Fire away.

Uhhh, not good?

Not sure how price of oil affects it being $3.33 this week in Mt Sterling and $3.79 in NKY.

 

Same day and 46 cents different 90 minutes apart?

Everyone knows my feeling it's excessive speculation causing the problem. Supply and demand is nowhere close to the problem, we are at record lows of gasoline use. 10 years ago speculators controlled 30% of the oil market, today it's 70%. Unfortunate greed at its best, capitalism is about making a dollar, however, wall street knows they can make hundreds of dollars of exploiting make believe oil scenarios. Anyone out there not been able to find a gallon of gas post 1980's... Anyone?

Everyone knows my feeling it's excessive speculation causing the problem. Supply and demand is nowhere close to the problem, we are at record lows of gasoline use. 10 years ago speculators controlled 30% of the oil market, today it's 70%. Unfortunate greed at its best, capitalism is about making a dollar, however, wall street knows they can make hundreds of dollars of exploiting make believe oil scenarios. Anyone out there not been able to find a gallon of gas post 1980's... Anyone?

How does speculators affect the situation i asked about above?

Everyone knows my feeling it's excessive speculation causing the problem. Supply and demand is nowhere close to the problem, we are at record lows of gasoline use. 10 years ago speculators controlled 30% of the oil market, today it's 70%. Unfortunate greed at its best, capitalism is about making a dollar, however, wall street knows they can make hundreds of dollars of exploiting make believe oil scenarios. Anyone out there not been able to find a gallon of gas post 1980's... Anyone?

 

I know this is a hot button with you. Explain how speculators drive up prices. Explain then how the prices plummeted. By your theory I would expect oil prices to not only always be high but always be rising due to the artificial market created by speculators.

Gas in Henderson Friday night was $3.46, Sat morning it was $3.75, Sat night $3.66.

How does speculators affect the situation i asked about above?

 

I know this is a hot button with you. Explain how speculators drive up prices. Explain then how the prices plummeted. By your theory I would expect oil prices to not only always be high but always be rising due to the artificial market created by speculators.

 

When an investor has the capital to purchase a significant amount of derivative futures at a high price, like an oil company, it could cause suppliers to horde stock to obtain the higher price in the future. That situation would cause the current price to rise, covering the futures bet.

 

Speculators make money selling short, too. That means that there is big money to be made by an investor purchasing a significant number of derivative futures at a lower rate causing the opposite scenario to happen and the price to plummet. Oil companies can make money coming and going.

When an investor has the capital to purchase a significant amount of derivative futures at a high price, like an oil company, it could cause suppliers to horde stock to obtain the higher price in the future. That situation would cause the current price to rise, covering the futures bet.

 

Speculators make money selling short, too. That means that there is big money to be made by an investor purchasing a significant number of derivative futures at a lower rate causing the opposite scenario to happen and the price to plummet. Oil companies can make money coming and going.

 

Your second point is why I contend that "high oil prices" are not because of speculators. They are putting themselves on the financial hook with the contracts they are buying.

 

The issue is decreasing low-cost supply and increasing world demand. The US isn't driving the market.

 

The speculator argument also completely discounts the economy.

Your second point is why I contend that "high oil prices" are not because of speculators. They are putting themselves on the financial hook with the contracts they are buying.

 

The issue is decreasing low-cost supply and increasing world demand. The US isn't driving the market.

 

The speculator argument also completely discounts the economy.

So there is plenty of oil, but not low-cost oil? Would not speculation, as I pointed out in my first scenario, not cause that? If not, why?

 

The economy has nothing to do with commodities speculation? Wouldn't speculating higher priced futures take the economy, mainly inflation, into account?

When an investor has the capital to purchase a significant amount of derivative futures at a high price, like an oil company, it could cause suppliers to horde stock to obtain the higher price in the future. That situation would cause the current price to rise, covering the futures bet.

 

Speculators make money selling short, too. That means that there is big money to be made by an investor purchasing a significant number of derivative futures at a lower rate causing the opposite scenario to happen and the price to plummet. Oil companies can make money coming and going.

So how does thst affect Shell gas being 46 cents different 90 minutes away?

Your second point is why I contend that "high oil prices" are not because of speculators. They are putting themselves on the financial hook with the contracts they are buying.

 

The issue is decreasing low-cost supply and increasing world demand. The US isn't driving the market.

 

The speculator argument also completely discounts the economy.

 

 

U.S. gasoline demand tumbled last week to the lowest level in the seven-year history of MasterCard Inc.’s SpendingPulse report as the pump price climbed to a seasonal record.

Drivers bought 8.01 million barrels a day in the seven days ended Feb. 10, down 3.1 percent from a week earlier, according to MasterCard, which began collecting the data in July 2004.

 

The average pump price rose 3 cents to $3.50 a gallon, 12 percent above a year earlier and the highest price recorded for this time of year, John Gamel, a gasoline analyst and director of economic analysis for SpendingPulse, said in a telephone interview.

 

“We’ve been seeing 5 percent declines in demand for the last four consecutive weeks,” Gamel said from Seattle. “This isn’t weather-related. This is demand-related. Consumers are reacting to the highest prices we’ve ever seen.”

 

The pump price rose in all regions of the country. The biggest gain was in the U.S. Midwest, where the price rose 4 cents to $3.42 a gallon. The highest price was on the West Coast, where a gallon of regular cost $3.71.

 

Demand fell below year-earlier levels for a 24th consecutive time, decreasing 5.4 percent from 2011. Gasoline use over the previous four weeks was 5.3 percent below the 2011 period, the 47th consecutive decline in that measure

 

 

 

Read more: MasterCard: US Gasoline Demand Drops to Record Low

 

Where is the supply and demand Clyde? We are the biggest gasoline consumer. Speculators, never receive one barrell of oil they are bidding on.

So there is plenty of oil, but not low-cost oil? Would not speculation, as I pointed out in my first scenario, not cause that? If not, why?

 

The economy has nothing to do with commodities speculation? Wouldn't speculating higher priced futures take the economy, mainly inflation, into account?

 

Well said... there will always be plenty of oil. As I said in my previous post nobody since the 80's has not been able to find a gallon of gasoline. The speculators can draw up imaginary situations and what if's to increase the value of oil and line their pockets. But it is a FACT there will always be enough oil sitting around for everyone to purchase gas.

So how does thst affect Shell gas being 46 cents different 90 minutes away?

Are you crossing a state line to get to that gas 90 minutes away? If not, it is the decision of the station proprietor.

Are you crossing a state line to get to that gas 90 minutes away? If not, it is the decision of the station proprietor.

 

I've seen similar differences between northern Kentucky and the Lancaster/Danville area. This isn't a state tax issue and I can't believe the proprietors in Central Kentucky are willing to take that much less money. It must have something to do with the supply coming from different refineries. One may be buying at Brent crude prices while the other is buying at WTI prices which have been running about $20 per barrel different for some reason.