OT: An open letter to the oil companies

Tegger wrote in news:Xns99A3D040E66A6tegger@

Sorry, should have said "is RELATED" to the mercantile exchange price.

The exchange price is just the base stock (raw material) cost, of course, so you need to add all the other expenses in there to arrive at the pump price.

"JoeSpareBedroom" wrote in news:ST1Ei.15586$ snipped-for-privacy@news01.roc.ny:

They don't have to be in the oil business any more than I have to be in IT to purchase shares of Microsoft.

You're referring to what are commonly known as "speculators". Speculators have limited effect, and on aggregate suffer as much as they gain. They too are making predictions on the future, predictions that are bound to be wrong from time to time.

Either speculators "price in" changes earlier than they otherwise might, or cause short-term swings in prices. If the underlying information is faulty that allowed the swing to take place (or if there was no info to begin with), there is always a correction.

Speculators cannot by themselves force long-term changes in prices, but they can make themselves some extra cash if they're lightning quick and pick their battles.

Nothing is that complex for a liberal. NOTHING.

They have all the answers! Remember that.

Tell us about being fired from a major brokerage firm, Joey...

Where do you get gas from genius?

I'll try and find an article I read, in which Alan Greenspan commented on this. Speculators can, in fact, affect trading in odd ways.

Seems are lefty kook friend Joe has been drinking the kool-aid again LOL

mike

Hunter, you senile old piss ant, perhaps someday, you will read something other than the Sunday comics.

Your tinfoil hat must have slipper over your eyes again LOL

mike