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On Fri, 06 May 2011 15:16:16 -0400, wrote:

On Fri, 06 May 2011 12:12:00 -0700, wrote:

On Fri, 06 May 2011 15:01:41 -0400, wrote:

You know the old adage, gas prices go up like a rocket and fall like a
feather

Yes, I also know the story about Chicken Littlle

Having nothing to do with what we are talking about.

It is a fact that gas prices go up with oil prices but they lag the
fall of oil prices by several weeks or even months.
If oil dropped to $60 tomorrow, gasoline might not reflect that for a
month or more.

Chicken Little was afraid of the sky falling. Right wing nuts are
convinced the world is ending and rising oil prices are supposedly an
example. Totally appropriate comment.
`
The world isn't ending, but we are losing value in the dollar and that
shows up in oil or anything else we import. You can live in denial if
you like.

Yet the price of oil is dropping... I guess my denial is working.

The question is where it levels off isn't it?

Yes, that's the question. According to the fear mongers, it will be
$200 per next week.

Wayne B

On Fri, 06 May 2011 16:47:19 -0400, wrote:

The open question is how much of his is real market forces and how
much is just speculation. The speculation part can swing fairly wildly
but the market component is going to be fairly predictable.
We can't ignore the number of cars the Chinese and the Indians are
putting on the road every year.

Speculation (buying inventory forward) is largely limited by storage
capacity. Once the tank farms approach full capacity, storage rates
start going up and it becomes increasingly expensive and risky. Same
thing with the threat of rising interest rates or increased margin
requirements. The real story is that the Saudi oil fields are pumping
at close to max capacity even though they will not publicly admit it.
The fun will start when it becomes obvious to everyone that the Saudis
can no longer pick up the pace to meet demand peaks,

[email protected]

On Fri, 06 May 2011 17:56:36 -0400, Wayne B
wrote:

On Fri, 06 May 2011 16:47:19 -0400, wrote:

The open question is how much of his is real market forces and how
much is just speculation. The speculation part can swing fairly wildly
but the market component is going to be fairly predictable.
We can't ignore the number of cars the Chinese and the Indians are
putting on the road every year.

Speculation (buying inventory forward) is largely limited by storage
capacity. Once the tank farms approach full capacity, storage rates
start going up and it becomes increasingly expensive and risky. Same
thing with the threat of rising interest rates or increased margin
requirements. The real story is that the Saudi oil fields are pumping
at close to max capacity even though they will not publicly admit it.
The fun will start when it becomes obvious to everyone that the Saudis
can no longer pick up the pace to meet demand peaks,

It's a good argument for fuel efficiency and as many alternatives to
oil as we can find.

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