[NELSON111]

The oil companies are charging what the market will bear. What is wrong with that? Have you ever gone to your employer and said, "Hey boss, although the market says I'm worth $100,000, I'm only going to charge you $55,000 for my services this year, because $100,000 is just a total ripoff"? No, I didn't think so.

There is a BIG problem with your analogy.

The oil prices are traded on FUTURES not actual supplies so they are not charging what the market will bear. So, in order for your analogy to be true, you have to go to your employer and tell them that I am going to charge you $150,000 for my services...even though I'm really only worth $100,000...because in the future...I am SPECULATING I will be needed at a greater cost.

And that is what is happening here. Oil is not traded at what it is actually worth. If we actually paid what oil is worth per barrel and took speculations out of it...oil is actually a LOT cheaper. It is estimated that futures adds at least $30 per barrel. Now...how much were you paying per gallon when oil was trading at $40 per barrel? Well...that's about what you SHOULD be paying now if oil was traded on the supply market...and not as a futures.

[ThinkDifferent]

It is estimated that futures adds at least $30 per barrel.

Estimated by whom? Certainly not those actually buying the futures, unless they're all in the habit of setting their money on fire. They believe oil prices will continue to rise; if you disagree you can bet against them and make an easy profit if you're right.

[P-40]

Oil is not traded at what it is actually worth.

Oil is worth what someone will pay for it...and we will pay a lot. That is the problem with relying on outsiders to supply you with what is certainly a necessary commodity.