Gas Prices

CH156378

DOWNWARD.

























































FORWARD.

gimmesometruth27

it is almost hurricane season and it will be labor day in the next few months. there will be a spike then. i still think we need to make speculation illegal since the speculators have historically been the ones responsible for the spikes and long term increases in prices. but i guess we can't interfere with the free market can we?

i am thinking that due to the election the cost is gonna rise, exxon mobil will make even higher record profits, and a lot of that money is going to be dumped into romney's campaign in hopes of buying the election. thank you supreme court for that one...

LloydXmas

There won't be a spike because it's an election year.

DriftingByTheStorm

Back when gas was still at 3.75 and heading to 3.50 around these parts i called "under $3.00 by August". I think we are WELL on our way to that reality. Although there could be a "fight" at $3 by speculators. I suspect "economic headwinds" will prevail and push through that would-be-bottom, though.

Oil (and therefore gas) have been moving down more or less steadily since the end of Spring when it became clear that economic numbers across the board were coming out stagnant\unimproved to mildly-down\below-expectations and NOT "better than had hoped". To be clear, they don't just move down "because of that news", that news is also a reflection of why they are moving down to begin with. Some of the bad numbers were "producer price index" numbers falling and "factory orders" \ "durable goods" type numbers. And drops in those indicate REAL CHANGES IN DEMAND ... which means real DOWNward changes in demand for OIL.

They started moving down faster (along with all comodities and the stock markets generally) as Europe\Greece\Spain woes flickered forward, but really the speed increase is due to both the economic numbers getting even more dismal in the last two months (when most of the loss in price occured) and also, i (and others) suspect, due to the underlying DEFLATIONARY wave that has gained steam ahead of the Fed's ability to "throw money at" this "problem".

We are in the tail end of an over-half-century-long GENERAL & government DEBT BUBBLE. Things will go DOWN on the way through this "phase of history". This is due to nature of leveraging, speculation, and debt at a rather fundamental level. As wealth is destroyed by debt defaults (look at all these countries and states \ municipalities \ businesses and private persons on the verge of insolvency\default) that "money" disappears from asset sheets & and account ledgers, making it unavailable for those who need it. This crisis-created-REAL-credit-contraction (ie. if you default on your debt, OR EVEN IF YOUR DEBT IS SIMPLY DOWNGRADED IN ITS RATING, your debt paper becomes worth less\or worthless in the market, everyone who holds your debt just took a big hit - and now the world as a whole is SHORT THAT "MONEY" to 'use') will be amplified UNTOLD-fold by massive leveraging at international mega-institutions including THE EURO BAILOUT FUND itself (lols). When these "knee capping" events occur. Look out below for commodity prices and stock prices across the board.


The only way things won't just steadily just go down and down more is if the government(s) can somehow not just massively inflate the currency base, but ALSO CAUSE GENERALALIZED FEAR of their failure (either in the markets, or in the people themselves) in which case we could have a "brief" period of HYPERinflation.

Who knows.
But, YAY CHEAP GAS on the way down.


PS - and ALL commodities (especially gold & silver, but including oil) and stocks went UP yesterday pretty sharply ... NOT because of Obamacare tidings (as has been misleadingly stated in US press) but BECAUSE IMMEDIATE BAILOUT ACTION FOR SPAIN SENT THE EURO DRASTICALLY HIGHER, HURTING THE DOLLAR, AND CAUSING EVERYTHING PRICED IN DOLLARS TO RISE APPRECIABLY.

inlet13

You're not...





















































...very smart. Gas prices increases and improving economic performance are positively related. What does that mean in the current context? Deflation. More directly... global recession.


Forward.

CH156378

inlet13 wrote:

Forward.

+1

DriftingByTheStorm

inlet13 wrote:

You're not...
...very smart. Gas prices increases and improving economic performance are positively related. What does that mean in the current context? Deflation. More directly... global recession.


Forward.

who was this addressed to?
gimmesometruth27?

Also, don't forget the converse,
prices can rise in RAPIDLY DETERIORATING conditions too.
Its called hyperinflation.

I agree though,
until the bottom drops out of global confidence in "the system",
we will continue on the "slow leak" deflationary course.

Shawshank

I wholeheartedly agree with Gimme, speculation should be outlawed somehow.

Also since oil spiked a few days ago (because of speculating pieces of shit) I speculate gas prices will be on the rise this week and into next week.

inlet13

DriftingByTheStorm wrote:

inlet13 wrote:

You're not...
...very smart. Gas prices increases and improving economic performance are positively related. What does that mean in the current context? Deflation. More directly... global recession.


Forward.

who was this addressed to?
gimmesometruth27?

Also, don't forget the converse,
prices can rise in RAPIDLY DETERIORATING conditions too.
Its called hyperinflation.

I agree though,
until the bottom drops out of global confidence in "the system",
we will continue on the "slow leak" deflationary course.

Yup. You and I both know that.

My issue here is people (including congress) are stupid. Plain and simple. Congress gets all up in arms when inflation sets in and oil prices rise. They freak out. "OMG! those damn oil producers" (umm did you look at the stock market, genius congressman?) - inflation means prices rise dummies. Since, oil profits are a function of prices (demand is inelastic), bing bang boom... oil companies are once again evil in periods when inflation sets in. Yet, their not now? Because it's going down or is lower? Seriously?

Meanwhile, inflationary periods are typically booms (or mini-booms more recently). Now, we're seeing a mini-global bust... and whammy... oil prices fall.... And oil companies are ok again. Yeh - Obama! Or Yeh Bush (or whoever is in office)...

Wowzer.

I'm sorry, but the whole topic makes me want to puke. As if government does anything to really reduce inherent prices. Sure, they can tax and regulate and create higher/lower realized prices, but they do very little to the underlying price. Which is a function of oligopoly and basically supply and demand...

Once again - I hate to be a drag, but to me ... ignorance is annoying. This thread is proof it runs rampant on this topic.

inlet13

CH156378 wrote:

inlet13 wrote:

Forward.

+1

:lolno:

gimmesometruth27

inlet13 wrote:

Yup. You and I both know that.

My issue here is people (including congress) are stupid. Plain and simple. Congress gets all up in arms when inflation sets in and oil prices rise. They freak out. "OMG! those damn oil producers" (umm did you look at the stock market, genius congressman?) - inflation means prices rise dummies. Since, oil profits are a function of prices (demand is inelastic), bing bang boom... oil companies are once again evil in periods when inflation sets in. Yet, their not now? Because it's going down or is lower? Seriously?

Meanwhile, inflationary periods are typically booms (or mini-booms more recently). Now, we're seeing a mini-global bust... and whammy... oil prices fall.... And oil companies are ok again. Yeh - Obama! Or Yeh Bush (or whoever is in office)...

Wowzer.

I'm sorry, but the whole topic makes me want to puke. As if government does anything to really reduce inherent prices. Sure, they can tax and regulate and create higher/lower realized prices, but they do very little to the underlying price. Which is a function of oligopoly and basically supply and demand...

Once again - I hate to be a drag, but to me ... ignorance is annoying. This thread is proof it runs rampant on this topic.

if you are so smart why don't you fix it?

it is counter productive for one guy who thinks he is smarter than everyone else to sit behind a keyboard and call everyone else stupid. that is all you do on here. you spout off your economic principles on here in every thread as if they are failsafe. we are not in a libertarian utopia. we are in reality here. your econimic theories sound good on paper, but when applied to reality they do not fit.

i am no armchair economist, as your purport yourself to be, but i also don't need a weatherman to know which way the wind blows. none of us do, so stop insulting our intelligence.

please, prove to me and everyone selse here that oil speculators have nothing to do with the price of oil. it is proven that the speculators drove it up last time a few years ago and they are doing it again.

gimmesometruth27

gimmesometruth27 wrote:

it is almost hurricane season and it will be labor day in the next few months. there will be a spike then. i still think we need to make speculation illegal since the speculators have historically been the ones responsible for the spikes and long term increases in prices. but i guess we can't interfere with the free market can we?

i am thinking that due to the election the cost is gonna rise, exxon mobil will make even higher record profits, and a lot of that money is going to be dumped into romney's campaign in hopes of buying the election. thank you supreme court for that one...

and by the way, inlet, i stand by this.

you can't tell me that exxon and halliburton and bp et al is not going to try to buy this thing for romney...

gimmesometruth27

everybody knows that to unseat a sitting president on econimic reasons you do 2 things...

1. make sure that the stock market stays volatle and unsteady

and

2. you make gas prices expensive.

high gas prices and a terribly fluctuating market are the signs of a bad economy. it bodes well for the challenger because the challenger can blame the sitting guy for the problems. your average american is going to feel the pinch at the pump much more immediately and moreso than the decreased numbers in their retirement accounts that they can't dive into for another 25 years.

this happened when clinton beat bush 1 and when bush 2 beat gore.

inlet13

gimmesometruth27 wrote:

if you are so smart why don't you fix it?

Seriously? It's market-based. I can't "fix" it - no one can besides the "market". Unfortunately, I'm not supply, nor am I demand. That's the point. I don't like these drone politicians who go up on stage and pretend they will "fix it"... nor do I like their pom-pom wavers who cheer on their every move, completely clueless to the actual fundamentals dictating alterations in real life.

I'm sorry, but it annoys me and I'm entitled to be annoyed.

inlet13

gimmesometruth27 wrote:

everybody knows that to unseat a sitting president on econimic reasons you do 2 things...

1. make sure that the stock market stays volatle and unsteady

and

2. you make gas prices expensive.

high gas prices and a terribly fluctuating market are the signs of a bad economy. it bodes well for the challenger because the challenger can blame the sitting guy for the problems. your average american is going to feel the pinch at the pump much more immediately and moreso than the decreased numbers in their retirement accounts that they can't dive into for another 25 years.

this happened when clinton beat bush 1 and when bush 2 beat gore.

Seriously? Are you really writing this stuff? Re-read this post. So, now someone "is doing this" with the purpose to unseat the President. This is kinda sad you believe this stuff.

brianlux

gimmesometruth27 wrote:

everybody knows that to unseat a sitting president on econimic reasons you do 2 things...

1. make sure that the stock market stays volatle and unsteady

and

2. you make gas prices expensive.

high gas prices and a terribly fluctuating market are the signs of a bad economy. it bodes well for the challenger because the challenger can blame the sitting guy for the problems. your average american is going to feel the pinch at the pump much more immediately and moreso than the decreased numbers in their retirement accounts that they can't dive into for another 25 years.

this happened when clinton beat bush 1 and when bush 2 beat gore.

This is definitely my recollection.

gimmesometruth27

brianlux wrote:

gimmesometruth27 wrote:

everybody knows that to unseat a sitting president on econimic reasons you do 2 things...

1. make sure that the stock market stays volatle and unsteady

and

2. you make gas prices expensive.

high gas prices and a terribly fluctuating market are the signs of a bad economy. it bodes well for the challenger because the challenger can blame the sitting guy for the problems. your average american is going to feel the pinch at the pump much more immediately and moreso than the decreased numbers in their retirement accounts that they can't dive into for another 25 years.

this happened when clinton beat bush 1 and when bush 2 beat gore.

This is definitely my recollection.

but i guess it is so much less exciting to simply deny those points and say the market dictates those things. leaving out the fact that markets are manipulated every day...

inlet13

gimmesometruth27 wrote:

2. you make gas prices expensive.

Excuse me everyone, I'm off to go "make gas prices expensive".

gimmesometruth27

inlet13 wrote:

Excuse me everyone, I'm off to go "make gas prices expensive".

:wave: :wave:

http://money.howstuffworks.com/oil-spec ... -price.htm

http://www.nytimes.com/2012/04/11/opini ... tures.html

mikepegg44

gimmesometruth27 wrote:

it is almost hurricane season and it will be labor day in the next few months. there will be a spike then. i still think we need to make speculation illegal since the speculators have historically been the ones responsible for the spikes and long term increases in prices. but i guess we can't interfere with the free market can we?

i am thinking that due to the election the cost is gonna rise, exxon mobil will make even higher record profits, and a lot of that money is going to be dumped into romney's campaign in hopes of buying the election. thank you supreme court for that one...

oil a free market?....hahahahaha

Jason P

gimmesometruth27 wrote:

i am thinking that due to the election the cost is gonna rise, exxon mobil will make even higher record profits, and a lot of that money is going to be dumped into romney's campaign in hopes of buying the election. thank you supreme court for that one...

US oil production increased for the first time since the early 80's under Obama's watch and has seen significant increases every year he has been in office. Who's to say big oil isn't perfectly happy with the current man?

It appears that Barry took Palin's advice ...

:think: