents higher than two weeks earlier. Analysts blame refinery problems, and Sen. Chuck Schumer (D-N.Y.) is calling for a federal investigation

=snip=

He said he thinks the hefty prices could have resulted from oil companies being lax on maintenance, thus short on capacity. "The looming question is, are they putting money into maintenance and keeping up refineries as they should?" Schumer asked. "Or are they happier with lower production and higher prices?"

U.S. refineries are operating at just over 88 percent of their capacity, according to the Department of Energy. That's not enough, Schumer said. "What they should be doing is making sure the existing capacity they have is fully utilized," Schumer said.

Rather than taking advantage of the higher prices and producing more gas, which eventually would drive down the overall price, the companies instead have kept production low and prices high by not engaging in needed improvements and repairs, Schumer said. That's good for them, and bad for us, Schumer said. The companies aren't colluding on prices, but they "wink at each other and do the same thing," he said.

FULL

[jimmyc]

It doesnt need to be this high. It shouldnt be this high. Looks like I'll be buying new running shoes cause I'll be walking to work this summer!!

Nigerian rebels messin' with world oil prices...

Nigerian Militants Attack Oil Pipelines
8 May 2007 -- The main militant group in southern Nigeria said Tuesday it bombed three major oil pipelines.

The Movement for the Emancipation of the Niger Delta said in a statement from an email address frequently used by the group that it had attacked three major pipelines in Bayelsa state, hitting a Royal Dutch Shell PLC pipeline and two operated by Eni SpA subsidiary Agip. "We will continue indefinitely with attacks on all pipelines, platforms and support vessels," the group said. Chief Joshua Benemesia, the head of a government-backed antipiracy force, said he confirmed the attack with members of the Bayelsa State volunteers who were stationed in the two areas attacked, Brass and Akassa. He had no information on the capacity of the pipelines attacked.

A private security contractor said a large oil slick was spreading down the river from the Brass area. The Niger Delta is veined with thousands of miles of pipelines snaking their way through the mangrove swamps. Much of the Delta is impassable except by boat and attacks on isolated oil pumping stations or staff are frequent.

In December 2005, a MEND bombing knocked out nearly a quarter of Nigeria's production, which still hasn't been restored. Last week, the militant group claimed responsibility for the kidnapping of six foreign oil workers from a Chevron Corp.-operated facility and on Tuesday sent photos of them from the same e-mail address used to claim responsibility for the bombings. MEND members say they are fighting for a greater share of the tens of billions of dollars of oil revenues generated annually by their impoverished region, and the freedom of two leaders on trial on treason and corruption charges.

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Can the world produce enough oil to supply itself?...

Oil prices rise on International Energy Agency worries over meeting jump in oil demand
May 11, 2007 – Oil prices rose Friday after a report from the International Energy Agency raised concerns about the market's ability to meet an expected jump in demand for oil products.

The IEA said Friday that the Organization of Petroleum Exporting Countries needs to increase output soon and expressed concern over the ability of refiners and OPEC's willingness to meet a 1.6 million barrels a day jump in oil product demand in June. Suggestions by OPEC officials that there is no need to boost its production levels “appear wide of the mark” the agency said.

“Steady output at current levels would lead (OPEC) undershooting our calculated range for the call on its crude, and thus tightening stocks further,” the IEA said. Light, sweet crude for June delivery rose 35 cents to $62.16 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. On London's ICE Futures exchange, June Brent crude rose 61 cents to $66.40 a barrel. A day earlier, light, sweet crude prices rose amid broader gains in energy futures as traders noticed a gas supply imbalance in Wednesday's government inventory report.

The Energy Information Administration reported that gasoline stocks rose an average of 400,000 barrels last week, the first increase in 13 weeks. But a closer inspection showed much of that increase was due to a 1.1-million barrel increase in inventories on the West Coast only, not across the country. The news caused gasoline futures for June delivery to jump 9.52 cents to $2.3261 a gallon on Thursday, and the U.S. national average price of gas at the pump rose to $3.037 a gallon.

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[Martin]

Originally Posted by Unregistered

Can the world produce enough oil to supply itself?...

Oil prices rise on International Energy Agency worries over meeting jump in oil demand
May 11, 2007 – Oil prices rose Friday after a report from the International Energy Agency raised concerns about the market's ability to meet an expected jump in demand for oil products.

Ahhh so thats why...

I went to run some errands a few hours ago.. Was going down the mountain and both gas stations near my house were at $2.91 a gallon for regular... I came back up the mountain 30 minutes later and both stations were at 3.00 a gallon for regular !! Rose 9 cents in a half hour. Im not kidding.

Mother's Day weekend.

They gonna take advantage of everyone traveling to see good ol' Mom.

Here's bettin' the price of gas starts going back down Monday.

Look for another hike around Memorial Day.

Gas up the Wednesday before.

Interesting item from Down Under...

US problems forcing up our petrol prices
May 17, 2007 - MOTORISTS face more price rises at the petrol pump, this time because of refining problems in the US.

The average price of petrol was $1.28 per litre at the end of last week and that average has continued to creep northward this week. New figures to be released tomorrow would show the price at the bowser heading towards $1.35, CommSec equities economist Martin Arnold said. Mr Arnold said there were seasonal increases because of the approaching northern summer, when US motorists increasingly took to the roads.

But he said a good deal of the rise was unexpected and came down to supply problems out of the US. "Refineries across the US have been reducing operations (due to) machinery breakdown and other unexpected things," Mr Arnold said. "The Australian petrol price is tracking (the) Singapore gasoline price ... which is just under record highs."

Capacity at US refineries is about 89 per cent for just the second time in 15 years and today US motoring group, the American Automobile Association (AAA), said prices had gouged through the mental barrier of $US3 a gallon. The figure was a landmark for motorists in a country not used to paying much for petrol because of low taxes.

The AAA blamed the spike on US refineries. "Because oil prices today are at least $US10 less expensive per barrel than when gasoline prices previously exceeded $US3 per gallon, almost all of the price pressure on gasoline can now be attributed to America's continuing - and increasing - inability to supply enough refined gasoline to the marketplace," AAA said.

US problems forcing up our petrol prices | NEWS.com.au Business

Why would our refinery problems affect Australia? Don't they have their own refineries or are our refineries supplying them too??