Stinky The Clown
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Tue Mar-09-10 03:39 PM
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I heard some economic nooz on the radio that I cannot defend or refute ..... gas prices |
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The nooz was that some investors see the economy coming roaring back and as a result are buying up oil futures because they expect demand to climb sharply.
That sounds like one of two things to me: Happy Nooz or laying the groundwork for a sharp increase at the gas pump that will be the result of refineries manipulating supplies, and not anonymous "investors".
Anyone have a better informed opinion than mine?
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NashVegas
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Tue Mar-09-10 03:41 PM
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I'm starting to understand why some assets get nationalized in times of sharp economic crises.
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DJ13
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Tue Mar-09-10 03:43 PM
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2. I think its a question of what they think defines a recovery |
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If the definition is one solely based on increasing the net worth of the top 5% then increasing profits by driving up oil would be a rational objective in their mind.
I doubt they give two shits if the other 95% of the population end up broke so long as they can satisfy their craven lust for more money.
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bluestateguy
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Tue Mar-09-10 03:44 PM
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Everytime there is evidence of an economic rebound oil prices go up, and vice versa.
We often forget that gas prices were over $4 as gallon before the Lehman collapse, and were at $1.40 during the nadir. I would expect that once GDP and employment improve--as they inevitably will--you can expect higher gas prices again.
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sinkingfeeling
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Tue Mar-09-10 03:48 PM
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4. I read that gas (oil) speculation was coming back strong this month. It does indeed mean increases |
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in the price of gasoline so 'investors' can transfer more money to themselves.
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Warpy
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Tue Mar-09-10 03:52 PM
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5. It means bigger fools are still out there |
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Spot market oil futures should be in the $65-70 range about now, varying only with currency fluctuations.
Hedge funds and other institutional investors have bid them up over $80. Joe Gullible thinks he's going to make a killing at that price and Joe Gullible couldn't be more wrong. If he starts getting into it right now, all that institutional money will leave and he'll be left holding the bag.
As usual.
Of course, if I'm wrong and the institutional money doesn't leave, bidding up spot market prices to a ridiculous level is going to stall any recovery we do manage.
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madinmaryland
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Tue Mar-09-10 03:55 PM
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6. $3.50 by Memorial Day. The annual "Spring Swing" spike in gas prices. |
tech9413
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Tue Mar-09-10 05:19 PM
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Speculators are bidding up oil future prices and reactionaries are are saying if the economy picks up, demand will increase. They're both affecting price per barrel of crude and the price at the pump. I can't even follow the BS they do in refining and how that affects price at the pump, but it sure looks like any time there's a glut of oil they have to take a few refineries "out for service" which also raises the price at the pump.
I don't consider my view all that informed, I'm just a pedestrian observer but the trends over the last few decades seem to support my observations.
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DU
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Thu Apr 25th 2024, 07:12 AM
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