Forty million Americans have no health coverage. That’s 3.7 million more than when Bush took office.
You can end up paying off an appendectomy for as long as a college loan or a mortgage.
Saturday, June 7, 2008
US Dollar vs. Crude Oil
From the Wall Street Journal
Oil Tops $134 on Weakening Dollar By BRIAN BASKINJune 6, 2008 9:51 a.m.
Crude-oil futures jumped by more than $6, at one point passing $134, as the weakening dollar returned as a force moving energy markets higher.
Light, sweet crude for July delivery traded $6, or 4.7%, higher at $133.79 on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $4.70 higher at $132.24 a barrel.
Futures have surged more than $11 above Wednesday's settlement of $122.30 a barrel, with analysts citing the weak dollar as an excuse for investors who saw the downward correction as too deep to bid oil prices higher. The dollar fell Friday after the Bureau of Labor Statistics reported that the U.S. unemployment rate increased from 5.1% in April to 5.5% in May, the biggest monthly increase in 22 years. The euro recently traded at $1.5701, a seven-session high. Traders have bought oil as a hedge against the weakening dollar for months, though that trade had receded to the background in May, as the U.S. currency firmed against the euro. The dollar's dramatic move over the last two days has renewed the connection to oil, however.
"As has been the case for more than a year, a quick shift in the value of the dollar is capable of igniting a disproportionate swing in oil prices," wrote Jim Ritterbusch, president of Ritterbusch & Assoc. in Galena, Ill.
Oil Tops $134 on Weakening Dollar By BRIAN BASKINJune 6, 2008 9:51 a.m.
Crude-oil futures jumped by more than $6, at one point passing $134, as the weakening dollar returned as a force moving energy markets higher.
Light, sweet crude for July delivery traded $6, or 4.7%, higher at $133.79 on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $4.70 higher at $132.24 a barrel.
Futures have surged more than $11 above Wednesday's settlement of $122.30 a barrel, with analysts citing the weak dollar as an excuse for investors who saw the downward correction as too deep to bid oil prices higher. The dollar fell Friday after the Bureau of Labor Statistics reported that the U.S. unemployment rate increased from 5.1% in April to 5.5% in May, the biggest monthly increase in 22 years. The euro recently traded at $1.5701, a seven-session high. Traders have bought oil as a hedge against the weakening dollar for months, though that trade had receded to the background in May, as the U.S. currency firmed against the euro. The dollar's dramatic move over the last two days has renewed the connection to oil, however.
"As has been the case for more than a year, a quick shift in the value of the dollar is capable of igniting a disproportionate swing in oil prices," wrote Jim Ritterbusch, president of Ritterbusch & Assoc. in Galena, Ill.
Thursday, June 5, 2008
Emails about Oil and other nonsense
email from Myrle: Subject: E85
Carmen filled her car with E85 which was about 12.5% cheaper than regulas gas. Dropped the mileage by about 23%, so not a very good deal based on sample of one tank full.
Re: Myrle’s recent email about E-85.
From the current issue of Business Week:
The high price of gas is the result of the high price of crude oil, caused by the worldwide high demand for diesel fuel. This is compounded by tighter diesel fuel sulfur standards in both Europe and the U.S., which reduces the amount of diesel that can be produced from a barrel of crude oil.
In the U.S., blending ethanol with gasoline means less gasoline is being refined, which reduces the hydrogen produced as a by-product of refining gasoline, so there is less hydrogen available to be used in producing low sulfur diesel...
Re: Myrle’s recent email about E-85.
From the current issue of Business Week:
The high price of gas is the result of the high price of crude oil, caused by the worldwide high demand for diesel fuel. This is compounded by tighter diesel fuel sulfur standards in both Europe and the U.S., which reduces the amount of diesel that can be produced from a barrel of crude oil.
In the U.S., blending ethanol with gasoline means less gasoline is being refined, which reduces the hydrogen produced as a by-product of refining gasoline, so there is less hydrogen available to be used in producing low sulfur diesel...
email to Beth, Subject: price of oil:
Some random comments about a very complicated subject - oil:
That email you received is typical of what is going on right now, mainly being pushed by conservatives. The line is that the Democrats and Environmentalists are stopping us from being energy independent ("we have lots of oil if we could only drill for it") and of course the security argument ("the Arabs are using our money to fund terrorism against us"). Another twist, even espoused by Hillary during her campaign, is that OPEC is responsible for the high prices.
There are also emails circulating not to buy Citgo because they are funding terrorism and Chavez is buying long-range missiles from Iran to aim at us. Everything wrong with that one. For one, Iran does not have long-range missiles. Also, the conservatives are not happy that Citgo is supplying home heating oil to needy homeowners in the U.S. (with Robert Kennedy Jr's help).
OPEC does not control the world price of oil, but they can influence it somewhat by increasing production, but supply is not the whole problem today. OPEC members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Emirates, and Venezuela.
For how OPEC really works, see http://www.eia.doe.gov/cabs/opec.html
Major oil producers that are not OPEC members are Canada, Russia, and Norway.
Canada is our largest supplier of crude oil and petroleum products, typically some 2.4 million barrels a day. Not many Americans realize this. See my email to you ‘petroleum imports’.
The high worldwide demand for diesel fuel is the cause for high gasoline prices now. See my email to you ‘fw: E85’.
Another reason for the high price of crude is that the world price is in U.S. Dollars, and every time the Dollar drops, crude goes up. We had a scare a few days ago when it looked like OPEC was considering changing to Euros – but it didn’t happen. If that ever happens we are really screwed.
As far as the Auto Industry goes, none of the Manufacturers, foreign or domestic, cares what the cars run on – they just want to sell cars. For example, in Brazil the major fuel is alcohol and the cars are made mostly by GM, Ford, and Volkswagen.
Major oil producers that are not OPEC members are Canada, Russia, and Norway.
Canada is our largest supplier of crude oil and petroleum products, typically some 2.4 million barrels a day. Not many Americans realize this. See my email to you ‘petroleum imports’.
The high worldwide demand for diesel fuel is the cause for high gasoline prices now. See my email to you ‘fw: E85’.
Another reason for the high price of crude is that the world price is in U.S. Dollars, and every time the Dollar drops, crude goes up. We had a scare a few days ago when it looked like OPEC was considering changing to Euros – but it didn’t happen. If that ever happens we are really screwed.
As far as the Auto Industry goes, none of the Manufacturers, foreign or domestic, cares what the cars run on – they just want to sell cars. For example, in Brazil the major fuel is alcohol and the cars are made mostly by GM, Ford, and Volkswagen.
From the EIA, Energy Information Administration, Official Energy Statistics from the U.S. Government,
December 2007 Import Highlights: March 3, 2008:
"Canada remained the largest exporter of total petroleum in November, exporting 2.360 million barrels per day to the United States, which is a decrease from last month (2.431 thousand barrels per day). The second largest exporter of total petroleum was Saudi Arabia with 1.686 million barrels per day. http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
Ineresting? Venezuela used to be number two, but Bush keeps pissing off Chavez, including behind the scenes backing trying to recall him from office a couple of years ago. So number two again is Saudi Arabia. See any connection there?
December 2007 Import Highlights: March 3, 2008:
"Canada remained the largest exporter of total petroleum in November, exporting 2.360 million barrels per day to the United States, which is a decrease from last month (2.431 thousand barrels per day). The second largest exporter of total petroleum was Saudi Arabia with 1.686 million barrels per day. http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
Ineresting? Venezuela used to be number two, but Bush keeps pissing off Chavez, including behind the scenes backing trying to recall him from office a couple of years ago. So number two again is Saudi Arabia. See any connection there?
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