oil in euros

[dynasim]

If you'll notice, oil is already traded in euros. Just because the listing is in "dollars", doesn't mean that the transaction must be in dollars. If one has euros, one can buy oil.

The price of oil in Europe is the same(in Euros) as it was a couple of years ago. In essence, the price of oil(in dollars) has increased by the same amount as the dollar/euro exchange rate has changed. In essence, opec has held the price of oil constant, in Euros.

Biofuels take more oil to produce than they yield in transportion fuel. It is a foolish thing to pursue for anyone who seriously wants to help our economy and defend our country. When the "cooking grease" runs out, what will they fuel the tractors that feed us with?

Wind and solar "energy" is also not net energy productive, as the devices that make the electricity take energy to produce and maintain. They would not exist without massive subsidies. Moreover, wind and solar power create electricity, with ought to be made with atomic and coal fired power plants.

The US is the Saudi Arabia of coal.

Chris

 

[deereman64]

You make a valid point and interestingly enough this is now being used as a speculative trade. A weaker dollar spurs commodity purchases by dollar holders to hedge their positions. I suppose the danger is not so much in trading the commodity but in which currency the commodity sellers hold their wealth.
But I note also that your response focuses on the supply side of the equation and I agree that current alternative solutions would be marginal in their impact. It is the demand side of the equation that we have to deal with, and that doesn't mean changing the light bulbs. During the last oil crisis the speed limit was reduced to 55 mph, and, I know, we all hated it, but it was not without some merit. The approach,IMO, has to be reversed engineered. Start with a target (this involves political decisions), to say reducing energy consumption by 6.5% in 10 years and from there establish parameters by which this target can be achieved.

 

[js5020]

I think you have hit the nail on the head so to speak, SPECULATIVE. And once the speculators get something rolling look out it can go well beyond any reasonable level. I'm hearing oil down to 70 in 2008, so to me it's not the oil driving the market rather the perceived proits from running the price up and then reversing that is driving price. Look at the fundamentals for the Euro, there is not a whole lot there telling me it's value should be where it is at verses the buck but that dosen't mean squat it's goin higher so higher we will go. It's were the speculators are sending it, right or wrong.

 

[deereman64]

If you bear with me let me expand the arguement. You could counter that the way in which you achieve the stated goal also involves a decision process. Yes, but we can do this on a prorata basis. Lets say transportation uses 60% of oil imports so we reduce the say the speed limit by x amount to reduce the consumption by the desired amount, but allow for an offset should the mileage of cars and trucks improve.Like wise for home heating thermostats have to be reduce to reach their prorata goals.

 

[js5020]

Yes conservation on our part will cause panic on the part of the seculators and there by change the current market condition. Sorry for the delay,, tradin spot at the moment.

 

[JSharp]

I have to agree with js5020. Conservation works well in a stable supply system without speculators. Anyone who's taken a basic economics course knows that. Keep the supply constant and reduce demand, price drops etc. I also agree with him that the fundamentals of many the countries using the Euro aren't necessarily better then the US. In many cases they're worse.

But we're not dealing with simple economics here. We're dealing with speculators, mob behavior, group think, confidence levels, and any number of other things that you can use to label how the markets "work."

My belief is we're going to see a long and bumpy ride until some very drastic changes are made in a lot of areas...