"JoeSpareBedroom" wrote in message
news
"Vic Smith" wrote in message
...
On Thu, 27 Mar 2008 20:47:59 GMT, "JoeSpareBedroom"
wrote:
"Vic Smith" wrote in message
...
On Thu, 27 Mar 2008 20:16:34 GMT, "JoeSpareBedroom"
wrote:
"Vic Smith" wrote in message
The reason oil costs what it does isn't because of futures, but
because of what the market will bear. Supply and demand.
Wrong. You will find out otherwise in the near future.
Is that a threat?
--Vic
It's a promise. Neither of us knows what percentage of oil price
increases
are due to simple gambling, but it's significant enough that it's getting
more attention.
Oil is a product whose price affects virtually everything we buy. There
is
no excuse for allowing recreational gamblers affect the price. Let the
oil
companies hedge, but not players at any level.
Here's how it works.
When you refuse to buy gasoline, refuse to fly, or cut back on use,
the price *may* come down. Including the futures prices.
Here's another option for you. Plant some oil acreage or find some
inexhaustible oil fields.
Until then, live with it. Jesus H. Christ, you act like the world
owes you low oil prices.
And I thought I was over the top complaining about Cheerios.
--Vic
Vic, you're reciting the fairy tale version. Please stop. It's not
befitting of a grown man.
Let's take it a step at a time. Do you agree that some players in oil
commodities are completely unrelated to the oil business itself? Not
acting on behalf of an oil company that's hedging its raw materials, in
other words.
Airlines hedge oil prices. Not just gas companies. Is a major reason the
Southwest Airlines was very profitable the last few years. Those hedged
contracts have now expired. Lots of uses also hedge the futures market.
Was a major reason the market was started. Farmer sold part of his crop
ahead of time for a set price. Gave him the money to plant his complete
crop and raise it to maturity. If big crop he made big money, small crop,
he still did not go bankrupt. Been futures trading for ever by those
gambling. George Soros made his billions on trading currency futures.
Enough futures that he most likely manipulated the market for huge gains.
Oil refiners are not a big profit percentage game. CVX only pays about 2.7%
dividend. XOM is about 1/2 that. Citigroup a couple of years ago had a
gross profit margin of about 35%. Maybe there should be a windfall profits
tax on all those multi megabuck bonuses the executives got while showing
huge profits from bad investing?