Fuel:Speculation

[Darl-Wilson]

Sorry Ted but this is a discussion about fuel speculation. I agree that there is probably nothing we can do about it but I certainly would like to hear some answers and suggestions about where this is going and how it will affect all of us. Fuel prices are not the only issue but how those prices will impact other commodities is very important.

Jon, you are right about OPEC but they control the supply and when that is impaired and the demand is high speculation follows. This is all driven by the futures market and the traders, many which are OPEC members and US oil companies. This market is a way for them to have predictable prices. Note that some traders are betting on $130 bbl oil all the way to 2010. The benchmark is Brent Crude. A more worrisome futures price is other commodities that rely heavily on oil products for transportation to market or grain used for ethanol. This also impacts milk and lumber prices. Since I am not a commodities trader and know little about this market I will leave it to others who can interpret the meaning of these prices.

I don't think the US oil companies are manipulating the market and these prices are simply a product of supply and demand. (free market again) In spite of what Maxine Waters (Dem CA)threatens, WE NEED MORE OIL here in the USA for oil prices to stabilize. Jon, I agree that a big part of the problem is the extreme environmental movement and our elected officials response to them. I also agree that trying to regulate executive pay is an exercise in futility. Stockholders of these companies will vote out the officials if they are dissatisfied with their salaries. These salaries, in the end, come out of the earnings of the companies, not from an overcharge for the product. Maybe you are right, this whole sordid economic problem will be history soon. I hope so. Also, this is my last post on this subject. (Private mails and phone calls will be accepted)

Darl

[0533]

Sorry Ted but this is a discussion about fuel speculation. I agree that there is probably nothing we can do about it but I certainly would like to hear some answers and suggestions about where this is going and how it will affect all of us. Fuel prices are not the only issue but how those prices will impact other commodities is very important.

Jon, you are right about OPEC but they control the supply and when that is impaired and the demand is high speculation follows. This is all driven by the futures market and the traders, many which are OPEC members and US oil companies. This market is a way for them to have predictable prices. Note that some traders are betting on $130 bbl oil all the way to 2010. The benchmark is Brent Crude. A more worrisome futures price is other commodities that rely heavily on oil products for transportation to market or grain used for ethanol. This also impacts milk and lumber prices. Since I am not a commodities trader and know little about this market I will leave it to others who can interpret the meaning of these prices.

I don't think the US oil companies are manipulating the market and these prices are simply a product of supply and demand. (free market again) In spite of what Maxine Waters (Dem CA)threatens, WE NEED MORE OIL here in the USA for oil prices to stabilize. Jon, I agree that a big part of the problem is the extreme environmental movement and our elected officials response to them. I also agree that trying to regulate executive pay is an exercise in futility. Stockholders of these companies will vote out the officials if they are dissatisfied with their salaries. These salaries, in the end, come out of the earnings of the companies, not from an overcharge for the product. Maybe you are right, this whole sordid economic problem will be history soon. I hope so. Also, this is my last post on this subject. (Private mails and phone calls will be accepted)

Darl

I agree, We have all beaten this dead horse to Death. Thanks Jim for the thread.

PS> Who do you want for our next president?, Just kidding.

[tdelorme]

Sorry Ted but this is a discussion about fuel speculation. I agree that there is probably nothing we can do about it but I certainly would like to hear some answers and suggestions about where this is going and how it will affect all of us. Fuel prices are not the only issue but how those prices will impact other commodities is very important.

Jon, you are right about OPEC but they control the supply and when that is impaired and the demand is high speculation follows. This is all driven by the futures market and the traders, many which are OPEC members and US oil companies. This market is a way for them to have predictable prices. Note that some traders are betting on $130 bbl oil all the way to 2010. The benchmark is Brent Crude. A more worrisome futures price is other commodities that rely heavily on oil products for transportation to market or grain used for ethanol. This also impacts milk and lumber prices. Since I am not a commodities trader and know little about this market I will leave it to others who can interpret the meaning of these prices.

I don't think the US oil companies are manipulating the market and these prices are simply a product of supply and demand. (free market again) In spite of what Maxine Waters (Dem CA)threatens, WE NEED MORE OIL here in the USA for oil prices to stabilize. Jon, I agree that a big part of the problem is the extreme environmental movement and our elected officials response to them. I also agree that trying to regulate executive pay is an exercise in futility. Stockholders of these companies will vote out the officials if they are dissatisfied with their salaries. These salaries, in the end, come out of the earnings of the companies, not from an overcharge for the product. Maybe you are right, this whole sordid economic problem will be history soon. I hope so. Also, this is my last post on this subject. (Private mails and phone calls will be accepted)

Darl

You are right, Darl, the thread is about fuel price speculation. But we all seem to get so worked up about the subject that before you know it we're stumbling around and getting worked up about lots of frustrating issues that are out of our direct control.
Fuel speculation? I spect we'll see $10 a gallon diesel in the next 18 months. We'll look back and think $5 wasn't so bad after all. But I'll tell you what, a lot of us have worked hard and done well and I for one am not going to park the bus because of high priced fuel.
We're gonna go and enjoy what we have worked for even if diesel is twenty bucks a gallon. And woe be unto any tree hugging SOB that thinks I need to be enlightened about my carbon footprint.
See, Darl, there I go getting all worked up. Just part of speculating I guess.

[Judi Brown]

We read where some oil execs. say they have to be able to drill for more oil to bring prices down. Here in Canada we are producing more oil and paying higher gas prices than the USA. So what is the answer, let the oil companys
rob us until we stop buying and they lower price and we get hooked again
and start over again. We are not going to worry about fuel prices, we will worry about something we can control. (Our kids have mileage figured out to the inch )
JB