Oil Prices

[lynnmcmahan]

I hear and read a lot about the current oil prices and what should be done about it.
The latest, that has me scratching my head, is that the Gov't should not allow big oil to export oil because that somehow is causing prices at home to continue to rise even though there is no crude shortage.
I do believe high oil prices is putting us in a squeeze but I can't fault the oil barrons for selling to the highest bidder.
As an anology, I have cows and I just sold two bulls for freezer beef for $4./# to locals. Should I refuse to sell to the Chineese if I'm offered $6/#?

 

[JSCATTLE]

The u s is exporting more oil . U. S . Oil consumption is also down because of unemployment . 33Percent of gas price per gallon is a tax by the government .

 

[Ryder]

If oil companies, refineries, etc. are restricted and only allowed to sell at home at lower prices, then they can't compete and profit against foreign oil. So US companies will be smothered and we as a nation will be badly hurt economically.
We live in a global economy, like it or not.
I think another problem is that we don't have enough refineries. Hard to build more because of government regulations.

If you have extra money available you might hedge against price increases by buying on the futures market. A couple of stock market hedges might be USO(oil) or UGA(gasoline).

I really can't blame the current administration for price increases (I blame him for just about everything else). The government can't fix everything but it has the ability to make things worse.

 

[Jim62]

He has certainly been doing an excellent job of making things worse.

All of his royal edicts and policies have been exactly 180 degrees off from what they should have been.

It's time for some hope and change. Personally, I'm hoping we can change presidents (before it's too late).

 

[Brute 23]

Agriculture sells world wide and it effects local markets. O&G does it and people get in an uproar.

 

[Caustic Burno]

Agriculture sells world wide and it effects local markets. O&G does it and people get in an uproar.

This is a pretty good link in explaining the markets and refining

http://auto.howstuffworks.com/fuel-effi ... price1.htm

 

[Douglas]

The Fed keeps flooding the market with dollars. The weak dollar is good for exports like ag products, and makes imports more expensive. We export some gasoline, but we import a whole lot of oil, about 50% i believe.

 

[Brute 23]

That is another factor most people are leaving out of the "high price of gasoline" discussion. Our dollar is weaker thanks to debt so it takes more of them to buy the same product than it did a year ago.

 

[JSCATTLE]

That is another factor most people are leaving out of the "high price of gasoline" discussion. Our dollar is weaker thanks to debt so it takes more of them to buy the same product than it did a year ago.

Due to the feds printing money . Still falls on obama . For spending to much