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Discussion Starter · #1 ·
It closed at $93.50 today

How long before it tops $100 a barrel?
It January it was below $50

all because of fear and speculation
knuckleheads
 

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Discussion Starter · #5 ·
speculation of a shortage
its always someplace else..

today it was Mexican oil...
 

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And the changing valuation of the dollar.
 

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fear and speculation of what?

Iran and the thought of striking them?
A lot of what is keeping the oil prices so high is the futures market...
Traders basically set the selling price of oil on Wall Street.. Now if it went tumbling down.. A lot of them would lose money.. They don't like losing money.. So up up up it goes...

Another factor
http://money.cnn.com/2007/10/29/markets/fed_oil/index.htm
Rate cuts...

And the biggest is the downfall of the dollar (yeah yeah yeah.. I know.. we aren't in a recession.. we don't over spend.. everything is peachy)
Even in the above article.. one of the reasons was lower rates depress the $....

Look at this... It is only going back 5 years (if you could go back further you would see the opposite chart... 1 EU was 70 cents... now it is 1.40)

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=5y
Dollar vs Euro - 5 yr

in plain english.. a dollar today isn't nearly as much as it was 5 years ago... That is just one exchange.. but it is indicative of many more... Hell.. Canadian money is worth more than American money now...

Maybe the Amero will do better? :)

oh.. and please don't anybody say this is inflation... :)
 

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A lot of what is keeping the oil prices so high is the futures market...
Traders basically set the selling price of oil on Wall Street.. Now if it went tumbling down.. A lot of them would lose money.. They don't like losing money.. So up up up it goes...

Another factor
http://money.cnn.com/2007/10/29/markets/fed_oil/index.htm
Rate cuts...

And the biggest is the downfall of the dollar (yeah yeah yeah.. I know.. we aren't in a recession.. we don't over spend.. everything is peachy)
Even in the above article.. one of the reasons was lower rates depress the $....

Look at this... It is only going back 5 years (if you could go back further you would see the opposite chart... 1 EU was 70 cents... now it is 1.40)

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=5y
Dollar vs Euro - 5 yr

in plain english.. a dollar today isn't nearly as much as it was 5 years ago... That is just one exchange.. but it is indicative of many more... Hell.. Canadian money is worth more than American money now...

Maybe the Amero will do better? :)

oh.. and please don't anybody say this is inflation... :)
yeah, it's the traders. They set supply and deman:jerkit:


Oil is cheap finally catching up, on an inflationary basis. We are pretty lucky. Besides, gas hasn't followed suit yet. It's still relatively cheap. The crack spread is tight. That's why alot of the refiners missed their earnings numbers last quarter.
 

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And the biggest is the downfall of the dollar (yeah yeah yeah.. I know.. we aren't in a recession.. we don't over spend.. everything is peachy)
Even in the above article.. one of the reasons was lower rates depress the $....

Look at this... It is only going back 5 years (if you could go back further you would see the opposite chart... 1 EU was 70 cents... now it is 1.40)


in plain english.. a dollar today isn't nearly as much as it was 5 years ago... That is just one exchange.. but it is indicative of many more... Hell.. Canadian money is worth more than American money now...
i don't care if a dollar is worth .01$ in Canada... as long as it is still worth a dollar in the US
 

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It'll still be worth a dollar.. but my online porn subscription rates have doubled!! @#$%$%@
:lmao: The value of the dollar must increase now :mad.
 

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Easy to solve this problem....walk, bicycle or ride. Don't use your gas guzzling SUV, in other words conserve! I know Mike will jump on my case, but using less will hurt them, not us! I went from a vehicle that was averaging 10 MPG to one that averages 32 MPG....and thinking of getting one that gets in the the low 40's.
 

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Speculation of surpassing 40 billion dollars profit in a year.
At a profit margin that is little better than a muni bond. :rolleyes

And BTW, the high per barrel prices are killing that margin even more on the refining spread. $90/barrel oil is not something COP or XOM like.
 

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Rate cuts...

And the biggest is the downfall of the dollar (yeah yeah yeah.. I know.. we aren't in a recession.. we don't over spend.. everything is peachy)
Even in the above article.. one of the reasons was lower rates depress the $....

Look at this... It is only going back 5 years (if you could go back further you would see the opposite chart... 1 EU was 70 cents... now it is 1.40)

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=5y
Dollar vs Euro - 5 yr

in plain english.. a dollar today isn't nearly as much as it was 5 years ago... That is just one exchange.. but it is indicative of many more... Hell.. Canadian money is worth more than American money now...
Exactly, not to be a buzzkill but this country is going to hell in a handbasket economically. A huge reason the US has always been so successful is because of it's strong dollar and its ability to attract investors from all over the world to invest in our currency and companies. We are now becoming a "has been" and money is flowing to other countries. They are simply more attractive to invest in. We are sort of becoming that deadbeat tenant that can't pay the rent so we borrow from every relative. If you were a lender and saw that we had a surplus just 10yrs ago and now have Trillions of dollars of debt and are spending billions every month on war with no end in sight would you want to lend to us, let alone would you want to invest in such a country? I know I would not.
The EU is a another example. I have a friend from Ireland who still has family over there. There economy is booming so much that they cannot find enough people to fill jobs. It is like the 90's were over here. They have money coming form every direction. Lots of people moving up in class too, lower class to mid....mid to upper. They wealth is being spread around very well if you take advantage of the new opportunities.
I also know people who travel overseas a lot and they are constantly bitchin' that they don't get shit for their dollar anymore. As stated 1.40 euro for a dollar. And to think that the euro was a total joke when it was first introduced.
I don't want to be a total pesimist but we need to get our shit together so we can be on top again. I don't blame it all on oil prices although they do not help. If our society totally hinges on the oil prices we are one fucked up society. To even allow only one item to screw up your country is an embarrassment and sign of poor planning. :2cents:

Under200
 

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Highest profit margins EVER....

wat?
6.73% (COP) margin is highest ever? It sucks. Seriously, there are a number of bonds that do better.


MSFT (microsoft), by contrast, has a profit margin of about 27%.
 

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6.73% (COP) margin is highest ever? It sucks. Seriously, there are a number of bonds that do better.


MSFT (microsoft), by contrast, has a profit margin of about 27%.

XOM:

Profitability
Gross Profit Margin (LFY) 41.76
Operating Profit Margin (LFY) 16.99
Net Profit Margin (LFY) 11.79


MSFT:

Profitability
Profit Margin (ttm): 27.51%
Operating Margin (ttm): 37.23%


IP and tangible goods are also two different animals.
 

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XOM:

Profitability
Gross Profit Margin (LFY) 41.76
Operating Profit Margin (LFY) 16.99
Net Profit Margin (LFY) 11.79


MSFT:

Profitability
Profit Margin (ttm): 27.51%
Operating Margin (ttm): 37.23%


IP and tangible goods are also two different animals.

and those are last fiscal years numbers. On a trailing 12 month basis, the net margin is 11% flat. Just as I said, the higher per barrel costs are negatively effecting margins. The effect has been the same on COP.


Most people would fire any financial manager that only deliver 6-10%/ year.
The idea that the standard should differ for investors in COP/XOM is ridiculous and entirely irrational.
 

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I've gotta agree with Rob here, people just like to stick it to big oil because it's a big, easy, slow moving target. No one seems to remember $18 oil nine years ago when these companies were near collapse.
 

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and those are last fiscal years numbers. On a trailing 12 month basis, the net margin is 11% flat. Just as I said, the higher per barrel costs are negatively effecting margins. The effect has been the same on COP.

Most people would fire any financial manager that only deliver 6-10%/ year.
The idea that the standard should differ for investors in COP/XOM is ridiculous and entirely irrational.
The rub with looking at it like this is:

Most people USE the product and don't invest in it. So the majority of the world really cares less about the percentage of profit. They just feel the prices kick them in the teeth each and every day.
 
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