Well maybe someone in the industry will know. Unfortunately, all those people are most likely trying to survive the hurricane.

I understand basic supply and demand from my econ classes and understand how the futures market works (these is basically just a form of gambling).

The oil industry seems to be the one industry that can get hit with bad news from every angle and turn it into profit. Somewhere (and maybe nothing to do with our government) but nonetheless a group of people have figured this out and are reaping huge rewards.

I read recently where Hollywood is mad at the movie theatres somehow thinking they are responsible for fewer people going to the movies. The movie theatres are saying it is because of the crappy movies. Anyone think it might be because gas has doubled over the last year and maybe people who go to the movies have had to cut back? Talk about morons. Anyone can tell that gas prices are having an impact on the ecomomy. It has never been easier to find a table at a restaurant than the last 3 months. I don't need to wait several months for a government accounting report to come out. I can tell just by going to any 2nd tier chain restaurant.

/Jon

 

I agree. When the cost of living goes up, people cut back on luxury items. The movies have been pretty crappy lately though too[img]i/expressions/face-icon-small-smile.gif[/img]

 

I think the prices will continue to rise till people start cutting back but unfortuantly we all need to buy gas to get to work. I think baseing the prices on the stock market(futures) is stupid and the wrong way to go. I mean why couldn't the oil company have someone buy the futures in oil to raise the price more and keep doing that with the profit they are making. Gas went from 2.79 here yesterday to $3.09 today. That is a bunch of bullcrap. People are gonna start getting pissed soon I'm sure. I mean gas has gone up like 64% this year. Sure gas is cheap compared to elsewhere but I bet if your food or other items went up 64% in less than a year we all would be in major trouble. Which isn't out of the possibilities since everything will start going up soon. People are talking anbout $4.00 a gallon now. WTF man. Someone needs to do something. Like build more refinaries (bush could do it but he would lose profit now so he isn't) or some other ingenious idea but we all know Bush is as smart as a blond so that isn't gonna happen. Nope I predict a recession comming soon within two years and all hell braking lose. So were all in trouble and our comfortable lifestyle most of us enjoy will be no more. Back to the darkages for most people. Enjoy our mess and Bush isn't helping matters nor will he as his past actions tell us.

Lets see.. A fill up at the begining of the year cost me $34 Now it costs me $52.53 a week. Almost $20 more a week or $80 a month. Now people with trucks and such are paying alot more.

My gas can use to cost $10 at the beginning of the year now it cost $15.35 I remeber when it was like $6.00 to fill up my can not long ago. Man that sucks for us 4wheel riders. Plus if you mow ur grass there is most gas cans...Errg.

Plus I feel bad for the hurican victims because this gas increase is gonna take away from alof of people giving to the cause. People should be talking about that but all I hear is about these damn gas prices. Its gonna cause alot of damage. more than we all realize.

Ahh great..Just read another 13cent increase today in the gas futures..Will it ever end?

MSNBC Gas Prices SOAR

Quote From Article:
“Depending on what we learn in the next few days this may be the biggest oil-supply shock since the 1970s. We are now in the days of reckoning,” said Cambridge Energy Research’s Daniel Yergin."

 

Oil prices are not dictated by the stock market. Demand for the oil sets the price per barrell of oil, the stock market looks at how much the major oil buyers are buying and raises the futures price because of that. Oil companies can record record profits because they have expanded their business to include every part of the process, from getting it out of the ground to refining, to gas stations. All intelligent businessmen try to do the same thing, control as much of your product as you can. The only way you can get the gas price down is to reduce demand, use the least amount of fuel that you can, and convince everyone you know to do the same. You would be surprised what will happen once everyone starts cutting back on their driving habits.

 

I heard a report that the average American will not change his/her buying demand until the price hits $5. I have to admit I fall into this category. This is the point where people will make a decision not to drive somewhere because the price of the trip isn't worth it or they can't afford to make the trip. The point where people would even be willing to change jobs, etc.

In the meantime, you will adjust your budget to cover gas. It will mean less business for restaurants, movies, cancelled movie channels, etc. Basically, fuel is a necessity like air and water so it is one of the last things you will cut out. This is happening now which is why oil consumption isn't going down yet while other businesses are getting hit hard. It could put us in a recession at some point. All these other products have to go up in price since all the delivery charges are going up like crazy. Not sure why airline tickets seem to be at all time lows. Anyhow, this is going to compound the problem. The best way to protect yourself is to make sure a good portion of your investments are in the energy sector. At least if the prices are going up, you are making more money off your investments to help cover the increase in prices.

/Jon

 

um gas over here is now $3.19. and is said to be up to $4 by the end of the day. Just 5 days ago gas was only $2.57. This sux.....gas in Iraq is only 3 cents a gallon.

 

wow no more politcal posts

ya my yfz has high compression piston so i mix race gass with premium.....which i also do for the camaro

at least the saleen runs on pump gass

 

An olive branch??? Although I find this amusing I think I will put a branch out there myself. I WILL NOT SAY that you should tatoo stupid on your forehead and save people the time of waiting for you to open your mouth to come to this conclusion. We're still friends hey? Now I have looked at your profile and seen that you are not 15 and you can see I am not either so lets just act like men here and agree to disagree.

 

You have every right to you opinion. I became heated when you mis-read my post, believing I was ripping on Canada.

 

What ever the situation with politics all I know is I'm gettin screwed! I got 2-stroke oil today an it has gone up 6euro a litre in six months and now petrol is 1.30 a litre so it now costs me intoal 6.5 for 5 litres of petrol and 2euro for 2-stroke oil. So every 5litres i put in my zilla or kx costs me 8.5euro!!!!!! you'd notice a hole in the wallet when you are back at school and not workin, I have to get a weekend job!