Oil prices help to determine the price of gas. Here is some oil prices:
2000 $27.39 $36.54
2001 $23.00 $29.86
2002 $22.81 $29.12
2003 $27.69 $34.60
2004 $37.66 $45.78
2005 $50.04 $58.83
2006 $58.30 $66.45
2007 $64.20 $71.03
2008 $91.48 $97.33
2009 $53.48 $57.18
2010 $71.21 $75.05
2011 $87.04 $88.93
2012
(Partial) $93.02
Notice that there are two prices. One is from Illinois oil exchange and the other price is inflation adjusted price.
Some questions that is strange: Why did the price in 2008 jump down from $91 to $53.48? Anyway the price of oil has been increasing and it may be due to peak oil (That less and less oil can be found)
Says that the present high oil prices is due to speculators thinking a war with Iran and Israel might be inevitable. I hope that war fears dies down and the price is able to go back down. Also the Feds might decide to release oil from the US Federal Oil reserves to lower the oil price.
Someone thinks (or implies) that oil prices can be linked to printing money. The chart shows no such thing.
Here is another chart using Texas oil prices. All the oil prices are explained by news events ( http://www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/prcng/crdlndptrlmprdcts/cndnmrkt-eng.html )Someone thinks (or implies) that oil prices can be linked to printing money. The chart shows no such thing.
Comments (47)
don't even talk to me about oil prices! this old lady remembers it being 21cents a gallon
Yes it is funny, that in 2008 it was $91.48 and in 2009 its $53.48
@angys_coco - Heh, heh edit 2 tells you some of the reasons for the changes in oil pricing. BTW Canadian oil is pretty heavy. Thus the pipeline to Texas is important because their refineries can handle that type of heavy oil. Furthermore oil supplies from Mexico and Venezuela are slowing (due to less oil in the oil fields there). Thanks for visiting and learning new stuff.
i would like to know what caused the drop in price. because i would like to know if the same thing will happen now that oil is over $90 a whatever unit this is. pretty sure the price has nothing at all to do with how much oil is available.
The general trend of oil prices is up, up, up.
That's because Bush had to start printing money after Al-Qaida shut down the economy with its victorious 911 attack. Printing money causes the value of the dollar to decrease. We see that decrease in value as the costs of oil and food increase.
Obama and Democrats then started printing money to finance their $1,000,000,000,000+ yearly deficits. To make such a catastrophic policy palatable, the Fed lies to us and says it is stimulating the economy.
Printing money has the exact opposite effect. And that's why the price of oil is so high (nearly doubling in 3 years under Obama) and why the economy has not improved.
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P., I only bring this up due to this administration's lack of action or funding for our own resources (which is is bullshit really, (the funding part being the B.S.) but I reckon if we're payin for a gay gorilla show on stage in SF (and we did), it would be far more profitable to put our tax-payer dollars to good use for a change.
@promisesunshine - In some areas of the United States (like the West coast) when the price of oil goes up the price of gasoline goes up pretty quickly. That's because there is no surplus reserve of gasoline supply to buffer the price. It is kind of like when women buy a whole bunch of toilet paper on sale, thus stores will not see much sales of toilet paper unless a natural disaster is coming.
The oil speculators are betting that there will be a conflict with Israel and Iran, hence the price of oil has remained high unnaturally. If we hear less war news, I guarantee you that the price of oil will come down.
the price goes up quickly because the price is arbitrary and why wouldn't you want to make more money on the gas sitting in that tank even though you paid the lower price for it.
so it benefits someone for us to hear war news. i don't think we'll hear otherwise for a long time.
@PrisonerxOfxLove - "The general trend of oil prices is up, up, up."
The chart of mine says otherwise. It moves up and downIf it is up, and up, then I must reach the conclusion that we are nearing peak oil (running out of fossil fuel) Already supplies of oil from Mexico is disappearing, and soon supplies from Venezuela is dwindling.
@PPhilip - The first number on your graph is $27. The last number on your graph is $93.
It is obvious to anyone who understands numbers that the trend for oil prices is up and that they tripled since 2000.
Are you so biased that you can not longer tell that $93 is greater than $27 and that $93 is more than triple $27?
@PrisonerxOfxLove - Great that you've shown how to multiply. Statistics is a nice advance course for you to study since you have shown an interest in numbers. Combine Economics, government and history with it and you can understand even more about prices.
Are you saying on the graph presented, that the subtitles on why they are like that exteraneous? The small print The falling dollar could mean printing too much money and/ or financial cheating where bad loans were being reneged upon? No wonder the United States is not well liked, we pushed bad loans onto the rest of the world.
@PPhilip - You don't need a class in statistics to understand the numbers you posted. You only need a 3rd grade understanding of arithmetic.
3 x 30 = 90. That shows that $93 is triple the value of $27.
Statistics will be unintelligible gobble-d-gook if you can't master 3rd grade arithmetic. And that is why you just convinced me that you haven't the foggiest idea what you are talking about.
@PrisonerxOfxLove - Really now? How about a test.....has the price of coffee tripled also? Or are you going to hazard a guess that it only doubled? Basically you are using gasoline prices to say there is inflation. In flation raises the price of everything in the same proportions. Gasoline prices is a special category. Oil prices is less volatile than gasoline prices.
@PPhilip - The world doesn't run on coffee. Must I also explain that you can't put coffee in your gas tank?
@PrisonerxOfxLove - But printing money causes inflation. So what is it only select inflation or key factors like gasoline are exempt from inflation. Anyway coffee is almost like toilet paper, you can stockpile only a certain amount and stockpiling it too long the coffee can get stale. Weather conditions in the world effect coffee prices. However a lot of people run on coffee and they do put it in their bodies so they can run......
@PPhilip - A tripling of the cost of oil is a 300% inflation over 12 years. That is about 25% inflation per year. Anyone who has to go out and shop knows what I'm talking about.
Normal people do more than just sit home drinking coffee.
@PrisonerxOfxLove - So now you admit the cause of inflation is not purely due to printing money but due to rising oil prices. Thank you that is all I want to hear now.
Why did the price in 2008 jump down from $91 to $53.48?
I can answer that one: the crash of the big three (GM, ford Chrylser) When they started tanking in 2005-2006 it dropped oil price down, with the devalue of neccessity.
@PPhilip - Inflation is a monetary phenomenon. So printing money does cause inflation. The value of the dollar is measured in oil.
So by watching how oil becomes more and more expensive we can actually see inflation take place with our own eyes.
Amandascowen's opinion sounds reasonable..I'm surprised there is still oil left on this planet..soon it will be depleted...
@locomotiv - The world is drowning in oil. It should be as cheap as the sand we use to manufacture glass and integrated circuit chips.
One thing I really appreciate about Denmark where I live, is that the nation is truly committed to finding sources of other energy... wind and sun!
Same thing happened in Malaysia. A price to pay for being a good citizen... I guess.
@jillcarmel - Sweetie, 21 cents in those days could purchase far, far more. Today's money is a joke.
@PPhilip - If your country keeps fucking with us with their constant cheating in an environment of free trade (NAFTA), that oil will stop flowing south, and we will start selling it all to the Chinese and Indians. They have offered to pay us more for our oil. You Americans are actually getting a break from us via NAFTA on oil costs. Keep up the bullshit, and that break ends. Stephen Harper is tired of warning your President.