Gas prices:

[daved150]

i've actually have been saying this for 2yrs!! this should not be openly trade4d on the stck exchange!!!

http://www.dailyfinance.com/story/the-real-reason-gas-prices-are-soaring/19893347/

[alluprbdy]

Re: Gas prices:

Interesting.

[firstenrgy]

Re: Gas prices:

I think I might have posted about this the last time oil went to $150 a barrel. 20-25 years ago, 90% of the people who were buying and selling contracts (options) on oil and gas and planned to take possesion of the product. In the 2008 run up 20% planned to take possesion and 80% was speculation.
Is this bad:
In a way yes because it increases the peaks and valleys of prices. In 2008 oil probably would have only ran to 110-115 a barrel. On the other hand the decline in prices wouldn't have happened as fast as they did and oil dropped to $60 a barrel as a low and probaly would have been $80 as a low if speculators weren't in there.

[trip]

Re: Gas prices:

it is the same with all commodities and precious metals

[firstenrgy]

Re: Gas prices:

Barry is on tv saying that china and inda keep consuming the gasoline and thats why we are paying higher prices.
What dunce is left that still will believe this idiot!
In 2008 it was bush and the big oil companies getting rich.

[trip]

Re: Gas prices:

fwiw, unless gas prices went up, most refiners we're going bankrupt, they've been losint money for two years, it's a market i call pass the profit, they are so busy spinning all the plates, some get extremely wobly and walla boom prices go zoom

i was in clean energy dec/beg of march, and sold my last position yesterday, all for profits, today, w/obama speech, i left a chunk of change on the table, lol, man what a day makes

[firstenrgy]

Re: Gas prices:

fwiw, unless gas prices went up, most refiners we're going bankrupt, they've been losint money for two years, it's a market i call pass the profit, they are so busy spinning all the plates, some get extremely wobly and walla boom prices go zoom

i was in clean energy dec/beg of march, and sold my last position yesterday, all for profits, today, w/obama speech, i left a chunk of change on the table, lol, man what a day makes

Refineries are running flat out 100%. People are paying premiums here to get there oil refined. Losing money? Was that a joke?

[rc10j1]

Re: Gas prices:

I work in the oil industry. All the refineries are setting production and profit records. They are not losing money.

[trip]

Re: Gas prices:

crack spreads went from 8 in dec too 26 today, all in 3 months

before that it's been bad, as you know it's cyclical, feast or famine, very lumpy earnings

[daved150]

Re: Gas prices:

i think it should be better regulated...its not the same as the other commodities

[O2BESOHUGE]

Re: Gas prices:

$3.54 HERE

[firstenrgy]

Re: Gas prices:

i think it should be better regulated...its not the same as the other commodities

Regulated? Before you know it you'll be a commie like trip!

[JsJs24]

Re: Gas prices:

Regulated? Before you know it you'll be a commie like trip!

Good point. No more regulation is necessary. Collectivism is what is wrong with this country. Everybody wants the government to step in and take care of things; Republicans and Democrats alike. Yet, Republicans supposedly stand for limited government. I haven't seen a limited government president in my lifetime.

Oil is a commodity which is traded. I suppose if we ban that one we might as well just ban the whole damn stock market. I mean heck, I would love to buy a bunch of Apple stock but it has been driven up in cost too high. If only the government would regulate it and get the price back down so everyone can own some shares. If an oil company owns a rig and drills oil then that is their oil, thus they should be free to do whatever they like with it. The free market is an amazing thing. The invisible hand as Adam Smith called it will take care of everything in the economy. But we are past that stage. We are now living among a world full of people who expect the government to manage everything. But the funny thing is, the government has proven that they can't do ANYTHING right. A centrally planned economy never works. Soviet Russia tried it, Germany, Italy, etc. Government cannot run the economy.

The airlines were regulated by the Federal Government until the Airline Deregulation Act of 1978. Prices came down as a result. If the government increased regulation of oil and set prices we would have much higher fuel prices. Already a large percentage of the cost of fuel is federal taxes. But let's keep in mind that speculators also push the price of oil down when they believe it will be lower in the future. It works both ways.

[rc10j1]

Re: Gas prices:

In a gallon of gasoline about 60% of the cost is the crude. The next highest % is taxes. Refining costs and profit are small percentages.

[daved150]

Re: Gas prices:

Regulated? Before you know it you'll be a commie like trip!

sorry...i just dont believe it should be in open trading... you want to take that as being commie, fine...i feel i'd be a better supreme ruler anyways!!! and i dont freel the WHOLE stock echange should be regulated...just becouse i feel that oil should have NEVER been open traded dosnt mean i feel that the whole thing should be regulated, but fine...i'll run that too!! i dont feel that oil should be uo for speculating the future