Why are oil prices still high?

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Why are oil prices still high?

Postby CFJunior » Sun May 18, 2008 4:27 am

For years now I've heard conservatives argue that high prices for home heating oil is driven by demand. The more demand for heating oil will drive the price up. Right now we are seeing a slow down in demand for home heating oil and yet the price continues to climb. For the past two years the price for #2 home heating oil has increased during the spring and summer months. Why? There hasn't been a demand for the product during those months so shouldn't the price come down?

I think this has to do with profit plain and simple. The home heating oil companies saw that people would wait until the price dropped so they kept their prices the same as they were when home heating oil was at high demand. Gas station owners do the same thing. The gas that is in the underground tanks wasn't $3.79 a week ago when it was delivered but yet they are charging market prices for gas they didn't pay market price for! :oops: Local companies are trying to get in on the act and they want bigger and bigger profits! When will all end :?:
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Re: Why are oil prices still high?

Postby spudneck111 » Sun May 18, 2008 8:03 am

CFJunior wrote:For years now I've heard conservatives argue that high prices for home heating oil is driven by demand. The more demand for heating oil will drive the price up. Right now we are seeing a slow down in demand for home heating oil and yet the price continues to climb.
Please try to get this right CF. It's supply and demand. If the supply is controlled (say by OPEC) they can control the price. Add in the market speculators. Throw the increased demand by countrys like China and I would be amazed if the price doesn't continue to rise.

You are right, it is about profit. Welcome to America!
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Re: Why are oil prices still high?

Postby CFJunior » Sun May 18, 2008 12:25 pm

So how do middle income Americans afford gas prices that will likely be over $4.00 per gallon all summer into the fall. I heard the other day that Triple A is reporting the possibility of $5.00 per gallon gas by Labor Day.

Then their is the home heating oil issue. How can middle income families afford to pay over $4 bucks a gallon for #2 heating oil and not go bankrupt in the process?

Oh I almost forgot we're not in a recession but just an economic slow down according to our President. I'd say that is the understatement of the Century right their Mr. Bush! NEWS FLASH to those who suffer from having their heads up their a-s-s for the past two years. We've been in an economic slow down because of rising energy costs. As we all know rising energy costs are passed on to consumers not just at the gas pump.

ALL goods and services now cost a lot more then they did two years ago. My electic bill used to be $100 to $120 per month. Not anymore. Now my electric bill is $165 to $185 per month and I bought ALL energy saving appliances and turn off all lights we don't use. Our grocery bill used to be $100 to $150 per week and now it's $200 to $250 per week. We aren't buying anything different. We are actually scaling back on some things and still no significant savings. The camps I send my two girls too this summer have increased by $10 per week. That is why my wife and I are taking a month off between the two of us to try and save $350 a week instead of sending them to camp. I'll have to tell the kids sorry but you'll be staying home instead of swimming, hiking or going to the beach...

There is some good news on my economic front. School starts in late August and my youngest daughter will be attending all day Kindergarden so that means we'll be saving $700 per month that normally went to pre-school. Hip, Hip, Hooray.... Of course our town could increase my taxes which could mean my wife and I break even? The school budget in the town of Trenton will be voted on next week and increases in spending are more then likely which means higher taxes for us... :x
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Re: Why are oil prices still high?

Postby spudneck111 » Sun May 18, 2008 12:57 pm

It won't be easy, especially for those that make a habit of spending every dollar, every payday. Unfortunately it is the working people that will have to make up for those that are unwilling and unable to work. Learn to turn that thermostat down a few degrees. Make less trips to the soccer field. Plant and care for a garden. Jeeze.... it'll be just like the good old days.

I'm glad my kids liked spending time with dear old Dad, I could never have sent them to summer camp on that e-5, e-6 or e-7 military pay scale back then. Loved t-ball, pee wee ball, fishing, hunting, swiming, etc. Yep, nothing like a walk the local swimming hole with the kids.

$700 per month savings and a tax increase by the town could cause you to break even? I think I would be searching the real estate ads to find a new place to live. That would be a $8400 dollar increase. What kind of pre-school was that any way CF? Cripes, you just saved enough to pay for all of your electric bill and half of your groceries to boot. Let the good times roll!!!
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Re: Why are oil prices still high?

Postby mainejeff » Sun May 18, 2008 2:20 pm

spudneck111 wrote:You are right, it is about profit. Welcome to America!


Our country will continue to go down the tubes if we don't re-think that one a bit......especially in the areas of energy and healthcare. Spud.......just so you know where I am coming from on this matter (it's not a totally anti-capitalism stance)........I'll just say this........desperate people do desperate things. Think about it.
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Re: Why are oil prices still high?

Postby CFJunior » Sun May 18, 2008 3:24 pm

spudneck111 wrote:It won't be easy, especially for those that make a habit of spending every dollar, every payday. Unfortunately it is the working people that will have to make up for those that are unwilling and unable to work. Learn to turn that thermostat down a few degrees. Make less trips to the soccer field. Plant and care for a garden. Jeeze.... it'll be just like the good old days.

I'm glad my kids liked spending time with dear old Dad, I could never have sent them to summer camp on that e-5, e-6 or e-7 military pay scale back then. Loved t-ball, pee wee ball, fishing, hunting, swiming, etc. Yep, nothing like a walk the local swimming hole with the kids.

$700 per month savings and a tax increase by the town could cause you to break even? I think I would be searching the real estate ads to find a new place to live. That would be a $8400 dollar increase. What kind of pre-school was that any way CF? Cripes, you just saved enough to pay for all of your electric bill and half of your groceries to boot. Let the good times roll!!!


We send her to the MDI YMCA which is $175 per week. What do we get for our money? She has learned how to swim, does gymnastics two times a week, goes to the library two times a week and they go on several field trips during the week. The MDI YMCA pays two full time pre-school teachers and there is only about 12 kids in this pre-school program. The advantage to this pre-school program is that it's an all day program. Last year our youngest daughter went too a pre-school that was only two times a week and for only four hours. We paid $75 a week for that program and they rarely left the school. The rest of the week she went to daycare which cost $120 per week. I'd say we get more bang for the buck sending her to the Y in Bar Harbor.

This summer I still will have to pay for 5 weeks of camp and both camps will cost $175 per week and neither provides a lunch or snack. When you add up the camp costs, price of gas to get to and from work as well as the grocery bill and I figured an expense of about $700 per week. That's $2,800 per month. Now you can see why I'll be staying home for two weeks and my wife will be doing the same. Let's just say my savings account will be empty very soon and I still have a $300 plus registration for my car and my car needs some new tires which will likely be at least $600.

My wife and I were not doing that bad a few years ago but we could become just like other American couples with children who live paycheck to paycheck and have no choice but to run up our credit cards balances just to stay above water.

What I just said is the reason I'll be supporting Barrack Obama for President. Senator Obama will have a clear majority in both House and Senate and that means he will likely be able to pass his middle class tax cut. That means $1,000 dollars more per child tax credit for my wife and I. Just what the doctor ordered. Obama is also going to give me a tax break for having health insurance with the company I work for. As much as $2,000 will go toward my health insurance coverage. I can't wait for Jan. 2009!
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Re: Why are oil prices still high?

Postby spudneck111 » Sun May 18, 2008 7:07 pm

cefjr wrote:That means $1,000 dollars more per child tax credit for my wife and I. Just what the doctor ordered. Obama is also going to give me a tax break for having health insurance with the company I work for. As much as $2,000 will go toward my health insurance coverage. I can't wait for Jan. 2009!
You make it sound like that money will just appear out of thin air. Would you like to thank the hard working Americans that have to throw in more money to pay your bills now? It may serve you well to remember that Obama is actually giving you nothing in return for your vote.(He is actually buying your vote with other peoples money) That tax credit for you will cost someone else. That $2000 for you to give to some health insurance company..... someone has to pay that bill also. It must be embarrassing to admit that you feel entitled to others hard earned money.

mainejeff wrote:Spud.......just so you know where I am coming from on this matter (it's not a totally anti-capitalism stance)........I'll just say this........desperate people do desperate things. Think about it.
I hear ya. What do you reccommend? Government control of everything "energy"?

I know that I have gotten desperate. I'm planting a garden. I went out and bought a new chain saw, and I hate cutting wood. I even bought a small pick-up last year. If iI ever feel that I have to ride a bicycle, you can rest assured that I will NOT be wearing one of those gay looking helmets!! I'd sooner die of massive head trauma. 8-)
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Re: Why are oil prices still high?

Postby Archer Bunker » Sun May 18, 2008 7:26 pm

I think it would be much nicer if one parent stayed home and raised their kid properly rather than shipping them out and let someone else do it. But people are greedy in todays world they want everything for themselves and not the responsiblity of raising their own kids. The kids don't need two cars in their family, they don't need a big house, they don't need play stations, they don't need a bunch of cell phones in the family, What they really need in todays world is a real mommy and a real daddy that love them and put them first over these extra luxuries they all seem to have. And what i mean by a reall mommy and daddy is.....A male and a female. This world has really gone Bonco's.

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Re: Why are oil prices still high?

Postby Archer Bunker » Sun May 18, 2008 7:30 pm

And OH! I don't want to hear they can't afford it. People need to learn how to sacarifice and set priorities. If you really can't afford it then don't have any.

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Re: Why are oil prices still high?

Postby CFJunior » Sun May 18, 2008 9:17 pm

spudneck111 wrote:
cefjr wrote:That means $1,000 dollars more per child tax credit for my wife and I. Just what the doctor ordered. Obama is also going to give me a tax break for having health insurance with the company I work for. As much as $2,000 will go toward my health insurance coverage. I can't wait for Jan. 2009!
You make it sound like that money will just appear out of thin air. Would you like to thank the hard working Americans that have to throw in more money to pay your bills now? It may serve you well to remember that Obama is actually giving you nothing in return for your vote.(He is actually buying your vote with other peoples money) That tax credit for you will cost someone else. That $2000 for you to give to some health insurance company..... someone has to pay that bill also. It must be embarrassing to admit that you feel entitled to others hard earned money.

Thank you Warren Buffett, Bill Gates and Stephen King to name only three. Their top marginal rates will be increased from 35% to 39% under President Obama. Boy that sounds nice. So nice I'll say it again, PRESIDENT BARRACK OBAMA! That's what the top rates were under Bill Clinton from 1992 through 2000. Then along came voodoo economics and here we are today. Actually know one has to pay the bill for my tax credit for either health insurance or our per child tax credit. Isn't already my money Spuddy old buddy? That's what GW kept telling his rich friends during the 2000 campaign. I'm letting you have more of your money he used to tell the top 1% of tax earners. So in about eight months or so the middle class will be getting a larger piece of the pie they should already have.

By the way the Jackson Lab where I work, is self insured so any tax credits will simply lesson my burden as well as their burden. Right now I pay about $4,500 per year for coverage for my wife, children and myself. It would be triple that if I got insurance on my own in the private market place per year, and with a larger deductable. Right now my deductable is $3,000. Also wealthy Social Security earners will have to pay higher tax rates on their benefits which seems fair considering our tough economic times. To qoute my economics professor from college, "The rich will always be rich no matter how much their tax rates are! They will always invest in our economy because they enjoy being rich. Even though I supported Ronald Reagan his economic policies will cost us more in the long term then the short term!" Did he ever hit the nail on the head. GW never learned anything from the many failings that were trickle down economics. Supply siders are wrong and will always be wrong. We are seeing that right now in our economy. If you want real sustainable growth over a longer period of time you cut middle income tax rates and give middle income families tax credits. You get more from trickle up then you do trickle down! So how is Bush economics working out for all of you? :x I knew this day of a poor economy under GW would come. I predicted it! I pray every night that the American people aren't dumb enough to listen to the fear John McCain and the GOP will throw at them for the next six months. The fear card is all they have left and they will play it over and over again until election day. My fear rests in my wallet and whether I can still afford to keep a roof over my kids heads. That is all that matters to me are my two girls and their well being. That is why Senator Obama will get my vote this fall.

mainejeff wrote:Spud.......just so you know where I am coming from on this matter (it's not a totally anti-capitalism stance)........I'll just say this........desperate people do desperate things. Think about it.
I hear ya. What do you reccommend? Government control of everything "energy"?

I know that I have gotten desperate. I'm planting a garden. I went out and bought a new chain saw, and I hate cutting wood. I even bought a small pick-up last year. If iI ever feel that I have to ride a bicycle, you can rest assured that I will NOT be wearing one of those gay looking helmets!! I'd sooner die of massive head trauma. 8-)
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