Report: Iran's president says oil prices too low

[bemildred]

Source: Yahoo/AP

TEHRAN, Iran (AP) -- Iran's hard-line president declared that crude oil prices, now above $115 a barrel, are too low, state media reported Saturday.

President Mahmoud Ahmadinejad told an oil and gas exhibition in Tehran on Friday that he thought the commodity still had to "discover its real value," according to the Web site of Iran's state-run television.

Oil prices have hit all-time highs above $115 a barrel in recent weeks, amid reports that oil and gasoline reserves in the United States were lower than expected and as the dollar sinks to record lows.

"The oil price of $115 a barrel in today's global markets is a deceiving figure. Oil is a strategic commodity that needs to discover its real value," the Web site quoted Ahmadinejad as saying.

Read more: http://biz.yahoo.com/ap/080419/iran_oil.html

[babylonsister]

1. He's toying with everyone, I guess because he can. nt

[Harry Monroe]

14. The same reason a dog licks his balls

...because he can

[Catch22Dem]

2. He's right, basically

The right price is the price at which customers are no longer willing to pay. We're showing no signs of slowing our thirst for crude. At some point, the price will reach that which the average consumer cannot or will not pay. We're not there yet.

[tama]

3. The right price

And how far have you thought what would be the breaking point price for average US suburban consumer who needs car to shop and work? And when? And after that?

[Catch22Dem]

4. I thought it would be long before now

But I was way off base.

[Javaman]

6. That point will be when mr. oversized SUV driver realizes it costs him more to

drive to work than it does to pay his mortgage.

[bemildred]

8. I figure around $10 a gallon in todays money will do it.

The present price is having an effect, but it will take a good deal more to get people serious about conserving energy.

[ohio2007]

11. but the current value of a dollar is around ten cents, .....just my $0.02

trading in Euro's not up to the Iranian standard ? doubt they will want to switch back to dollars now

[bemildred]

15. The current value of a dollar is a dollar.

In 1968 dollars, it might be 10 cents. In 2020 dollars, it might be 10 dollars.

Since almost all currencies are fiat money these days, it doesn't matter that much which currency it is priced in, unless you plan to hold that currency. But a seller can convert to any currency he likes after making the sale, so he doesn't really have to care unless he plans to hold that currency.

[lutefisk]

21. That was the Enron approach in California, wasn't it?.....n/t

[Phred42]

5. Sorry kids - he's right

It's THEIR Product.

It's OUR job to do everything we can as fast as we can to get the hell away from the need for Oil - Their's or anyone else's.

Let's not blame that insane little bastard for the stupidity and greed of our Oligarchy and our own personal laziness.

Time of another Manhattan-type Project

[Javaman]

7. I agree, something must be done, but a manhattan project isn't the way to go...

check out this article. It pointed up some things that didn't occur to me. I was on the manhattan type project idea myself, until I read this.

http://chronicle.com/review/brainstorm/greenberg/a-manhattan-or-apollo-project-for-energy-what-nonsense

[Phred42]

12. Manhatten Project is simply a metaphor - let's not get hung up

He concludes "The real problem is that the energy crisis is mainly in our heads — in our habits and comfort preferences." Of course!

and that needs to be part of a Modern Manhattan Project as does the need to mobilize and fund the science and ultimately the manufacturing (IN THIS FUCKING COUNTRY!) and distribution of the results. AND the modern Manhattan Project needs to get people elected who UNDERSTAND, AGREE WITH and actually SUPPORT this 'Project'.

Let's not get hung up in the terminology. Obviously we don't need a 1940's style Manhattan Project - we need a 2010 style Manhattan Project and we need it NOW.

[Voltaire99]

20. Yes. What's needed is RItalin for the energy greedy.

Actually, make that cold turkey.

[lakeguy]

9. he's right...

but a good chunck of this latest increase should go to paying for the pollution that burning oil causes.

no more externalizing pollution costs on the backs of the people!

[ohio2007]

10. SO it's the worlds fault he fires his economic advisers for cooking the books?

back to sabre rattling/invasion/spy purges talk as the Iranian election season's "spring offensive" is under way.

[Phred42]

13. Yep. The Reich will certianly use this report as another excuse

[ohio2007]

16. it's the internal fifth column he is worried about.

They will see Europe pass that cost back to Iran with a spike in the cost of refined gasoline

[stubtoe]

17. I get the impression he relishes sticking jabs at the US whenever he can.

Kinda reminds me of my late mother in law :)

[grahamhgreen]

18. THAT'S THE SAME THING MCAIN SAYS EVERY TIME HE WANTS TO BOMB, BOMB, BOMB IRAN

[Voltaire99]

19. Raise it until the SUVs rust on the roadside!

Loves me some wide-ass suburban pickups rusting, too.

[FarCenter]

22. Since OPEC is a monopoly, the right price is the monopoly price

where a further increase of the price will decrease demand enought to offset the increased price.

Wasn't OPEC Kissinger's bright idea to funnel money to Iran to prop up the Shah?

[GliderGuider]

23. OPEC has a monopoly on oil production? Since when?

Russia and Canada would beg to differ. Even OPEC's oil is sold on international markets where buyers and sellers determine the price (with some influence from currency markets, politics and human emotions of course).

Oil prices are on their way to north of $500 a barrel within 5 years, thanks to Peak Oil supply limits meeting the demand generated by the global growth paradigm. OPEC's going to have nothing to say about that, and neither will you or I. I expect demand destruction to play only a limited role in constraining this price rise, because oil is now and for the foreseeable future the master resource of our civilization. If we were to destroy enough global demand to bring the price down from $500 to $100 a barrel I guarantee nobody would like the results. So no matter how it plays out, we've got a long bumpy downhill ride in front of us.

[KillCapitalism]

24. That's it, we're gonna have to go electric.

This is really the only way to go with our cars.

I really wish I could take a trip in a time machine to 2025 to see what crude costs. My guess would be $5,000 a barrel.

[truthisfreedom]

25. We need the infrastructure to support that. Wind and solar.

Electric comes from natural gas and coal in my city

on edit: And a percentage from wind farms.

[cliss]

26. Actually Mr. Ahmadinejad is correct.

Oil prices are too low.

According to Stan Goff, we can not pay the real price of oil. Look at it this way: oil is a non-renewable resource. Once we've used it up -- it's gone. Forever.

Without oil, our society goes back to the horse & buggy days.
Oil = transportation = energy = food = life.
If we were to price it according to its true value, it would be much higher.

[bean fidhleir]

27. We should maybe hold a lottery to pick the price per gallon in 2018

Everyone throws in $100 and the winner gets the money to buy gas with. It could cover a whole tank even then, if enough people go in.

[Name removed]

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