by PrimateDave 4 Replies latest social current
I just read an interesting article.
"If speculators were forced to liquidate their positions, oil would easily be $65 to $75 per barrel by the time the liquidation was complete," said Michael Masters, the founder of Atlanta-based hedge fund Masters Capital Management. Tuesday, oil was trading at $108.74 in midday trading in New York.
More here: Bailing Out The Oil Market
Any thoughts?
Dave
What I hear is oil at lower prices does not justify getting it deliverd to the us....the consumer...it doesn't pay for the processing. In other words, we will probably pay more if oil prices go down......doesn't this just make you sick??????
Hi Dave,
I personally think that oil is in a higher price bracket due to the higher costs to get it out of the ground. What that price actually is, I don't know. I'd say it is around $110 or so per barrel - this would keep big oil still interested in exploring new regions. More demand (developing nations) means increased cost.
Of course, I don't have an economics degree.
Ten years ago the cost of extraction of Alaskan oil was $6.00 per barrel. One Sockeye salmon was worth over $10.00 at the time. I can't imagine the extraction costs have dramatically increased to justify the costs of gas we are experiancing, likewise, I don't think Arabian or other old extraction costs exceed that of Alaska. Carmel (former Alaskan)
Not an expert but .....
a few weeks ago gas prices were $3.60-3.99 a gallon, now they are $3.26.
