2006-09-22 03:22:15 · 9 answers · asked by pappu 1 in Business & Finance ➔ Investing
It is amazing that there are still ignorant people who believe the supply and demand nonsense. That is true only in a free market, and the oil market is NOT free. What you see on the news is the futures spot price, which has nothing to do with supply and demand either. It is based solely on hysterical guesses about what will happen to oil PRICES, not oil supply. And it is oil companies buying up futures that they will be selling. In a true free market, that would be called rigged bidding.
If the Republicans retain control of both houses after the elections in November, the price of oil will go up, whatever the winter in the US is like - it will be because of a harsh winter somewhere else, or unrest in some area of the world, or because a storm hit somewhere, or whatever excuse is handy.
Even if the Democrats regain control of one house, they are no different from the Republicans, but the rate of increase may be slower. I expect a barrel of oil on the spot futures market to go close to $100/barrel by the time Congress is back in session after the new members of Congress are sworn in.
2006-09-22 03:42:14 · answer #1 · answered by thylawyer 7 · 0⤊ 0⤋
If anyone could really answer this question, Exxon-Mobil or many other people would pay a million dollars to employ them. What we can only say in general is this: The demand for oil had greatly increased because of growth in China, India and other parts of the developing world. Supply cannot at the moment meet Demand because, it takes some time to invest in the infrastructure to explore, drill and refine oil. That is the nature of all raw materials and commodities. You can say that Oil's price of late has been exacerbated by paper trades in oil Futures, as well as political troubles in some oil producing regions and that it should not be as high as it is now. But Oil's price will never be as low it should be until new sources of supply come onstream.
2006-09-22 09:28:31 · answer #2 · answered by tiankhean 1 · 0⤊ 0⤋
It all depends on what happens around the world and the deman for the oil. It could go as high as $200/barrell.
2006-09-22 03:30:31 · answer #3 · answered by casey_leftwich 5 · 0⤊ 0⤋
Wait until after the election. That's only 2 months away.
2006-09-22 03:46:56 · answer #4 · answered by johnnylakis 4 · 0⤊ 0⤋
actually the oil price depends up on the US consumptions, demand and supply, as US is facing cool winters the demand may increase and the price may shoot up to a certain extent
2006-09-22 03:26:34 · answer #5 · answered by askumar1020 1 · 0⤊ 0⤋
Depends of whether it is the six months leading up to elections or not.
2006-09-22 03:24:50 · answer #6 · answered by Rjmail 5 · 0⤊ 0⤋
What government's don't know yet is that they can charge the earth for oil and all us little citizens will pay it, we will complain and protest, but we will pay.
2006-09-22 03:24:31 · answer #7 · answered by Ya-sai 7 · 0⤊ 0⤋
As high as DumBya wants it to!
2006-09-22 03:23:22 · answer #8 · answered by CATHOLIC PRIEST!! 4 · 1⤊ 0⤋
$100.00 USD
2006-09-22 11:06:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋