Time and time again we see oil prices changed proportionally to upcoming environmental events. Current:
NEW YORK (Dow Jones)–Crude futures rose above $79 a barrel Monday on concerns about the threat Tropical Storm Ida poses to U.S. oil and gas production facilities in the Gulf of Mexico. A weakening in the dollar also supported prices.[Source]
That’s a relatively big number considering the amount of oil reserves that are available. Also, another interesting fact is that prices are relatively high because production levels are as lost as post hurricane conditions. This is partially because of the high oil reserves and the demand of oil in the marketplace. The low production level, the upcoming hurricane, and the amount of reserves all contribute to the price of oil. Production can be increased, but where is the product stored? The current situation is that the high supply is actually causing high prices, which is completely counterintuitive to the supply and demand model as it pertains to product price.
Originally when I started buying domains from Yahoo the cost was around 10$ per year. Then it went up to 13$ per year. Now with the recent financial crisis around the world, Yahoo has decided to tripple their yearly fees TO 34$ yer pear. I am either cancelling my domains at warp speed, or contemplating transferring them to Go Daddy for a fraction of the price. Technically I can host them from my house, but I get nervous with the dynamic IP address provided by Optimum online. I haven’t had an IP address change in a long time, and for all practical purposes without the modem being offline for a long time the IP address rarely ever changes. Overall I am going to cancel as many domains as I can, thus eliminating many of my websites. I am going to remove the websites that do not receive many hits, ect… I will keep my main website, which I plan to have my entire life. I also will keep this domain, because I have many websites consolidated into it, as well as this blog which I cherish as a means of venting and documentation. Maybe I will transfer some domains to Go Daddy, I have a couple of things to think about before the critical date that Yahoo wants payment before it stops hosting the domains.
Oil prices are well over $100 per barrel; the price will stay this high, and definitely get substantially higher.
This Tuesday, U.S. Energy Department reported that that there is a high probability that oil remains at an average of $101 a barrel this year. This was big revision of their Januaryâ€™s forecast. (reference)
For decades Europeans have paid relatively tremendous prices for their gasoline. Over $5 per gallon is something Europeans have been used to for a long time. Are Americans spoiled? (rhetorical). We have had cheap oil forever, and now that gasoline prices in the US are catching up to the rest of the world the American public is getting nervous. We really shouldn’t be getting nervous, as I have know for a long time that gas prices are well over $5 per gallon in Europe. I have been expecting increases in gas prices for a long time. Its simply supply and demand, and supply can no longer keep up with demand. According to the theory of peak oil, we are currently in a transitional phase where it is impossible to extract and refine enough oil to keep up with gasoline demand.
Even as American drivers complain about “gas pains,” they can count their blessings that they don’t live in Europe, where motorists pay more than twice as much at the petrol pumps. (reference)
Prices will get higher. Think about getting rid of your car and taking public transportation. In NYC that golden Metrocard is looking better and better. Have patients to wait for the bus, and you can save yourself substantial money on a weekly basis.