Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (71313)	6/9/2008 7:50:01 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 543149

Allen; Kudlow just had a chart of gas prices inflation adjusted and we are way above where we were in the 70's - 30% above I believe they said. Also heard on NPR today that Americans had been paying 1.5% of their income for gas and that has now risen to 6%. Yikes! That will get some changes in the way we use this resource. steve

To: Cogito who wrote (71313)	6/9/2008 7:52:23 PM
From: TimF	Read Replies (2) \| Respond to of 543149

By the way, are you sure that gas prices are not at a high, in terms of inflation-adjusted dollars? I'm not totally sure about oil. I am pretty sure about gasoline. Gasoline was (after adjustment for inflation) over $3/gallon in 1981, but not over $4/gallon (the average in the US now is $4.046 according to gasbuddy.com ) The question is, then, why do you have the Saudi government saying that there is no reason for the current high price of oil? Did they say that? I only saw "The kingdom will work to ensure there will be no "unwarranted and unnatural oil price hikes", which is not the same thing. "We will work to ensure that X doesn't happen", doesn't equal "X has happened".

To: Cogito who wrote (71313)	6/9/2008 8:11:47 PM
From: TimF	Read Replies (1) \| Respond to of 543149

Oil may now finally be at an all time high in real terms. A year ago, it probably wasn't at an all time "modern" high, and until very recently the pre-civil war peak was higher, but probably not any more. Of course inflation adjustments are tricky, and adjustments going back for a very long time (like to the 1850s) even more so. The chart was taken from this blog post The Future of Oil Prices 3: Nonrenewable Resource Pricing overcomingbias.com I neither endorse nor oppose the theories about future oil prices contained in that post.

To: Cogito who wrote (71313)	6/12/2008 11:37:05 PM
From: 8bits	Respond to of 543149

The question is, then, why do you have the Saudi government saying that there is no reason for the current high price of oil? If I were the head of the Saudi government I would be doing exactly the same thing. Basically, taking the tack of "it's not our fault" and point the finger somewhere else as they have been for around 5 years. 2003-2004 it was the terrorist premium. 2005 Hurricanes, etc. With a US Congress shellacking US oil execs in public hearings and threatening to sue OPEC members, it makes perfect sense that the Saudi's wish to deflect criticism away from themselves. I doubt the Saudi Royal family wants any of their overseas travel and investing opportunities to go away. With the Saudi's (and much of OPEC) watch not what they say but what they do over time.