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Some quick facts: Total Lybian oil production is just a percentage of what Saudi Arabia could produce if they wanted to increase their production. Lybia and the Suez Canal do not directly affect oil prices.

Goldman Sachs made 3.4 B in the first half of 2009 on oil trading.

Although in theory, the market should even out oil prices, in reality it's a bubble with trickles down to food prices amongst other things, which hurts everyone.

http://www.dailyfinance.com/2011/03/28/the-real-reason-gas-prices-are-soaring/

Dan Dicker, who has spent nearly three decades in the oil market, has a profoundly disturbing explanation of why the price of oil, and the gasoline that comes from the crude product, has risen so dramatically in recent months. It turns out, Dicker says, that the price has nothing to do with supply and demand for oil. It's the financial market for oil, filled with both professional speculators and amateur investors betting on poorly understood oil exchange-traded funds, who have ratcheted up the price of gas to such sky high levels.

"There is no supply issue going on here - what you have is the perception of the possibility of a supply issue," Dicker says. "A whole bunch of people are pouring money into an oil market trying to take advantage of what they perceive to be a real risk in supply. It's a marketplace that I argue should not be allowed to be wagered on like a stock or bond."
Why does all this trading drive up the price, when buyers and sellers should theoretically cancel each other out? Dicker says that is primarily because almost all oil investments being sold by the big investment banks are long trades - bets that the price will go up. While it's also possible to short oil ETFs, no one does. So that's heads ever skyward.

"There is no shorting of the market and the commodity market is not like a stock market," he says. "It is not designed to have only one half of a trade. It is designed to inspire both halves, that's how you arrive at a correct price." Dicker gives the following example: Let's say you live in a neighborhood where all the homes are priced at $200,000. Suddenly an army of buyers arrives who want desperately to move into the neighborhood. You were not really interested in selling before, but now a buyer offers you $400,000 for your $200,000 house. What are you going to say?

"That's what's going on in oil," Dicker says. "You have this army of people who have been flooding into a brand new neighborhood and they've had to inspire somebody to sell and the only way you can do that is pay an outrageous price for it."
 

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Do not forget that most commodities are traded in dollars and if our governments long term policy seems to be devaluing the dollar(printing more of them:eek)then it would seem to make sense that you will get rising prices on the currrency issue alone.
 

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I do feel sorry for you guys in the U.S paying so much for your fuel.
In the UK were now paying over $10 a gallon for diesel:panic:
 

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I do feel sorry for you guys in the U.S paying so much for your fuel.
In the UK were now paying over $10 a gallon for diesel:panic:
LOL.

I've heard people say that taxes make up the majority of the gas price in the US...this is false. That might be true for your side of the pond though. Then again, that's why our roads are filled with potholes. I remember hitting a huge (a couple feet) pothole on the highway around a blind curve so hard I heard a metal on metal sound. :panic:

Once I got off the highway I inspected the wheel and the tire was still OK so I went home slowly. The next morning the tire was flat and I found a 6 inch strip of the wheel lip on the inner side was gone! That's a hard hit.
 

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80% is tax for us over here, crazy! They don't even spend the money on fixing the roads and use it for their own expense accounts, second homes, prostitutes etc.
 

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80% is tax for us over here, crazy! They don't even spend the money on fixing the roads and use it for their own expense accounts, second homes, prostitutes etc.
Yes this is very true! But not quite as bad as the Italian government LOL!
I once had to change down to first gear to get out of a pot hole in a supermarket car park but this was repaired the next day after numerous complaints. I was a manger a said supermarket lol!
 
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