Re: Fuel Price

TBone · 2005-08-31T13:56:18+00:00

LOL, a reserve for how long Max. These refineries could be down for monthsand who knows how long it will take to fully repair the infrastructure. AndBTW, they had DAYS, not weeks to prepare.Sure, and where are they going to offload too?Yea, a buffer for a few days or even weeks, not months.Not only do you have to look at the futures market Max, you actually have tounderstand it and from what you are saying, you don't.If it were only this simple. First of all, the only way that people coulddrive uip the price this way is if the supplies are limited which accordingto you, they are not. Then there is a SIGNIFICANT risk of loss driving upthe price in a market that has a ready supply because someone else can sellbelow what you even paid for it is supplies are plentyful. This is only thebeginning and I really don't have the time to list out point by point whythis is wrong and you really need to do a little reading. The only thingthat I will say that the only way for the futures of something to be drivenup like this is because the near future availability of of the item isbelieved to be in SHORT supply.The price is always determined by the market Max. If people will not paythe price that you want, then you lose money.

Re: Fuel Price

Aug 31, 2005 22 Replies

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TBone 20 years ago

LOL, you really need to pull your head out of the sand Miles. You keep saying Global and yet refuse to admit that we are not only part of the global economy, but the biggest user of it. China is not the only country on the rise when it comes to use and are not the only ones to blame for the increase. The funny thing is that you and Maxi (but mostly you) keep claiming that there is no shortage or even strain on the supply and if that were true, how would China or anyone else cause this steep rise?

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miles 20 years ago

You're mixing two things up. Supply of oil, and supply of gas. China's use of oil has skyrocketed the past couple of years. Thats by far the single biggest cause of oil price rises. The gas supply in the USA has been steady. There have not been shortages at gas storage facilities. USA usage of gas or oil is not why oil prices have shot up.

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TBone 20 years ago

The gas supply HAS NOT been steady and over the past three months has dropped to record lows for this time of year. Perhaps that has to do with the automotive manufacturers employee pricing and a huge bunch of idiots buying the biggest SUV's and trucks that they can. While China's use of oil has significantly increased, ours has gone up more than usual as well so we in fact are to blame for the increase in the price of oil just like any other significant user. But that still doesn't answer the question I asked you. If the supply of oil is not strained, how would China, us, or any one else's increase in demand cause the price to shoot up that way?

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