Oil prices climb based in part to hurricane fears

[Stratosphere747]

A little hint here - Profit margin vs. profits....

In the scheme of things, folks should complain about the pharmaceutical companies, instead of the oil companies. Now you want to talk about profits!

Staying somewhat on topic. I can easily see the futures market being moved by some of the talk from the forecasters this year. Will be years before we will ever escape the paranoia of 05.

[hial2]

If it's not a hurricane forecast,it's blend changes,Iran problems,refineries,Nigeria,Chavez,the Democrats,the Republicans,Iraq,Syria,winter snow, summer heat,tornadoes, terrorists,sleet...and a paartridge in a peeeeear tree!!.......

[CrazyC83]

Geez, even this May subtropical low in the Atlantic is forcing oil prices up...imagine what it would be like if there was a Category 5 hurricane sitting in the Gulf...

[MGC]

Oil prices are demand driven. There is plenty of oil just not enough capacity to make gasoline. Oil companies should be expanding capacity to provide an adaquate gas supply. We will be in deep doo-doo is a major refinery has a problem this summer....MGC

[feederband]

Oil companies should be expanding capacity to provide an adaquate gas supply.

Why would they do that...It would cost them money to build it and the price of gas goes down... Its a Lose lose for them...

[MGC]

My brother-in-law works at the Shell Norco refinery. He tells me that when there is a problem with the refinery and they can't make gasoline is costs Shell big bucks in profits. If you were making X dollars for every gallon of product you produced would you not seek to maximize your production? I would......MGC

[BUD]

and yet the oil companies still turn multi-billion dollar profits......

*sighhhhh*

The Fed makes 48 cents in Taxes on the gallon and the companys make something around 8-10 cents on the gallon.Look at your state tax on a gallon of gas.In SC its 17 cents.

[gtalum]

Why would they do that...It would cost them money to build it and the price of gas goes down... Its a Lose lose for them...

It doesn't work that way. The more volume they refine, the more profit they make, no matter what the end price of gasoline is. The oil companies all want to build more refineries. They can't get through the red tape to do so.

[Steve Cosby]

Buy oil stocks.

Best Advice ever found in these here pages.

[jimvb]

The article at the beginning of this thread mentions hurricanes only once and does not say that the price of oil is going up because of the expectation of a bad hurricane season this year.

Oil prices are probably going up because we may have passed peak oil. Four major fields in the world, including an enormous one in Saudi Arabia, are declining in production. Further, the economic boom in this country is increasing demand for oil. This is what will cause $4/gallon gasoline in this country. There is NOT plenty of oil around, at least not enough to increase production with. There are refinery problems, which will increase gasoline prices even more, but that will lower oil prices because oil is worthless unless refined. I think we could be headed for some problems, just before the 2008 election, and if a bad hurricane season like 2005 occurs, prices could head to $6/gallon or even higher, and shortages could develop.

[ALhurricane]

What I find disturbing is that milk is quickly catching back up to gas for price per gallon. Is there that many dairy farms in hurricane prone areas?

[flightwxman]

Farmers are taking on that "oil company mentality"

[Trader Ron]

I get a kick out of folks who think nothing of buying a $3 cup of Starbucks Coffee or a $2 bottle of water,but complain about the price of gas

Gas is a cheap commodity, compared to inflation.

[WeatherEmperor]

I get a kick out of folks who think nothing of buying a $3 cup of Starbucks Coffee or a $2 bottle of water,but complain about the price of gas

Gas is a cheap commodity, compared to inflation.

It is very difficult to compare a star bucks coffee to gasoline. Remember its $3 a gallon, not $3 per tank fill-up. Most of us end up paying around $60 per week for gasoline which is about $240 a month which is about $2880 per year, do you see where Im going with this? But I do see your point though.

<RICKY>

[Trader Ron]

As a Portfolio Manager, I told people to buy commodity stocks in 2001. You would have plenty of $$$ to buy gasoline.

[Stratusxpeye]

What I find disturbing is that milk is quickly catching back up to gas for price per gallon. Is there that many dairy farms in hurricane prone areas?

Milk here at the local walmart has been 3.40 for years. I think it's just floridas milk prices are crazy though. Gas is catching up to milk in our state. Drive to the store to get a gallon of gas and a gallon of milk and you need a $10 bill nowadays.

[WeatherEmperor]

As a Portfolio Manager, I told people to buy commodity stocks in 2001. You would have plenty of $$$ to buy gasoline.

TraderRon, I sent you a PM.

<RICKY>

[feederband]

Why would they do that...It would cost them money to build it and the price of gas goes down... Its a Lose lose for them...

It doesn't work that way. The more volume they refine, the more profit they make, no matter what the end price of gasoline is. The oil companies all want to build more refineries. They can't get through the red tape to do so.

So your saying that the cost of building and running a refinery and having more supply out there(right now I see no gas stations out of gas) which will lower the amout of price per gallon will make them more profit?

I think they are the red tape...

[CajunMama]

I get a kick out of folks who think nothing of buying a $3 cup of Starbucks Coffee or a $2 bottle of water,but complain about the price of gas

Gas is a cheap commodity, compared to inflation.

It is very difficult to compare a star bucks coffee to gasoline. Remember its $3 a gallon, not $3 per tank fill-up. Most of us end up paying around $60 per week for gasoline which is about $240 a month which is about $2880 per year, do you see where Im going with this? But I do see your point though.

<RICKY>

Let's see
a $3 starbucks coffee a day for 365 days...$1095. That's an awful lot of moolah there for caffeine.
My gas costs me $910/year at $3/gallon.

As for $60 per week of gasoline...what and where are you driving???????? I conserve and fill up every 2 weeks for $35. I don't run unnecessary errands and combine many trips into one. I don't leave work for lunch.

[skysummit]

Well, I tank up my company vehicle every single morning for the 5 day work week and it's always between $50 - $60 per DAY. Now, that adds up quickly!