When will oil prices go back up

Obama wants to tax oil companies
$10.00 a barrel, is this merely scratching the sutface?

 

That won't really matter if they can buy cheap overseas oil. the down side is alot of companies will go bankrupt resulting in more unemployment.

 

more taxes

 

Just out of curiosity, why do you guys want it to go back up?

 

It benefits everyone for oil to go back up. Look around as oil drops, so dies economy. Cheaper fuel doesn't equal higher profit. You are paying less in fuel, but it's for hauling cheaper freight. My best years as O/O was when fuel was around 4-5.00. Rates were high, s/c through the roof and freight was every where you looked. There's no difference between 1.75 a for a gallon of gas with no job and 3.50 gas with a job.

 

I often hear and read many theories and explanations, but never with links to fact based articles or opinions on the subject.

I used to think there was a dial on the wall in an office somewhere that someone just turned up and down, depending on their mood that day.

 

Americans consume a LOT of energy. The cheaper that energy is, the more they have to spend on other things. I firmly believe that low oil prices are good for the economy. I too made good money as an o/o when fudl was $4+. But, it didn't last long did it? As soon as all of the spendable income was sucked out of the avg Americans pocket via the gas pump, the economy tanked and we are still dealing with the fallout.

The only people wishing for higher oil prices are the ones who want to profit from it. Everyone else loves cheap oil. Sorry guys, but you are out numbered and the good of the country far outweighs the benefit of a few rednecks being able to strut around in a $75k pickup playing big shot.

As far as the $10/barrel tax. I do wish they would do a $10/barrel..or more tarrif on foreign oil. I would also agree with it if every penny of that $10 was spent on infrastructure to encourage the transition to cleaner fuels ie: natural gas.

As for when is the price of oil going back up?

1. When the demand for oil outpaces the supply. This is the only true and sustainable price increase.
2. When, for whatever reason, someone can convince the traders that there is a supply disruption brewing somewhere. This is only sustainable if it comes to fruition.
3. Influence by the government or other controlling interests. Again, nothing works unless it effects supply..or demand.

Supply vs demand. Its what markets are made of. It sets the prices. As long as the oil is flowing and the storage tanks are full, its going to be cheap.

 

Uhhh, because we work in the oil fields and like to provide for our families. Did you fail to notice this is the oilfield forum?

 

Nah, didn't notice that actually. Good luck though

 

Actually you got it backwards. As oil price goes up, the economy slows down. Which then causes oil to go down due to lower demand. As the economy rebounds and more goods are produced and transported, demand for oil goes up, resulting in oil prices climbing. Rinse and repeat.