Why gas prices are creeping back upwards
12 replies
padre31Luxury BoxOPhttp://seekingalpha.com/article/140448-why-is-oil-creeping-back-up?source=article_sb_popular
The flip-side to this argument is that these ups and downs in the oil market are simply market reactions to future expectations. Expectations of increased future demand may be driving the increases in oil prices, which is to be expected if you believe the recent words of Summers and Bernanke and the talk of the beginning of a recovery in the third and fourth quarters of 2009. (Although I will point out that the definition of a recovery varies across academia and the policy world.) Most see recovery as merely the return of economic growth even if growth is painstakingly slow (somewhere in the .1-.2% of GDP region). This slow positive growth may not justify such a dramatic increase in oil prices.
As always, the best explanation combines all of these factors and describes the rise in oil prices as a function of creeping demand, dwindling supply, market expectations, some speculation, OPEC output cuts and even the political environment in oil-producing states.
I find it surprising that the article does not mention the recent loss of strength in the Dollar relative to the Euro, the dollar has declined 6% and is dropping further meaning more dollars are needed to purchase oil..
USArmyFinFanForum Veteran"padre31 wrote:
http://seekingalpha.com/article/140448-why-is-oil-creeping-back-up?source=article_sb_popular
I find it surprising that the article does not mention the recent loss of strength in the Dollar relative to the Euro, the dollar has declined 6% and is dropping further meaning more dollars are needed to purchase oil..
Don't worry Padre, they will print more, we will never run out of money until we run out of ink!:up:
Stringer BellSupporterGas is not that expensive.
“Come on, shake your body baby, do that conga!”
Fin DForum Veteran"Stringer Bell wrote:
Gas is not that expensive.
I must disagree.
It is not expensive based on much of the rest of the world pays. However, based on what we can handle, it absolutely is.
Oil speculators. They see the economy turning the corner so they drive the price back up.
Why this is not regulated, especially by our current president who seems to be doing little to address the issue, is beyond me.
unluckylucianoNew Member"Rich wrote:
Oil speculators. They see the economy turning the corner so they drive the price back up.
Why this is not regulated, especially by our current president who seems to be doing little to address the issue, is beyond me.
yup basically. what really ticks me off is it seems longer for dropping oil prices to take effect at the pump then rising prices........
thanks to VO for the sick ass sigs. 
Charlie: If you're not as educated or as informed what you do is you start your own party and you yell the loudest.
AguaForum Veteran"Rich wrote:
Oil speculators. They see the economy turning the corner so they drive the price back up.
Why this is not regulated, especially by our current president who seems to be doing little to address the issue, is beyond me.
110% agree. This is the ONE thing the gov maybe should have stuck its nose in, rather than all this other BS, and its the ONE thing they haven't done. HIGH GAS is going to kill everything. They need to limit purchase of future contracts to sizes commensurate with bona fide users and production - those that will actually take delivery of the product. There is no sense in hedge funds running this BS up to turn a quick buck while the nation suffers. I know people that had to choose between eating regular meals and driving to work when this crap got up to $3.80+ last summer. The gov is so concerned with raising consumer spending, THERE'S the killer, right there.
jdang307Supporter"Rich wrote:
Oil speculators. They see the economy turning the corner so they drive the price back up.
Why this is not regulated, especially by our current president who seems to be doing little to address the issue, is beyond me.
Oil speculators who believe oil will be an inflation shelter once the economy turns the corner (many believe current fiscal policies will drive inflation wild once the economy turns).
It's a global oil market. You will not be able to contain speculation.
texanphinaticForum VeteranDoesnt gas always creep upward during the summer months?
2socksForum Veteran"Rich wrote:
Oil speculators. They see the economy turning the corner so they drive the price back up.
Why this is not regulated, especially by our current president who seems to be doing little to address the issue, is beyond me.
Hmmmmmmmm.......no balls?
Winning isn't everything - it's the only thing
In Our Business there is no second place
Either your first or your last
Vince Lombardi
my 2 centsForum Veteran"2socks wrote:
Hmmmmmmmm.......no balls?
it is a world market not a domestic one...not gonna happen....as much as I would love to see our POTUS tell Shiek Alla Abdul Mydamnoil that he cannot speculate on oil in the country of Mauritania..................but hey I do not put it past our POTUS to not allow US oil speculation.........now that would help tax revenues...lol..........
2socksForum Veteran"my 2 cents wrote:
it is a world market not a domestic one...not gonna happen....as much as I would love to see our POTUS tell Shiek Alla Abdul Mydamnoil that he cannot speculate on oil in the country of Mauritania..................but hey I do not put it past our POTUS to not allow US oil speculation.........now that would help tax revenues...lol..........
Here's an idea!!!
why don't we just tax everyone's checks 100%. Then we could be put in a data base and when we want to buy something that we desire or need we just fill out a request form 3-6 months prior to the actual need. We would get what we want that way.....what ever's left over the Govt can keep, ya know kind of like all the taxes we pay now only thing is at least we would be certain what we are paying in taxes. Need toothpaste fill out a request. Want a cup of Starbucks fill out a request. Seems like it would work to me.
Everyone on a fair level playing field. Bill Gates need's a computer.....fill out a request:shifty:
Winning isn't everything - it's the only thing
In Our Business there is no second place
Either your first or your last
Vince Lombardi
CrunchTimeRetired Admin"USArmyFinFan wrote:
Don't worry Padre, they will print more, we will never run out of money until we run out of ink!:up:
When you print more money its worth less thus leading to inflation .Prices will rise especially on imported products such as oil.
Pre war Germany did that and that led to hyper inflation.What as worth a mark one day was worth half a mark the next day.
The consequences laid the groundwork for Hitler to take power
Its a slippery slope .
