Article

2005-03-22 Arabia

Oil prices ease as Saudis move to address supply worries

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Posted by Fred 2005-03-22 00:00:00|| || Front Page|| [11133 views since 2007-05-07] Top

#1 The sooner this rainy weather stops, the sooner I'll be able to resume the I-ride-a-motorcycle-so-I'm-not-affected-much attitude toward these oil-trader-induced high gasoline prices.

Posted by Bomb-a-rama 2005-03-22 12:23:17 AM|| 2005-03-22 12:23:17 AM|| Front Page Top

#2 oil prices are up because demand is up and supply is politically controlled. Traders are just making an efficient market. Without traders and an efficient market you would have physical shortages.

Posted by phil_b 2005-03-22 12:45:42 AM|| 2005-03-22 12:45:42 AM|| Front Page Top

#3 But Phil! All the profits are going to Bushitler Haliburton and your so-called market is killing little babies from Iraq to Ireland to Alaska and causing global warming to boot! I say F**k the market. Let the government decide that fuel should be cheap and plentiful for people like me. The rest of you baby killers can walk.

/MRR

Posted by Shipman 2005-03-22 10:16:48 AM|| 2005-03-22 10:16:48 AM|| Front Page Top

#4 Traders are just making an efficient market.

Not when their "fears" make it into the bidding process.

Posted by Bomb-a-rama 2005-03-22 10:18:19 AM|| 2005-03-22 10:18:19 AM|| Front Page Top

#5 Even then BAR, fear of supply disruption is part of any market.

Posted by Shipman 2005-03-22 3:42:48 PM|| 2005-03-22 3:42:48 PM|| Front Page Top

#6 ..fear of supply disruption is part of any market.

The difference here is that oil, for better or worse, is a driving (and seemingly somewhat volatile) force behind our economy, and as such, it seems rather irresponsible to drive up prices on fears that may or may not materialize. If and when supply is disrupted in a tangible manner, then an actual problem exists and then that's the time to start worrying.

Posted by Bomb-a-rama 2005-03-22 5:50:19 PM|| 2005-03-22 5:50:19 PM|| Front Page Top

#7 You're right. :)

/Daniel Drew.

Posted by Shipman 2005-03-22 6:39:43 PM|| 2005-03-22 6:39:43 PM|| Front Page Top

#8 The traders in general are not the source of the fear, they are merely profiting by taking on the risk of other peoples fear. It works like this. A consumer of oil is concerned about the cost of their future supply. The consumer goes to the trader and says will you gaurantee to supply me with an amount of oil at a future date. The trader then agrees at a price that factors in his perception of the risk of oil not being available at a certain price (effectively the current price). The premium the trader asks for must be less than the consumer's perception of the risk (and cost) otherwise the trade will not take place. So not only do traders take on other peoples fears they also reduce the overall fear in the market because those who anticipate lower risks outbid those who anticipate higher risks.

Posted by phil_b 2005-03-22 6:44:36 PM|| 2005-03-22 6:44:36 PM|| Front Page Top

#9 I think phil_b is really Mark Espinosa.

Posted by Mrs. Davis 2005-03-22 6:46:34 PM|| 2005-03-22 6:46:34 PM|| Front Page Top

#10 /Daniel Drew.

Just to be clear, I'm not trying to argue with you or be hostile in general. It's pretty frustrating watching prices spiral ever-higher for no apparent reason, and combine that with the already high prices that we are forced to pay here in CA due to state-mandated gas requirements, and quite frankly, it's driving me crazy. The only thing that keeps me sane is my motorcycle, but I can't ride the damned thing because it's been raining for most of the past week, and the outlook for next week is unsettled!

I'm losing it!!!!

AAAAAUUUUUUUUUGGGGGGGGHHHHHHH!!!!!!

Posted by Bomb-a-rama 2005-03-22 9:24:09 PM|| 2005-03-22 9:24:09 PM|| Front Page Top

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