Since Oil Is a Traded Commodity, Doesn’t SPECULATION Determine the Cost Per Barrell?
Monday, November 23rd, 2009 at
6:43 am
hichefheidi asked:
If one refinery is on fire, the price goes up, if a hurricane hits, the price goes up. If a war happens, the price goes up. So, can we all see that market speculation drives the prices, and not dems or reps? Now I would be all for arguing that the war in Iraq drives the speculation…
yes, and you also have to factor in not mandating fuel efficieny in cars.
mbush, I know what you WANT me to believe, but the fact is that the price of a barrell of oil has gone up, everytime the price of gas goes up. So put on your listening ears and stop parrotting the GOP phrases.
lol…’here’.
If one refinery is on fire, the price goes up, if a hurricane hits, the price goes up. If a war happens, the price goes up. So, can we all see that market speculation drives the prices, and not dems or reps? Now I would be all for arguing that the war in Iraq drives the speculation…
yes, and you also have to factor in not mandating fuel efficieny in cars.
mbush, I know what you WANT me to believe, but the fact is that the price of a barrell of oil has gone up, everytime the price of gas goes up. So put on your listening ears and stop parrotting the GOP phrases.
lol…’here’.
Filed under: Commodity Trading
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Woa, this does not fit the liberal agenda. They believe that all companies are evil and only steal.
The real winners are the government because they take taxes and take more taxes.
Sure, but you have to factor in the reasons for not having more oil refineries.
Absolutely and every conflict in the Middle East makes the speculators nervous and the price increases exponentially as a result.
So yes, some of the recent price spikes are attributable to the Iraq war and indirectly on the Bush Administation for upsetting the apple cart in the Middle East.
That’s what the speculators on Wall Street do. The Wholesalers have the ultimate say in the price. The most recently built refinery being 32 years old also has a major impact.
100% right. oil is a commodity- completely on speculation, has long as the liberal media continues to tell us that gas will go up, it will go up period.
NEW JERSEY has the lowest gas prices in USA, and it is even sold by full service only.
I think it’s ironic that the answerer who claims that liberals, “believe that all companies are evil and only steal”, then suggests in the next sentence that the government is putting our tax dollars into its own pockets. In answer to your question, I believe there are a number of factors contributing to the high price of gasoline, not the least of which are monopolistic conditions. It’s not just the cost of oil and gas that is going up, don’t forget. Oil company PROFITS are skyrocketting.
Well, the CAFE standards not changing are what you get when you elect an oil man President.
Oil is a strategic resource and is subject to political influence more than anything… Irak did supply very little oil before the war, and the oil price was not high at all at the time… So now, what is driving the price so high, is an artificial phenomenon trigger by the US. They want to oil price high, so poorer countries that depend on oil import have trouble to develop themselve, while most American can still afford to drive their Big SUV. So in other words, they want either to buy most of the oil supply, or avoid other countries to buy too much of it…
It is a big strategy put in place many years ago, it is why most American car manufacturer have increase the engines size on their car… To force American to buy more oil thus limiting supplies available to the rest of the world.
The problem is not the price of oil, it’s the price of gas. Oil supplies are full thus the low prices of oil. Refineries especially in the US are producing at maximum levels, and can’t keep up with the demand. We are having to use foreign gas now. 13% of our fuel is now coming from overseas. These foreign producers are having to make US grade fuel which is something that they are not used to and it is driving up the cost. Especially our “special” fuels for states like California and NJ which have set themselves up for higher prices because of the needs they have created.
Not only oil, but refined products as well, including gasoline, home heating oil & diesel fuel. If too many speculators THINK there will be supply disruptions, the price jumps.
Why are you telling MBush to “put on his listening ears.” You asked a question and he is trying to answer you. Perhaps YOU should listen. Speculators are only a small part of the total equation that effects gas prices.
I would bet MBush works somewhere in the oil and gas business as I do. He tried explaining “boutique” fuels and you don’t want to here. He tried explaining that we are now having to import refined product to meet demand, but you don’t want to here that either.
I guess anyone who doesn’t give you the answer you want shouldn’t bother responding.
I suppose that answer is : Bush is evil and is secretly controlling fuel prices so he can profit personally.
Unfortunately, that is not reality. I don’t know what field you work in, but it clearly is not in the fuel business.