Also in this playlist...
This transcript is automatically generated
Egyptian unrest and pipeline protests.
Our drivers face a real pain in the gas this summer gas prices jumping three pennies overnight something we haven't seen.
In the months to former Shell Oil president John Paul Meister and money and money watchers got market.
Martin's John let's start right at the top I looked up -- today it's oil a 107 -- I can I can't believe.
That were back above a hundred dollars a barrel what's going on in the oil market.
Well it's been about a year almost a year and a half since we hit that price.
Eric what's going on is a couple of things that you hit the one there's the -- political volatility in the Middle East.
Always adds a bit of pressure to the price.
Win -- the unexpected -- of what happens.
Just makes it worse.
You know the Keystone Pipeline the failure of the United States government to be able to make a decision after five years of study.
Is adding to the futures.
You know the availability of oil.
But what's really underlying this most recent price rise is the fact that we now have some new infrastructure.
That brings oil from Oklahoma to Texas.
That we didn't have before.
And we're really getting the US.
Up to a global price so what Americans are now having to pay for sure is what the rest of the world has been paying for right along.
Right because we're gonna just -- if if price is over there are off here and prices over here are here eventually realize that cost -- transported over there.
Makes -- -- difference of brings those prices in -- Scott let me go -- you very quickly.
I've I've done this a long time.
The oil seems to have.
A mind of its own at times -- -- everything we read that there's enough oil around there's enough oil in the pit it in the market a global of the global markets yet the price continues to go up.
Path of least resistance -- true supply and demand pushing prices higher now.
Public path of least resistance.
-- Eric and I'll tell you you know one thing that we blamed in the past you know that traders right there were used to get after them at least the government -- As blaming them for the -- this lesson I think the point is it's pretty well made though -- you know demand is up year over year and so the price.
Can only go as far as the demand is gonna take it so -- -- -- prices maybe go to the 110s.
Demand will likely suffer and prices will come down.
Certainly to John's point -- it yet the Keystone Pipeline was a major blow no surprise the government did so long of a due diligence report on it and then didn't actually act on it big deal.
That obviously pushed prices a little bit higher but I think -- I'll get it.
That's a sucked out of the market here as we get up while driving -- he had.
Let me ask what's more important -- getting more oil Keystone Pipeline or getting more refining capacity.
I think getting more refining capacity but not just for oil Eric let's get natural gas let's get an alternative.
Into that the fuel mix so that we have competition.
Natural gas fuel or oil fuel.
Americans would be better off by increasing that the capability to build an alternative fuel to gasoline.
Yeah and John -- just one point out there were some protests yesterday.
In Washington DC I think the president was attending a fund raiser.
In his -- you have little -- there is certain there protesters.
Up protests in -- they they want -- they want the oil to start -- club Scott let me talk this very quickly 151464.
OK they're telling -- the I'm sorry they they are they're protesting that they don't want the oil pipeline my dad statements that.
Scott talked to me a little bit about the stock market the stock market doesn't seem to care.
That there's a 106 dollar a barrel of oil out there another record high today fifty fours before thoughts.
Isn't it funny -- I mean it's actually like a correlation issue with the stock market as oil prices go up.
-- stock prices when you think that would be counter -- the reality is -- and 500 is comprised of some very big oil companies that tend to move the index up.
As you see oil prices go up that tends to help these companies and that pushes up the prices.
Or John is it is it that there's so much money floating around is pushing its -- inflating everything whether it's a stock.
Or an oil barrel of oil.
-- there's a lot of money out there that's looking for some way to get a return.
Because I don't think the underlying economy is strong enough to really support -- the oil price.
-- the share prices there's a pretend economy and has a real economy.
I don't think the real economy is as strong as the aspiration -- economy are we -- -- -- -- my students got mark that you guys.
Filter by section