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| Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don't always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year. The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. The OPEC oil ministers, whose countries account for about 40% of the world's entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb. (See pictures of South Africa's oil-from-coal refinery.) Oil analysts believe OPEC's decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi - OPEC's key power player - said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. "Demand is picking up, especially in Asia," he told reporters puffing alongside him as he jogged through the streets of Vienna. "The price rise is a function of optimism that better things are coming in the future." The economic recovery Naimi so optimistically predicts would certainly be vital to oil-producing countries, whose own economies would be imperiled by a drawn-out recession. Oil demand in rich countries has crashed since the onset of the economic crisis last year, and is now at its lowest level since about 1981, according to the Paris-based International Energy Agency. U.S. oil inventories - the stored surplus - this month reached their highest level since the 1980s. And about 2.6 billion barrels are currently stored in commercial tankers around the world. "There is some risk we will run out of storage space in the next four to six weeks," says Simon Wardell, director of global oil at IHS Global Insight, an energy-forecasting company in London. To oil-rich countries that possibility evokes grim memories of 1998, when the Asian economic crisis sent demand plummeting, driving world oil prices down to $10 a barrel. "If we run out of storage it could prompt a collapse in the price," says Wardell. Oil producers might then choose to dramatically cut output in order to run down the surplus. (See pictures from Azerbaijan's oil boom.) Despite such dangers, investors and oil producers are betting that global demand will roar back, apparently hoping that the recession has already hit bottom. Over the past two months, investors have plowed billions of dollars into oil futures. If the U.S. and other major industrial economies rebound, oil supplies could be depleted because the recession has prompted producer nations to freeze hundreds of projects to open new oil wells or upgrade existing ones. In the oil-rich Niger Delta, a major Nigerian government offensive against rebels has seriously disrupted production for several weeks. Venezuela's Oil Minister Rafael Ramirez said in Vienna that his country could not afford to invest in major new oil exploration unless prices rise further. "We need a level of at least $70 [a barrel] to recuperate investment," he said on Thursday. Muhammad-Ali Zainy, senior energy analyst at the Center for Global Energy Studies in London, says oil demand could increase quickly once the recession ends, especially as China has begun to build up its strategic oil reserves. "We think the price is going to go up gradually," says Zainy. For those feeling the pain at the gas pumps, however, there is one piece of good news. Oil is unlikely to hit $147 a barrel again - at least not during the coming decades. The U.S. Energy Information Administration said on Wednesday that oil prices would likely rise to $110 a barrel by 2015 and $130 a barrel by 2030. By that time the world oil markets might once again follow the normal rules of economics |
| QUOTE (Space Monkey @ May 29 2009, 11:20 AM) |
| Once demand returns the new energy bubble will dwarf the last one. A decimated dollar will magnify normal supply and demand many times over. |
| QUOTE (OakBan @ May 29 2009, 07:40 PM) |
| and yet for all the bitching and self righteousness you bring to the board, its amazing what a hypocrite you .... |
| QUOTE (Dr. Gonzo @ May 30 2009, 03:54 PM) |
| If only we could drive SmartCars and get killed instantly during accidents. Bumper Cars have better security. |
| QUOTE (Pats&Sox @ May 31 2009, 02:10 AM) | ||
Have you ever researched anything before forming an opinion? :logik: ARLINGTON, VA — The Smart car is getting a lot of attention for its small size and style, and now it's earning impressive crash test ratings. In recent Insurance Institute for Highway Safety tests, the 2008 Smart Fortwo, the smallest car for sale in the US market, earned the top rating of good for front and side crash protection. Its seat/head restraints earned the second highest rating of acceptable for protection against whiplash in rear impacts. http://www.iihs.org/news/rss/pr051408.html |
| QUOTE (Dal1as @ May 30 2009, 07:21 PM) |
| Those crash tests are bogus and don't take in to effect getting hit by a larger car. Reports have already been out saying they are a death trap when getting hit by a larger vehicle. |
| QUOTE (Pats&Sox @ May 30 2009, 07:10 PM) | ||
Have you ever researched anything before forming an opinion? :logik: ARLINGTON, VA — The Smart car is getting a lot of attention for its small size and style, and now it's earning impressive crash test ratings. In recent Insurance Institute for Highway Safety tests, the 2008 Smart Fortwo, the smallest car for sale in the US market, earned the top rating of good for front and side crash protection. Its seat/head restraints earned the second highest rating of acceptable for protection against whiplash in rear impacts. http://www.iihs.org/news/rss/pr051408.html |
| QUOTE (Dr. Gonzo @ May 30 2009, 09:37 PM) |
| When they start testing Hummers and cement trucks against that piece of shit, shoot me a link. |
| QUOTE (Pats&Sox @ May 30 2009, 10:39 PM) | ||
Youre fucked if a cement truck hits you no matter what youre driving. Unless youre driving, maybe, another cement truck. Better run out and buy a cement truck, gonzo. |
| QUOTE (Dr. Gonzo @ May 30 2009, 10:53 PM) | ||||
Only if I can I fill the back of it with greenhouse gasses, polar bears and spraycans. |
| QUOTE (Pats&Sox @ May 30 2009, 10:56 PM) | ||||||
about what I expected when your reasoning on this topic dead ended |
| QUOTE (Dr. Gonzo @ May 30 2009, 11:00 PM) |
| I knew that'd piss you off, you fuckin' nancy. ;) Go back to your dendrophelia usergroup and talk about skateboards and lightbulbs full of dangerous mercury and painting your roof white. |
| QUOTE (Pats&Sox @ May 30 2009, 11:02 PM) | ||
Yeah Im so pissed off right now. |
| QUOTE (Dr. Gonzo @ May 30 2009, 11:03 PM) |
| I think you should log off. You're killing the planet by using electricity to maintain an internet connection. How selfish of you, Pats. You of all people should know better. |
| QUOTE (Pats&Sox @ May 30 2009, 11:11 PM) | ||
Using electricity doesnt kill the planet. It doesnt even harm the environment. You fail. Second time in this thread. |
| QUOTE (Dr. Gonzo @ May 30 2009, 11:12 PM) |
| But using plasma screen TV's will bring about the apocalypse! :spaz: :spaz: :spaz: :spaz: :spaz: :spaz: :spaz: :spaz: :spaz: :spaz: |
| QUOTE (no one in particular @ May 31 2009, 12:07 AM) |
| this is one seriously bad thread for you JG. You should stop.... like, a long time ago. |
| QUOTE (Pats&Sox @ May 31 2009, 01:11 AM) | ||
Using electricity doesnt kill the planet. It doesnt even harm the environment. You fail. Second time in this thread. |
| QUOTE (Pats&Sox @ May 30 2009, 01:10 AM) |
| blame asia and environmentalists, anyone but those actually responsible... speculators and fat lazy fucks who need to take their 3 ton SUV to the corner store for some glazed donuts I remember hearing a girl I work with complaining about gas prices when they were about $4/g. She was driving her brand new Mercury Mountaineer 30 miles each way to work. Boy that problem she created for herself was really bothering her. |
| QUOTE (Pats&Sox @ May 30 2009, 01:10 AM) |
| blame asia and environmentalists, anyone but those actually responsible... speculators and fat lazy fucks who need to take their 3 ton SUV to the corner store for some glazed donuts I remember hearing a girl I work with complaining about gas prices when they were about $4/g. She was driving her brand new Mercury Mountaineer 30 miles each way to work. Boy that problem she created for herself was really bothering her. |
| QUOTE (Space Monkey @ Jun 1 2009, 01:41 PM) | ||||
:lol: :lol: :lol: Because electricity isnt produced in coal and gas powered plants........it comes from magic little electricity fairies who live in our electrical outlets and leave no carbon footprints. And suncubes, lots of suncubes..........because those things work! :lol: |
| QUOTE (Pats&Sox @ May 31 2009, 01:16 AM) | ||
:blink: Apocalypse, end of the world, these are denier terms. Climatologists are saying we will destroy our own environment. The planet will be fine. |
| QUOTE (Pats&Sox @ May 29 2009, 09:10 PM) |
| blame asia and environmentalists, anyone but those actually responsible... speculators and fat lazy fucks who need to take their 3 ton SUV to the corner store for some glazed donuts I remember hearing a girl I work with complaining about gas prices when they were about $4/g. She was driving her brand new Mercury Mountaineer 30 miles each way to work. Boy that problem she created for herself was really bothering her. |
| QUOTE (Pats&Sox @ May 31 2009, 01:39 AM) | ||
Youre fucked if a cement truck hits you no matter what youre driving. Unless youre driving, maybe, another cement truck. Better run out and buy a cement truck, gonzo. |
| QUOTE (Pats&Sox @ May 30 2009, 07:35 PM) | ||
Ill take my link over your opinion. |