Gas prices

TCracing said:
Yes but with a drug like oil and so many junkies you will win more than you will loose. if you have billions and billions in the markets you can (and they do) influence the markets. So any loss on corrections is easily (massively) replaced by the previous earned gains (from the end product) at the pump and at the company. so the loss or correction comes only if when enough bears (from the general population) rally against them in the markets. So If you do not have a monopoly (which is debatable since all the major oil producers are all in bed together / it's the same thing) buying and controlling the the markets is just as influential as controlling the production and creating shortages on demand to drive up prices.

I guess what I am trying to say is that oil companies are fixing prices plain and simple if not outright illegally (which many have tried to investigate with no success) then they are certainly unfairly squeezing the markets. Most likely they are doing both and probably some other stuff in between.
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I don't think you understand what speculation is. Most investors are individuals, and those who invest in oil commodites do so sparingly because it is a high risk investment. Oil companies do not my buy oil shares on the commodities market. Oil commodities only result in profit if the daily price on a barrel of oil happens to be higher than it was when they bought it. There are no dividends like stocks, and their value has nothing to do with oil company profits or sales, or the price of gasoline. It is stricly worth the daily marekt value price of a barrel of oil. I think you are confusing oil commodities i.e. "speculators" with the purchase of oil comapny stocks, which have always been cosnidered a blue chip stock. Yes, they are low risk, and have a very modest and conservative return.
 
sturd said:
Oil production Opec
http://www.wtrg.com/opec/PROD7398.gif

Oil production world
http://www.indexmundi.com/energy.aspx?product=oil&graph=production

Oil price
http://www.wtrg.com/oil_graphs/oilprice1947.gif

Note those big drops in price when Reagan and Nixon instituted price controls
and the recession dropped demand.

Do you check any of the "facts" you cite? The rest of your contentions are equally
flawed.

You can have your own opinions, you can't have your own facts.
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Imaginary links to nowhere do not constitute facts.


Reagan's price controls? Seriously?

The price on a barrel of oil dropped drastically because OPEC couldn't abide by their own agreements with each other which they so successfully used to steamroll the the market during Carter's time. Several OPECers where exceeding their agreed to production quotas. The US government cannot put price controls on crude oil on the world market, and if you force any business to sell under cost or at non-prfit rates, they will move overseas or go out of business. I was operating a gas station during the 80's. Price was determined by the wholesale cost and the area competitors who kept the margin between wholesale and pump price very thin.


Wikipedia, not my favorite source, but probably yours. :

Oil policy[edit]At the beginning of his presidency, Reagan ended the price controls on domestic oil which had been started by Richard Nixon; they had contributed to both the 1973 Oil Crisis and the 1979 Energy Crisis.[36][37] The price of oil subsequently dropped, and the 1980s did not see the gasoline lines and fuel shortages that the 1970s had.[37] Reagan also attempted to make good on his 1980 campaign promise to repeal the "Windfall Profit Tax" that Carter and Congress enacted in 1980 on domestic oil production; he was able to do so in 1988, when Congress agreed that it had increased dependence on foreign oil.[38] The tax was not a tax on profits, but an excise tax on the difference between a statutory "base price" and the market price.[39] Reagan also stopped aggressive pushing of new auto efficiency standard by Carter administration, descended on alternative energy researches started by Carter administration. However, fuel efficiency in cars and light trucks driven by Americans still increased by a larger amount between 1980 and 1990 compared to previous decades or the decades since.[40]
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TimSr90 said:
I don't think you understand what speculation is. Most investors are individuals, and those who invest in oil commodites do so sparingly because it is a high risk investment. Oil companies do not my buy oil shares on the commodities market. Oil commodities only result in profit if the daily price on a barrel of oil happens to be higher than it was when they bought it. There are no dividends like stocks, and their value has nothing to do with oil company profits or sales, or the price of gasoline. It is stricly worth the daily marekt value price of a barrel of oil. I think you are confusing oil commodities i.e. "speculators" with the purchase of oil comapny stocks, which have always been cosnidered a blue chip stock. Yes, they are low risk, and have a very modest and conservative return.
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You are completely missing this or something. And you seem intelligent enough for me to give it one more try at getting my point across, So here goes. The profits are gained by the false inflation of gas prices by the speculation of crude Just as in the past by intentional low production. and anything else (IE. Storm of the century, Scheduled maintenance, Platform worker stubbed his toe) that can be construed to justify inflating gas prices.
The dividends and other earnings are gained directly by the oil companies (not through the commodities "CRUDE" itself) by the obvious increase in fuel not to mention any spread or from already purchased inventory, then you have earnings and profits on other markets IE. flat out earnings stocks, dividends, bonuses, payed and whatever in the oil companies or oil industry related IE Halliburton, drilling companies equipment companies ect.
Thanks for explaining commodities though / for those who might brave those waters. That is best left for the most seasoned investors). HA HA!
So regardless whether or not these Speculative investments come to fruition later. If they do that is just more butter on their bread, The gains from that inflated market have already been realized. and if the speculations come up short Enough bears rally against them to keep them in check then those losses in the speculation end still have been easily offset by those gains previously explained.
Can't make it any more clearer than this. And this fish is no longer biting...
 
TCracing said:
You are completely missing this or something. And you seem intelligent enough for me to give it one more try at getting my point across, So here goes. The profits are gained by the false inflation of gas prices by the speculation of crude Just as in the past by intentional low production. and anything else (IE. Storm of the century, Scheduled maintenance, Platform worker stubbed his toe) that can be construed to justify inflating gas prices.
The dividends and other earnings are gained directly by the oil companies (not through the commodities "CRUDE" itself) by the obvious increase in fuel not to mention any spread or from already purchased inventory, then you have earnings and profits on other markets IE. flat out earnings stocks, dividends, bonuses, payed and whatever in the oil companies or oil industry related IE Halliburton, drilling companies equipment companies ect.
Thanks for explaining commodities though / for those who might brave those waters. That is best left for the most seasoned investors). HA HA!
So regardless whether or not these Speculative investments come to fruition later. If they do that is just more butter on their bread, The gains from that inflated market have already been realized. and if the speculations come up short Enough bears rally against them to keep them in check then those losses in the speculation end still have been easily offset by those gains previously explained.
Can't make it any more clearer than this. And this fish is no longer biting...
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If sturd is the fish you caught on the line, i'm sure your fishing line is turnin smoke right now. zzzzzzzzzzzzzzwreeeeeeeeeeeeeeezezezezeeeeeeeeeeeeeeeeeeeeezzezzererzezeeeeeeeeeeeeeeee
 
GeorgiePorgie said:
If sturd is the fish you caught on the line, i'm sure your fishing line is turnin smoke right now. zzzzzzzzzzzzzzwreeeeeeeeeeeeeeezezezezeeeeeeeeeeeeeeeeeeeeezzezzererzezeeeeeeeeeeeeeeee
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Heck, I'm not even sure what those two are talking about anymore.

Gas $3.45 corner of 84 and Liberty today.
 
gas some somewhere around 3.05 at walmart on rt 62 in canton. diesel was 3.55 or 3.45 if u paid cash or has a walmart card. pumps were lined up. such a shame that were "getting a deal" at these prices. $50 gave me a shade over a half tank. its almost gone now. ughh
 
I think its this coming weekend, BJs wholesale club is offering gas for $2.50 to the first 200 customers... That tells me 2 things. A. They are STILL making a decent buck on the gas at $2.50 a gallon ( no company will lose money on anything). B. BJs is hurting for new memberships. That is all its about, memberships
 
MxFreedom33 said:
I think its this coming weekend, BJs wholesale club is offering gas for $2.50 to the first 200 customers... That tells me 2 things. A. They are STILL making a decent buck on the gas at $2.50 a gallon ( no company will lose money on anything). B. BJs is hurting for new memberships. That is all its about, memberships
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If they were making a decent buck on $2.50 gas, it would not be limited to 200 customers. It is an advertising campaign, and goes into the company ledger under advertising expenses.
 
sturd said:
Heck, I'm not even sure what those two are talking about anymore.

Gas $3.45 corner of 84 and Liberty today.
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TC Racing will have to explain to you how all those speculators who invested in oil at $120 a barrel last year are going to make a killing selling it today at $96 a barrel, because I don't understand it either.
 
TimSr90 said:
If they were making a decent buck on $2.50 gas, it would not be limited to 200 customers. It is an advertising campaign, and goes into the company ledger under advertising expenses.
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The point i was making is their STILL making money at $2.50 a gallon.
 
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