Author Topic: Gas prices and the vote  (Read 2298 times)

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Offline Mac11700

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Re: Gas prices and the vote
« Reply #30 on: September 30, 2006, 08:08:08 AM »
http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&c=MGArticle&cid=1149189653884&path=%21business&s=1045855934855

http://www.gainesville.com/apps/pbcs.dll/article?AID=/20060430/EDITORIALS0102/204300346/1098/editorials..read carefully...this is from the second link and quoted from Dan O'neil of xpresstrade.com...
Quote
Others see clear speculation.
"I think there's more at work here than the simple fundamentals of supply and demand. I think speculation has been driving some of these markets higher," said Dan O'Neil, partner in Xpresstrade.com, an online trading firm in Chicago that caters to individuals who are investing in commodities.

O'Neil thinks the speculation is coming from hedge funds, which pool money from private, often wealthy, investors. Hedge funds tend to take bigger risks, but offer investors greater financial rewards.

It's unclear how much money hedge funds have in oil contracts, which are weighted at 1,000 barrels of oil each, or about $72,000 per contract at today's prices. The Commodities Futures Trading Commission provides little detail about who invests in oil contracts; it discloses only the broad categories of commercial and noncommercial positions.

Commercial positions are traders who have stakes in the delivery of oil, either as sellers or buyers. These include oil producers and refiners, who use the futures market to hedge against falling prices in oil, diesel and gasoline. They also include users of petroleum products such as manufacturers and airlines, who hedge against prices going higher in the future.

And with the profit's in the billions per quarter...guess where a-lot of their money is getting re-invested....it sure as  h***  ain't in the equipment...

Mac
You can cry me a river... but...build me a bridge and then get over it...

Offline gimphunter

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Re: Gas prices and the vote
« Reply #31 on: October 01, 2006, 10:08:24 AM »
Tim,

Gasoline prices rise in the spring and fall at the end of the summer driving season, whether Republican loyalists say so or not. Your charts show crude futures, not gasoline prices.

D

Offline DWTim

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Re: Gas prices and the vote
« Reply #32 on: October 01, 2006, 10:23:23 AM »
Absolutely, and I made no effort to hide it. Are you suggesting that a downward trend in the price of crude will not effect the price at the pump?

Offline gimphunter

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Re: Gas prices and the vote
« Reply #33 on: October 01, 2006, 03:08:24 PM »
No, I'm asserting that your graph of crude futures is irrelevant because it does nothing to refute the fact that gasoline prices are seasonal.

In the late summer, demand for gasoline declines because people drive less, and refiners begin to refine less gasoline and start building inventories of heating oil for the winter months. The reverse is true when the weather warms in the spring. People stop heating their homes, and drive more, so refiners refine more crude into gasoline and less into heating oil. These seasonal fluctuations may or may not change the seasonal demand for crude itself. That's one reason crude prices don't track the same seasonal path as gasoline prices. Of course, rising or falling crude prices can counteract or add to the seasonal trend of gasoline prices.

If you still think gasoline prices aren't seasonal, try your ten-year chart trick with them. (I did like the chart trick.)

D

Offline DWTim

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Re: Gas prices and the vote
« Reply #34 on: October 01, 2006, 04:08:01 PM »
Ah, I see what you mean. It may take a little while to put together charts for the national average for gas prices at the pump, since they're apparently harder to find.

Also: I did the chart that way because I realized it was a whole lot easier than posting 10 pictures. ;)

Offline Echo4Lima

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Re: Gas prices and the vote
« Reply #35 on: October 02, 2006, 07:49:56 AM »
Summer, You just cant tell some people.  I have run out of breath trying to explain the market controll on gas prices to some.  Lundberg report for example. It goes against WHAT they WANT to believe, so it doesnt get thru! 

Its so much easier to believe some things are a conspiracy.  Easier to accept I guess.

Offline Echo4Lima

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Re: Gas prices and the vote
« Reply #36 on: October 02, 2006, 07:58:44 AM »
BTW, I was trying to explain the market pricing to a guy I know that just didnt want to hear it.  Finally, I lost it and asked, "what do you think they're doing? Sitting around the Motel 6 smoking Havanas' plotting all this out?" 

He responded, "No! They would be at the HILTON not the Motel 6 !!"

I think he was serious!!