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Old 01-07-2008, 03:19 AM
 
Location: Michigan
29,391 posts, read 55,402,853 times
Reputation: 22042

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RIYADH (Reuters) - Saudi Oil Minister Ali al-Naimi said on Sunday that the rise in oil prices to a record high had been determined by market forces.

"The market fixes the price of oil," Naimi told reporters at an energy conference in Riyadh when asked to comment on oil's surge to a record above $100 last week.

Market determines oil prices: Saudi Arabia: Financial News - Yahoo! Finance (broken link)
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Old 01-07-2008, 05:49 AM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,665,577 times
Reputation: 3587
He is probably somewhat telling the truth. The Saudis used to be able to determine the price themselves and when it would get higher than they wanted it to be (usually $40 a barrel), they would simply open the spigot and drive it back down. It appears they no longer have the capability to do that. Apprently they are pumping at or near their ability now.
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Old 01-07-2008, 07:16 AM
 
Location: wrong planet
5,161 posts, read 11,400,888 times
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Peak oil....

days of cheap oil are over forever. With China and India and to some extent, the rest of the world, wanting to emulate the "american way of life", oil prices will continue to rise and we better get some alternative energy sources SOON!
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Old 01-07-2008, 07:59 AM
 
Location: Londonderry, NH
41,478 posts, read 59,544,333 times
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The "market" has not determined oil prices since before the creation of Standard Oil in the late 1890's. Oil prices are set at whatever the producer cartels want the to be. That is: high enough to maximize profits while low enough to discourage alternates. No resource company is going to risk the enormous investment in oil production, refining and distribution on something a fickle as a ‘market’. Remember that oil companies are put together to make a profit. Schlepping around the oil is only one method of achieving that goal. Price fixing is another, more reliable, method.
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Old 01-07-2008, 08:32 AM
 
11,135 posts, read 14,145,471 times
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What Ali al-Naimi failed to mention was what exactly determined "market forces". In this case, primarily, political forces, military forces, and the forces of nature, gravity. (can't seem to hold the price down any longer)

By the way, don't scoff at the amount of fuel it takes to drive the US military forces, in fact I would love to see some daily statistics on it.

During the summer months we hear that due to the driving season, gas is going up. Then when driving season is over, prices rise to demands on winter heating oil.
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Old 01-07-2008, 08:46 AM
 
Location: Sacramento
14,044 posts, read 27,113,773 times
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Quote:
Originally Posted by TnHilltopper View Post
What Ali al-Naimi failed to mention was what exactly determined "market forces". In this case, primarily, political forces, military forces, and the forces of nature, gravity. (can't seem to hold the price down any longer)

By the way, don't scoff at the amount of fuel it takes to drive the US military forces, in fact I would love to see some daily statistics on it.
Gee, all you had to do is ask (1.7 million gallons per day):

Gas Pains
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Old 01-07-2008, 08:53 AM
 
11,135 posts, read 14,145,471 times
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Quote:
Originally Posted by NewToCA View Post
Gee, all you had to do is ask (1.7 million gallons per day):

Gas Pains
Excellent, but that is just in Iraq alone. I was looking for a total gas/jet fuel/ship fuel statistic. My bad for not clarifying this but that is still a pretty weighty number. (on par with some total fuel consumption of smaller nations)
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Old 01-07-2008, 09:03 AM
 
Location: Londonderry, NH
41,478 posts, read 59,544,333 times
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One of the best strategies for defeating a mobile armored force is to cut the fuel supply. A tank out of gas is just another stationary fort that can be bypassed or destroyed ad needed. Our greatest military vulnerability is not our space based communications but transporting our fuel supply. You can safely bet that our current and future enemies have fidgeted this out.
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Old 01-07-2008, 09:12 AM
 
Location: Sacramento
14,044 posts, read 27,113,773 times
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Total consumption might be tough to measure, you have to remember that DoD (Office of the Secretary of Defense), Navy, Air Force and Army are all funded independently by Congress, with the Iraq effort having a consolidated reporting mechanism. You might have to go and have each of their fuel purchase numbers pulled separately, however the military services knew they had consumption problems over five years ago:

NDM Article - Pentagon Needs Accurate Accounting of Fuel (http://www.nationaldefensemagazine.org/issues/2002/Mar/Pentagon_Needs.htm - broken link)
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Old 01-07-2008, 09:25 AM
 
Location: Portland, Oregon
5,299 posts, read 8,226,890 times
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Iraq is producing oil at half its capacity. Does this impact oil prices? Much as I don't like bush, I don't believe he's responsible for rising oil prices. It's demand from countries like China and India.
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