Here it is, once again the oil markets respond to something that does not yet exist. It's bad enough to have high prices based on global tensions and wars, but when they climb based on a hurricane seasonal forecast? Come on!
http://www.cnbc.com/id/18541192
This is really getting old. But then again, we knew it was coming. Get your horse and buggies ready- you're gonna need them when gas hits $4.00 a gallon later this summer.
Oil prices climb based in part to hurricane fears
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hurricanetrack
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Scorpion
The oil companies will use anything to raise gas prices..... and yet they will not lower the prices when there is nothing going on-
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Tampa Bay Hurricane wrote:Oil companies and middle eastern oil companies make billions
What reason could they possibly have to raise prices more?
Even IF 20 Category 5's formed the oil companies, billionaires
are rich enough to not increase prices.
Yup....they continue to say they need to raise prices, yet they continue to report record profits. Something just doesn't match up.
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curtadams
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x-y-no wrote:Amazing how quick they are to rise given bad news and how slow they are to fall given good news.
Well, there's good reason for that. Production of conventional oil has either peaked or is so close to it to make no difference. We are running out of oil. I doubt the hurricane forecast has much to do with this - traders know how unreliable they are. The Nigerian sabotage is much more likely as the cause for the latest jump.
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gtalum
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The oil companies do not raise the price of oil. The price of oil is set by supply and demand on the commodities market, just like all other commodities (and very similar to the stock market). If buyers see risk or constriction of supplies, the price goes up. When they see stability, it goes down. The price of oil is down about 25% from it's peak in 2005.
Oil prices are only one factor in the price of gasoline. Now it's not the supply of oil that is the limiting factor in gasoline, but the refining capacity. Our nation's refineries are in bad shape, and that is why gasoline prices are climbing and don't come down with oil prices.
Oil company profits are at record levels because they must maintain a certain profit margin to keep the shareholders happy. If the base costs go up and the margin stays the same, the total profit soars.
It's not a massive conspiracy, even if it might feel like it.
Oil prices are only one factor in the price of gasoline. Now it's not the supply of oil that is the limiting factor in gasoline, but the refining capacity. Our nation's refineries are in bad shape, and that is why gasoline prices are climbing and don't come down with oil prices.
Oil company profits are at record levels because they must maintain a certain profit margin to keep the shareholders happy. If the base costs go up and the margin stays the same, the total profit soars.
It's not a massive conspiracy, even if it might feel like it.
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feederband
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feederband
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