Re: prices


"js" <nothing AT nothing DOT com> wrote in message
news:485bff0b$0$7035$4c368faf@xxxxxxxxxxxxxxxxx
Even in the most favorable conditions, gas isn't "horribly underpriced".
In
fact, if it was allowed to REALLY be at the whim of "market forces", it
would be too cheap to pump out of the ground. Even in the days of 88 cent
gas, Big oil was closing refineries and storage facilities left and right
in
order to severely limit supply and jack up prices.

there's a collusion going on between OPEC, Big Oil, the Bush regime and
speculators that would NEVER be tolerated under well, a non-Bush
administration (remember, his dad tried the same thing, only it cost him
his
job).

You know this might be interesting if you could keep your partisan politics
out of it. I am curious (seriously) as to what you think "the Bush regime"
can do about OPEC pricing. I'm assuming you know who the OPEC member states
are but for any readers who don't they are: Algeria, Indonesia, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and
Venezuela. The stated purpose of OPEC is to "stabilize oil pricing."
Obviously to stabilize it as high as possible which is simply enlightened
self interest. Now the world oil useage is around 82 million barrels per
day of which the US uses about 25%. The US produces around 10% so the net
result is we import about 15% of the world's oil production. So, it would
appear that we could stop importing oil in protest of the current
artificially high prices and effect OPEC's pockets. Well, we only have
about 3 years of reserves if we stopped importing now. If you look at the
"governments" of the OPEC countries you will see that none of them actually
are responsible to an electorate. The bottom line IMHO is they could simply
wait us out. So, what other option is there? Are you recommending we go
take the oil by force??

Gerry



Sure, these players are eternally manipulating the market. But every so
often the planets line up for them and they are allowed to gouge the ***
out of us at will. The house of cards collapses sooner or later and "real"
valuation returns.

As for the price/consumption thing - that's a function of the "demand
curve". The demand curve for essentials like fuel is incredibly steep -
steeper than anyone thought. In fact, it seems that we are just now
hitting
it's apex and listing to the other side.

This is part of the speculation problem. I'm sure none of the principles
in
this collusion thought they would still be running the scam in 2008; They
figured they'd hit the "target" on the curve years ago and cash out. But
as
oil kept rising, it created a bubble in the commodities market, that just
keeps fueling itself.

So yeah, it's entirely possible for us to be gouged at the pump, without
prices being affected. People need to work. they need to eat. they need
Xmas
presents. they haven't been ready to give those up for what they see as a
temporary crisis.

The other side of the equation is that producers and sellers of goods are
being squeezed like never before.They can't raise prices for fear of
losing
sales, but they are making less and less profit on what they sell, in
order
to stay in business. Again, consumers don't want to sacrifice their lives
for gasoline, so they put incredible downward pressure on retailers. This
is
why prices LOOK flat, but are far from it in reality.

Now, demand is starting to falter, even at these low prices, so the only
thing to do is go lower.

Just remember - the last time people talked about energy being
"undervalued"
and such was the California "rolling blackouts"...which of course had
NOTHING to do with price/consumption, and EVERYTHING to do with Enron
colluding to keep prices high while fucking the consumer.

"Jim Carr" <newsgroups@xxxxxxxxxxxxxx> wrote in message
news:3Bl6k.1424$F97.593@xxxxxxxxxxxxxxx
CS wrote:

I've held the belief for a while now that all those c*&%suckers who
made
large bank in oil and gas futures needed to be taken out of the
equation. I can't believe for a minute that every time someone buys or
sells a petroleum contract they aren't screwing every one of us.
Although a friend who did just that and retired after 5 years, swears
up
and down he had no affect in the price at he pump.....

I have no doubt that speculation has sparked some of these increases,
but the reality is that the market was was ready for it.

The biggest drop in consumer gas consumption in 16 years happened
recently. It was a whopping 1.1% drop from the previous year. Think
about that for a second. In just four years the price of gas has
increased about 225%, yet the biggest drop in consumption is a measly
1.1%?

Have you ever run your own business or been in charge of pricing a
product or service? I have done both. What these prices tell me more
than anything is that gasoline was horribly under priced and that they
should continue to raise prices to see what happens.

I was in a meeting recently with a client who was excited because he was
about to hit full occupancy on his apartment complex. I said, "So, how
much are you going to raise your rents?"

That's how business works. You see what the market will bear. Obviously,
the US market will bear $4.25 per gallon with only a minor decrease in
consumption.


--
Write a wise saying and your name will live forever.
- Anonymous




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