GOP News Flash: The real reason for soaring gas prices

[alan1]

Am I on ignore, ABS? The feds make 18.4 cents.
Fuel taxes in the United States - Wikipedia, the free encyclopedia

Profit for the oil companies is 9 cents a gallon

Damn the REP system...!

You mean.......you waited until Meister came to bail you out.

I'm still serious though Meister, I'd be willing to bet that at the end of the 2nd quarter this year, oil companies will be posting record profits again.

Just wait.

And paying record dividends to owners of stock.
It is almost impossible to have a 401k or mutual fund and not benefit from dividends paid by oil companies.

However, I would like to point out the fallacy of your "record profits" statement. Oil companies actually have a very low profit margin when compared to many business' and other industries. For example, Apple has a profit margin of 28.2%, whereas Exxon has a profit margin of 9.47%. Apple is almost 3 times as much, yet I see all kinds of threads bitching about oil company profits and almost none bitching about Apple's profits.

 

[Mr. Shaman]

There has been a lot of blame for oil prices on President Obama lately.
The GOP needs to emphasize this point in order to sway voters.

But when we look at the facts, there are simply too many speculators profiting from soaring gas prices.

They had a great segment, on.....

...Up w/ Chris Hayes...

....this morning (probably much-more preferable, for Teabaggers; no reading, required), regarding what prompts higher-prices!!!!​

 

[Foxfyre]

I'm still waiting for someone to explain Canada. They produce more oil than they consume and yet their gas isn't any cheaper than ours. Why?

Because they prefer to sell it as a "global" commodity.
They don't have to do that, but it's about the money.

But.....the price of gas in Saudi Arabia is less than a dollar and in Iran it's just a little more expensive than S.A. But their oil company is run by the government.

If we drilled and produced we wouldn't have to tie it to the "global commodity", but we would because our oil companies are privately owned

And the last I heard, Venezuela was selliing gasoline to its own people for like 25 cents a gallon or something like that. Of course the oil they sell to us is considerably more than it costs to produce a barrel of our own oil.

 

[NYcarbineer]

Yeah. We got that. Oil is up to about 106/barrel. That's high.

Fossil fuel is a world market. Do you think that this country exists in a vacuum?

I'm not the one blaming Obama, so apparently I'm one of the few who does know that around here.

It's not like it's all his fault or not his fault at all.

He can be a huge part of the problem or a huge part of the cause compared to the average person. From his record, I'd lean toward the part of the cause.

Which is irrational.

 

[Mr. Shaman]

Damn the REP system...!

You mean.......you waited until Meister came to bail you out.

I'm still serious though Meister, I'd be willing to bet that at the end of the 2nd quarter this year, oil companies will be posting record profits again.

Just wait.

And paying record dividends to owners of stock.
It is almost impossible to have a 401k or mutual fund and not benefit from dividends paid by oil companies.

However, I would like to point out the fallacy of your "record profits" statement. Oil companies actually have a very low profit margin when compared to many business' and other industries. For example, Apple has a profit margin of 28.2%, whereas Exxon has a profit margin of 9.47%. Apple is almost 3 times as much, yet I see all kinds of threads bitching about oil company profits and almost none bitching about Apple's profits.

Ah, yes.....let's talk percentages, rather than those.....

.....nasty, ol' DOLLAR-FIGURE$!!!!!

 

[philsings33ss33]

Gee instead of but but but Bush, it's now but but but the GOP. lol

 

[Toddsterpatriot]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

 

[NYcarbineer]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

If oil traders and various other financial institutions are bullish on the price of gas they will buy up gas futures contracts; the demand for the contracts pushes up their prices.

They might, for example, want to be heavily long in oil and gas in anticipation of some sort of blow up in Iran.

 

[Toddsterpatriot]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

If oil traders and various other financial institutions are bullish on the price of gas they will buy up gas futures contracts; the demand for the contracts pushes up their prices.

They might, for example, want to be heavily long in oil and gas in anticipation of some sort of blow up in Iran.

Yes, their demand for contracts pushes up the value of the contracts.
So how does that push up the price of gas?
The financial institution doesn't take delivery of the gas.
They don't consume the gas.
So how do they raise the price?

 

[whitehall]

Crude oil prices are a futures game. People invest and drive up the price because they assume that oil prices will go up. What would cause them to believe that oil prices will go up under the Obama administration? Look around you boobs.

 

[Mr. Shaman]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

...Up w/ Chris Hayes...

​

 

[Toddsterpatriot]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

...Up w/ Chris Hayes...

​

You're not going to explain?

 

[Papageorgio]

In short, the massive oil corporations and Hedge Fund managers are the real culprits.

How do hedge fund managers make the price of gas go up?

Could some ignorant liberal explain it to me? Thanks!

...Up w/ Chris Hayes...

​

You're not going to explain?

Libs don't want to be questioned, you are supposed to take their word for it.

 

[alan1]

Crude oil prices are a futures game. People invest and drive up the price because they assume that oil prices will go up. What would cause them to believe that oil prices will go up under the Obama administration? Look around you boobs.

So is orange juice, hog bellies, cotton, coffee, wheat, corn and hundreds of other things.
I find it funny that some people are only concerned about oil (or energy) futures.

 

[Big Fitz]

Crude oil prices are a futures game. People invest and drive up the price because they assume that oil prices will go up. What would cause them to believe that oil prices will go up under the Obama administration? Look around you boobs.

So is orange juice, hog bellies, cotton, coffee, wheat, corn and hundreds of other things.
I find it funny that some people are only concerned about oil (or energy) futures.

Too many people need to watch "Trading Places".

[ame=http://www.youtube.com/watch?v=7EjdC0pjo1A]Billy Ray Valentine learns commodities - YouTube[/ame]

 

[percysunshine]

Too many people need to watch "Trading Places".

The future price of a 'Trading Places' DVD just went up.

 

[KissMy]

Speculators can't drive up oil prices unless they have the means to store the oil outside of the commodities market. Inventories are below expectations & the Baltic Dirty Tanker Index is low which means speculators are not renting oil tankers to store oil off-shore. There is a supply problem brought on by government!!!!!!!!!!!!!!!!!!

 

[Big Fitz]

Too many people need to watch "Trading Places".

The future price of a 'Trading Places' DVD just went up.

Five dollars... I think I'll go to the movies. By myself!

 

[NYcarbineer]

Crude oil prices are a futures game. People invest and drive up the price because they assume that oil prices will go up. What would cause them to believe that oil prices will go up under the Obama administration? Look around you boobs.

So is orange juice, hog bellies, cotton, coffee, wheat, corn and hundreds of other things.
I find it funny that some people are only concerned about oil (or energy) futures.

Nobody is betting on an Israeli attack on Iran driving up the price of orange juice.

 

[alan1]

Crude oil prices are a futures game. People invest and drive up the price because they assume that oil prices will go up. What would cause them to believe that oil prices will go up under the Obama administration? Look around you boobs.

So is orange juice, hog bellies, cotton, coffee, wheat, corn and hundreds of other things.
I find it funny that some people are only concerned about oil (or energy) futures.

Nobody is betting on an Israeli attack on Iran driving up the price of orange juice.

They aren't betting on a harsh Florida winter to do it either, but it happens. (Oh, and fungicide in south america changes US orange juice consumption also, who knew?)

Edit to add:
There are lots of ways different events can cause commodity prices to swing one way or another. Speculators just react to those events. It's no different than how before the year 2000 hit, many people purchased some extra gasoline 'just in case' and kept it in their garage or shed. They were speculating.