oil possibly going to $28 a barrel????

[K-Mart]

Milk costs $3.50/gallon and it just comes straight out of a cow from Wisconsin. Oil has to undergo an expensive refinery process to make gasoline. If it's imported, it has to travel across an entire ocean. $2.30/gallon of gas is still a pretty good deal.


Funny!!!!!!!!! And true!!!!!!

 

[Paul R. Smith]

Milk costs $3.50/gallon and it just comes straight out of a cow from Wisconsin. Oil has to undergo an expensive refinery process to make gasoline. If it's imported, it has to travel across an entire ocean. $2.30/gallon of gas is still a pretty good deal.


Funny!!!!!!!!! And true!!!!!!

Maxim magazine said venezuela pays .14 cents a gallon so thats a really good deal. And there right about everything else.

 

[enigma]

Please elaborate how "the hedge fund people" are making a killing? You really think hedge fund traders can manipulate the price of oil? You kidding me right? You actually think that?

Oil price is affected by two things, PERIOD

1. Physical supply, how much physical oil indeed exists on the planet
2. PERCIEVED supply, or "perception of Point 1" above

NOTHING ELSE

if people get scared by pipeline explosions in Iraq, reports of not-decreasing SUV sales, reports of China drinking oil away, the price goes up, for REASON 1 and/or REASON 2 above. NOTHING ELSE

Now, are hedge fund people making a killing? YES, but it is for the reasons above, they "ride the trend" and put money in the bank on it. I know, I trade Crude Oil Futures.

later

You protesteth too much. You're correct that the price is as dependant upon percieved supply as it is true supply, but the perception is in the eyes of the traders, not the final consumer.

In a normal supply / demand situation, the final consumer sets the price. In the oil and gas business, the supply is set by the OPEC types, and demand is "forecast" by the traders.

If the hedge fund people are not making a killing, then why do the speculate? It seems to me that they are only making more money for the oil exporting countries, and costing consumers billions...............or, they're making money. The second possibility makes more sense than the first.

enigma

 

[satpak77]

You protesteth too much. You're correct that the price is as dependant upon percieved supply as it is true supply, but the perception is in the eyes of the traders, not the final consumer.

In a normal supply / demand situation, the final consumer sets the price. In the oil and gas business, the supply is set by the OPEC types, and demand is "forecast" by the traders.

If the hedge fund people are not making a killing, then why do the speculate? It seems to me that they are only making more money for the oil exporting countries, and costing consumers billions...............or, they're making money. The second possibility makes more sense than the first.

enigma

the hedge fund people ARE making a killing, but not by controlling price

if they could CONTROL price or DETERMINE price, oil would be $500 a barrell

later

 

[General Lee]

the hedge fund people ARE making a killing, but not by controlling price

if they could CONTROL price or DETERMINE price, oil would be $500 a barrell

later

How about that Goldman Sachs jacka$$ that stated "Oil could go to $105 a barrel"? Didn't that jack up the prices, even for one or two days? His firm made a lot of money that day alone. Other analcysts said that was crazy and that that might happen if we had a nuclear war with Iran.......


Bye Bye--General Lee

 

[satpak77]

again, PERCEPTION of supply affects prices.

Goldman Sachs Analyst Arjun Murti did not just blindly claim $105 oil was around the corner, he observed that he believed it would occur due to world supply and demand.

Could he be wrong? Sure, of course. However, we should not get worked up over the uncontrollable future. TODAY, oil is at $53 a barrell. What does the future hold for oil? Who knows.

PERCEPTION of supply affects prices. PERCEPTION IS reality. It does not matter what really is reality. If a rumor is spread on CNN and FOX that all the apples in Albertsons were sprayed with some fatal chemical, guess what happens to apple prices over at Safeway? Did the physical, true, apple-count in the stores drop? Of course not. But prices rise, since the amount of "safe to eat apples" is perceived to be less, and Safeway's Apples become sought-after and more expensive. As actual buying increases and people "stock up" on purportedly safe apples, the supply could indeed be affected, causing prices to rise further.

Lets say oil drops to $40 a barrell this summer (it wont, but lets say it does...).

Everyone, on a worldwide basis, celebrates and takes summer vacations, drives to Grand Canyon, airlines loosen up fuel miser programs, etc, etc. INCREASED DEMAND from the "pre-high oil price period" now saps supply, and this pushes prices back up.

sorry to rant but thats how I see it

observe I am not claiming to be correct or predict the future, however those are my observations as I see them

later

http://www.prophet.net/analyze/sc.jsp?symbol=CL0505