$oil down $gas up - wth

Don Quixote

Don Quixote

cancer survivor
Contributor
i guess it is because they can

the price of oil is down but the price of gas has risen $0.23

demand for oil and gas is also down

wth
 
the oil companies are just being patriotic. The higher fuel prices will boost the economy on paper. Just like they did for the last few years.
 
We won't sell it to at a loss. So we shut down some refineries for maintanance. $2 gallon your stealing it.
 
uscitizen said:
Yeah well since they announced that production but oil has gone from around $100/bbl to around $43/bbl.
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That's because speculators know the party is over. You risk losing money if you purchase future contracts. right now, or for the last few months anyway. It seemsw like it found bottom and as the value trends up as production is cut, you'll again see speculation driving prices up. It's really not too hard to figure out investors. If it looks like the price is going to go up, it will as they all race for the limited resources, the oil futures.

There are other factors also, but it seems ike speculation drove the bubble up and the producers wanted to see it kept that way. They're doing everything they can to get the price back up so speculation will resume and they can further profit.


They have enough wealth to wait it out
 
but ...but just a few months ago the exspurts claimed speculation was not really impacting the price.


btw I agree with you tin, mostly specualtion driven.
 
uscitizen said:
but ...but just a few months ago the exspurts claimed speculation was not really impacting the price.


btw I agree with you tin, mostly specualtion driven.
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Yeah, I remeber hearing that, but it was obvious to anyone with half a brain that speculation drove the bubble. Perhaps this expert had some oil futures in his portfolio and didn't want to see that sector become regulated. Who knows? I know I don't trust "experts" anymore. I bet Madoff was considered an expert in his field too.
 
tinfoil said:
Yeah, I remeber hearing that, but it was obvious to anyone with half a brain that speculation drove the bubble. Perhaps this expert had some oil futures in his portfolio and didn't want to see that sector become regulated. Who knows? I know I don't trust "experts" anymore. I bet Madoff was considered an expert in his field too.
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As I recall Madoff was near god status among the investment gurus.
 
tinfoil said:
That's because speculators know the party is over. You risk losing money if you purchase future contracts. right now, or for the last few months anyway. It seemsw like it found bottom and as the value trends up as production is cut, you'll again see speculation driving prices up. It's really not too hard to figure out investors. If it looks like the price is going to go up, it will as they all race for the limited resources, the oil futures.

There are other factors also, but it seems ike speculation drove the bubble up and the producers wanted to see it kept that way. They're doing everything they can to get the price back up so speculation will resume and they can further profit.


They have enough wealth to wait it out
Click to expand...


Speculation hasn't gone away, not in the least. It simply changed sides. Now oil is undervalued based on supply and demand. You just don't hear people bitching about speculators when the speculators are working in their favor.
 
one of the few things you are right on
wasnt oil near 60 before the crazy run up.
Also our production goes down every year so the effects of a real or percieved shortage can be much more dramatic next couple of times.
 
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