"D.Duck" wrote in message
...

"JimH" wrote in message
...
On Sat, 18 Oct 2008 15:38:09 -0700 (PDT), Tim
wrote:

On Oct 18, 5:35 pm, JimH wrote:

The morning after we drove home the corner stations were at $2.49.

Tom predicted at this NG this several months ago.........nice call
Tom.

Absolutely!

To get this back on topic (ignoring the flames and political crap from
the usual suspects)..........why don't pump prices drop when crude oil
barrel prices drop as fast as they increase when barrel prices rise?


Here's some data that you may find interesting.

http://www.newyorkgasprices.com/retail_price_chart.aspx

Set the chart options to show crude oil prices and any area of the country
you desire for retail gas price. Set the chart duration to 3 months. You
will note that the *retail* cost of gas did *not* peak in response to the
spike in crude prices. Therefore it seems like the cost of gas has not
dropped as fast as crude prices.

Make sense?

One thing I forgot to point out is that the prices for oil you hear quoted
in the news every day are for futures contracts. And that price is for a
contract to be delivered in the following month.

When we saw those $145/barrel prices, that was for futures contracts and I'd
bet no product actually changed hands at that price. That's where the
speculators lose money.

"D.Duck" wrote in message
...


One thing I forgot to point out is that the prices for oil you hear quoted
in the news every day are for futures contracts. And that price is for a
contract to be delivered in the following month.

When we saw those $145/barrel prices, that was for futures contracts and
I'd bet no product actually changed hands at that price. That's where the
speculators lose money.




Bingo.

Eisboch

Eisboch wrote:
"D.Duck" wrote in message
...

One thing I forgot to point out is that the prices for oil you hear quoted
in the news every day are for futures contracts. And that price is for a
contract to be delivered in the following month.

When we saw those $145/barrel prices, that was for futures contracts and
I'd bet no product actually changed hands at that price. That's where the
speculators lose money.




Bingo.

Eisboch




Gee, is there any chance the speculators lost *all* their money? And if
they did, can they apply for a bailout from the US taxpayers at the same
time they decry socialism? :)

..
--
A Harry Krause truism:

"It's not a *baby* kicking, beautiful bride, it's just a fetus!"
[A Narcissistic Hypocrite]

"Eisboch" wrote in message
news

"D.Duck" wrote in message
...


One thing I forgot to point out is that the prices for oil you hear
quoted in the news every day are for futures contracts. And that price
is for a contract to be delivered in the following month.

When we saw those $145/barrel prices, that was for futures contracts and
I'd bet no product actually changed hands at that price. That's where
the speculators lose money.




Bingo.

Eisboch

Yeah, they didn't want several thousand barrels of oil setting on their
front lawn.

On Mon, 20 Oct 2008 19:21:22 -0400, "D.Duck" wrote:


"Eisboch" wrote in message
news

"D.Duck" wrote in message
...


One thing I forgot to point out is that the prices for oil you hear
quoted in the news every day are for futures contracts. And that price
is for a contract to be delivered in the following month.

When we saw those $145/barrel prices, that was for futures contracts and
I'd bet no product actually changed hands at that price. That's where
the speculators lose money.




Bingo.

Eisboch

Yeah, they didn't want several thousand barrels of oil setting on their
front lawn.

Delivered in North Sea herring barrels, in horse drawn wagons,of
course.

Casady