What’s the reason (that I can understand) why a barrel of oil has went from $25 to $61.40 in the last 3-4 weeks?
posted by Ironman92What’s the reason (that I can understand) why a barrel of oil has went from $25 to $61.40 in the last 3-4 weeks?
You may be aware of a COVID pandemic that devastated the energy sectors and that we are recovering from. Increased fuel demand. Econ 101.
posted by Dr Winston O'BoogieYou may be aware of a COVID pandemic that devastated the energy sectors and that we are recovering from. Increased fuel demand. Econ 101.
Why such the demand in the last month?
posted by Ironman92Why such the demand in the last month?
Vaccine.
Probably election is factored in. But a president does not immediately swing oil costs like that. $25 a barrel was never sustainable.
posted by Dr Winston O'BoogieVaccine.
Probably election is factored in. But a president does not immediately swing oil costs like that. $25 a barrel was never sustainable.
So those with the vaccines are adding to the daily travel? Makes sense but seems a bit drastic considering the % and so many being the elderly that has received it.
So as us normal age folk get the vaccine over the next 60 days how high do you see it going?
Lol at tying oil prices to covid.
posted by Ironman92What’s the reason (that I can understand) why a barrel of oil has went from $25 to $61.40 in the last 3-4 weeks?
A number of factors that I read and from talking to a colleague that covers the overseas oil market.
1. There is a strike in Norway that is hampering production
2. The weather in Texas is shutting down oil production, thus limiting supply.
3. The idea of another round of federal spending will link to more people spending and more demand of oil.
4. OPEC is likely to raise their prices as well in relation to the higher demand anticipated here in the US by Shale
5. Yes, the vaccine is a factor as it means more people will eventually travel.
6. The price for a barrel was artificially deflated due to the pandemic and was due to increase as people get back to normal.
7. Yes, the Keystone decision did play a small part, but other factors above also played a role.
8. Trying to tie higher gas prices to a President is dumb as its a complicated market.
posted by Ironman92So those with the vaccines are adding to the daily travel? Makes sense but seems a bit drastic considering the % and so many being the elderly that has received it.
So as us normal age folk get the vaccine over the next 60 days how high do you see it going?
The price of oil futures can incorporate factors such as a gradual increase in transportation expected in coming months due to more people driving and flying. It doesn't mean it's happened today all at once. But it reflects a general attitude that demand will continue to rise as the economy continues to recover.
posted by FletchLol at tying oil prices to covid.
Look at the price of oil last February and March when the shutdowns started and tell me that Covid's not a factor.
Don’t mind Fletch, gas prices before the pandemic are irrelevant.
posted by Ironman92What’s the reason (that I can understand) why a barrel of oil has went from $25 to $61.40 in the last 3-4 weeks?
Oil price is a function of speculation, kind of like the stock market.
The speculators got scared when Biden shutdown the Keystone Pipeline.
posted by Dr Winston O'BoogieYou may be aware of a COVID pandemic that devastated the energy sectors and that we are recovering from. Increased fuel demand. Econ 101.
So this devastation waited through the whole year of the pandemic and waited until now to drive the price up?
Or, a more simple answer, speculation is driving it up as the speculators are worried after the shutdown of Keystone.
posted by Dr Winston O'BoogieVaccine.
Probably election is factored in. But a president does not immediately swing oil costs like that. $25 a barrel was never sustainable.
Seriously? Vaccine? I hope you were being facetious.
posted by ptown_trojans_1A number of factors that I read and from talking to a colleague that covers the overseas oil market.
1. There is a strike in Norway that is hampering production
2. The weather in Texas is shutting down oil production, thus limiting supply.
3. The idea of another round of federal spending will link to more people spending and more demand of oil.
4. OPEC is likely to raise their prices as well in relation to the higher demand anticipated here in the US by Shale
5. Yes, the vaccine is a factor as it means more people will eventually travel.
6. The price for a barrel was artificially deflated due to the pandemic and was due to increase as people get back to normal.
7. Yes, the Keystone decision did play a small part, but other factors above also played a role.
8. Trying to tie higher gas prices to a President is dumb as its a complicated market.
All of those factors are true, just funny you try to minimize Keystone since it is the only one tied to your guy...
posted by jmogAll of those factors are true, just funny you try to minimize Keystone since it is the only one tied to your guy...
No, because in talking to my colleague, I asked him that and he said, the Norway issue, OPEC decision, and federal spending are more important factors. The Texas weather only adds to it. The strike in Norway is apparently a really big deal.
Again, tying oil prices to a President is dumb. It's a complicated market.
posted by jmogSo this devastation waited through the whole year of the pandemic and waited until now to drive the price up?
Or, a more simple answer, speculation is driving it up as the speculators are worried after the shutdown of Keystone.
Actually yes, that seems about right. Gas is still cheaper now than it was pre pandemic in case you weren't aware. Like he said, the demand is going back up.
posted by jmogSeriously? Vaccine? I hope you were being facetious.
No, I'm not. It's not the only factor. But it counts. Not that millions of drivers are back on the road all of a sudden. But the vaccine represents a strong possibility of economic recovery in coming month and a recovery in oil demand.
Maybe try the overall philosophy of the new regime and the policies they are pursuing right out of the gate. Keystone; Dakota; Anwar; Gulf; fracking; federal lands; climate change hysteria; permits being revoked, leases getting whacked ............the writing is on the wall, and this is not surprising in the least with these whack jobs. Energy independence is held in disdain by the radical left.
Buckle up.
posted by ptown_trojans_1A number of factors that I read and from talking to a colleague that covers the overseas oil market.
1. There is a strike in Norway that is hampering production
2. The weather in Texas is shutting down oil production, thus limiting supply.
3. The idea of another round of federal spending will link to more people spending and more demand of oil.
4. OPEC is likely to raise their prices as well in relation to the higher demand anticipated here in the US by Shale
5. Yes, the vaccine is a factor as it means more people will eventually travel.
6. The price for a barrel was artificially deflated due to the pandemic and was due to increase as people get back to normal.
7. Yes, the Keystone decision did play a small part, but other factors above also played a role.
8. Trying to tie higher gas prices to a President is dumb as its a complicated market.
1. Norway? Really? I doubt they affect domestic oil prices here that would make the price jump 50+%
2. Weather? STFU about that. Gas prices and oil prices went up weeks ago. Weather hit this week.
3. You just made our point....demand goes up and shutting down production in the US affects the prices more then all these factors combined.
4. Of coarse OPEC will raise prices....we just shut down our net export and they are going to own us.
5. Not a factor
6. The price of the barrel was low because we were controlling the market and not OPEC
7. It is the number one factor
8. There isnt one person in this country that knows anything about politics that would agree with you. This President (just like Obama) is anti energy. When we are paying $3.50 a gallon you will finally learn.
I am surprised the media hasn’t told us how many 9/11s in terms of COVID deaths have happened since Biden took office.
THey arent telling us anything .......the daily totals are so low that we are no longer in a "pandemic"
And they dont want this to end too soon . because it would look like Trump was the reason. Dems want to drag it out claim victory
posted by like_thatI am surprised the media hasn’t told us how many 9/11s in terms of COVID deaths have happened since Biden took office.
Lol
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— Stephen L. Miller (@redsteeze) February 16, 2021
Thanks for all the answers everyone...and especially those that didn’t say it like I was a dumb fuck. Appreciate it.
I don’t care who the president is....was wondering and knew this thread would attempt delivery. Man some of you are defensive lol.
posted by Ironman92Thanks for all the answers everyone...and especially those that didn’t say it like I was a dumb fuck. Appreciate it.
I don’t care who the president is....was wondering and knew this thread would attempt delivery. Man some of you are defensive lol.
These are all safe harbor statements. Don't invest based upon what all of us financial geniuses on Ohiochatter say - you know, a fool and his money....
posted by Dr Winston O'BoogieThese are all safe harbor statements. Don't invest based upon what all of us financial geniuses on Ohiochatter say - you know, a fool and his money....
I was just looking for a nice and easy dumbed down answer. Between the 12 people on this site you can get a decent answer for about any topic.