under Bush 41?If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
No Bush is not responsible for the oil prices. Oil is traded on the world market. If we could get this suckie congress to open up drilling you will see the prices start to go down immediately.If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
I'm sure the that our CIC would like to haev that power but he and we (US) do not have that power., It's all under the hands of the countries that have the oil and the amount of oil that they are willing to drill/ give to other countries.
The CIC is not responsible.
the last time gas was .89 was back in the 80's....what are you smoking?
I get a thumbs down for stating a fact ?? wow..if you are not interesting in an honest answer how about this.....
the gas ferry is the one we should be mad at...he keeps rising up prices to pay off his kids braces....it has nothing to do with the devalued dollar or over confident commodity traders...nope..not a thing...the gas ferry...it's his fault...
because he doesnt , opec and all the taxes are why the prices are high, if they took the taxes away for a yr they would lower the price to about 2.50 a gallon
The government really has no control over oil prices as much as some in congress think they do.
You have so many implied faulty assumptions in that question that I don't know where to start...
Because the Dollar was strong and meant something back then. Now more and more people are getting off the Dollar.
Iraq kept low prices back then.
Friday, July 30, 2010
Why is Obama allowing oil companies to raise gasoline prices so high?
Gas this morning was at $2.85 a gallon. Up from $1.59 a few weeks ago.Why is Obama allowing oil companies to raise gasoline prices so high?
A weak dollar makes prices go higher, plain and simple. Obama has made the dollar weaker.
-edit-
Why was when the gas prices went up last summer it was because Bush was in bed with the oil companies. Now that Obama is directly responsible for oil prices going higher as a result of a weak dollar the libs now want to say oh he doesn't control the oil companies or he doesn't allow them to do it they hjust do it because it's the summer driving season. What a bunch of bull!Why is Obama allowing oil companies to raise gasoline prices so high?
ok, so do you want the government IN, or OUT, of business
It amazes me, the same folks who bash him for bailing out our financial institutions and major US employer (auto companies) cry because he DOESN';t fix the price of gasoline?
If you don't like the price of gas, take some personal responsibility to use less. Simple as that.
With the new cash for clunkers program more people should switch to more fuel efficient cars and hybrids, therefore reducing demand and the prices will drop. During the summer more people drive and gas prices always increase.
Obama doesn't allow crap...fuel prices are based on the price the station has to pay at the big pump...and these prices are based on the cost of a barrell of crude oil...and the cost of crude oil is based on a WORLD MARKET!
The U.S. President has never had absolute control of fuel costs.
Maybe that is part of the change he was talking about.
EDIT: can't help but notice the liberals now are saying the president has nothing to do with the oil companys...hrmm...and yet according to them it was all Bushs fault..along with everything else.
Liberal logic. (oxymoron)
Obama is stealing oil from Iraq.
And he secretly works for Halliburton.
because Obama knows that all he has to do is give a moving speech about it to explain it all away and then it will just be accepted.
Personally I think Obama should seize their companies and Nationalize them all .
But you know he won't .
what do you mean ';allowing';?
he isn't in charge of the oil companies
and they ALWAYS profiteer during the 'summer driving season'
obviously obama is in bed with big oil.....he certainly has no problem
continuing the ';war for oil';
Because the free market has set this price. If you're so opposed to 'socialism', then surely you would recognise the action of a market in operation.
So everyone runs out and buys the 'new' Chrysler/FIAT (aka Found in A Trench) cars! The government gets its return on investment.
Gas always goes up in the Summer...DUH!!! (but that simple fact obviously won't stop you from posting this crap over and over.)
He's not in control of oil companies any more than Bush or their predecessors were.
How could you blame it on Obama, Don't you know it is Bush's fault? (For you liberals, that is SARCASM)
He thinks we should be punished for using fuel on the first place.
Solution....do not purchase any.
Next problem?
Because Dick Cheney's energy bill is still on the books.
i love it....keep driving the low mpg trucks
because he is preoccupied doing other things to piss off the right, and nothing to help the country
A weak dollar makes prices go higher, plain and simple. Obama has made the dollar weaker.
-edit-
Why was when the gas prices went up last summer it was because Bush was in bed with the oil companies. Now that Obama is directly responsible for oil prices going higher as a result of a weak dollar the libs now want to say oh he doesn't control the oil companies or he doesn't allow them to do it they hjust do it because it's the summer driving season. What a bunch of bull!Why is Obama allowing oil companies to raise gasoline prices so high?
ok, so do you want the government IN, or OUT, of business
It amazes me, the same folks who bash him for bailing out our financial institutions and major US employer (auto companies) cry because he DOESN';t fix the price of gasoline?
If you don't like the price of gas, take some personal responsibility to use less. Simple as that.
With the new cash for clunkers program more people should switch to more fuel efficient cars and hybrids, therefore reducing demand and the prices will drop. During the summer more people drive and gas prices always increase.
Obama doesn't allow crap...fuel prices are based on the price the station has to pay at the big pump...and these prices are based on the cost of a barrell of crude oil...and the cost of crude oil is based on a WORLD MARKET!
The U.S. President has never had absolute control of fuel costs.
Maybe that is part of the change he was talking about.
EDIT: can't help but notice the liberals now are saying the president has nothing to do with the oil companys...hrmm...and yet according to them it was all Bushs fault..along with everything else.
Liberal logic. (oxymoron)
Obama is stealing oil from Iraq.
And he secretly works for Halliburton.
because Obama knows that all he has to do is give a moving speech about it to explain it all away and then it will just be accepted.
Personally I think Obama should seize their companies and Nationalize them all .
But you know he won't .
what do you mean ';allowing';?
he isn't in charge of the oil companies
and they ALWAYS profiteer during the 'summer driving season'
obviously obama is in bed with big oil.....he certainly has no problem
continuing the ';war for oil';
Because the free market has set this price. If you're so opposed to 'socialism', then surely you would recognise the action of a market in operation.
So everyone runs out and buys the 'new' Chrysler/FIAT (aka Found in A Trench) cars! The government gets its return on investment.
Gas always goes up in the Summer...DUH!!! (but that simple fact obviously won't stop you from posting this crap over and over.)
He's not in control of oil companies any more than Bush or their predecessors were.
How could you blame it on Obama, Don't you know it is Bush's fault? (For you liberals, that is SARCASM)
He thinks we should be punished for using fuel on the first place.
Solution....do not purchase any.
Next problem?
Because Dick Cheney's energy bill is still on the books.
i love it....keep driving the low mpg trucks
because he is preoccupied doing other things to piss off the right, and nothing to help the country
What will be the price of gas in 4 years if we don't begin drilling for more oil now?
the dems will let gas prices soar.thats why we need to vote their worthless asses OUT.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
I don't know. If I knew the answer to that question with any certainty, I would be buying or selling futures contracts to cash in on my prescience. The neat thing about the activity of speculation is that it transforms views on future uncertainty into prices today. Increasing prices signal producers to ramp up production or (failing that) consumers to cut back on consumption. And it's not just speculators who participate in this process. People who rely upon oil or gasoline in their business may transact in the futures markets to insulate themselves from future price changes.
In my opinion, there may be an actual scarcity of oil revealing itself. I believe that increased drilling may slow the price increases but not stop them entirely. In terms of the cost of oil, I believe the predictions of $200-$300 per barrel in that time period. It would be hard to say how those price levels would convert into gasoline prices since gasoline is only one good among many for which oil is used. If those predictions are true, a good many aspects of our economy will have to adapt. If left alone, prices will balance out supply and demand.
The nightmare scenarios are if governments intervene to such an extent that price signals are suppressed or distorted. If the stuff is running out, government decrees won't replace it when it's unavailable.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
$1.
You may remember the oil shocks of the 1970's.
But have you forgotten the oil glut of the 1980's?
';Oil prices of over $40 a barrel on the spot market contributed substantially to a depressed world economy, which required less energy. As production rose from new sources such as Mexico and the North Sea, an oil glut replaced the perceived shortage of 1979 and 1980. Prices softened and drifted downward. This triggered a dramatic decline in domestic exploration, and the number of active drilling rigs was nearly halved in 1982.Oil service and supply companies in Houston and elsewhere found themselves with excess capacity and inventories and few customers. Firms like Hughes Tool and Cameron Iron laid off thousands of the workers they had hired in the previous two or three years.';
Whether we drill or not, regular inflation will drive the price up if there are still no solid alternative sources. I guess if you want an estimate:
Without adding any differential for outside sources of inflation, every 10 years prices increase about 2%. So in 4 years we can say prices will be 1% higher then they will now. Avg. gas in the country (right now) is about $4. So we would be looking at a base price of $4.05, rounding up. Which, of course, is $1.20 more then last year. If we drill...that won't affect the price for a decade, so I don't see the price of gas in four years being altered by off shore drilling. Supply and demand would have a greater affect on it...if anything.
Well, if we got ALL the pumps the Republicans and the oil companies drilled and going and active by tomorrow, the price of gas would drop approximately six cents.
Of course, didn't the Saudis say that there's no reason for gas to be costing more than $60/barrel, so I would expect there's quite a bit of oil speculation going on right now at EXXON, Chevron and Shell 鈥?and I wonder how much of this money the Republicans in Bush's administration are pocketing for themselves.
Depends on what you are talking about and other circumstances.
I'd guess it would be exactly the same as if we didn't start drilling/development now. Will it be too much or much higher? Probably yes. So the answer is to cut our use so it will cost us less.
But wait, I just said the price won't change! If it costs X dollars, and I use Y amount, it will be cheaper if it costs X dollars and I use 1/2 of Y amount.
The key is to find alternatives and to increase efficiency to cut our use.
If you're talking about opening up offshore drilling or ANWR, that won't make any difference, at all. They're already sitting on leases and capped wells that have billions of gallons of oil. The oil companies would rather import the stuff, and, really, why would they have any interest in reducing the amount of money they get for their product?
It's going to start to decline a bit now, without drilling... Keep in mind until we are able to refine more oil, into gasoline and diesel, we will be in the same boat regardless of the influx of oil... The speculators are banking on that alone... So don't expect to see it any lower until then.
We need to reduce consumption and eventually get away from oil all together.
We shouldn't be squealing with delight when we find new oil fields while fighting global warming at the same time. It's a little nutty.
How much oil demand is going to increase in 4 years? Is drilling going to make any difference ?
Too much.
If that's all we do.......it will be the same....or worse....
Who cares?
I don't know. If I knew the answer to that question with any certainty, I would be buying or selling futures contracts to cash in on my prescience. The neat thing about the activity of speculation is that it transforms views on future uncertainty into prices today. Increasing prices signal producers to ramp up production or (failing that) consumers to cut back on consumption. And it's not just speculators who participate in this process. People who rely upon oil or gasoline in their business may transact in the futures markets to insulate themselves from future price changes.
In my opinion, there may be an actual scarcity of oil revealing itself. I believe that increased drilling may slow the price increases but not stop them entirely. In terms of the cost of oil, I believe the predictions of $200-$300 per barrel in that time period. It would be hard to say how those price levels would convert into gasoline prices since gasoline is only one good among many for which oil is used. If those predictions are true, a good many aspects of our economy will have to adapt. If left alone, prices will balance out supply and demand.
The nightmare scenarios are if governments intervene to such an extent that price signals are suppressed or distorted. If the stuff is running out, government decrees won't replace it when it's unavailable.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
$1.
You may remember the oil shocks of the 1970's.
But have you forgotten the oil glut of the 1980's?
';Oil prices of over $40 a barrel on the spot market contributed substantially to a depressed world economy, which required less energy. As production rose from new sources such as Mexico and the North Sea, an oil glut replaced the perceived shortage of 1979 and 1980. Prices softened and drifted downward. This triggered a dramatic decline in domestic exploration, and the number of active drilling rigs was nearly halved in 1982.Oil service and supply companies in Houston and elsewhere found themselves with excess capacity and inventories and few customers. Firms like Hughes Tool and Cameron Iron laid off thousands of the workers they had hired in the previous two or three years.';
Whether we drill or not, regular inflation will drive the price up if there are still no solid alternative sources. I guess if you want an estimate:
Without adding any differential for outside sources of inflation, every 10 years prices increase about 2%. So in 4 years we can say prices will be 1% higher then they will now. Avg. gas in the country (right now) is about $4. So we would be looking at a base price of $4.05, rounding up. Which, of course, is $1.20 more then last year. If we drill...that won't affect the price for a decade, so I don't see the price of gas in four years being altered by off shore drilling. Supply and demand would have a greater affect on it...if anything.
Well, if we got ALL the pumps the Republicans and the oil companies drilled and going and active by tomorrow, the price of gas would drop approximately six cents.
Of course, didn't the Saudis say that there's no reason for gas to be costing more than $60/barrel, so I would expect there's quite a bit of oil speculation going on right now at EXXON, Chevron and Shell 鈥?and I wonder how much of this money the Republicans in Bush's administration are pocketing for themselves.
Depends on what you are talking about and other circumstances.
I'd guess it would be exactly the same as if we didn't start drilling/development now. Will it be too much or much higher? Probably yes. So the answer is to cut our use so it will cost us less.
But wait, I just said the price won't change! If it costs X dollars, and I use Y amount, it will be cheaper if it costs X dollars and I use 1/2 of Y amount.
The key is to find alternatives and to increase efficiency to cut our use.
If you're talking about opening up offshore drilling or ANWR, that won't make any difference, at all. They're already sitting on leases and capped wells that have billions of gallons of oil. The oil companies would rather import the stuff, and, really, why would they have any interest in reducing the amount of money they get for their product?
It's going to start to decline a bit now, without drilling... Keep in mind until we are able to refine more oil, into gasoline and diesel, we will be in the same boat regardless of the influx of oil... The speculators are banking on that alone... So don't expect to see it any lower until then.
We need to reduce consumption and eventually get away from oil all together.
We shouldn't be squealing with delight when we find new oil fields while fighting global warming at the same time. It's a little nutty.
How much oil demand is going to increase in 4 years? Is drilling going to make any difference ?
Too much.
If that's all we do.......it will be the same....or worse....
Who cares?
Liberals how can you blame Bush for high oil prices?
It is YOUR fault we have high oil prices. We have plenty of oil on our own lands but the problem is that they are on government land. Who keeps them from opening up this land... hippy liberals. How can you blame Bush, that is outrageous. Oil is a commodity, supply and demand rule the price not the president. There is simply not enough being produced to meet the world's demand. Open up our govt. lands for drilling (maybe hurting a little wildlife) and oil prices will go down within the next 5 years or so.Liberals how can you blame Bush for high oil prices?
I would like to read the cold hard facts you base your statement on.
I'm all for cheaper gas!Liberals how can you blame Bush for high oil prices?
Bush is to be blamed for high oil prices because his foreign policy, and his ';war'; in the middle east affects the economy. Just like his support of Israel right now in their campaign to destroy Lebanon (because the religious right wants Armageddon) is impacting the economy.
Oil prices will not go down by opening up public land to drilling because the oil companies regulate the price. If Exxon can afford to give one of their executives a $400 million dollar golden parachute (his retirement package), then something smells rotten.
It is the same reason for the war in Iraq. It was not about weapons of mass destruction or removing Saddam Hussein from power (Cause those informed people know that Iraq is a much worse place off today than it ever was under Saddam's regime) , it was about oil. We are dependant on oil.
The actions in the Middle East affects not only the price of oil, but it also affects the market in other aspects.
I suggest you wake up, open your eyes, and read about what is really going on in America, like the American citizens losing their freedoms.
The NSA is monitoring your calls and e-mails, the FBI wants every router manufacturer to put backdoors in every router, hub, and switch.
I suggest you read:
http://www.wired.com/news/technology/1,7鈥?/a>
and
http://digg.com/security/FBI_putting_a_b鈥?/a>
http://www.broadbandreports.com/shownews鈥?/a>
You are slowly having your rights chipped away, and most Americans do not even know it. I suggest you get out and read things for yourself and stop listening to republican propaganda. The unemployment rate is at it's highest, the economy is in the toilet, and we are borrowing and now owe China so much money (because Bush is acting like he has Chinese Visa credit card) that if they recall our debt we instantly go into recession.
Except for the energy rip-offs that cost billions of dollars to consumers, Bush has done his best to make all of America's air as yellow as Texas air.
I am sure that Mr. Bush thinks ';the smell of money'; as they say in Texas, is what a person should look forward to as you pass from the comfort of your air conditioned home to walk to the driveway to get into their air conditioned and armored Humvee.
So the oil companies making record profits to the tune of billions of dollars has nothing to do with high oil prices? It is all due to hippy liberals not wanting to drill on government land?
Right we have tons of oil. Cept we don't. Theres some in alaska but nobody knows how much is there. And because repukes don't care about ANYBODY except themselves...they'd have us destroy the land to get oil that might not even be in a quantity that would effect prices at all.
Why blame bush? It's his watch....carter got blamed for the mess in the 70's. And seriously...it's really interesting that oil (adjusted for inflation) is more expensive now then it was when there was no oil.
Supply and demand??? right....take one oil company CEO's bonus for the year and dump it into the market and watch the prices go down.
You don't seem to be paying attention....
Bush is and oil man, from an oil family. When the price of oil goes up, him and his family profits. You don't see him doing anything real to stop the rising prices do you, unless it actually helps the oil companies.
Where do you think he will get a job when he leaves office. Wake up!!
What is so hard to understand?
dkstringer.....Actually during the gas crisis of the 70's gas prices adjusted for inflation were over $6 a gallon.
The area in ANWAR that they want to drill on is an area the size of a small airport and about 2 people a year visit an area about half the size of Texas....hmmm yeah that's destroying the environment.
Offshore drilling....how many spills have the oil rigs in the Gulf had in the last 10 years....zero...that's right zero.....the only reason we can't drill is so some jackass liberals who own property won't have to see it out of their million dollar houses...NOT IN MY BACK YARD...but I will sure in hell blame the president for high gas prices.
I am with you 100%. Your statement is right on!!
Yep, absolutely true, libs just want something to complain about or they arent happy, when in reality they create most of the things they complain about. It is actually kind of funny.
i dont think imaginer realizes that presidents get paid even after they arent president anymore, Bush doesnt need to fall back on his income from oil when his ';job'; as president is over, it just happens to be part of his income.
i think republicans have controlled the congress since bush was elected....so what is your excuse now
While I agree with you up to a point, I also feel, as President bush said, we must find and develop different sources of fuel other than oil.
I agree with you. The lines are there turn them on.jabbawockeez mask
I would like to read the cold hard facts you base your statement on.
I'm all for cheaper gas!Liberals how can you blame Bush for high oil prices?
Bush is to be blamed for high oil prices because his foreign policy, and his ';war'; in the middle east affects the economy. Just like his support of Israel right now in their campaign to destroy Lebanon (because the religious right wants Armageddon) is impacting the economy.
Oil prices will not go down by opening up public land to drilling because the oil companies regulate the price. If Exxon can afford to give one of their executives a $400 million dollar golden parachute (his retirement package), then something smells rotten.
It is the same reason for the war in Iraq. It was not about weapons of mass destruction or removing Saddam Hussein from power (Cause those informed people know that Iraq is a much worse place off today than it ever was under Saddam's regime) , it was about oil. We are dependant on oil.
The actions in the Middle East affects not only the price of oil, but it also affects the market in other aspects.
I suggest you wake up, open your eyes, and read about what is really going on in America, like the American citizens losing their freedoms.
The NSA is monitoring your calls and e-mails, the FBI wants every router manufacturer to put backdoors in every router, hub, and switch.
I suggest you read:
http://www.wired.com/news/technology/1,7鈥?/a>
and
http://digg.com/security/FBI_putting_a_b鈥?/a>
http://www.broadbandreports.com/shownews鈥?/a>
You are slowly having your rights chipped away, and most Americans do not even know it. I suggest you get out and read things for yourself and stop listening to republican propaganda. The unemployment rate is at it's highest, the economy is in the toilet, and we are borrowing and now owe China so much money (because Bush is acting like he has Chinese Visa credit card) that if they recall our debt we instantly go into recession.
Except for the energy rip-offs that cost billions of dollars to consumers, Bush has done his best to make all of America's air as yellow as Texas air.
I am sure that Mr. Bush thinks ';the smell of money'; as they say in Texas, is what a person should look forward to as you pass from the comfort of your air conditioned home to walk to the driveway to get into their air conditioned and armored Humvee.
So the oil companies making record profits to the tune of billions of dollars has nothing to do with high oil prices? It is all due to hippy liberals not wanting to drill on government land?
Right we have tons of oil. Cept we don't. Theres some in alaska but nobody knows how much is there. And because repukes don't care about ANYBODY except themselves...they'd have us destroy the land to get oil that might not even be in a quantity that would effect prices at all.
Why blame bush? It's his watch....carter got blamed for the mess in the 70's. And seriously...it's really interesting that oil (adjusted for inflation) is more expensive now then it was when there was no oil.
Supply and demand??? right....take one oil company CEO's bonus for the year and dump it into the market and watch the prices go down.
You don't seem to be paying attention....
Bush is and oil man, from an oil family. When the price of oil goes up, him and his family profits. You don't see him doing anything real to stop the rising prices do you, unless it actually helps the oil companies.
Where do you think he will get a job when he leaves office. Wake up!!
What is so hard to understand?
dkstringer.....Actually during the gas crisis of the 70's gas prices adjusted for inflation were over $6 a gallon.
The area in ANWAR that they want to drill on is an area the size of a small airport and about 2 people a year visit an area about half the size of Texas....hmmm yeah that's destroying the environment.
Offshore drilling....how many spills have the oil rigs in the Gulf had in the last 10 years....zero...that's right zero.....the only reason we can't drill is so some jackass liberals who own property won't have to see it out of their million dollar houses...NOT IN MY BACK YARD...but I will sure in hell blame the president for high gas prices.
I am with you 100%. Your statement is right on!!
Yep, absolutely true, libs just want something to complain about or they arent happy, when in reality they create most of the things they complain about. It is actually kind of funny.
i dont think imaginer realizes that presidents get paid even after they arent president anymore, Bush doesnt need to fall back on his income from oil when his ';job'; as president is over, it just happens to be part of his income.
i think republicans have controlled the congress since bush was elected....so what is your excuse now
While I agree with you up to a point, I also feel, as President bush said, we must find and develop different sources of fuel other than oil.
I agree with you. The lines are there turn them on.
When oil prices go up, how does that affect the value of the U.S. dollar?
Generally, as oil prices go up, does that make the U.S. dollar go up or down?When oil prices go up, how does that affect the value of the U.S. dollar?
Well, theoretically, it is the other way round. It is the weakness in the dollar (for many other reasons such as fears of recession, relative weakness of US economy, carry trade, monetary policies, things going on in other countries that affect the exchange rates ....) that pushes the oil price up - ceteris paribus. I think the reason is quite simple. As the dollar loses value, you need more dollars to buy the same amount of anything - say a barrel of oil. Oil and other commodities are very particular because the world buys and sells them with US dollars (reserve currency).
But you are asking a very interesting question. It may be possible that the link becomes recursive, especially when investors and traders in both markets (commodity and Forex markets) start watching each other. Oil price could rise for reasons other than the weakness in USD (eg. political risk, fear of war, supply/demand, speculation ...) As oil price is pushed to new records continuously it puts the American economy under more pressure and closer to recession. So as the risk of recession increases it has a direct and indirect effect on the dollar. The direct effect is obvious: currency is the mirror of economic strength of a country, so as the country moves to recession, it shows up in its currency (devalue) - this is because investors, especially foreigners, move out of the US markets therefore selling US dollars in exchange of foreign currency and as they sell, offer of US dollars increases which sends its price (the exchange rate lower) - something to do with supply and demand. The indirect effect is that as the economy slows, the Federal Reserves sees its hands tied and cannot increase rates (increasing rates are - ceteris paribus - harming for the economy but good for fighting inflation). So when the economy cools, the market anticipates that inflation will increase (or at least not solved). Inflation is the other variable that impacts a currency. The higher the inflation rate (differential compared to other countries) the weaker the dollar gets, pushing speculators/traders on the oil market to bid up the price of oil higher, feeding a feedback effect.When oil prices go up, how does that affect the value of the U.S. dollar?
why is it that the oil prices go up and it affects the USD?
why can't it be that the USD goes down and oil goes up?
That's very simple! You can find the answer yourself.
1. Pull up a chart of oil (futures)
2. Pull up a chart of USD (forex)
See how they correlate for each trading day =)
It goes down, duh
Idk, my guess is that were gas is cheaper in the world that makes our dollar fall. The dollar cannot stretch w/ inflation
Well, theoretically, it is the other way round. It is the weakness in the dollar (for many other reasons such as fears of recession, relative weakness of US economy, carry trade, monetary policies, things going on in other countries that affect the exchange rates ....) that pushes the oil price up - ceteris paribus. I think the reason is quite simple. As the dollar loses value, you need more dollars to buy the same amount of anything - say a barrel of oil. Oil and other commodities are very particular because the world buys and sells them with US dollars (reserve currency).
But you are asking a very interesting question. It may be possible that the link becomes recursive, especially when investors and traders in both markets (commodity and Forex markets) start watching each other. Oil price could rise for reasons other than the weakness in USD (eg. political risk, fear of war, supply/demand, speculation ...) As oil price is pushed to new records continuously it puts the American economy under more pressure and closer to recession. So as the risk of recession increases it has a direct and indirect effect on the dollar. The direct effect is obvious: currency is the mirror of economic strength of a country, so as the country moves to recession, it shows up in its currency (devalue) - this is because investors, especially foreigners, move out of the US markets therefore selling US dollars in exchange of foreign currency and as they sell, offer of US dollars increases which sends its price (the exchange rate lower) - something to do with supply and demand. The indirect effect is that as the economy slows, the Federal Reserves sees its hands tied and cannot increase rates (increasing rates are - ceteris paribus - harming for the economy but good for fighting inflation). So when the economy cools, the market anticipates that inflation will increase (or at least not solved). Inflation is the other variable that impacts a currency. The higher the inflation rate (differential compared to other countries) the weaker the dollar gets, pushing speculators/traders on the oil market to bid up the price of oil higher, feeding a feedback effect.When oil prices go up, how does that affect the value of the U.S. dollar?
why is it that the oil prices go up and it affects the USD?
why can't it be that the USD goes down and oil goes up?
That's very simple! You can find the answer yourself.
1. Pull up a chart of oil (futures)
2. Pull up a chart of USD (forex)
See how they correlate for each trading day =)
It goes down, duh
Idk, my guess is that were gas is cheaper in the world that makes our dollar fall. The dollar cannot stretch w/ inflation
Is synthetic oil better for cars then regular oil? (considering it's price)?
i don`t knowIs synthetic oil better for cars then regular oil? (considering it's price)?
Full synthetic is better for your car, car will run better and it is worth it. Considering if you paid some guy to do the oil change for you with his regular (and often recycled) oil, it would cost the same as you putting synthetic in on your own(or even cheaper) and with better results! If you go with a synthetic blend, its cheaper than full-synth and still an improvement from regular.Is synthetic oil better for cars then regular oil? (considering it's price)?
only if you change it when you should really yes its better casue it does not break down as fast as regular but peoole seem to think that it means they dont have to change it as offen which is wrong and not saving anything by doing so stil should change it the same way every 3000 to 5000 miles and if one does that any oil will work but synthetic at the time will stil be good shape which mean motor is in good shape
I THINK SYNTHETIC OIL IS A PRICE GOUGING TACTIC BY OIL PRODUCERS
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ive been using 10 w30 pennzoil for many years and my cars are just fine.
YOU SHOOK ME ALLLL NIIIIGHT LOOOOONG!
Try vegetable oil... it's more green.
Yes. It is designed to condition engines better, and has a greater range of viscosity than standard oil. Which means it performs better under high heat or very cold conditions.
short answer is yes. I have only ever used Full Synthetic in my car. Mobil1 in my opinion makes the best synthetic. but you pay for it.
yes ,it bonds to engine parts much better and does not burn as easily.
yes.
synthetic oil was originally designed to handle the high heats adn pressures of high revving airplane engines during WW2. when they were developing the motors (30's) they found that conventional oil would not stand up to the heat or pressure. they developed synthetic oils in response to this.
following WW2 the Europeans were using it in cars and found it gave longer oil life and engine life. it was not until 1972 that this technology made it across the pond for automotive use (it was used in aviation as conventional oils wouldn't handle jets or turbo props) it is also widely used in racing as it handles the higher pressures and speeds better, especially in turbos.
IF you use it at 6k change intervals instead of 3k, your car will last longer (Pennzoil, Quaker State, Castrol and Amsoil all offer engine warranties if you use their synthetic oil exclusively, in some cases up to 500k), get better mpg and run better. the other aspect is that synthetics stay liquid colder (-60 vs -10 for conventional.) and stays liquid vs gaseous longer at high temps so it doesn't burn off if you are running in the desert either.
Synthetic oil can be better it last longer runs cooler then your basic oil yes the cost high however with being able to drive 6-10,000 miles on one oil change its adds up to about the same cost as it would be every 3-4,000 miles of regular oil now once you switch over you have to stay with synthetic if you switch back and forth it will cause serious problems with your engine
Full synthetic is better for your car, car will run better and it is worth it. Considering if you paid some guy to do the oil change for you with his regular (and often recycled) oil, it would cost the same as you putting synthetic in on your own(or even cheaper) and with better results! If you go with a synthetic blend, its cheaper than full-synth and still an improvement from regular.Is synthetic oil better for cars then regular oil? (considering it's price)?
only if you change it when you should really yes its better casue it does not break down as fast as regular but peoole seem to think that it means they dont have to change it as offen which is wrong and not saving anything by doing so stil should change it the same way every 3000 to 5000 miles and if one does that any oil will work but synthetic at the time will stil be good shape which mean motor is in good shape
I THINK SYNTHETIC OIL IS A PRICE GOUGING TACTIC BY OIL PRODUCERS
.
ive been using 10 w30 pennzoil for many years and my cars are just fine.
YOU SHOOK ME ALLLL NIIIIGHT LOOOOONG!
Try vegetable oil... it's more green.
Yes. It is designed to condition engines better, and has a greater range of viscosity than standard oil. Which means it performs better under high heat or very cold conditions.
short answer is yes. I have only ever used Full Synthetic in my car. Mobil1 in my opinion makes the best synthetic. but you pay for it.
yes ,it bonds to engine parts much better and does not burn as easily.
yes.
synthetic oil was originally designed to handle the high heats adn pressures of high revving airplane engines during WW2. when they were developing the motors (30's) they found that conventional oil would not stand up to the heat or pressure. they developed synthetic oils in response to this.
following WW2 the Europeans were using it in cars and found it gave longer oil life and engine life. it was not until 1972 that this technology made it across the pond for automotive use (it was used in aviation as conventional oils wouldn't handle jets or turbo props) it is also widely used in racing as it handles the higher pressures and speeds better, especially in turbos.
IF you use it at 6k change intervals instead of 3k, your car will last longer (Pennzoil, Quaker State, Castrol and Amsoil all offer engine warranties if you use their synthetic oil exclusively, in some cases up to 500k), get better mpg and run better. the other aspect is that synthetics stay liquid colder (-60 vs -10 for conventional.) and stays liquid vs gaseous longer at high temps so it doesn't burn off if you are running in the desert either.
Synthetic oil can be better it last longer runs cooler then your basic oil yes the cost high however with being able to drive 6-10,000 miles on one oil change its adds up to about the same cost as it would be every 3-4,000 miles of regular oil now once you switch over you have to stay with synthetic if you switch back and forth it will cause serious problems with your engine
Are liberal whackos like Gore/Obama/Reid/Pelosi counting on high oil prices to enact their whacko agenda?
Don't they want to destroy our industries and de-claw our economic strength? Don't they despise that we consume the resources since we've been so effective at working hard to take care of our people.Are liberal whackos like Gore/Obama/Reid/Pelosi counting on high oil prices to enact their whacko agenda?
Absolutely they are. Why hasn't the democratically controlled congress voted on the bill to lift the drilling ban? Because they want americans to live in fear of high gas prices until they get their boy in the white house. Look at the global warming myth that it's decimating our planet? Another fear tactic.
And before someone else attacks me on the global warming comment - I believe it is occuring but I believe that liberals are inflaming it stating we're causing it - and that is a myth. Ask any geologist and he/she will tell you its cyclical.Are liberal whackos like Gore/Obama/Reid/Pelosi counting on high oil prices to enact their whacko agenda?
Gee, Rush.....what's a 'whacko'??
It's apparent you've been spoon-fed too much political Pabulum by America's #1 purveyor of hatred, bias, bigotry and political prejudice.
';....we consume the resources since we've been so effective at working hard to take care of our people...';???
We consume 55% of the world's resources, even though we represent only 5% of the world's population. Rampant arrogance, ignorance, avarice, sloth, and hubris have set in to destroy our industries and 'de-claw' our economic strength. We wouldn't be in our current set of economic circumstances had it not been for the selfishness of banks, mortgage brokers, hedge fund operators, oil industry executives, stock market players, war-mongers, corporate greedheads and wealthy elitists, industrialists, oil barons and power brokers who only want to become wealthier and more powerful.....all aided and abetted by a sloppy, incompetent, aberrant, capricious administration led by a village idiot with a history of consistent failure at anything he attempted in his wanton life. -RKO- 07/29/08
No, the Neo-Con hacks are trying to keep prices up to keep profits flowing into business pockets.
Ask yourself this: Why did the Republicans block the Democrat-sponsored bills in Congress last week that would have returned the off-shore drilling call to the States and opened up the ANWR?
Answer: Simple, they couldn't stomach the conditions, such as keeping Alaskan oil for domestic use instead of exporting much of it to Japan as they do now OR closing the ';Enron Loophole'; that is responsible for about 25% of the current price increases, OR the ';Use or Lose'; conditions on all existing and new Federal oil leases that would block the oil companies from squatting on them to drive up prices and profits.
Those aren't our industries, those are Saudi Arabia, Kuwait, Venezuala, etc.'s industries. Renewable resources can completely belong to us and we can build a new industry and create tons of jobs by developing and researching them. The only ones who should be scared are the ones who are making the record profits in the oil companies.
Liberal Whackos!?
Such misinformed ';hate speech'; sounds like the mindset from last Sunday's church shooter. Maybe 'Mullah Limbaugh ', et al, have provided you an improper means to vent such anger...
They don't want prices to come down til after BO is elected so they can take ALL the credit for it.
I thought the only problem was the economy getting drunk.
More hysteria?
No they want no such thing.
Do you have these baseless nightmares often?
Aw come on! You coulda worked Whacko into that at least 3 more times.
Whoah there....Didn't I meet you last time I was in Knoxville?
Absolutely they are. Why hasn't the democratically controlled congress voted on the bill to lift the drilling ban? Because they want americans to live in fear of high gas prices until they get their boy in the white house. Look at the global warming myth that it's decimating our planet? Another fear tactic.
And before someone else attacks me on the global warming comment - I believe it is occuring but I believe that liberals are inflaming it stating we're causing it - and that is a myth. Ask any geologist and he/she will tell you its cyclical.Are liberal whackos like Gore/Obama/Reid/Pelosi counting on high oil prices to enact their whacko agenda?
Gee, Rush.....what's a 'whacko'??
It's apparent you've been spoon-fed too much political Pabulum by America's #1 purveyor of hatred, bias, bigotry and political prejudice.
';....we consume the resources since we've been so effective at working hard to take care of our people...';???
We consume 55% of the world's resources, even though we represent only 5% of the world's population. Rampant arrogance, ignorance, avarice, sloth, and hubris have set in to destroy our industries and 'de-claw' our economic strength. We wouldn't be in our current set of economic circumstances had it not been for the selfishness of banks, mortgage brokers, hedge fund operators, oil industry executives, stock market players, war-mongers, corporate greedheads and wealthy elitists, industrialists, oil barons and power brokers who only want to become wealthier and more powerful.....all aided and abetted by a sloppy, incompetent, aberrant, capricious administration led by a village idiot with a history of consistent failure at anything he attempted in his wanton life. -RKO- 07/29/08
No, the Neo-Con hacks are trying to keep prices up to keep profits flowing into business pockets.
Ask yourself this: Why did the Republicans block the Democrat-sponsored bills in Congress last week that would have returned the off-shore drilling call to the States and opened up the ANWR?
Answer: Simple, they couldn't stomach the conditions, such as keeping Alaskan oil for domestic use instead of exporting much of it to Japan as they do now OR closing the ';Enron Loophole'; that is responsible for about 25% of the current price increases, OR the ';Use or Lose'; conditions on all existing and new Federal oil leases that would block the oil companies from squatting on them to drive up prices and profits.
Those aren't our industries, those are Saudi Arabia, Kuwait, Venezuala, etc.'s industries. Renewable resources can completely belong to us and we can build a new industry and create tons of jobs by developing and researching them. The only ones who should be scared are the ones who are making the record profits in the oil companies.
Liberal Whackos!?
Such misinformed ';hate speech'; sounds like the mindset from last Sunday's church shooter. Maybe 'Mullah Limbaugh ', et al, have provided you an improper means to vent such anger...
They don't want prices to come down til after BO is elected so they can take ALL the credit for it.
I thought the only problem was the economy getting drunk.
More hysteria?
No they want no such thing.
Do you have these baseless nightmares often?
Aw come on! You coulda worked Whacko into that at least 3 more times.
Whoah there....Didn't I meet you last time I was in Knoxville?
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