Posted on 09/21/2005 5:36:47 PM PDT by Crackingham
You need to do some research my friend? I don't know what your problem is relating each energy crisis to new math BUT facts remain, after each energy crisis that has occurred, more crude was produced and more gasoline was sold at higher prices. Don't let the facts get in the way of your 'new math'??????
Too many people haven't a clue about economics, finance, futures trading... These same people blame the big eeeeevil petroleum companies. Petro companies buy crude on the spot market to backfill crude shortages from their wells. Further, with this weather, tankers can't get to refineries. Further, refineries are/will be out of commission. At least this is what my wife has ex been explaining to me for the last 30+ years in the petroleum supply/chain logistics for Texaco Oil.
We should all relax. Putin & Chavez will have tankers filled with refined petroleum pulling into New York harbor like a conga line at a weddding.
Review the earlier threads on the free market as it applies to gasoline prices and learn about basic economics. We are not getting screwed.
CNN hopes so. They can blame those evil oil companies and President Bush again.
And of course, you and the rest of the panic buyers are what makes the price spike.
Rising prices do not result in shortages. Panic buying and price caps cause shortages.
Some idiot predicts it and it will happen. Are you listening EXXON?
>If gasoline reaches $5 a gallon, there won't be any gas to fill up, and places that do will have fist fights, road rage, and gun fights to get the last available gas.<
If gas reaches that point, I am gonna buy a 1980's vintage Mercedes 300 Diesel for a couple of thousand, and then fill the bloody thing with biodiesel and wave at you as I putter on by.
Oh I understand all of this and I also understand that viewed on a graph, we'd expect fuel prices to take continual rise, I was being somewhat sarcastic regarding the spikes on the graph.
Oh I understand all of this and I also understand that viewed on a graph, we'd expect fuel prices to take continual rise, I was being somewhat sarcastic regarding the spikes on the graph.
We didn't drop to below $3 a gallon until this week. There has been one positive though....the high price of gasoline has severely restricted the ability of teenagers to mindlessly cruise back and forth through town for hours at a time on the weekends.
CNNBS
I thought Kerry and Clinton and the rest of the Libs WANTED higher gasoline prices. Didn't Kerry propose a $.50 Federal INCREASE of the gasoline tax?
And as soon as it happens, let's have congress vote on that ANWR drilling bill.
It is refreshing that there are some here that understand economics and distribution logistics. One other piece that need to be considered, is that tankers bearing crude may have to be delected from docking. This whole enterprise is going to have major effects on our economy.
Fortunately for me (from a totally selfish perspective) my wife and I are retired. We only book 10k miles a year on our cars. So, fuel prices are insignificant. HOWEVER, the cost of goods and services will increase. Ergo, no one is totally insulated from the effects of these storms.
MAYBE the libs will allow the ptro companies to drill and refine. And, MAYBE the libs will allow building nuke facilities.
EGGGSACTlY! Valero, the refinery company, is up more than GOOGLE so far this year. I would think some enterprising oil company or billionaire would see the opportunity here.
We were just above $3 post-Katria, and are currently in the $2.60 to $2.70 range. Looks like our relief will be short lived...
There has been one positive though....the high price of gasoline has severely restricted the ability of teenagers to mindlessly cruise back and forth through town for hours at a time on the weekends.
LOL! That alone is worth the higher gas prices!
But more seriously, I've been noticing that almost ALL the retail stocks have been taking a hit this past week or so, especially since the higher energy prices (just wait until the winter...) is causing reduced sales, as people have less disposable income to spend. The retail forcasts for the fourth quarter were already being downgraded, and now I fear they are going to move further south...
Two things have been sustaining our economy: consumer spendng and housing. Both are showing signs of cooling off, which means people are starting to conserve their money, or are spending more of it buying gas, fuel oil, or natural gas.
But I did find out some good news from the NOLA site just a little while ago....Rita will probably only be a CAT 3 hurricane when it strikes, as the water near Texas is too cool to keep the CAT 5 rating in tact....
If you live in a northernly state, expect to see BIG, and I mean REALLY BIG increases in heating your home, especially if you use gas or heating oil.
As for goods like clothes and food, that will be more difficlt to determine. What is currently happening is that people are spending LESS money at the stores, and they are beginning to believe that the fourth quarter is going to be the pits for retail. Hence the prices of goods will probably go down, as stores get stuck with inventories that need to be moved. This will also mean that companies will have to take a hit on their profit margins, rather than charge more do to transportation costs, resulting in lower net earnings for a lot of companies.
But the lower prices will not be a good thing, as lower margins will nescitate companies looking to contain costs, which usually usually means lay-offs, stagnent or decreasing wages, and greater unemployment.
If we are not careful, this could bring us into a sharp downturn economically speaking. I'm expecting a recession in 2006 at the very least, and perhaps even the first ever depression since the 1930's.
The Federal Reserve showed it's true ignorance by raising it's rates by another quarter point today. The last thing we need right now is a tighter money supply. The market showed it's dissatisfaction by losing over 100 points.
A lot of things are lining up for dire economic times ahead...
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