“Why would you think there is a flat direct percentage correlation with demand to price? What I mean by that is....just because demand goes up 10%...doesn’t mean price will only go up 10%.”
No, I realize it’s not linear and not always proportional. There are other factors of course. What I’m saying is that the rise in prices have been so dramatic in such a short period of time, that it seems as though speculation is a more significant factor than anticipated demand relative to anticipated supply.
I could be completely wrong and do believe that worldwide supply and demand drive prices, but I also think we are now at the mercy of speculators and this will only get worse if Obama wins and the AGW crowd gets its way. We have got to start drilling for more domestic oil but I just don’t see this alone bringing down prices significantly.
The puppet master reps told the pipeline chaplain 10+ years ago that they were going to raise the price to $10/gal.
Purely an arbitrary manipulation.
IF, the "power" that you and the Dims have assigned to these evil "speculators" is that great. Why haven't they "cornered" the market like this a thousand times before?
As of yesterday the "Commercials" in Light Sweet Crude were only net long 12k positions. That is NOT driving this market.
Price is not controlled. Price is determined by VALUE. Value is the balance of Supply and Demand. Value is determined by commercial interests..( Those that actually take delivery of commodities...) LONG TERM. Value is also determined by TOO MANY BUYERS / SELLERS SHORT TERM
Did you know...that most commodities traders lose money? About only 1/3 make money.
FWIW