Poll: Will Gas Hit $5/Gal by 4th of July?
Do you think that the price of a gallon of gas will hit $5 or more by the 4th of July weekend? Vote now!
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Don't feel bad. Premium is allready $1.50/ litre here which works out to 5.70/us gallon
Wait till anyone from Britain responds. |
It will if Wall Street and Obama Ya Mama wants it to . :mad:
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That makes me feel so much better. Huh? :D |
it will be worth it if
OBumma is kicked out of the white house
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I felt that it was obvious why gas went to $4.75/gal when Bush was in the White House (Bush familly comes from oil business in Texas) but its not clear to me what's going on now...??
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as much as i like to blame bush for things, the president has little control over the price of gasoline.
the commodities market - where oil is bought and sold plays a large part. speculation raises the price of oil that will be sold months from now. there is an ever increasing demand for oil as more and more people move up and purchase vehicles, populations increase the need for mass transit and homes need to be heated. part of the problem is instability in the middle east - where a lot of oil comes from. instability means fear that prices will skyrocket. OPEC could raise production but they're getting $112 barrel and it's still being purchased (though they've started to voice concerns that it will need to come down soon). Most of the oil purchased in the US comes from Canada, by the way, but is still bought and sold on the global market. as long as someone is willing to pay the prices, they will stay high. |
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Reprobate !
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Imagine you are an airline
burning $25,000 worth of av-gas per minute (Continental/United). And you think that there could be supply disruptions and the price of oil might go up significantly. Don't you think you'd want to buy a contract that would fix your price for future delivery of a large portion of your expected needs as a hedge against the worst happening. And when everyone does that, then the price of the futures contract goes up. And of course financial speculators, loving a volatile market, will speculate exacerbating the rise in prices.
Add in the fact that oil companies have been selling off refineries over the last few years so now refineries are having to buy and so they are hedging too. And when the contracts are exercised and it comes time to pay for delivery, the price of the thing that is produced using that gas goes up. And the BRICs are adding how many cars a day to the world demand for oil. Its the natural supply and demand free-market thing. And no president would ever want gas to go up as that is one of those things that gets presidents to be one term presidents. Some of you are too young to remember the Carter-era gas lines. |
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;) |
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AKL ;) |
Hmmm. How do you explain Exxon/Mobil (and the rest of the oil industry's) record profits during the Bush years?
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AKL |
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1. NObama has more pals in the oil business than Bush did? 2. Since the dollar is worth so much less maybe the profits in real buying power are about the same? 3. Keeping the US dependent on foreign oil helps both terrorist nations and the oil companies profits? 4. The promise to bankrupt coal companies and to triple electric bills keeps driving the price of all energy up? 5. What about the astronomical NEW record breaking revenue for govt.? All of the above tongue in cheek. I am sure we all can come up with more sterling explainable so have at it. AKL ;) |
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I explain alll huge oil company profits during as nothing more than the oil industry grossly taking advantage of our dependence on oil. Nothing more, nothing less - simple good ol' fashioned greed. The oil industry does it because they can and we are basically powerless to do anything about it. We're oil addicts who will pay anything for our fix. |
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Oil companies DO NOT set the price. The trading market does. Always the same old saw, greedy oil companies, never the actions of a greedy govt. Honestly guys chuck your high school and college propaganda, this grows tedious. AKL :confused: |
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If Exxon's numbers are correct (I assume they are easy to check) their profit on gasoline amounted to .02 cents per gallon. Why would you consider that a huge profit. BTW-They pay over 41% of gross profit by way of corporate income taxes. How much SHOULD they make? |
It's been $5.19 on Maui.
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A small handful of producers (OPEC) who set production limits apriori is not a sellers free market.
Equally, a small handful of sellers (Big Oil Companies) who effectively set the market price of gasoline to consumers world wide is not a free market. In a true open market, oil production would rise substantially as soon as oil prices increase. Instead, prices go up and production stays constant. Therefore, the worldwide oil market is not free nor open. Q.E.D. |
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