creeping death
Big Ring
Posts:248
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| 07/07/2008 1:49 PM |
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| gas in london, ky is at 4.14. jumped 24 cents in one day. funny how it keeps rising so much, so fast. Does anybody know of any other service or goods that the price rises so rapidly? some say the oil buyers or speculaters are the reason for the price increase. |
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PR
Big Ring
Posts:516
Registered Users
Jackson County
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| 07/07/2008 2:30 PM |
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$4.14. That's our economy going into the tank. I believe that speculation does add to the price we are paying, but not nearly as much as we have been lead to believe lately. That economist that says if we implimented strict controls on speculation in oil futures the price of oil here would fall as much as 50%??? That guy is insane. And he has believers on both sides of the aisle in congress. I doubt if speculation adds .20 here.
It's a nice, nostalgic pipe dream though. It harkens back to a day when we truely were the big dog on the block. Before OPEC. Before China and India exploded with development.
Now we're just another pig at a shrinking trough. |
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RIC0
Big Ring
Posts:319
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sumwaresin, KY
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| 07/07/2008 2:34 PM |
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| The stock market today is about ta fuggin crash I think. |
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creeping death
Big Ring
Posts:248
Registered Users
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| 07/07/2008 2:46 PM |
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| funny that how people say demand drives the price. I don't think demand increased that dramatic in the day. |
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russell g
Big Ring
Posts:376
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Louisville, KY
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| 07/07/2008 4:49 PM |
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| Big fat Americans saw this coming back in the Carter administration. but we were to lazy and bullheaded to make plans. US cut the railway system budget. Continued urban sprawl. and paid more money for people to have more oil hungry babies. Bottom line there is too many friggin people in this world. |
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zherz
Little Ring
Posts:64
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l-ville
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| 07/07/2008 11:07 PM |
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| Anybody got 6 minutes? :) |
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OCguy
Big Ring
Posts:235
Registered Users
Oldham
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| 07/09/2008 4:52 PM |
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| Well, the AG is looking into "price gouging" in Jefferson County because it has been 4.14 there for quite some time. So if you ask me it's just the distributor making sure all's fair again. |
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MikeF
Training Wheels
Posts:6
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| 07/11/2008 6:35 PM |
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Well, a year ago oil was $70 a barrel and fundamentals haven't changed that much, in fact currently demand is down since China dropped subsidies and the US is driving less due to the cost. I'm not familiar with the mechanics of the futures market but if it's like stock options then a feeding frenzy based on greed, hurricanes, middle eastern conflict, whatever, can drive the price to it's current level.
Just my dos pesos.
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creeping death
Big Ring
Posts:248
Registered Users
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| 07/12/2008 8:46 AM |
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| ..................,But Europe is paying 8-9 dollars a gallon. I love that statement. Who cares what stinky Euros pay or do. |
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OCguy
Big Ring
Posts:235
Registered Users
Oldham
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| 07/12/2008 3:12 PM |
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The current oil futures market is approximately 65% "speculators"--those that cannot take delivery of the underlying contract. They MUST sell the contract before it expires.
Ten years ago it was 21%.
I can't say that this has made a difference considering the only futures market that has strictly enforced NO speculators is the onion market, and that market has actually shown MORE volatility than others. But I am not sure if volatility is the right measure here...someone eventually takes the goods.
What IS certain is that when commodities fall quickly the speculators are hardest hit...duh.
.02 (BTW, dos pesos = about 19 US cents )
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MikeF
Training Wheels
Posts:6
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| 07/14/2008 11:43 AM |
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So like like a stock option, someone eventually ends up holding the bag....which in the current enviorment they can be in the money, or if it starts falling quicky could really get burned. What then, if prices aren't driven by speculation, would cause them to double in a years time.
My .19 cents worth. |
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OCguy
Big Ring
Posts:235
Registered Users
Oldham
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| 07/16/2008 8:50 AM |
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If you are serious, good old supply and demand. It is true that the fundamentals have not changed that much, but the biggest problem (IMHO) has been the subsidizing of energy by developing countries. Any artificial price support skews the true market, so it does not react rationally to changes in supply and demand.
If oil prices rise due to demand but the end user (i.e., the Chinese construction and manufacturing market) doesn't have to pay more then the price keeps going up. And it will until some resistance is met. The recent moves by subsidizing governments to reduce their contributions will have an affect (note yesterdays pounding of oil). So in this scenario the "bagman" is the governments.
My feeling is that the decline of the US dollar has had more of an affect than subsidies...but than is another issue. Hank Paulson has been an idiot through all of his tenure. I find it interesting when people that have "real world" experience get involved in government and find the new rules contrary to their common sense so they freeze up. |
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