Posted on 05/20/2010 11:02:24 AM PDT by mikelets456
WTH is going on with oil... Down another $5 today. Also, it is down $25 over the last three weeks but no change at the pump... why? Memorial day weekend?
Is this due to our strnger dollar?
From what I have read, including here on FR, refining capacity is at an all time low due to lower demand.
Gulf Seawater burns so much funkier but at a lower cost!
Oil and all other commodities are down. Someone posted an article yesterday that the commodities index 50 day moving average had fallen below the 200 day moving average.
That is extremely bearish for commodities in general. Therefore, commodity hedge funds are selling across the board whether it is oil , coppper , lumber or anything else.
Why the price at the pump is not down. They are ALWAYS slow to lower prices because they already paid for the product in the tank at the station. Their price on that is fixed. They are quicker to raise it because they only need to be the same price or slighhtly cheaper than their competion down the street. You are not going to drive 40 miles out of your way to save $.05/gallon.
Yes, obviously the dollar is one factor, because the weak dollar was propping up the price of oil. It was artificially inflated, anyway.
It’s due to the the problems in Greece etc. It is NOT a good sign.
Hopefully it will be down more over the summer - borrowing the folks’ motorhome. At 6.5 MPG, any drop in price is a good thing.
Dang, I just got awarded over $100,000 in manufactured equipment. By the time it ships I’m sure it will go up.
Double face palm!
Yep.
As they say, oil goes up like a rocket, and down like a feather....
The price change takes a while to work it’s way through the pipleline.
That's when prices go down. When they go up, the price at the pump jumps immediately. The excuse is that they have to pay for the upcoming increase. Yeah, whatever...
Also, it is due to a stronger US dollar.
People are selling EURO’S and buying US treasury bonds.
Investors also fear(fear and greed drive ALL markets) that there is not another TRILLION dollars to throw at the market to support it again.
Basically, the $HiT is hitting the fan.
“You got some ‘splainin’ to do. Yeah, the no manufacturing part sucks, but the rest is definitely good news.”
Since so much of the oil market is involved in production, transportation, supply, energy and distribution of goods...if that ain’t happening, it is NOT a good thing. I understand what you mean, that it seems contradictory, but it really isn’t. I would rather see lower prices based on competition. And this is so not.
It won't even have to be a conscious decision, although I'm sure it will be partly. But, the fact of the matter is the people who are primarily responsible for capital formation in a free market - higher income earners and producers - will have less to invest and spend as the fedgov begins to take a bigger chunk.
This might account for some increase revenue to the Treasury, but that will be short-lived as the economy begins to slow, again (assuming it ever really began to pick up. Eventually, what is happening in California with respect to disappearing tax receipts will happen federally, which will spur the liberals to call for even higher taxes - it's a death spiral which we probably won't get out of until Obama is beaten, hopefully.
High oil prices are typically a sign of economic growth.
Ain’t much of that lately.
Gold, Silver, Platinum, Palladium, and grain prices are all down today. Platinum and Palladium have dropped 10% in the last couple days.
Errrr... crude oil is bought on a futures market. Gas prices don't go up and down with crude prices at the same time.
World-wide depression... India and china are not using it as much as they were.
LLS
The price change only takes awhile if it’s going down - if it needs to go up at the pump, it’s done immediately.
Lumber futures have come off 27 % in the last 5 weeks.
most of it is the stronger dollar yes
keep in mind the Euro lost nearly 20 cents in the past two months that is significant
also there is a worry about overall demand in Europe for oil and i think our supplies are higher thany they thought
as for the price at the pump most likely the long weekend coming up, a bit of gouging and the fact that a lot of these guys probably bought the gas a month or two ago and havent used those up to order more yet
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