- Joined
- Dec 16, 2011
- Messages
- 74,299
- Reaction score
- 32,538
- Location
- Florida
- Gender
- Male
- Political Leaning
- Liberal
You know folks, with all the debates going on about the price of oil/gas, I'm seeing a lot of mixed messages. Can anyone provide just the straight poop on how oil and gas is priced?
It seems that the prime movers are Supply and Demand, and Speculators, right? So if the US produces more domestic oil, that domestic oil will not necessarily be cheaper because oil price follows the Intl market price, right? But sometimes some countries get oil for more or less, and that seems contradictory, yes? And how can the president be or not be responsible for the price of gas?
And then the price of gas is obviously influenced by the price of oil, but does that (gas) follow Intl pricing? I don't think it does. The price of gas follows the regular rules of Supply and Demand I would think because I can get different gas prices from different stations in the same town. Correct?
I'm not trying to be a wiseass, I'm asking sincerely.
No domestic oil is not cheaper and supply has little to do with price. 60% of oil produced is "owned" by entities that use no oil, mostly hedge funds and commercial banks. Those funds are now attacking oil prices with the "Iran Situation" being the excuse. In the commodities market, the more money chasing oil futures the higher the price gets. It is nothing less than a perversion of the system of supply and demand that needs to be regulated out of existance. The only ones who should be buying oil are those that use it. Until that happens we are at the mercy of the speculators and their enormous wallets.