Oil and Gas prices big Drop!!

docofthebay

docofthebay

New Member
Sep 10, 2009
461
Fort Morgan, Mobile Bay Alabama
Boat Info
1985 390 EC
Engines
twin 3208TA Cats
Twin disc transmissions
Oil down 9%, gas and diesel down 5-6% wholesale!!!

http://www.bloomberg.com/news/2011-...bal-growth-drags-down-stocks-euro-climbs.html:smt038:smt038:smt038
"
It’s panic,” said Michael Shaoul, chairman of Marketfield Asset Management, which oversees $1 billion in New York. “You have those super crowded trades. Now you’re in liquidation mode. There’s nothing to do with weak U.S. economic data. It’s not a global financial crisis. It’s a classic liquidation move in a crowded trade.”
 
Really ???. Gas went up here to $4.07agal from $3.97 and Diesel went from $4.29 to $4.33agal today. :smt101 .
 
sfergson727 said:
I hope those ******* speculators lose their shirts, climb to the top of the Empire State Building, and aim for the bushes.
Click to expand...

Generally speculators are the first to sell and an indicator prices for oil are really dropping. Please don't hate them for without their "speculation" the prices would have gone higher and stayed up longer.
 
MonacoMike said:
Generally speculators are the first to sell and an indicator prices for oil are really dropping. Please don't hate them for without their "speculation" the prices would have gone higher and stayed up longer.
Click to expand...
Who do you think is behind the rise in oil to begin with? If it were simply based on supply and demand we would not be close to the prices we have now. Opec has cut production because there is a glut of oil on the market.
 
gnephew511 said:
Who do you think is behind the rise in oil to begin with? If it were simply based on supply and demand we would not be close to the prices we have now. Opec has cut production because there is a glut of oil on the market.
Click to expand...

The fear of Middle East contraction combined with a lack of domestic expansion causes the futures market to rise. Most oil is purchased from these markets as industry wants to be certain of their costs. If the cost was less because speculators wetre barred from the market someone, possibly a competitor of who needs it, would buy it thus the price would rise anyway. It is a false premise that barring speculators would reduce the market prices. The speculators keep liquidity in the market by making hoarding too costly
 
The news this morning said that even though the price fell below $100 a barrel it would take at least 10 days below where we could see any drop at the pump. Conversely, it takes a nano second for the price to go up at the pump when there is the slightest upward movement in the price of a barrel. Gee.........
 
"Conversely, it takes a nano second for the price to go up at the pump when there is the slightest upward movement in the price of a barrel."

No kidding......amazing ain't it? :-(

And around here...it takes forever to start coming back down....and NEVER gets back down to where it was before the horrendous increases started.

At least you guys down there are only dealing with increases of pennies per gallon at a time.

Two weeks ago we jumped overnight by 58.5 cents per damn gallon. Last week it came back down 31.5 cents per gallon. And a few days later it went back up by around a dime I believe. No idea what it's doing today.

Damn stuff just keeps going up and down like a whore's drawers. Maddening as hell.
 
The fear factor (unrest in the middle east) and long-term economic growth vs oil supply which does have a limit.....but everyone is just guessing.
 
sfergson727 said:
It really stinks, doesn't it? They rape us before the higher priced oil hits the market, then they soak us some more when the price drops and they don't pass it along. Before someone defends this behavior, keep in mind, they are making money on both sides of the deal, they get no sympathy from me. For the next ten days, every gas station I pass will be getting a middle finger gestured at them. (hopefully the patrons won't mistake me as flipping them off, or you might not hear from me for a while as they don't let you play on the computer in intensive care)
Click to expand...

Can't defend the practice, can offer why? First not all gas retailers are set up the same. Mom and pop's often have to leave the price up to recover what they lost while the big boys were selling under market trying to put them out of business. (As discussed in our recent thread). If we bought gold at $600 and now the market is $1350 would any of us just want our $600 back? If retailers sold at what they paid, then when the media reported oil price increases, there would be a run on gas creating artificial shortages. Costco seems to charge what they pay as their prices rise slower than others but they go through it faster.
 
If you follow the oil prices on Bloomberg.com, then they have stories and links about why the prices went up that day and very commonly it is a story like "oil prices rose on speculation that the pipeline in ......stan could be attacked by militants" or "storms in the ......ocean could hamper the delivery of oil by tankers". The prices rise and fall many times on what "could" happen and not what really is affecting the supply of oil.
 
"The prices rise and fall many times on what "could" happen and not what really is affecting the supply of oil."

Unfortunately they sure seem to rise a heck of alot more than they fall.
 
sfergson727 said:
Make no mistake, I blame obama and his policies, the EPA and the looney left for the high cost of pretty much everything, including energy first. But I still hope that speculators lose their shirts. I am not appreciative that we live in a moment to moment world right now, and the slightest burp causes the markets to go haywire. Things always seem to go from bad to worse, but never get better. I liked the world better when the news was only on at 6 pm, and you were told the news, not some editorial garbage from the flavor of the month comentator. We need Ron Burgundy.....
Click to expand...

Any comments on the article?
 
MonacoMike said:
... If retailers sold at what they paid, then when the media reported oil price increases, there would be a run on gas creating artificial shortages. ....
Click to expand...

Of course, everyone would rush out and fill up their massive underground gasoline storage tank.....wait.....everyone has one of those right?

I also don't think the link you posted supports your statements. Its very clear in detailing the fact that speculation causes an increase in todays prices....all based on a guess at what might happen in the future. It adds insult to that injury by saying that consumers need this manipulation in order allocate resourse over time. Who comes up with this horse sh1t? A REAL increase in demand (or reduction in supply) will increase prices, just the same as the FALSE increase. The only one to benefit from the false demand is the speculator.
 
You must log in or register to reply here.

Forum statistics

Threads
113,186
Messages
1,428,171
Members
61,097
Latest member
Mdeluca407
Back
Top