My simplistic thought about oil prices

How far can oil prices go? This has been the question that my wife and children and most people ask nowadays. Well, the answer could vary depending on whom you are talking to.

Looking at it in the most simplistic way, say based on the reasons given by companies or businessmen – prices go up because oil prices go up, it is quite easy to assume that prices could go even higher for the simple reason that oil producers are also dependent on their own products. Suffice to say that as the price of oil goes higher, the price of products needed to produce oil also rise.

The loop therefore creates an effect to everything related to oil stretching as far as the oil producers themselves thereby making it even more expensive to locate, extract & produce that oil. Which in turn, causes even higher oil prices, which again raises the cost of oil production.

The compounding effect therefore affects everything else which in turn could further push the prices higher.

Forget about how the governments, dealers and traders, investors and speculators and oil producers do with regards to oil prices. The bottom line here is that oil prices affect everything.

So what shall we do? It is all up to us. If you can earn more than enough then it is fine.

Oh well, the cockroaches said, who cares.

Trivia:

Cockroaches are among the hardiest insects on the planet, some species capable of remaining active for a month without food, or being able to survive on limited resources like the glue from the back of postage stamps. Some can go without air for 45 minutes or slow down their heart rate.

It is popularly suggested that cockroaches will “inherit the earth” if humanity destroys itself in a nuclear war.

Source: Wikipedia.org

4 Responses to “My simplistic thought about oil prices”


  1. 1 bw May 28, 2008 at 5:05 am

    I love attributes of the cockraches LOL🙂

    It’s the speculators that drive the oil prices up. Funny but haven’t you noticed that all of a sudden, the Iraq war isn’t in the people’s radar anymore? Like everyone’s attention is focused on the horrible oil prices and no one is talking about the equally expensive and fruitless war any longer😦

  2. 2 Jayred May 29, 2008 at 1:09 pm

    Buti pa ang cockroaches…they will inherit the earth someday (LOL). So effortless.

    About the oil prices…well, talk about media hype.

  3. 3 bingskee May 29, 2008 at 6:10 pm

    come to think of it, this can reduce traffic in EDSA.. 😀

  4. 4 annamanila May 30, 2008 at 9:06 pm

    Sometimes I try not to care too, i let myself go numb, number, numberest. But look .. if we hurt because of the inflation … what about those below the poverty line.

    Is this going to get worse before it gets better? What do you think?

    Nice to know that coakroaches would survive us, even if it is my least favorite animal/insect I know.


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