Filed under: Etc., Green Daily
Who's responsible for $100 barrels of oil? One guy "seeking fame"
Well, the big news from yesterday that the price of a barrel of oil went over the $100 mark for the first time ever. The big news from today is that we have one guy to blame for this incident. According to the Daily Mail, a single trader who was "seeking his moment of fame" decided that being the first to pay more than $100 for a barrel of oil was the best way to make the papers. Man, how sad and lonely is that guy?
Anyway, this as-yet-unidentified trader bought 1,000 barrels (the minimum allowed) at $100 a pop, then turned around and sold them for $99.40. That means he bought his fame for $600.
As our friends at Autoblog point out, we won't need one idiot with a inferiority complex to push gas prices up over $100 the next time: Goldman Sachs predicts a barrel of oil could be priced at $105 by year's end.
[Source: Daily Mail via Autoblog]
Reader Comments (Page 1 of 1)
Mort 7:58PM (1/03/2008)
What is pathetic is that s/he didn't have the wherewithal to ride it out for a profit. Not a true believer. Pitiful, just pitiful.
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1985 Gripen 8:24PM (1/03/2008)
I've heard economists saying that the current price of a barrel of oil is just stupid. The true price should be around $60 a barrel when taking the supply and demand into consideration. I also just heard on the news (NPR) today that economists expect the price to drop to around $75 a barrel this year. Still substantially more than when the current former oil men President and Vice President took office. Coincidence?
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Marcio 9:17PM (1/03/2008)
Who's responsible for $100 barrels of oil?
All of us.. the guy was only anticipating us in the future..
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Mort 9:50PM (1/03/2008)
Oil is subsidized by the MIC @ a rate of $150 / bbl. The dollar is weak. China alone has enough dollars to buy the entire world's output of oil for a year at $100 per barrel. Oil expensive? Only to Americans.
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Mort 9:50PM (1/03/2008)
Er, Iraqi oil is subsidized...
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bc 11:39PM (1/03/2008)
Anyone know what the solution is for high oil prices? Higher oil prices. Eventually you hit the point where it drives people to find alternatives and the price "corrects" itself.
If former oilmen Bush and Cheney wanted to push the future of oil in the favor of oil companies they would have embargoed Iraq and left Sadam in power for as long as possible...thus keeping that oil off the market and further pinching the available supply.
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TX CHL Instructor 9:00AM (1/04/2008)
1) $100/bbl oil, adjusted for inflation, is not really significantly expensive. $200/bbl oil would be significant, and might be enough to spur an earnest effort to conserve and find alternatives. Unfortunately, that is not likely, or at least, not soon.
2) All the folks that claim that we went into Iraq solely for the oil might reflect on the fact that it would have been cheaper just to buy it from Saddam. LOTS cheaper -- for what that conflict has already cost, we could have bought *all* of the oil Iraq is likely to ever produce at $500+/bbl. The Iraq and Afghanistan military operations are largely responsible for the current weakening of the Dollar. All we need now to convert the US into a 3rd-world country is to pick a fight with Iran (regardless of who 'starts' it). Wars are bad for republics, regardless of the cause or goal.
3) OPEC isn't the only game in town. Recent advances in tar-sand recovery technology could easily push oil back under $60/bbl. The good news is that would be a major setback to both OPEC and the Politically Correct ethanol industry. The bad news is that it would sidetrack conservation and other alternative energy pursuits. The worst news is that it would take some economic pressure off of China, which could then accelerate its already-massive military buildup.
We live in interesting times.
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Tim 9:36AM (1/04/2008)
$100.00 or $99.40 Big Difference... NOT!
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smartalec 3:54AM (2/21/2008)
While 'we' went into Iraq for oil - it's the
septedegeneratarian likes of Cheney and other Vulcans who'll reap the rewards.
I also disagree with this 'we' business - there are millions of us in Europe who regularly use public transport, walk and cycle every day.
Americans would be better to push for a public transport infrastructure beyond the joke it currently is.
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Ryan 12:01PM (2/21/2008)
Come on people. I was looking through these comments hoping someone had a clue and would have told you all that $100 a barrel is cheap, and this is just the start of oil prices getting higher. Its called "Peak Oil" .. look into it. Spend 5 minutes googling it , or whatever you have to do.
The supply of oil has peaked (worldwide) last year (some say Dec 2005). Regardless of the exact date, the supply is now no longer climbing along with demand. With China and India demanding more and more oil (just research how many new cars are being sold in china and their traffic nightmare all of a sudden), along with normal exponential population growth, the demand is continuing to climb, and will not stop for quite a while. Get ready for $200 a barrel and beyond within 3 years. You don't have to run out of oil to make prices that high, you only have to disrupt the supply / demand , and since this is THE inelastic good of all inelastic goods, there is no substitute.
www.lifeaftertheoilcrash.net
educate yourselves and quit spouting off this bullshit about "$60 oil... you'll never see it..ever"
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