will crude oil prices go down?

Question

If so how far will they go down. And tell me what might make them go down.

Answer 1

no. since oil is a finite resource, the price will only go up as the supply goes down and/or demand increases. you will never see prices lower than their current level again. the price will fluctuate a bit, but overall, the price will only rise. this is true even with alternative fuels being developed. yes, they could be produced for far less money, but since americans have become so passive paying these prices, producers of new fuel sources will want to cash in on this. look up information on "peak oil." it should help you understand whats going on.

Answer 2

If the do it will only be a little. It's the law of supply vs. demand. Most people will figure out a way to pay for it. We have Huge gas guzzling Suv's that I see on the freeway all the time with ONE person in them! I have people I work withthat ride bikes to work over 15 miles! And ride the elevator up with the guy who drove 1/2 mile in his Hummer! Crazy!

There are too many factors going into the price of oil. There is usually 1 family in the middle East that is raking in billions per year while they pay very little to the workers who do the dirty and dangerous jobs to bring it too us. This is what bothers me more that the price. I would feel better if I knew the field workers were making good money for what they do to provide this much needed comodity for us.

And I would guess all politicians have invested heavily in oil. Here they throw Martha Stewart in prison for insider trading when they have access to all the worlds production and know how their own decisions affect the price. Isn't that a form of insider trading?

I was once told many years ago a farmer near my Grandpa had invented a tractor engine that could run on part Water! I can't remember the ratio, 1/2 and 1/2 or 70/30 or something. He went to patent it and the Government took him away and set him up for life somewhere away from everyone who had seen it and he was never allowed to talk about it! Water is one thing that can't be controlled so the Government has no way of profiting from it. I was sent a video awhile back of some else who figured out how to split the water molecule and pull out the Hydrogen for fuel. They had a small generator engine that ran entirely on water! They too dissapeared I think because the link I was sent no longer works.

All the hype about the gas companies or oil companies setting the price is wrong. The price of oil is set by a small group of guys in new York. They decide what the demand will be and adjust it accordingly. So they alone decide whay we pay.

Answer 3

Doesn't matter if the price of crude goes down. The Oil companies will find other excuses to charge you more money. they know they have us by the gonads, and they will continue do squeeze until we are presented with a real CHOICE. That is the way capitalism is supposed to work. It becomes savage capitism when companies conspire to keep alternatives out of the market, which is what they are doing. I did a quick report on my blog a few months back, www.tenwebzine.com, where I looked at the pure profit the oil companies operating in Canada had made in 2004/2005, and it was RIDICULOUS. Despite all their complaints about New Orleans, and Iraq, and Terrorism, and government taxes, they recorded RECORD profits yet AGAIN! And I am not talking Gross, but NET. There is NOT A SINGLE reason for the gas prices to be up where they are, but not a single politician is "slick" enough to do something about it.

Answer 4

The only way crude oil prices will drop is once those greedy, lukertive, oil companies finally raise the price of oil so high to the point that the averege Joe can seriously not afford it. However, this is not a very practical situation. There will be plently of uproar and protest over the increasing oil prices, but Americans will never stop buying, due to our large dependence on oil.

In a nutshell, the oil companies will just continue to jack up the price, and Americans are just going keep buying. The only way this vicious cycle will stop is once alternatives to oil become available. Then, Americans won't have to continue to feed the cash-hungry oil companies, and demand will go down, and lowering the price of oil.

Answer 5

Crude Oil prices will not go down, we are fighting a war and the USA is too stupid to pull the troops and send in the CIA to run agents, thats why we will never win in Iraq. So look at it like this, there will be constant instability in the gulf, and once IRAQ does have oil up and running (our only hope to lower oil) terrorists will be working around the clock to devise a plan to mess up the oil production.

The only thing that can make them go down would be lowering the demand. I dont see that as something thats going to happen considering Ford and GM are still cranking out gas guzzling SUV's that everybody must have. Just be happy the prices arent like Europe of Japan.

Answer 6

If someone could really know the answers to your questions, they could make millions on the market.

Of course, they can go down. and, just as easily go up. Mostly it is just two things that drive oil prices. How much oil is available, (supply) and how much oil is needed. (demand)

When supplies are low, the producers can charge more, because they know the consumers have a limited choice of supplies and suppliers. When the demand is high, again, oil producers can charge more for a product because when a consumer needs it, he is willing to pay more for it.

Oil is produced in only a few parts of the world, Because it is a valuable and limited commodity, the producers do not want to pump too much of it out of the ground. They pump just enough to meet the expected demand, just a few weeks ahead of time and maybe a little bit more.

Sometimes, they guess wrong and produce too much. It is expensive to store too much oil, so it has to be sold off quickly. That drives oil prices down.

If consumers don't buy as much as expected, again, this causes supplies to go up, so prices must be lowered to encourage people to buy. On example of how this might work is with heating oil. If producers expect a cold winter, they will produce a lot of heating oil because they expect consumers will need it and pay more during the cold winter months. If the weather is much milder than expected, consumers use less, so the supply is very high and prices will go down.

Answer 7

The only way crude oil prices will drop is once those greedy, lukertive, oil companies finally raise the price of oil so high to the point that the averege Joe can seriously not afford it. However, this is not a very practical situation. There will be plently of uproar and protest over the increasing oil prices, but Americans will never stop buying, due to our large dependence on oil.

Answer 8

Not likely my friend......

I found the following information below:

The central cause of the run toward $50 a barrel is simple: For the first time in the history of the modern oil industry, global demand continues to rise faster than the world’s capacity to produce more crude. That's very differnt than the last major “oil shocks” of the 1970s, which were the result of a decision by the newly-formed Organization of Petroleum Countries to withhold supplies to drive up prices. But with prices now nearing $50, OPEC producers are pumping as fast as they can — and just barely keeping up with the current global demand of roughly 82 million barrels per day.

Answer 9

Probably not. I use to work for a company called Halliburton out of Ventura, California. I saw how Shell and Mobile would cap their wells to drive prices up and the little Mom & Pop stations out.

It worked then and it will probably keep on working.

When I was 19 I paid 25 cents a gallon for gas and now here it is almost 40 years later and the price, including taxes, is up to $2.91 a gallon if you are lucky enough to find it that low.

Brother Oil company and Sister greed will see to it that gas prices of even a year ago do not make it to the surface ever again. They may come down a little as a tease, but they will rise again as soon as some oil guy wants more.

Answer 10

Considering that the latest news (yesterday) that the Saudi Arabians are slowing down production especially that in the past they have volunteered to up production,for if more available then prices go down. This has all those involved,Economists and so forth wondering just how much oil is below the sands of that region. No way to actually measure. This decision on the Saudis does not mean they are now running low but may be conserving to make sure they don't. I doubt that anywhere in the near future oil prices will go down and we need to resign ourselves to gas prices comparable to Europeans where gas has for many years been much higher than here in the USA. What might make them go down is the conflict of the Middle East to resolve itself, to have America looked on more favorably by all the countries in the Far and Middle East, a stable world wide economy to name a few. I think we need to now begin to wean ourselves off oil and to seriously develop other means and not just by a few but everybody.

Answer 11

Well, the main producers do have some control over the prices. But it seems that these countries i.e Venezuela, Nigeria and many Middle Eastern countries, have internal problems or diplomatic problems with the West. To that end, I reckon the prices will come down eventually, but not for a long time.

The other thing is that the world seems to be consuming more oil than it discovers, so unless there is some big deposit waiting to be found, supply will be outweighed by demand and prices will rise even further...Prepare for the $100 barrel of oil my friend.

I say switch to gas, while its still cheap.