Yes and no. And if any kind of economic turn up happens, watch oil...it
will go right past $140 in a blink.
That isn't to say there is a shortage. There isn't. Just a shortage at
$60/barrel. At $140 there is lots.
Then we would see prices drop again. That does not challenge the assertion
that this is just the normal summer time price increases at work. We have
seen this work both ways in the past. We've seen prices rise for the
summer, consumers cut back on their driving, and prices start coming down
again. Then, we've seen where the prices do not come back down until after
Labor Day. And, we've seen where consumers seem unaffected by the price
increase. It remains that the prices always go up this time of year.
Probably won't see prices drop a lot from here. Ever. I'd be very surprised.
Once the economy returns to more normal levels prices will easily surpass
what we have seen before. Watch out for taxes to boot. BO needs to raise
money somewhere for his spending spree, the huge injections of liquidity and
given the Dems bent it makes a perfect target. Actually gas isn't all that
expensive when you consider prices over 40-50 years. I remember paying 0.35
gal and making $1.50/hr. Today's ratio is not a lot different. And the gov't
takes a far greater slice.
Supply and demand. Lots of commodities are on the rise, just you don't have
to buy them every day. Coal, flour, uranium, copper, gold... Natural gas
should hit somtime in about February. It lags because business that shut
down don't burn the electricity or natural gas but supplies are dropping
fast too. Once supply gets corrected, that holidy will be over.
You don't think the stock market is up because of an economic turn around do
you? Hell, better be in oil wells than in T-bills when inflation hits.
On Tue, 16 Jun 2009 18:10:14 -0600, Canuck57 wrote:
The problem with all that rational thinking is you ignore the new Obama
math that supersedes even the laws of nature. With OM 57 + 1 + 2 = 50.
With OM you double the budget to balance the budget. With OM you save the
taxpayer's money by going out on the town all the time. With OM you even
It is worse than many realize! The FED is buying US BONDS with printed
money. It is unbelievable, BO is monetizing the debt by using current debt
to pay future debt with interest.
BO is a disaster, who will make Jimmy Carter look like a economist. We
will have double digit inflation interest rates and unemployment at the end
of his only term like we have not seen since WWII.
The Dims better start contacting your Senators and Congressmen.
Trouble is, America has lost it's integrity. They need to honour their
debt. They need to reprect that others have the right to their wealth
without the government taking it.
But realistically, I don't expect America will change. Too many money for
nothing, too many debt welchers, too many jive talking politicians....
When Obama looked like he was going to win, the markets tanked. When he did
get elected, I will always remember the slud that said Obama will take car
of my car mortgage.... signifies what is wrong in the USA. Too many low
life stupid and selfish losers with a vote.
On Tue, 16 Jun 2009 10:38:18 -0400, Jim Higgins wrote:
What is the big deal? In CA you pay over $1,000/month on lot rent. In CA
you pay $250,000 for an old, tiny home to just bulldoze it to the ground
and put up a new home. Who cares about a minor thing like $3 a gallon gas?
On the day your gas went up OURS went down and is still going down a penny
or 2 a day. Now THERE is a curiosity worth investigating. Crude goes up
and gas goes up 10 cents a day. Crude goes down and gas goes down 1-3
cents every 2-3 days. Does not compute!
When you say crude oil "goes up," I believe you are referring to the FUTURES
prices that are published, not the price that the refineries are paying for
The futures price is the price speculators are currently willing to pay for
crude, that will not be becoming to the refineries for at least five or six
months, not the current price paid by the refiners today.
The current price for crude coming to the refineries today is around $90 a
barrel. That is crude that the speculators paid for at around $130 a barrel
five or sis months ago.
The reason gas is going up are two fold. The government has raised the fee
domestic companies must pay, to remove domestic crude from the ground,
around 10% on the first of June. The other reason is home heating oil
demand is now way down the oil companies now have thousands more tanks in
which to store gasoline now that they do not need tanks for hearing oil.
Thus they need not reduce the wholesale price as much to get ride of it
because demand for gasoline is rising as summer travel increases.
Gasoline is not like some other commodes that can be held to the price goes
up, like bricks or lumber. Gasoline is basically a byproduct of refining
crude to get to the carbon stocks and heavy distillates, the parts that are
worth the most money, if they can't store or get ride of gasoline the big
money is lost.
Gas prices will have to come down once some of the future that were bid at
$30 to $50 start to arrive at the refineries, if demand does not go up even
further in the near future.
Search the Petroleum Institute wed site for information on the subject
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