tag:blogger.com,1999:blog-6737941.post112510425175217868..comments2024-01-14T17:27:30.511-05:00Comments on Law, Legislation, and Lunacy: Oil Five-ODavidhttp://www.blogger.com/profile/14364155797420903461noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6737941.post-1125582965279822522005-09-01T09:56:00.000-04:002005-09-01T09:56:00.000-04:00"You see supply/demand don't influence oil and gas..."You see supply/demand don't influence oil and gas prices like it used to."<BR/><BR/>I'm not sure what that means. Unless there's been a technological regression in refining, supply and demand have always influenced the price of oil with a delay considered. (There might be an exception in the early days of gas, when it was rarely used and not that important.)<BR/><BR/>This is hardly atypical of commodities. If you go to the Chicago stock exchange (or any stock exchange, really), you'll notice they have a big tv screen that constantly shows the weather. Why? Because if it <I>looks like</I> a storm will destroy crops or they will get a lot of rain, prices now are effected by that through futures.<BR/><BR/>Similarly, if a report from the Mideast says the production MAY go up, the price goes down. Supply and demand do have an effect on oil now and the futures, thus they play a fundamental role directly and indirectly.<BR/><BR/>"The problem isn't with supply or demand, it's with how the futures are being run. America needs gas, lots of gas...."<BR/><BR/>Case in point: America needing gas is demand. If we were talking about something America doesn't need nearly as much of, like fine china, futures wouldn't be so important. And they're not.<BR/><BR/>"I feel the price we pay for gas should reflect either the original cost or yesterday's price. Not tomorrow's possible price."<BR/><BR/>Be careful. If I buy squash on Tuesday and a big storm on Wednesday destorys half the squash crop, I could sell my squash for much more than the original cost or yesterday's price. And since yesterday's price establishs the starting point for this change, the final price plays a very important role.<BR/><BR/>But why should predictions influence today's price? Because the experts (and lets not kid ourselves, the good ones are experts in oil) are adding to the market's body of knowledge of the commodity, shouldn't they be compensated for it? Just because you don't like the outcome, doesn't mean it shouldn't happen; I never hear people complain when the futures decrease the price of gas.Davidhttps://www.blogger.com/profile/14364155797420903461noreply@blogger.comtag:blogger.com,1999:blog-6737941.post-1125339121871391232005-08-29T14:12:00.000-04:002005-08-29T14:12:00.000-04:00How about a real comment?I missed that part of NPR...How about a real comment?<BR/><BR/>I missed that part of NPR, but I'm wondering if it mentioned oil futures? You see supply/demand don't influence oil and gas prices like it used to. These days oil FUTURES are the most important factor. It takes a long time for oil to get here and be turned into gas. The price paid for a gallon of gas today is not based on the price of the oil it came from. It is based on what the price of oil may be in the future. That is why gas prices skyrocket and then slowly goes down, if it does at all. Do note I didn't include the price of oil today. That only indirectly affects the cost of gas. Today's oil prices influences oil futures which in turn influence today's oil prices.<BR/><BR/>The problem isn't with supply or demand, it's with how the futures are being run. America needs gas, lots of gas, so the risk of exploitation is high and we're seeing it here. I feel the price we pay for gas should reflect either the original cost or yesterday's price. Not tomorrow's possible price.<BR/><BR/>What happens when a news report from the mideast says something like, "which MAY increase oil prices" the cost of gas goes up the next day. But when the price of oil doesn't go up, what happens? The cost of gas doesn't return to previous levels. People aren't refunded for the price difference. If the cost of gas drops at all, it's very little.<BR/><BR/>JasonAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6737941.post-1125110203132049252005-08-26T22:36:00.000-04:002005-08-26T22:36:00.000-04:00WTF? This is new; ads on the comments section. And...WTF? This is new; ads on the comments section. And notice they are all within about half an hour. What's going on?Davidhttps://www.blogger.com/profile/14364155797420903461noreply@blogger.comtag:blogger.com,1999:blog-6737941.post-1125107234773299022005-08-26T21:47:00.000-04:002005-08-26T21:47:00.000-04:00So many Bloggs so little time. Thanks For letting...So many Bloggs so little time. Thanks For letting me leave a comment. <A HREF="http://www.low-carb-ketogenic-diets.com/low-carb-ketogenic-store.html" REL="nofollow">Protein Power</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6737941.post-1125105548034934812005-08-26T21:19:00.000-04:002005-08-26T21:19:00.000-04:00Talk Talk: Who's on the late night shows tonightJa...Talk Talk: Who's on the late night shows tonight<BR/>Jay Leno: Ebert and Roeper, Kathleen Edwards, and Dr. Phil Jimmy Kimmel Live: Hugh Hefner , Louis C.K. , and Jason Mraz Late Night With Conan O'Brien: Ted Danson, Tana Goertz, and Mudvayne The Late, Late Show ...<BR/>Hey, you have a great blog here! I'm definitely going to bookmark you!<BR/><BR/>I have a <A HREF="http://www.Frisco-Online.com" REL="nofollow">Frisco Texas</A> site/blog. It pretty much covers Frisco Texas related stuff. This is a great place to find info about Frisco. Great message board!<BR/><BR/>Come and check it out if you get time :-)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6737941.post-1125105151164402652005-08-26T21:12:00.000-04:002005-08-26T21:12:00.000-04:00Hi, I noticed you have a neat blog. I have one rel...Hi, I noticed you have a neat blog. I have one related to currency trading and learn forex trading online. If you are interested in making money trading the forex, visit <A HREF="http://forex.1st-in-earn-extra-income.com" REL="nofollow">learn forex trading online</A> for some interesting articles.Anonymousnoreply@blogger.com