Oil price swings shatter market myths--from Al Jazeera

[Ladybast]

Oil price swings shatter market myths
By Adam Porter

Saturday 06 November 2004, 22:37 Makka Time, 19:37 GMT

Oil prices dropped to five-week lows and stock markets around the world gained ground following the re-election of US President Bush.

These movements in commodity prices and equity values do not herald a brighter economic future, however. Instead they only debunk some of the normalised economic theories about the relationship between prices, "terrorism" and politics.

We are repeatedly told by analysts, traders, politicians and oil producers that the world is paying a "terror premium" on the price of crude oil. Prices bandied about range from $5 to $15 a barrel extra because of the threat of "terrorism".That centre of that threat of "terror" is generally accepted as being inside Iraq. Notably attacks on pipelines. It is those attacks, we have been told, that are contributing such a significant slice to the price rises in oil.

This theory also works during election campaigns, or so we are led to believe. Yet almost unnoticed in the media, the exact opposite has been happening.

(more)
http://english.aljazeera.net/NR/exeres/9EC1C0AC-C5AD-4C43-B98A-248F6F0D48A2.htm

[radwriter0555]

1. the current price gouging is the same used against California, by creating

an artificial shortage where none exists.

Peak oil is a myth. There is no fight for oil in iraq, but the struggle to CONTROL the oil, to keep it from the market.

[aneerkoinos]

2. Myth?

What are you smoking? Pass that stuff, I would enjoy a visit to the happy la-la land!

Nobody, I mean NO-BO-DY denies that Oil extraction capacity is going to peak some day. What differences of opinion there are is about when that is going to happen. Wery few, if anybody, place the peak after next decade.

Consider this: If Saudis had enough extra capacity, Iraq blown off-line would not make a difference. But the thing is, Saudis can't pump more than they are now pumping. Peak Oil is a myth? Think again. Think hard. It is imminent.

[radwriter0555]

3. There is no oil shortage. Why believe the lies of the oil industry?

They're closing 'wildly profitable" and producing oil wells right here in California..

There is no pending shortage, just some oil co assholes who make more money pretending there is, and making a 56% profit.

[aneerkoinos]

5. oil co assholes?

Colin Campbell is not oil co, he's scientist, geologist and certainly not asshole. ASPO is not oil industry, but forum of conserned scientists. Neither was/is Club of Rome oil industry. Do you sincerely believe that every enviromentalist warning about Peak Oil, is fooled by oil industry and incapable of independent thought? I don't think you do. Because:

I challenge you to find one piece where some top guy from some big oil co warns publicly about Peak Oil. You can't, such warnings don't exist, because telling the truth would not serve their interests, facing the truth would force nations to invest all available resources into allternatives instead of handing out massive corporate wellfare to oil industry as they now do. Oil industry needs to keep us addicted to oil as long as possible, and your denial is helping them to keep us addicted.

[Porcupine]

4. Google "tanker shortage" or "peak oil" and read....

it all again. The fact is that the Peak Oil theorists predict and expect wild price swings in crude oil with a steady trend towards higher prices.

Also there is a tanker shortage for a reason. The reason is that there is little interest in laying out billions of dollars for oil tankers that will have no oil to ship. Likewise the number of drilling platforms, test wells and rigs are all down steadily from year to year. The oil majors KNOW there is little economic incentive in spending the money.

They have the cash to buy tankers, rigs and platforms but there are no announcements of vast new contracts. Why?