And yet gasoline prices rise - Page 5

Tchocky · 03-03-12, 02:59 PM

Would those in favour of stopping speculation in oil futures also want to restrict trading in other commodities?

I mean,oil price is a function partly of speculation, yes. But look at what that speculative industry uses for a basis - expected supply, expected demand, and the prime movers of both.

That's why hearing a USA presidential candidate talk about war with Iran and reducing gas prices in the same breath is ridiculous.

jumpy · 03-03-12, 04:26 PM

Quote:

Originally Posted by Sailor Steve

Your government, on the other hand, adds five times the amount that ours does.

ya rly

I think I already mentioned fuel duty and its place here in the UK.

Quote:

lets be clear: were it not for each and every government here adding 2/3's of the cost of every litre of fuel at the pump as tax/fuel duty, I wouldn't have half as much to lambaste as I do

I hate quoting myself.

yubba · 03-03-12, 05:12 PM

Gas Prices in California rise 25 cents this week, so how's that workin out for you ???????

Torplexed · 03-03-12, 05:16 PM

Quote:

Originally Posted by yubba

Gas Prices in California rise 25 cents this week, so how's that workin out for you ???????

Tchocky · 03-03-12, 05:19 PM

Quote:

Originally Posted by yubba

Gas Prices in California rise 25 cents this week, so how's that workin out for you ???????

Summer is coming.

Every year gas prices rise as the summer demand racks up. Now, you've got a lot else going on in the oil production world, OPEC keeping production steady as Syrian unrest gets worse and talk of military action between Israel and Iran heats up. Election season in Teheran and Washington doesn't do much to easy this kind of thing.

Also the damn stuff is running out, which means it's not going to trend cheaper.

Sailor Steve · 03-03-12, 09:42 PM

Quote:

Originally Posted by jumpy

ya rly

I think I already mentioned fuel duty and its place here in the UK.

I hate quoting myself.

I was responding to a specific post, and didn't remember reading the other one. Sorry if I'm too stupid to take part in a conversation.

Buddahaid · 03-04-12, 01:38 AM

Quote:

Originally Posted by yubba

Gas Prices in California rise 25 cents this week, so how's that workin out for you ???????

I get 41mpg so not as bad as you might expect.

mookiemookie · 03-04-12, 08:28 AM

Quote:

Originally Posted by Tchocky

Would those in favour of stopping speculation in oil futures also want to restrict trading in other commodities?

That's a good question. I would probably limit it to oil, since I feel it's such an important commodity to our nation. You could make a good case that it's a matter of national security. We can make do if the price of hog bellies got so high that we had to cut back bacon consumption. Precious metals are used a lot in construction and electronics, but I would bet that since they're used in such small amounts in those applications, we could probably survive a speculation-fueled price hike in them. I don't have any evidence, but I bet something like the price of copper adds little to the final cost of say, an iphone.

In any case, instituting volume limits or financial disincentives to excessive speculation in oil would probably be the best way to help stabilize prices.

Quote:

I mean,oil price is a function partly of speculation, yes. But look at what that speculative industry uses for a basis - expected supply, expected demand, and the prime movers of both.

The laws of supply and demand aren't the drivers of speculation that you think they'd be, and when they are, they're amplified into wild price swings. Here's a chart of US oil production It was at it's highest level since 2003. Yet, during the past two years, we've seen the price of oil steadily increase.

For further proof, here's non-OPEC production and OPEC production. The correlation between price and production has been lost.

Consumption doesn't have much to do with it either - Here it is plotted against price. If we ignore the price spikes from the oil crises in the 70s - a truly supply driven event, there's a pretty good correlation between consumption and price throughout the 90's. Except until we get to the 2000s, when oil speculation took off.

Stealhead · 03-04-12, 01:21 PM

Quote:

Originally Posted by Tchocky

Summer is coming.

Every year gas prices rise as the summer demand racks up. Now, you've got a lot else going on in the oil production world, OPEC keeping production steady as Syrian unrest gets worse and talk of military action between Israel and Iran heats up. Election season in Teheran and Washington doesn't do much to easy this kind of thing.

Also the damn stuff is running out, which means it's not going to trend cheaper.

I am surprised that Yubba does not mention the cost of fuel is Florida I live in FL and so does Yubba(I think he claimed to have at one point anyway) and in Florida the gas prices always go up staring in spring to so they can get all that money from the tourists.I have relatives in Louisiana an drive out a few times a year Florida no matter the time of year always has higher prices than any other Gulf Coast state more so in the summer time yet the Gulf Coast has tons of oil wells and refineries(mostly in Texas) and there is a huge port in Florida where oil is off loaded we are closer to the supply line than other states yet we pay more than we should.

Something you may also notice in the US is that the price of fuel at a gas station right off of the Interstate almost always is .2~.3 cent sometimes as much as .10 more per gallon than a gas station away from the interstate.

Torplexed · 03-04-12, 01:35 PM

Quote:

Originally Posted by Stealhead

Something you may also notice in the US is that the price of fuel at a gas station right off of the Interstate almost always is .2~.3 cent sometimes as much as .10 more per gallon than a gas station away from the interstate.

Gas is generally more expensive near the interstate because real estate prices are higher. It's what the market can bear. Conversely, visiting the "other side of the tracks" can save you money. In nicer neighborhoods, a gas station's overhead tends to be higher than in less savory sections because land is more expensive, as are property taxes. In addition, avoid buying gas near car repair shops. Those prices tend to skew upward.

Stealhead · 03-04-12, 01:48 PM

I don't think that is always the case in the area I live in there is a smaller city with 3 gas stations this city has pretty high value land yet here the fuel runs about 4 cents cheaper than the cost of fuel in another larger city about 22 miles away there the gas stations are on lower cost land yet up there the price is higher the larger city also sees alot more traffic passing through that are not local.

I agree that the cost of property taxes does have an effect but the owner also knows that many people are not gong to drive another mile or so for cheaper gas so they are also taking advantage of that fact as well.

Schroeder · 03-04-12, 02:33 PM

Quote:

Originally Posted by Buddahaid

I get 41mpg so not as bad as you might expect.

Prius?

I get 35mpg in my 20 years old (rusty) beauty.

jumpy · 03-05-12, 04:47 AM

Quote:

Originally Posted by Sailor Steve

I was responding to a specific post, and didn't remember reading the other one. Sorry if I'm too stupid to take part in a conversation.

sorry rough day.. acerbic response error

Catfish · 03-05-12, 07:27 AM

Why not sell oil in other currencies than dollars ?

Just trolling.
Because it's the only measure that keeps the dollar afloat at all. So some were right, the middle east wars were not about oil, but about some countries intending to sell oil in other currencies, now let's see what is Iran up to ?

Sailor Steve · 03-05-12, 10:43 AM

Quote:

Originally Posted by jumpy

sorry rough day.. acerbic response error

As I said privately, sometimes I just react badly. Apologies are mine.

03-03-12, 02:59 PM	#61
Tchocky Navy Seal Join Date: Jul 2004 Posts: 5,874 Downloads: 6 Uploads: 0	Would those in favour of stopping speculation in oil futures also want to restrict trading in other commodities? I mean,oil price is a function partly of speculation, yes. But look at what that speculative industry uses for a basis - expected supply, expected demand, and the prime movers of both. That's why hearing a USA presidential candidate talk about war with Iran and reducing gas prices in the same breath is ridiculous. __________________ [SIGPIC][/SIGPIC]

03-03-12, 05:12 PM	#63
yubba Admiral Join Date: Sep 2009 Location: in a neighborhood near you Posts: 2,478 Downloads: 293 Uploads: 2	Gas Prices in California rise 25 cents this week, so how's that workin out for you ???????

03-04-12, 01:48 PM	#71
Stealhead Navy Seal Join Date: Feb 2009 Location: Kentucky Posts: 5,421 Downloads: 85 Uploads: 0	I don't think that is always the case in the area I live in there is a smaller city with 3 gas stations this city has pretty high value land yet here the fuel runs about 4 cents cheaper than the cost of fuel in another larger city about 22 miles away there the gas stations are on lower cost land yet up there the price is higher the larger city also sees alot more traffic passing through that are not local. I agree that the cost of property taxes does have an effect but the owner also knows that many people are not gong to drive another mile or so for cheaper gas so they are also taking advantage of that fact as well.

03-05-12, 07:27 AM	#74
Catfish Dipped Squirrel Operative Join Date: Sep 2001 Location: ..where the ocean meets the sky Posts: 17,765 Downloads: 38 Uploads: 0	Why not sell oil in other currencies than dollars ? Just trolling. Because it's the only measure that keeps the dollar afloat at all. So some were right, the middle east wars were not about oil, but about some countries intending to sell oil in other currencies, now let's see what is Iran up to ?