diesel hell... i paid $2.50gal for fueloil, that's MINUS the road taxes. it'll be a while.
Posted on 09/16/2006 5:56:55 PM PDT by Chi-townChief
Yeah, but when are diesel prices going to drop like gas.
The best I saw diesel in NH was 2.75. And in some spots diesel is still at 2.99.
I'll contribute! Sunup at 6:30, where do we start?
IronJack, YOU are on to something!
"It was a bleak day for capitalism, and further proof that supply and demand were not the only, or even the primary, forces driving the price of fuel.
If speculators are buying oil, that's not demand?
Of course it is. They're paying out hard cash for it, just like those who propose to use it immediately.
diesel hell... i paid $2.50gal for fueloil, that's MINUS the road taxes. it'll be a while.
Anchorage today is $2.75, where I live in a rural area 35 miles north its $2.84, if it actually drops as low as it might be predicted I'm grabbing a bunch of 55 gallon barrels from work and stockpiling.
"And they bring nothing to the table. They don't make anything. They don't process anything. They don't add anything.
I wouldn't say that. They profit by assuming risk, enabling others who do not wish to assume risk to avoid it.
Thanks to options and futures traders, you can buy oil for delivery a year from now at a fixed price. That's a service to those who need that sort of thing.
Jack
Interesting read about how the regulation of the commodities market was changed in 2000.
http://www.chronwatch.com/content/contentDisplay.asp?aid=23024
The key here is that CFMA allowed for the creation of electronic futures exchanges that would not be governed by the CFTC, and determined that energy futures and derivatives could be traded on such exchanges. In the view of this Senate report, this precipitated a tremendous expansion in the demand for energy related contracts – and the potential for manipulation by large investors around the world – that has likely increased the price of oil by as much as $25 per barrel.
This is important, because despite conventional wisdom, existing supply-demand ratios in oil and oil-related products in no way justify current prices. As the Senate report accurately stated:
While global demand for oil has been increasing – led by the rapid industrialization of China, growth in India, and a continued increase in appetite for refined petroleum products, particularly gasoline, in the United States – global oil supplies have increased by an even greater amount. As a result, global inventories have increased as well. Today, U.S. oil inventories are at an eight-year high, and OECD oil inventories are at a 20-year high.
The report also gave an accurate historical reference to current oil supply levels:
As a result, over the past two years crude oil inventories have been steadily growing, resulting in U.S. crude oil inventories that are now higher than at any time in the previous eight years. The last time crude oil inventories were this high, in May 1998 – at about 347 million barrels – the price of crude oil was about $15 per barrel. By contrast, the price of crude oil is now about $70 per barrel. The large influx of speculative investment into oil futures has led to a situation where we have high crude oil prices despite high levels of oil in inventory.
It looks like Mahmoud is going to find it a little tougher to keep buying his people off with that 30 cent a gallon government subsidized gasoline in Iran.
Funny, I must have MISSED it!
Sorry for reading THIS thread!
Oh my G@D, must be the end of the world!
REALLY? What was their first clue? The prices are already falling?? REAL GENIUSES, these ANALYSTS!
You could always forward contract for any commodity. It might not be traded on the BOT but that didn't mean you couldn't execute a contract with a supplier. But these days, futures trading is nothing more than a legalized crap shoot. How many of these contracts are ever held for delivery? All speculation has done was create a false market, an inflated, illusory "demand" that existed only on paper and served to do nothing more than feed itself.
That's a service to those who need that sort of thing.
Yeah, oil speculators are doing this to help out the poor and downtrodden. I didn't realize ...
Why wait till sunup? It's not like we won't have plenty of light!
The very definition of a "bubble." Paper chasing paper.
This whole lie has to collapse sometime. And when it does, I trust we'll see some profiteers taking eighth-story exits. Let's just hope they don't make too big a mess when they hit the pavement. Someone has to clean that crap up.
Is there any chance the regulations will be changed to make such manipulation more difficult? It sounds like this could be a good campaign issue for someone, but I don't hear much talk about it. All you hear are Democrats with their usual demogoguery of wanting to raise taxes on gasoline and increase regulations on car makers while Republicans are not saying much at all about the high price of oil. There is not much said about how the market is being manipulated.
good grief! ease up a bit huh?
Is there any chance the regulations will be changed to make such manipulation more difficult? It sounds like this could be a good campaign issue for someone, but I don't hear much talk about it. All you hear are Democrats with their usual demogoguery of wanting to raise taxes on gasoline and increase regulations on car makers while Republicans are not saying much at all about the high price of oil. There is not much said about how the market is being manipulated.
We'd have better luck finding threads if we put in a google search. We could search sentences and such.
And this is important because it shows the limits of speculation: when inventories rise high enough that there's no more room to put any more oil, you have to sell for whatever you can get
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