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The U.S. No Longer Controls the Price of Oil

Seeking Alpha -- Back in the days when US oil demand controlled the price of oil, a massive recession in the United States would have sent oil to 12.00 dollars a barrel. That era, which ended last decade, was defined by ongoing spare capacity in OPEC, low-cost oil in Non-OPEC, and nascent demand for oil in the developing world. That was then, and this is now. And so it’s rather quaint that the energy analysts from that previous era still gather each week on American financial TV, to discuss the inventories at Cushing, Oklahoma. Inventories at Cushing, Oklahoma? The US has been removing discretionary demand for oil for years, starting back in 2004. And current unemployment in California is at 13.2%–another new post-war high. Yet oil is at 82.00 dollars? Get these analysts off TV. Please. We need analysis of

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Submitted Mar 19, 2010 By: ccf_jeff

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agasmiser Champion Author Long Island Posts:10,731 Points:2,016,325 Joined:Apr 2005	Message Posted: Mar 20, 2010 11:51:55 AM Ignore agasmiser Report Abuse If we don't get our schools in order we won't be in the forefront of much of anything. We have to vote every incumbent in state and federal office out so we get the attention of their replacements.
the1roadhog Champion Author Atlanta Posts:7,718 Points:1,596,655 Joined:Jun 2007	Message Posted: Mar 20, 2010 8:06:11 AM Ignore the1roadhog Report Abuse When did the US ever?
largobob Champion Author Tampa Posts:15,603 Points:2,915,960 Joined:Dec 2003	Message Posted: Mar 20, 2010 8:02:00 AM Ignore largobob Report Abuse multibillion dollar brokerage houses control the price of oil.
Pete12 Champion Author Albany Posts:3,602 Points:1,245,480 Joined:Nov 2005	Message Posted: Mar 19, 2010 8:15:49 PM Ignore Pete12 Report Abuse The bottom is going to drop out of the oil market. There is too much excess in storage.
greywolves Champion Author Las Vegas Posts:6,437 Points:1,990,770 Joined:Dec 2004	Message Posted: Mar 19, 2010 6:40:34 PM Ignore greywolves Report Abuse the u.s. has not controlled oil prices since 1973.
BurtB Champion Author Los Angeles Posts:1,430 Points:1,014,575 Joined:Jun 2006	Message Posted: Mar 19, 2010 5:40:12 PM Ignore BurtB Report Abuse I never believed it before, but Now I believe in peak oil. It is still about supply and demand, not speculators. Global production (by non-OPEC countries) is not going up in response to higher demand. There was a time, before 2004, when it did. Chinese and French oil companies can not seem to increase their production any more than US, British or Dutch companies. Production of Crude Oil including Lease Condensate (Thousand Barrels Per Day) 1994 61102.57 1995 62384.88 1996 63751.73 1997 65743.64 1998 66965.55 1999 65922.49 2000 68494.74 2001 68098.58 2002 67158.12 2003 69432.81 2004 72480.93 2005 73728.13 2006 73446.33 2007 72989.35 2008 73708.99 http://tonto.eia.doe.gov/cfapps/ipdbproject/iedindex3.cfm?tid=5&pid=57&aid=1&cid=ww,&syid=2003&eyid=2008&unit=TBPD http://tonto.eia.doe.gov/cfapps/ipdbproject/iedindex3.cfm
POLELANE Champion Author Ohio Posts:7,148 Points:828,370 Joined:Mar 2008	Message Posted: Mar 19, 2010 3:33:55 PM Ignore POLELANE Report Abuse welcome to the world of today and tomorrow gas buddies everywhere
FastAndy Champion Author Indianapolis Posts:4,409 Points:1,578,510 Joined:Jun 2007	Message Posted: Mar 19, 2010 3:32:27 PM Ignore FastAndy Report Abuse No it is the world's Supply and Demand.
AnObserver Champion Author New Jersey Posts:6,290 Points:1,845,210 Joined:Sep 2005	Message Posted: Mar 19, 2010 1:21:06 PM Ignore AnObserver Report Abuse ++ The U.S. No Longer Controls the Price of Oil ++ Welcome to my world
skybiker Champion Author South Carolina Posts:5,491 Points:1,134,190 Joined:Jul 2008	Message Posted: Mar 19, 2010 1:13:32 PM Ignore skybiker Report Abuse So they are trying to say that our conservation won't affect the price..... [Edited by: skybiker at 3/19/2010 1:13:49 PM EST]
ENORMS Champion Author Colorado Posts:3,014 Points:1,174,060 Joined:Sep 2006	Message Posted: Mar 19, 2010 12:56:37 PM Ignore ENORMS Report Abuse The speculators keep pushing up the price of oil until it kills the economy and puts more people out of work.
madison8359 Champion Author Cleveland Posts:5,752 Points:1,129,690 Joined:Apr 2008	Message Posted: Mar 19, 2010 12:30:45 PM Ignore madison8359 Report Abuse Perhaps the U.S. reserves are not what they once were and perhaps the center for what is pumped is not what it once was but the price is very often and strongly influenced by Wall Street and the players there. We still have Big Oil influence around the world and alot of finance and expertise in geology right here. Granted our influence is waning and will continue to but we are still players, for better or worse. One of the reasons there is OPEC and global is the control and influence U.S. oil had all around the globe. Old habits die hard. But it is correct that oil is and will continue to be strongly influenced from all corners of the world.
popeye2009 Veteran Author Ottawa Posts:320 Points:280,545 Joined:Sep 2009	Message Posted: Mar 19, 2010 11:54:43 AM Ignore popeye2009 Report Abuse IMF and World bank controls oil prices not even opec can change prices as much even though they try to limit supply and make tons of profit. Alaska has lots of oil but they won't pipeline it to the US to drop prices.
Kimmunicate Champion Author San Francisco Posts:1,068 Points:371,420 Joined:Jan 2010	Message Posted: Mar 19, 2010 11:24:53 AM Ignore Kimmunicate Report Abuse It's hard for some people to come to terms with the fact that we're not the most powerful country anymore and we don't make all the decisions for the rest of the world.
Shane1936 Sophomore Author Atlanta Posts:219 Points:267,380 Joined:Mar 2005	Message Posted: Mar 19, 2010 11:11:34 AM Ignore Shane1936 Report Abuse Thanks, CharlieCO8. Your point is one which I've often used in discussions with my "Drill, Baby, Drill" friends (most of whom are staunch supports of the Socialist Party now in control of our government). I have yet to get a response from any of them but you can see it in their face... "I may be stupid enough to think we can produce all the oil we need, but I'm not so stupid that I would sell my oil for $50/bbl less than everyone else!"
PaylessKY Champion Author Kentucky Posts:6,120 Points:1,125,425 Joined:Oct 2008	Message Posted: Mar 19, 2010 11:10:39 AM Ignore PaylessKY Report Abuse Try to conserve, at least it could help you.
neptune2008 Champion Author Michigan Posts:6,265 Points:1,219,560 Joined:Aug 2008	Message Posted: Mar 19, 2010 11:03:30 AM Ignore neptune2008 Report Abuse did they ever????
cnet1 Champion Author Arizona Posts:1,955 Points:515,150 Joined:Nov 2008	Message Posted: Mar 19, 2010 11:03:29 AM Ignore cnet1 Report Abuse S P E C U L A T O R S control the oil price. american, european, middle eastern, it doesnt matter. These pirates control the life blood of the world.
cruisingtx Champion Author San Antonio Posts:1,482 Points:974,420 Joined:Jan 2009	Message Posted: Mar 19, 2010 11:03:17 AM Ignore cruisingtx Report Abuse Is anyone surprise!
jellyfishgirl All-Star Author Milwaukee Posts:981 Points:238,530 Joined:Apr 2008	Message Posted: Mar 19, 2010 11:02:45 AM Ignore jellyfishgirl Report Abuse Duh. Isn't this a world market thing? Despite what most reporters say, the US does NOT own/deal with/dictate everything that happens on the globe.
GoBlazers Champion Author Washington Posts:5,183 Points:655,245 Joined:Dec 2008	Message Posted: Mar 19, 2010 11:02:00 AM Ignore GoBlazers Report Abuse Ended last decade? Try three decades ago.
papou Champion Author Tampa Posts:8,496 Points:1,449,015 Joined:Jul 2005	Message Posted: Mar 19, 2010 11:00:56 AM Ignore papou Report Abuse Sure and as long as we keep China guzzsling oil we are the problems. Buy American made products.
MikLamb Champion Author Texas Posts:5,653 Points:1,714,070 Joined:Jun 2006	Message Posted: Mar 19, 2010 11:00:42 AM Ignore MikLamb Report Abuse "Rather quaint"? I thinks it's "rather idiotic."
jayrad1957 Champion Author Los Angeles Posts:14,595 Points:1,131,340 Joined:Nov 2008	Message Posted: Mar 19, 2010 11:00:38 AM Ignore jayrad1957 Report Abuse I have thought OPEC has controlled the price since the early 70's.
southjerseyal Champion Author New Jersey Posts:11,474 Points:1,511,915 Joined:Mar 2005	Message Posted: Mar 19, 2010 10:59:49 AM Ignore southjerseyal Report Abuse No kidding; duh...
Tutootin Champion Author Toronto Posts:7,771 Points:2,614,430 Joined:Jun 2004	Message Posted: Mar 19, 2010 10:59:22 AM Ignore Tutootin Report Abuse Night Owl, That's the key variable.
UMassLowell Veteran Author Dayton Posts:425 Points:301,415 Joined:May 2008	Message Posted: Mar 19, 2010 10:58:42 AM Ignore UMassLowell Report Abuse I did not realize we ever did.
Night Owl Champion Author Toronto Posts:5,280 Points:1,335,675 Joined:Jul 2004	Message Posted: Mar 19, 2010 10:55:13 AM Ignore Night Owl Report Abuse Greedy oil speculators are controlling the price of oil.
NavyEOD Champion Author Los Angeles Posts:7,712 Points:1,567,900 Joined:Jul 2007	Message Posted: Mar 19, 2010 10:55:02 AM Ignore NavyEOD Report Abuse This is part of the reason why we need more alternative fuels.
glorioussnookie Champion Author Tennessee Posts:2,206 Points:502,350 Joined:Feb 2010	Message Posted: Mar 19, 2010 10:54:29 AM Ignore glorioussnookie Report Abuse I agree with Miser 209 also! The ones with deep pockets are the ones who control the prices!
The_Gunslinger Champion Author Arkansas Posts:1,897 Points:384,340 Joined:Oct 2008	Message Posted: Mar 19, 2010 10:53:55 AM Ignore The_Gunslinger Report Abuse Up and down. Up and down. I'm getting nauseated by the up and down.
KillChain Champion Author Albuquerque Posts:4,430 Points:1,094,275 Joined:Jun 2006	Message Posted: Mar 19, 2010 10:53:14 AM Ignore KillChain Report Abuse I agree with miser709.
goodbuy Champion Author Michigan Posts:5,514 Points:993,760 Joined:May 2005	Message Posted: Mar 19, 2010 10:52:55 AM Ignore goodbuy Report Abuse Nobody knows who controls the price of oil. It is magic.
miser709 Veteran Author Grand Rapids Posts:407 Points:634,335 Joined:Mar 2004	Message Posted: Mar 19, 2010 10:51:42 AM Ignore miser709 Report Abuse The US never did!
REKEY Champion Author South Carolina Posts:6,216 Points:1,235,530 Joined:May 2008	Message Posted: Mar 19, 2010 10:51:24 AM Ignore REKEY Report Abuse Did we ever? The rich people always did.
bluebird1 Champion Author Toronto Posts:13,431 Points:2,655,990 Joined:May 2004	Message Posted: Mar 19, 2010 10:50:37 AM Ignore bluebird1 Report Abuse The US never did control it...it was speculators, big Oil etc. However, it was US$ that measured it.
arnerator Champion Author Seattle Posts:5,831 Points:1,156,910 Joined:Sep 2008	Message Posted: Mar 19, 2010 10:49:01 AM Ignore arnerator Report Abuse Supply/demand is meaningless in the face of manipulation.
ssect8 Champion Author Hartford Posts:5,619 Points:1,664,680 Joined:Jun 2006	Message Posted: Mar 19, 2010 10:45:46 AM Ignore ssect8 Report Abuse The US never controlled the price of Oil and anyone who thought that was basically an idiot and very stupid.
RockCity Champion Author Denver Posts:5,315 Points:964,560 Joined:Mar 2009	Message Posted: Mar 19, 2010 10:44:52 AM Ignore RockCity Report Abuse Don't be too suprised, just keep reading, it's scary how dumb the little masses really are. [Edited by: RockCity at 3/19/2010 10:45:20 AM EST]
Sam195 Champion Author San Bernardino Posts:5,765 Points:1,116,950 Joined:Oct 2008	Message Posted: Mar 19, 2010 10:44:34 AM Ignore Sam195 Report Abuse The price of oil is based on so many factors that it is now completely unpredictable.
esorsd Champion Author St. Louis Posts:3,508 Points:1,187,790 Joined:May 2005	Message Posted: Mar 19, 2010 10:41:56 AM Ignore esorsd Report Abuse No kidding, this is a WORLD market, not a US controlled market.
twiper1 Champion Author San Diego Posts:5,487 Points:1,141,485 Joined:Oct 2008	Message Posted: Mar 19, 2010 10:41:10 AM Ignore twiper1 Report Abuse Big oil dont want us ti have alternitive energy unless they can make a buck out of it
ddkk Veteran Author Illinois Posts:354 Points:923,645 Joined:Mar 2005	Message Posted: Mar 19, 2010 10:41:03 AM Ignore ddkk Report Abuse It surprising how many who post here think an all powerful dictator is the kind of person and government we need, with out any real idea what that would really mean. Or even think we have one now, forgetting the previous 8 years. Just who would such a person work for ? Us ? Ha, ha, . . .
Robert44 Champion Author Columbus Posts:2,884 Points:945,230 Joined:Mar 2004	Message Posted: Mar 19, 2010 10:39:42 AM Ignore Robert44 Report Abuse Oil main reason it goes up or down is due to overall demand worldwide!!!
MahopacJack Champion Author New York Posts:5,904 Points:1,182,605 Joined:Feb 2008	Message Posted: Mar 19, 2010 10:38:58 AM Ignore MahopacJack Report Abuse This would NOT happen were we to stop INFLATING our Dollar and lowering its TRADING VALUE. Oil prices are inversly related to the value of our Dollar. There is NO REASON TO BEAT UP THE OIL Companies OR OPEC. OUR GOVERNMENT (in other word us) IS DOING THIS TO OUR SELVES!!! [Edited by: MahopacJack at 3/19/2010 10:39:32 AM EST]
Rick52 Champion Author Milwaukee Posts:9,433 Points:740,285 Joined:Mar 2005	Message Posted: Mar 19, 2010 10:38:07 AM Ignore Rick52 Report Abuse Alternative Energy ??? The problem is Big Oil will buy it up... Keeping us under their Thumb !!!
repeater1 Champion Author Topeka Posts:6,053 Points:1,916,495 Joined:Oct 2005	Message Posted: Mar 19, 2010 10:37:42 AM Ignore repeater1 Report Abuse Just another example of the US declining influence on market prices. It seems the only time we have much influence is when someone is looking for a handout.
Panthr1 Veteran Author North Carolina Posts:265 Points:750,535 Joined:Aug 2008	Message Posted: Mar 19, 2010 10:37:02 AM Ignore Panthr1 Report Abuse Imagine that!
VetteBlue Champion Author San Jose Posts:7,705 Points:1,544,210 Joined:Jan 2007	Message Posted: Mar 19, 2010 10:36:06 AM Ignore VetteBlue Report Abuse Duh!
ziyulu Champion Author Oklahoma City Posts:6,117 Points:1,162,580 Joined:Aug 2007	Message Posted: Mar 19, 2010 10:34:48 AM Ignore ziyulu Report Abuse But I thought the Obama bashers said Obama controlled the price of oil.