Loc: SLO County, CA - 22.214.171.124
Every year since the 70s, I've watched the price of crude spike at the thought of a hurricane, or renewed fighting in the middle east. Every three-day weekend I remember sent the price of gasoline soaring. Summer always made gas move up, because consumption would be so large, we'd have trouble keeping plenty of gas on hand for vacationers.
So what is going on now? BP is bleeding oil into the gulf faster than a small state can burn it, but no hint of higher gas prices? Instead of seeing gas prices rise before Memorial Day weekend, they actually dropped slightly.
So what's the deal?
"A lot of things were acceptable--until we stopped accepting it." -- Al Sharpton '12
Guess they are waiting to see if BP goes broke or we might be so mad we won't pay any higher gas prices.
We went down to Jr's Economart to buy $20 worth of gas on our Vsacard a week or so ago andMilliewent inside to prepay with our card.Well the gal was having trouble with the cash regster screwing up and we waited for several minutes while she fddled with it and finally Mllie told her to cancel the charge toour card and we would go elsewhere for our gas. Well she fiddled with the card and finally said she had cancelled the charge. Weleft and went up to 7-11 and bought $30 worth of gas on the card. A couple of days later I was looking at our account on the computer and there were two $20gas charges for Jr's Econo on that day. $40 charge and no gas. I went down the next day complaning to the guy there with a print out of the account and he took all the info and tried to call the gal to verfy but couldn't getthrough to her (she was probably texting, he said) so said he would get back to us. Another day no communication so I went back down and the gal was there and complained to her. She saiid the owner was in India and they couldn't reach him.I said I don't care I wantmy $40 backl cause i didn't get any gas for my money. She said well themachine said it had cancelled the original $20 and that she couldn't see how I ddn't get any gas. Mllie went in and talked to herand she saiid no I didn't get gas but that someone would call us the next day. They don't have a phone number in the book so have to go down to talk to them.Well we didn't hear back from anyone so I called WellsFargo and got the fraud divison on their tail. gonna take about 90 days but they say they will pretty for sure be able togetour money back. We'll see. $70 spent that day and only got $30 worth of gas. From now on we pay cash for gas! Paul :-(
Oil prices are controlled by people like ME who buy and sell oil futures and the BP spill is way down on the list of factors affecting crude price. Earlier this spring when crude was topping $85 and the economy (vis a vis demand) looked good the future price of oil rose. But as rumors of less demand from China and a possible crisis from a contagon effect from europeon credit crisis, prices fell quickly back to below $70. Now as economies and China posting some good numbers recently and barring any new big crisis (ex. an Iranian conflict) the price is making it's way back up, to I would guess, the low $80 (at least it better since I am no longer leveraged short :)).
Like I care, the importent thing is I'm making money and the present risk/reward is better generally then buying stocks.
LOL @ Flicka. I just read the tea leaves, invest as I see things evolving and if I am correct reap the reward.
Paul, before I understood futures I used to share your small minded attitude. But by investing, I add liquidity to the free market economy. Liquidity is the grease that keeps things moving. Alot of what went on with the latest Flash Crash was due to a lack of liquidity. So keep your money under your matress and your guns ready. I prefer to be a contributing member to the economy.
I spent a social evening last year with a group of my lady's relatives. One was the just retired president of BP America. I asked him about the variation in price and he said simple supply and demand. Yeah, sure. Shortly after came the info about oil futures traders manipulating the price. I asked why diesel cars were so popular in Europe and not here. He said he didn't now. I couldn't figure out how I knew.
This present guy from BP is spinning a new direction every day. He must have an aide just to tell him what today's spin is. So who really knows what is happening? Maybe that pipe at 5000 ft is really in a studio like where they made the flight to the moon.
Edited by Paul I (06/11/1004:02 PM)
"...only the shadow knows"
It all falls under God's big plan, even you too Greg...We just don't understand all the pieces nor where they fit. So you goon buying into your liquidity in the market and we'll see where we all wind up.:-) Paul