Fuel price will rise due to OPEC

well, this is bad news for many and good for some...
many people in oklahoma, texas, Arkansas, Lusiana, and PA, for these states its a good news... where they will start drill moore which will creat more jobs

OPEC and the oil companies are simply testing the Obama waters. Is he going to let them get away with it like Bush or reign them in? Stay tuned...

This article misses the mark slightly. The recent rise in prices is, indeed, not a function of supply and demand. What is going on is entirely dollar driven. The article fails to mention that oil is priced in U.S. dollars- everywhere. What happens when governments or central banks engage in inflationary monetary policies through things such as the monetization of debt (read: “stimulus “ packages and “bailouts”) it causes the devaluation of that currency. So when the dollar is devalued, because oil it is priced in U.S. dollars, the oil price rises.

Of course OPEC is not going to increase production, as they receive NO extra money despite the increased prices because their product is sold on the international market in dollars, but their costs are in the local currency. The increased prices are not realized by OPEC.

I have to say, that while these higher prices benefit my company and help my job, as the person who does all of the petroleum economics for our consulting firm, the fact that over the past half-year the prices have risen faster than they ever have before (over a similar time span) scares me rather badly. I am afraid that it is a precursor to some rather significant problems.

I don't know man. The value of the dollar was going up until like before this month. The price of oil will be $100 from now on, it's a fact, just get used to it. The oil producers got a taste of what it's like when oil costs $145, so from this point on there's now way they'll be happy with anything less than $100.

ps. Tesla Model S baby!

We shall see yet whether Thorsten Polleit, a professor at the Frankfurt School of Finance and Management, is right; i.e. that there will be hyper-inflation. The dollar, incidentally, has been fluctuating lately, but doing so at the bottom is still the bottom.

As a note: the oil companies do not have some magical dial in New York or Saudi Arabia, anywhere else with which they control the oil price. Usually what is reported by the news are futures prices, which have a different set of considerations than do actual spot prices. In fact, while OPEC does have some market power, they act as an absorber of residual demand, which is set by the “fringe” producers. This is actually softly supported by empirical evidence because the OPEC quotas follow the price and do not precede it. Although when one actually does this analysis (OPEC performs the same analysis by the way) one finds that it behooves the smaller producers to cheat on their quotas, and indeed they do.

We need to move away from oil. Period. There is no argument anymore. If we don't we'll be in some deep s**t a decade from now. Even if it costs $trillions, it's worth it to get off oil.

I would love to move away from oil too, unfortunately I commute to work, so I am a slave to the oil companies, how far can they push the limit? $$ When will they stop? Can our Governments cap the price at the pump?

1UAW: I love the prospect of Nuclear but we fall into the old adage "Not in my backyard", which has kept nuclear power at bay.

If the woman in Puerto Rico weren't so hot, I would say just build all the plants there with a long extension cord to connect us :-)