Cold Temps and Rising Heating Oil Prices

[JotulOwner]

I read that China's increasing demand for oil combined with worldwide colder temperatures this year have caused an increase in oil prices. Our local temps are definately colder than usual. This morning it was 25 degrees which is not common around here until January/February. Heating oil is now about $3.38/G.

Oh yeah, my point........ it's really nice to have a wood burning stove right about now!

 

[BrotherBart]

A larger decrease in inventories than expected, usually caused by refiners slowing down, and the drop in the value of the dollar are the biggest culprits.

 

[snowtime]

I find it funny when someone breaks down the costs associated with a wood stove and say the payback is not enough. When the recession is over you better believe oil will double.

 

[cmonSTART]

Griddle Temp: Pushing 650F
Cat Temp: 1700F
Oil Burner: Off

 

[Later]

Oil isn't going up - the dollar is going down

 

[JotulOwner]

A larger decrease in inventories than expected, usually caused by refiners slowing down, and the drop in the value of the dollar are the biggest culprits.

And, possibly things like this too:

http://www.huffingtonpost.com/janet-ritz/oil-prices-were-manipulat_b_114855.html

 

[jharkin]

Oil prices are going up not just because of increased demand, but because there is not enough new supply coming online to meet that demand. This years IEA world energy outlook finally came out and admitted that 2006 was the all time peak of conventional crude production at 70-something million barrels/day . All increase in overall supply since then has been from unconventional sources like deepwater, the Canadian tar sands and synthetic sources. Today's total oil production is something like 86 mpd, but out of that conventional oil has already declined to less than 65mbpd. Those unconventional are EXPENSIVE and are the only source of supply growth going forward.

Oil has nowhere to go but up. It may pullback from time to time during recessions but the overall trend is obvious to anyone who doesn't stand to make money denying it. Be ready.

 

[shawneyboy]

A larger decrease in inventories than expected, usually caused by refiners slowing down, and the drop in the value of the dollar are the biggest culprits.

And, possibly things like this too:

http://www.huffingtonpost.com/janet-ritz/oil-prices-were-manipulat_b_114855.html

First off I don't read nor believe many things the Huffy Post puts out. Oh and second and more importantly that article was what 28 months old !

 

[BrotherBart]

We'll save this subject for when the Ash Can reopens.