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Posted on 04/24/2006 8:41:25 AM PDT by churchillbuff
Mr. Gaines, chief executive officer of Houston-based Dune Energy and a former top institutional energy analyst, told The New York Sun that those factors could include the current shortage of gasoline inventories, a really hot summer, supply disruptions arising from troubles in Iran and Nigeria, or another serious hurricane in the Gulf, 13% of whose production is offline.
These factors, he says, also could easily produce $90 to $100 oil, as well, versus Friday's close of $75.17.
Equally significant are the implications for interest rates. The gushing oil price, says money manager Leonard Mohr of Los Angeles-based MCR Associates, re-enforces his conviction that the Fed, contrary to overwhelming Wall Street expectations, is in no position to call it quits on future interest rate increases, given the inflationary ramifications of the burgeoning price of oil.
(Excerpt) Read more at nysun.com ...
Bunk. Futures run up has been going on for at least the past 3 years.. has nothing to with Iran... just a bubble drivin by a an easily corruptable market and greed.
You obviously don't understand how a retail business works. Regardless of how much a retailer actually pays for his inventory, the price of his product is largely dictated by how much it will cost him to replenish his inventory.
If I bought 10,000 gallons of fuel three months ago for $1 per gallon, I can get a 25% profit margin by charging $1.25 per gallon today (let's ignore all my other operating expenses for the sake of this argument). My $10,000 yields $12,500 in gross revenue.
But if I know today that my next delivery of fuel is going to cost $2 per gallon, then even a 25% "profit" will leave me $7,500 short when it comes to replenishing my inventory. If I know that my next delivery is going to cost $2 per gallon, then getting anything less than a 100% "profit" (i.e., charging $2 for the fuel I bought for $1) on my current inventory would be financially disastrous and grossly irresponsible.
Just fine, thanks for asking.
Again not true, not enough refining would not affect the crude price of oil... secondly demand for end product is actually DECREASING.... thirdly demand is no greater now than 3 years ago, and since refinery capacity has been relatively flat since the 1970s. Forth, since the fed reduced requirements for many gormet blends following Katrina et al, there is even less issues limiting refining to the pump.
The argument that refinery limitations are behind the run up don't hold water.
You might want to wipe your chin there. Seems there's a little drool dribbling out.
Lance the festuring mullah made mess..
Jaaba?
Demand, worldwide is actually declining.
Could you please provide a source for your statements ?
Dream comes true for Daddy. This is just what BushI said Americans should be paying for their gas.
Article was posted here on FR just in the last 2 or 3 days.
Crude supplies are at record highs, and demand is actually dropping.
I am presuming that you can make that statement by observing ripples in your toilet. Or do you just have s*** for brains?
Tankers are SITTING in harbors because we have no place left to store the crude we have such oversupplies around the world, but the price keeps going up.. its a speculative manipulated bubble driving up prices for the past few years, not war in Iraq or issues with Iran.. just pure old greed by a few powerful folk.
I would guess a significant portion of this speculation is politically motivated and manipulated by George Soros and his ilk. They are deliberately trying to affect Bush's poll numbers and the November election.
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We don't need to drill for more oil. We need increased refinery capacity.
Yeah, not much happening in the Middle East these past three years to cause any uncertainty.
So this is the model that the larger oil companies are using to make sure they break even and don't go out of business?
Yeah...that's what they're doing...just breaking even.
This is of course all Bush's fault. This morning on the local news, their lead off story was that Americans are BLAMING Bush for the higher gas prices. That he should be doing something about it, bla, bla, bla. New pols showed that something like 75% of Americans say Bush is at fault, so says the local leftist news this a.m.
Crude supplies are at record highs, and demand is actually dropping.
Could you provide a link ?
According to this article the Department of Energy reported crude stocks dropped unexpectedly last week by 800,000 barrels. article
You didn't answer my question.
Why would the all-powerful world manipulators of oil prices allow anyone to enjoy very large quantities of fuel at half the going price?
What's wrong with this picture?
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