Gas prices, thank you President Obama!

[OnePercenter]

Supply and demand set the price of gasoline. If the USA was tapping its massive supplies of offshore and fracked oil, the world supply would greatly increase and the price would go down.

Keeping energy prices high is part of the obama strategy to punish the USA for slavery and its wealth. He is determined to bring the US to its knees and make us a third world nation. Obama hates the USA and everything it stands for.

Worst president in history is a gross understatement. Traitor is more accurate.

Nothing to do with supply and demand, the market of rich and greedy keeps the prices high.

More supply will only increase exports which as of 2013 are more than imports. This will only help for greater profits for oil companies, and will do nothing for pump prices.

 

[OnePercenter]

a barrel of oil was $24 in 2000

three factors between then and now-------supply, demand, and inflation.

futures traders/speculation/consumer sentiment supply/demand

in that order IMO


I was close ..

Unlike most products, oil prices are not determined entirely by supply, demand and market sentiment toward the physical product. Rather, supply, demand and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination. Cyclical trends in the commodities market may also play a role. Regardless of how the price is ultimately determined, based on its use in fuels and countless consumer goods, it appears that oil will continue to be in high demand for the foreseeable future.

Futures traders and speculation ONLY. Consumer sentiment and supply/demand only enter the equation if there are workable alternatives, which for the majority of the country there aren't.

 

[Andylusion]

There is too much money in oil for it to be subject to simple supply and demand. The days of big oil and associates my be more sophisticated and but its still here, and making sure their boys in government vote correctly.

More money being involved, doesn't change the fact it is supply and demand. In the 90s, they said prices would go up and up forever. Then Asian economies crashed, demand went down, and I remember filling my car for 78¢ a gallon.

Equally, in the late 2000s, Exxon issued an internal memo, explaining the reason they were not investing millions into alternative energies, like BP, Shell and others were, is because they had no idea what oil prices would do in the future. The risk of having prices fall, and their investments in alternative energies, was too high.

The idea that 'big oil' and the 'boys in government' have any control over the market, is just flat out false, and ridiculous.

 

[Andylusion]

three factors between then and now-------supply, demand, and inflation.

futures traders/speculation/consumer sentiment supply/demand

in that order IMO


I was close ..

Unlike most products, oil prices are not determined entirely by supply, demand and market sentiment toward the physical product. Rather, supply, demand and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination. Cyclical trends in the commodities market may also play a role. Regardless of how the price is ultimately determined, based on its use in fuels and countless consumer goods, it appears that oil will continue to be in high demand for the foreseeable future.

Futures traders and speculation ONLY. Consumer sentiment and supply/demand only enter the equation if there are workable alternatives, which for the majority of the country there aren't.

Futures markets, and speculation, has no effect on market price.

None.

At the end of the day, the supply and demand, determines the price. You can speculate all you want, and if the prices falls, no amount of speculative buying is going to change the price.

 

[Ravi]

Kids are back in school. where I live that signals the end of the summer driving period. Maybe not on the planet libtardia where you live.

Summer weight fuel vs. winter weight fuel. Get a clue before your brain turns to mush.

Oops, too late.

OMG, you really are a fool. Yes, summer gas is formulated differently from winter gas. The difference is greater in some states than others. But that does not change the fact that demand goes down once schools start back in session.

Sorry, mush brain, but you once again have made a fool of youself on USMB

aw, you've been punked, so sad. Keep spinning though, it's amusing.

 

[Andylusion]

Rick Santelli had a great discussion on this.



Now for those who don't know much about future markets, this can be confusing.

But the bottom line is, if the real price is $80, and I speculate a contract for $120, that contract, doesn't cause the real price to change. So at the end of the contract, I lose my shirt... or roll it over. If I roll it... I can delay the sell, but it still doesn't change the real price.

All contracts have to come due at some point. The oil is delivered at some point. They can't hold it indefinitely for numerous reasons.

First, if you are the speculator, and you bought for $120, every single day that the oil sits somewhere, you have to pay money. If you are paying $1,000 a day, and see the price has fallen to $80, you can't afford to sit there with oil dropping in value, while paying a holding charge.

Second, oil isn't static like say a load of steal. You can put steal in a warehouse and hold it forever. Oil degrades over time. So not only are you paying money to hold the oil, but the value of the oil declines if you hold it too long.

So all futures contracts come due at some point. When they do, they sell at the real market price, and the futures contract price, has absolutely no effect.

 

[RoshawnMarkwees]

Obama and the green agenda are responsible for high gas prices, higher consumer goods prices and for the US economy remaining stagnant, at best.
Impeach and exile obama and repeal the EPA.