The world's leading oil producers have said it is too expensive - and they plan to increase supplies to help ease the global fuel crisis.
A source at Opec said its 13 members were uncomfortable with the current price of crude, which last week hit a record $135 a barrel.
Based on present supply and demand, he said it should be fetching $60-$70 a barrel.
Experts say oil has been driven to its present level by speculators who see it as a safer haven for their money than the weak dolllar.
As I understand it , this is just another play on wall street and the bubble will pop as the tech bubble did, and the housing market has. question is, who gets hurt the most? American consumers, or wall street investors.....voice your opinion!
I think both get hurt. Investors are probably pouring money in thinking the price is going up, which might not be the case and we get hurt because gas is so expensive.
Chuck: Exactly...capitalism at its best! it cannot be helped
How do we get to double the price it should be? HELP!
Steven, I am fed up with these oil prices. The little guy is truly under the thumb of the big guy. I wish as a nation we would move away from oil as our major fuel source, but it is to easy for some people to make money. Why change? There is no way for a capitalist society to work if the people are self sufficient. The little guy is dependent and that is not going to change.
I fear the cost of energy will cause harm to the world economny and I am guessing they agree. I am hopeful the price will stabilize soon.
Penny - double the home prices or the gas? haha
Our economy is hurting, my kids can't find a summer job because people are fighting over grocery store jobs, and McDonald's. Something better happen fast, this is going to hit the middle classhard. I had to drive over to the mall Friday night and there was very little traffic out, made it in record time. People are driving on a need basis now. The President and government had better wake up.
Terry: it will coincide with the New North American Union that is being formed. (In my opinion)
Kathy: its a great social control mechanism is'nt it.
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I am just waiting for the next bubble credit cards is going to be hitting us soon. I just feel so sorry for those poor oil companeis making so much money
lol Dave! from now on your real name will be "Super Dave" I like your sense of humor
Hopefully, the production increase will offset the ever-increasing demand. And, until the economy stabilizes, I think this is going to be a long haul.
A great mind control technique is repetition. re-enforcing there is a oil shortage only convinces people of the value. $5.00 per gallon is coming and will stay after the bubble pops.
The real problem is THERE IS NO GAS SHORTAGE
I think prices like this will force us to become less dependent on oil and that's a very good thing. However, our economy may not be able to take this hit for too much longer.
STEVE - I think that most of us will be filled with joy when this bubble bursts. Those that are speculating, like the real estate speculators, will likely suffer the greatest losses when the bubble bursts. This bubble bursting is different though, because more people will benefit from it then be hurt by it.
Adam: I respect your point of view and will welcome the results of that bursting of the bubble.
However, in the meantime, our nation as a whole suffers from all this speculation. GAS PRICES are out of control and there is no regulation to keep the oil companies inline with reality.
THERE IS NO GAS SHORTAGE - just a shortage of Government leadership in the higher levels.
Not only has this hurt the consumer of gasoline, but all consumers since the effect of the increased gas prices have effected the WHOLE economy. So even if gas prices go down, do we really think that all the other "effected" price increases will drop as well... No - definately NOT! The damage has been done to the economy already and this has pushed our economy dangerously close to a depression!
And as for Wall Street... When profits disappear, so will further investment so this drop will have a double whammy on the economy in my humble opinion... Cover your heads the next few years are gonna be FULL OF OPPORTUNITY! The secret is turning those grey clouds to seeing the silver lining!
STEVE - I'm with you on this. I think that the oil companies get away with murder, and have created artificially inflated prices. This, in turn, has made other businesses overreact and start inflating their prices as well (especially food prices). I was speaking to my mother the other day about this. She said that the price of a variety of fish that she buys has risen by over $3 per pound recently. There is no reason that this should be happening, especially in an area that doesn't have to have fish shipped from far away.
The government had no problem allowing Exxon and Mobil to merge, and yet the proposed merger of Sirius and XM satellite radio is now going on for 15 months and counting.
I want this bubble to burst, but I agree with you that it was created by a lack of government intervention where it is necessary.
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