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Oil sets Record high on Friday of nearly $128 a barrell

By
Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 38783

Oil prices set another record on May 16, 2008 of nearly $128 a barrell.  Traders of commodities set the price of oil by buying and selling it on the open market.  Two events that might have lowered the price of oil had no effect on the market as traders bid the price of future oil barrells to nearly $128 a barrell.  The first event that should have been good news was Saudi Arabia increasing production by 300,000 barrels a day.  The market saw this as too little to impact the traders.  The second move that should have lowered oil prices was the United States decision to stopping adding oil to the strategic Reserve.

John Thomas - Certified Mortgage Planner - www.DelawareMortgageLoans.net

 

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Dennis Sanchez
Coldwell Banker Tenafly - Hackensack, NJ

Oil is still a huge market that impacts our way of living too much.  We definitely have to do something to join and fix this problem

May 17, 2008 02:29 PM
Patrick Lambert
ALLY Real Estate - Waikoloa, HI
Hawaii Real Estate Expert

As long as people continue to pay, the prices will continue to increase. It's the greed factor.

May 17, 2008 02:30 PM
Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

Yep.....the oil companies just get richer.  The average person will be not be able to buy milk.

May 17, 2008 02:49 PM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

It's really sad Linda....I am seeing sad faces everytime I go to the pump...even when i look in the mirror after feeling up I feel sad...its BAD!

May 17, 2008 04:53 PM
John Thomas
Primary Residential Mortgage Inc. - Newark, DE
First Time Home Buyer Expert

The big oil companies are making lots of money, but the oil companies do no set the price of oil.  Oil is a commodity that is traded openly on the commondities market, so the price is set by the traders.  The price of oil is being driven up because the traders are speculating that the demand for oil will continue to run high so they keep buying more which drives the price up even more.  The only time we see a drop is if investors do some profit taking, start selling, then there is a drop in price.  We need some big news that will indicate to the traders that the demand will be met or the demand will go down.

Funny thing is we have plenty of oil in the United States that we could tap into but it is not allowed to be drilled because it is under protected areas.  So if we would allow them to drill in protect areas then we could drop the price of oil real fast.  We also have a probably with limited refinery capacity so when one goes off line, the price of gas shoots up.  Again there are some major laws prohibiting the construction of new refineries.  New and upgraded refinery capacity would also create a drop in the price of gasoline at the pump.

John Thomas - Certified Mortgage Planner

May 18, 2008 02:22 AM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Sounds like to me that some laws need to be changed to help out poor Americans!  I was familiar that we had sources and I know we were not using them....real good information John!

Also online today msn had a link about the topic at:

http://www.msnbc.msn.com/id/24757944 Check out that article as SEO's of the oil companies try to explain prices to the US Senate.  Whew...  it's insane the price of gas I just drove by a station that was at $3.97 a gallon of regular unleaded... and poor Diesel Drivers!!!

Thanks John...this is a big topic everywhere in America.

Bottom Line Is ...It is Hurting Businesses and American Families!

Comment By: Tom Davis, A Delaware Realtor who is Extremly Concerned about what you pay at the gas pump in Delaware. 

 

May 21, 2008 01:53 PM
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Delaware Mortgage loans for the purchase or refinance of homes in Delaware. Advice on Delaware mortgage rates and loan programs. Delaware FHA Loans, Delaware USDA loans, Delaware VA loans, and Delaware Reverse Mortgages. John R. Thomas is the author of the book, Your Guide to Buying Your First Home in Delaware.

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