Oil Speculation

cawacko said:
I'm not all that well versed on oil speculation but I thought this article did a pretty good job of breaking down what is occuring.
Are speculators to blame for soaring gas prices?

http://www.washingtonpost.com/blogs...-woes/2012/03/05/gIQAqMS8sR_blog.html#excerpt
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It is truly comical that every time the speculation drives prices ABOVE the current supply demand equilibrium price that everyone gets all pissy about speculators. Yet when the opposite occurs and speculators drive prices below the current supply demand equilibrium... no one says a fucking word.

That said, the article does do a good job of discussing the issue. Democrats just use big oil as a whipping post. They want the environment of hate towards big oil to take the heat off of their part in rising oil prices.

One nice point in the article... anyone bitching about the 'excessive speculation' in nat gas right now?
 
General Buck Turgidson said:
Yes, they are. Whether the speculation is warranted is a separate question, but there can't be much doubt that speculation is driving up prices.
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Read the question Dung... the question is are they to BLAME for the soaring gas prices?

The price of oil has not been skyrocketing. It has been in the same seasonal pattern it was last year. Yet the prices of gasoline did not soar like they have been. Speculators are betting on oil in general. They are not driving gasoline prices other than the seasonal shift in oil prices (which almost always increases heading into summer.)
 
Superfreak said:
Read the question Dung... the question is are they to BLAME for the soaring gas prices?
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I read it. What's your point? The answer is yes.


Superfreak said:
The price of oil has not been skyrocketing. It has been in the same seasonal pattern it was last year. Yet the prices of gasoline did not soar like they have been. Speculators are betting on oil in general. They are not driving gasoline prices other than the seasonal shift in oil prices (which almost always increases heading into summer.)
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The spike came early this year than is has in the past because of speculation about future supply.
 
OK dummycrats I'm only going to teach you 1 or 2 more times.
It's all suplly and demand other than short term spikes and crashes. Want to know why the wall street scape goat is 100% wrong?
Brent crude $17 higher than WTI and they are both the highest quality and normally priced the same. World supply is in tighter demand than US supply!!!
Please don't treat economics like it's the Irish potato famine Dummycrats!
 
The Dude said:
OK dummycrats I'm only going to teach you 1 or 2 more times.
It's all suplly and demand other than short term spikes and crashes. Want to know why the wall street scape goat is 100% wrong?
Brent crude $17 higher than WTI and they are both the highest quality and normally priced the same. World supply is in tighter demand than US supply!!!
Please don't treat economics like it's the Irish potato famine Dummycrats!
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It's all about supply and demand AND expectations about future supply and demand. You left the latter part, where the speculation comes in, out of the picture.
 
Superfreak said:
If you were, then you wouldn't be stating that it is speculators driving up the cost of gasoline right now.

Again... why is gas spiking so hard on the coasts but not in the 'fly over' states?
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Here's a chart:

68589697.jpg



The trend line for the national average is the same as the trend line for California. Prices are increasing everywhere. Colorado has unique circumstances that keep prices particularly low, but the rest of flyover country isn't so lucky.
 
Probably a stupid question but why is ARCO gas cheaper than Chevron/Shell/Exxon etc.? Is it because of the additives (sp?) they do or don't put in their gas and if so are you hurting your car using ARCO gas vs. the others?
 
General Buck Turgidson said:
Thank you. Look, I understand the Colorado has the lowest gas prices in the country right now, but that doesn't mean that spiking gas prices are a coastal phenomenon. They aren't.
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Thank you straw man maker. I didn't say they were a coastal phenomenon. I stated the rates on the coasts are typically spiking at a faster pace and asked you to explain why. You then showed us a wonderful graph of CA and the US and said 'see they about da same'. The comparison you should have been looking for is CA and other coastal states compared to those in the Gulf Coast, Rocky Mountains, midwest/plains.

It was the variance there that I was asking you about.
 
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