Oil prices

[TexasBred]

I think the gov't could do things to regulate the price without directly setting it...

For one, the cost at the pump can't go up until new fuel is delivered to the station... I'm sick of every time there's a MINOR disturbance somewhere the gas price at the pump here jumps $.10.. but they will work like heck to not bring it back down.

So why is the oil price low? demand hasn't drastically changed.. we're driving as much (or more) with lower prices.. supply didn't suddenly double... What's the point of OPEC? I have a hard time believing the current blabber in the news that Saudi's are increasing production to make up for the lower prices...

I think we should look at the major powers at play... Who might get hurt the worst from the low oil price? Perhaps Russia? ISIS??.. everyone else is collateral damage in the bid to break Russia.. South American countries are a welcome collateral damage, as is Canada and the midwestern states.

This low oil price is certainly not accidental.

What's killing us all is speculation... from sub prime housing lending, oil speculation, and BEEF speculation.. How can you ever get a stable economy without stable commodity prices?

Nesi any good business man in a position to do so always prices his product on what it would cost to replace it not what he paid for it. The gas you bought yesterday may be based on the price of gas two weeks or a month from now. And sure it will go down slower than it went up. May be his chance to really make a little money especially if competition doesn't force him to go down quicker. We don't need gov't or anybody else telling us how to price our products.

 

[TexasBred]

I think the gov't could do things to regulate the price without directly setting it...

For one, the cost at the pump can't go up until new fuel is delivered to the station... I'm sick of every time there's a MINOR disturbance somewhere the gas price at the pump here jumps $.10.. but they will work like heck to not bring it back down.

So why is the oil price low? demand hasn't drastically changed.. we're driving as much (or more) with lower prices.. supply didn't suddenly double... What's the point of OPEC? I have a hard time believing the current blabber in the news that Saudi's are increasing production to make up for the lower prices...

I think we should look at the major powers at play... Who might get hurt the worst from the low oil price? Perhaps Russia? ISIS??.. everyone else is collateral damage in the bid to break Russia.. South American countries are a welcome collateral damage, as is Canada and the midwestern states.

This low oil price is certainly not accidental.

What's killing us all is speculation... from sub prime housing lending, oil speculation, and BEEF speculation.. How can you ever get a stable economy without stable commodity prices?

Nesi any good business man in a position to do so always prices his product on what it would cost to replace it not what he paid for it. The gas you bought yesterday may be based on the price of gas two weeks or a month from now.

 

[dun]

We don't need gov't or anybody else telling us how to price our products.

SPOT ON!

 

[Caustic Burno]

I think the gov't could do things to regulate the price without directly setting it...

For one, the cost at the pump can't go up until new fuel is delivered to the station... I'm sick of every time there's a MINOR disturbance somewhere the gas price at the pump here jumps $.10.. but they will work like heck to not bring it back down.

So why is the oil price low? demand hasn't drastically changed.. we're driving as much (or more) with lower prices.. supply didn't suddenly double... What's the point of OPEC? I have a hard time believing the current blabber in the news that Saudi's are increasing production to make up for the lower prices...

I think we should look at the major powers at play... Who might get hurt the worst from the low oil price? Perhaps Russia? ISIS??.. everyone else is collateral damage in the bid to break Russia.. South American countries are a welcome collateral damage, as is Canada and the midwestern states.

This low oil price is certainly not accidental.

What's killing us all is speculation... from sub prime housing lending, oil speculation, and BEEF speculation.. How can you ever get a stable economy without stable commodity prices?

Nesi any good business man in a position to do so always prices his product on what it would cost to replace it not what he paid for it. The gas you bought yesterday may be based on the price of gas two weeks or a month from now.

TB your spot on we bought crude 30 to 60 days out when I was at the refinery.
We had to have a half million barrels a day come in port, had storage for one million crude.
So we had a day's buffer if a ship got delayed. I have seen it this time of year the Houston Ship Channel get fog bound and not get a ship in for a week. That one event would impact the world supply of fuel. We also had a unit at the refinery alone made three percent of the US gasoline,let it go down and fuel futures would go through the roof. The reason it made such an impact we are running our refineries at capacity, so your looking at having to purchase the fuel from overseas,
That doesn't get here tomorrow either.

 

[Nesikep]

Then don't complain about $5/gallon gas.. you can't have both.

 

[boondocks]

Then don't complain about $5/gallon gas.. you can't have both.

Yup!
Somehow it always seems that when the price of oil drops a lot, we always hear that retail prices (for gas, fuel oil, planes, etc etc) are still high because they bought it at a higher price! Never seems to work in reverse, do it?

 

[Ryder]

Strange that when price goes down you don't hear people shouting that it is the speculators driving it down. :roll: :???:

 

[Caustic Burno]

Strange that when price goes down you don't hear people shouting that it is the speculators driving it down. :roll: :???:

Our price of energy in this country is cheap compared to the rest of the free world.
Our target profit at the refinery was one penny a gallon over operating cost that ran 7 to 10 cents depending on mechinacal or weather related events.

 

[TexasBred]

Then don't complain about $5/gallon gas.. you can't have both.

No I'll bytch about $5 gas but we can dang sure stand $3 gas all day long with no problem and put a huge number of oil field workers back to work.

 

[skyhightree1]

Then don't complain about $5/gallon gas.. you can't have both.

No I'll bytch about $5 gas but we can dang sure stand $3 gas all day long with no problem and put a huge number of oil field workers back to work.

Then I will have to let some of my workers go cause I'm not a big outfit.

 

[Nesikep]

I just fail to see how wildly fluctuating commodity prices can ever yield a stable economy.

I do think there are speculators driving it down now too, they just don't have their eggs in "that" basket...

 

[TexasBred]

I just fail to see how wildly fluctuating commodity prices can ever yield a stable economy.

I do think there are speculators driving it down now too, they just don't have their eggs in "that" basket...

Prices have fluctuated since creation. About time we all get use to it. And everything is speculative. You buy something speculating that the price will go up. You hold off from buying speculating that prices will go down. Stop and think about it. The very idea of commerce requires this are there would be zero transactions. Very little is guaranteed but there is a world of speculation on all fronts.

 

[TennesseeTuxedo]

I just fail to see how wildly fluctuating commodity prices can ever yield a stable economy.

I do think there are speculators driving it down now too, they just don't have their eggs in "that" basket...

When supply greatly exceeds demand prices will fall. Pretty simple concept.

 

[fenceman]

We don't need gov't or anybody else telling us how to price our products.

SPOT ON!

Yes absolutely spot on. It's their oil they can sell it for what they please. I didn't like paying 5.00 for diesel ,but in honesty it made me hire more employees and work them longer hours.
Had to get more production done in a day to pay the fuel bill. I honestly think fuel is to cheap right now.
People Will gladly pay 1.25 for a pint coke cola
And then bytch about a couple of bucks for something that has to be drilled and pumped from the center of the earth is beyond me.

 

[hurleyjd]

We don't need gov't or anybody else telling us how to price our products.

SPOT ON!

Yes absolutely spot on. It's their oil they can sell it for what they please. I didn't like paying 5.00 for diesel ,but in honesty it made me hire more employees and work them longer hours.
Had to get more production done in a day to pay the fuel bill. I honestly think fuel is to cheap right now.
People Will gladly pay 1.25 for a pint coke cola
And then bytch about a couple of bucks for something that has to be drilled and pumped from the center of the earth is beyond me.

Also a high price for a bottle of designer water. Also every new vehicle put on the road today needs less of the fuel to go the same distance. A lot of cars in the 35+ MPG now. Same reason for buying the Dodge 1/2 ton diesel to better your MPG.

 

[Nesikep]

I just fail to see how wildly fluctuating commodity prices can ever yield a stable economy.

I do think there are speculators driving it down now too, they just don't have their eggs in "that" basket...

When supply greatly exceeds demand prices will fall. Pretty simple concept.

Did you read anything I wrote?

 

[mwj]

If people are still buying and using fuel, why does that cause job reductions? The cost of fuel has nothing at all to do with the amount of people needed to produce it.

 

[TexasBred]

If people are still buying and using fuel, why does that cause job reductions? The cost of fuel has nothing at all to do with the amount of people needed to produce it.

That doesn't even deserve a reply. :???: :dunce:

 

[Caustic Burno]

If people are still buying and using fuel, why does that cause job reductions? The cost of fuel has nothing at all to do with the amount of people needed to produce it.

That doesn't even deserve a reply. :???: :dunce:

Economics. 101

 

[ga.prime]

It's like a broken record with the Saudis over-saturating the market with oil whenever they feel the heat of competitive technologies.