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mswarrior wrote:At $105 a barrel my 4 wheeled ride will sit in the garage and my 2 wheeled ride will get much more km's put in it

We just purchased a 2004 Chey Aveo because we knew this was coming, it gets 32 City and 46 Highway. Or about 500 km's on 45 liters.

But I don't want to be paying $45 (at $1 a liter) to fill it up!

My bike will get more use forsure... And wouldn't you know it, we NEED to fill up this weekend!!

Mike.

This just in:


Traders head for the hills following 'superspike' report
Crude expected to hit $105 by 2007
By Michael Glackin Daily Star staff Saturday, April 02, 2005


Analysis


BEIRUT: Any advance on $105? It's not just airlines and central bank governors who were reaching for the migraine pills this week after Goldman Sachs' "superspike" report. Anyone with a cursory knowledge of supply and demand must surely be scratching their heads wondering how on earth we arrive at these inflated estimates for what a barrel of crude oil will cost us. For those who may have missed it, Goldman Sachs, the largest energy derivatives trader, issued a report on Thursday warning oil prices could hit $105 a barrel because the commodity is entering what the bank called a "superspike" period. According to the report, oil will jump to $75 next year before hitting $105 in 2007. It was not all doom and gloom though as Goldman added that oil price will plunge to around $30 by 2010. For all the drama inherent in these kinds of reports, a superspike is not that far fetched. The price of a barrel of crude has already risen 25 percent since the start of the year, something of a super spike in itself. With OPEC's spare capacity still stuck at around a million barrels a day it would only take a major supply disruption, along the lines the market has already experienced in Venezuela, Iraq or Nigeria, one of the largest producers of light sweet crude, to send the price of oil rocketing. In fact, even the hint of supply problems, say another terror attack in Saudi Arabia, or an attempt on one of its oil facilities, would send traders reaching for their mobiles. OPEC has already warned $80 a barrel is not out of the question, an estimate that has now been spectacularly trumped by Goldman Sachs who single handedly added almost $2 to the price of a barrel of crude on Thursday. Oil continued to spike on Friday, rising $0.85 to $56.25 a barrel on the New York Mercantile Exchange.

But there is something here that everyone is missing. If prices jumped another 30-40 percent, a large chunk of the demand that is driving oil ever skyward would disappear. The large Western importers, whose economies are having mixed results in spluttering their way out of one of the longest global economic slowdowns in living memory, are likely to slip back into recession territory, lessening demand and consequently putting a sharp brake on price increases. Common sense should dictate that a stagnant world economy would have no need for its current demand. Recessions in Europe and the U.S. would mean China, the chief culprit in spiking demand, would no longer have a market worthy of the name to sell its goods in. No demand would quickly create enough spare capacity to drive the price of a barrel of crude back to its bargain basement level of $10. But laughingly, that bastion of oil common sense, the International Energy Agency, wants oil importing countries to implement a raft of emergency procedures if supplies show any signs of falling. According to a report due to be published in May during the annual IEA meeting of energy ministers, the organization is calling for governments to consider driving bans and reductions to the working week in the event that daily oil supplies fall by a meager 1 million to 2 million barrels per day, roughly the equivalent to the market loss caused by the U.S.-led invasion of Iraq in 2003, or Venezuela's oil strike a year earlier. Pretty soon we'll all be advised to head for a cave in some remote area, pray to whatever God we hold most dear and wait for Armageddon to occur. For what it's worth, the world doesn't seem to have much of a problem paying north of $50 a barrel for oil. When it does, the market will be the first to know and will act accordingly. The problem right now, is we still don't know at what price that will happen. For what it's worth, my guess is at around $75 to $80.

I really really hope you've just created an elaborate April Fools Joke.

mswarrior wrote:I really really hope you've just created an elaborate April Fools Joke.

you are an april fools joke

I think even the 1100cc motorcyclist may be go back to a 600. Ill have to make sure I can keep the 400 running for a whole lot longer.

Sobereality wrote:

mswarrior wrote:I really really hope you've just created an elaborate April Fools Joke.

you are an april fools joke

How rude, that make feel good? I pitty you

mswarrior wrote:

Sobereality wrote:

mswarrior wrote:I really really hope you've just created an elaborate April Fools Joke.

you are an april fools joke

How rude, that make feel good? I pitty you

lol of course make feel good !