I have a big question about the price of oil/gas in light of the oil gusher.

Bonobo

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Sun May-23-10 08:30 PM
Original message

I have a big question about the price of oil/gas in light of the oil gusher.

I recall that after Katrina and during the summer when the price of gas went through the roof, the price of gas and oil seemed to fluctuate every time there was a little storm in the Gulf or the surrounding area. At least that was the excuse that they bandied about... Does anyone remember that? I swear that the prices were bouncing all over the place and the media kept issuing these lame excuses for it. Am I remembering wrong?

Anyway, in light of that past 'behavior'. why is the price of oil and gas going down now even though a huge amount of oil is being lost? Yes, I know, European monetary crisis, but still....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4394766
U.S. Gasoline Falls to $2.8279/Gallon, Lundberg Says (Update1)

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NYC_SKP

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Sun May-23-10 08:39 PM
Response to Original message

1. Refinery Capacity, IMO.

Many, many factors enter into the equation, but I think here the difference is that the BP problem doesn't reduce by a single drop of oil how much oil has been in the equation.

Remember, it was under development, not yet contributing to supply.

:patriot:

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Feron

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Sun May-23-10 10:25 PM
Response to Reply #1

7. However if the oil spill shuts down the LOOP and producing platforms...

then there will likely be an impact.

So far the LOOP is still open and I haven't heard of any platform closings.

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caraher

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Sun May-23-10 08:56 PM
Response to Original message

2. I also read that there's concern about the economic recovery

The oil speculator types aren't buying because they're apparently forecasting weak demand in the near future.

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gravity

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Sun May-23-10 08:58 PM
Response to Original message

3. Because one oil well is insignificant

but a storm that could affect hundreds of oil wells is

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Synicus Maximus

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Sun May-23-10 09:08 PM
Response to Original message

4. There are roughly 3500 oil wells in the Gulf alone. ALthough this

is a ecological disaster the lose of one well which was not even producing anyway would have no affect on the price of oil.

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scheming daemons

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Sun May-23-10 09:16 PM
Response to Original message

5. I heard that less than *20 minutes* of world consumption has been leaked so far

All of the oil that has been spilled represents less than 20 minutes of worldwide consumption, based on current rates of usage.

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Lint Head

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Sun May-23-10 10:14 PM
Response to Original message

6. The Deep Horizon drilling was exploratory. It was not producing

oil output so there is no impact on current oil supplies.

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MadHound

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Sun May-23-10 10:41 PM
Response to Original message

8. There's a glut of oil currently

Tankers and tankers of oil sitting in harbor full of oil, waiting to be refined, waiting for the price to go up.

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Bonobo

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Mon May-24-10 04:42 AM
Response to Reply #8

9. Ah, thank you all for the information. Much appreciated. nt

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