Why is oil more expensive?

[martien007]

They will tell us why at the G8 !! with such specialists we see having a clear answer, I have no doubt

OSAKA (AFP) - 13/06/08 09:40

G8 finance ministers look for causes of expensive oil

Finance ministers of the G8 industrialized countries were to begin a two-day meeting in Osaka, Japan, Friday to analyze the causes of the explosion in oil prices and volatile exchange rates that threaten their economies.

The Osaka "G8 Finances" was to officially start with a working dinner followed, Saturday, by the ministerial meeting itself.

A barrel of oil touched the $ 140 mark last week. The resulting inflation threatens the recovery of a global economy which has still not completely recovered from the financial cataclysm linked to subprime US mortgage loans.

"There is good reason to believe that most of the financial crisis is behind us, but it is too early to tell", said the Managing Director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, also invited to the G8 ministerial meeting (Germany, Canada, United States, France, Great Britain, Japan, Russia).

Mr. Strauss-Kahn said he expected "sluggish growth for several successive quarters" in industrialized countries, adding that there would be "no real recovery until 2009".

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The French Minister of the Economy, Christine Lagarde, wanted the G8 to research the causes of "the erratic volatility" of oil prices, deploring the lack of a clear explanation for the phenomenon.

"We need tangible information on reserves, stocks, the functioning of markets, production and refining capacities," Ms. Lagarde said, pleading for the IMF to investigate this matter.

The G8 has called on several occasions in recent months the Organization of Petroleum Exporting Countries (OPEC) to increase its production to lower prices. But the current president of the cartel, Algerian Minister of Energy Chakib Khelil, ruled out this possibility on Thursday, saying that "market fundamentals do not currently influence prices".

Even if it is not on the official menu of the "G8 Finances", the issue of exchange rates should occupy a central role in the discussions. The United States is currently increasing the declarations in favor of a recovery of the dollar against other currencies.

"The defense of the dollar has become an urgent matter," Japanese Financial Services Minister Yoshimi Watanabe said on Friday.

"I have the impression that there is a very close link between instability in the financial markets, the euro-dollar relationship and the rise in oil prices," Ms. Lagarde said for her part.

G8 officials fear that rising inflation in recent months will push their central banks to raise interest rates, which could further jeopardize growth.

Both the governor of the European Central Bank (ECB) Jean-Claude Trichet and his counterpart of the Federal Reserve (Fed) Ben Bernanke have beefed up their anti-inflationary speech in recent weeks.

Rising food prices, which have caused social unrest in many countries in recent months, development aid and environmental issues are also on the menu at the Osaka meeting.

Japan, which chairs the G8 this year, has invited officials from six countries not members of the club (South Africa, Australia, Brazil, China, South Korea, Thailand), as well as the head of the International Development Agency. energy to join the ministers at a dinner and breakfast.

orange.fr source

"the "market fundamentals do not currently influence prices"." : that would mean that it is only speculation

[dirk pitt]

when OPEC says that to justify not increasing production, they are in their role, one can hardly expect anything else from them. they are obviously not going to say: "Well we would like to increase the production but we are almost at the max and if we go faster, it will use up our precious oil faster then as we want it to last as long as possible, and well do with that eh and that's all "
see my other post here
on the other hand the G8 could say something a little more convincing than: "it is speculation and the cause of the financial crisis"
wait and see ....

[Christophe]

The speculation? No kidding? We wouldn't have thought of it ...

There is still the Iraqi instability which is not speculation (or at another level if you see what I am thinking ...) ditto for the tensions in Venezuela or Bolivia ...

Closer to home: https://www.econologie.com/forums/diesel-car ... t5472.html

[Remundo]

No, it means that oil producers have no interest in opening the gates immediately.

The more they let the situation "rot", the more they value their stocks. And the more they are going to screw us over the next decade.

They periodically revive production just before the breaking point causing the world economy to fall into a recession.

In other words, they put our heads in the oil and let us breathe just enough to last and accentuate their situation rent. (Cf. recent declaration of Gaddafi launched against Europe)

This is why I say everywhere that we must urgently bow out to these gentlemen the Oils and Gazers by a massive revival of renewable energy. For nuclear, it is already done.

The billions (current oil bill 50 billion euros for France, soon double or triple) are badly invested (pure loss ...) at Cheikh Mouhammad and Boris Smirnov, supervised by the Yankees. They should be invested in facilities WITH US, with return on investment.

I listened to Fillon yesterday on the fuel problem; deplorable (VAT adjustment, assistance fund, transport check ...) apart from its support (usual whatever the government) to the powerful nuclear lobby ...

Apart from the EPR, none structural measurement to permanently get rid of fossible oil.

Still nothing new under the sun.