Re: World Finance Watch
http://www.macnewsworld.com/story/34919.html
Notice the way he describes how prices are set:
So in effect, the prices we're paying today reflect the supply-line "trading" that is constantly occurring while the oil/gas is on it's way to the pump. This explains why within days of some "negative" event or information, the next trade made along the supply chain will reflect the increase/decrease. Sounds to me like we need to have Walmart get into the gas business.....
Z-
Sue, although we do have (or are supposed to have) an *emergency* 90 day reserve, the gas we're using today came from crude oil imported several months ago. The price increases we're seeing today are "supply line" or "trading" increases that have occurred since this oil was originally shipped from it's orgination point. I found a decent article (below) that describes the supply-line process and how it affects prices at the pump. Although I think this trading "machine" is a bunch of bunk, the process itself is accurate. See what you think.This is crap! I'm paying today for something that may happen in 6 months! I'm paying for gasoline at a rate of $100/brl of oil that it might have cost them at the time it was refined at $35/brl of oil! When you get into this cycle, it can never go down! And I flunked economics (obviously), but I do run a business. I just know you can never take a loss and stay in business. Greed? I call this armed robbery at the pumps. If I told my clients that I have changed my per/hr rate from $13 to $39 because I'm anticipating a price hike on Windex, Scrubbing Bubbles and vaccuum cleaner bags, I would lose clients!
http://www.macnewsworld.com/story/34919.html
Notice the way he describes how prices are set:
Quite a convenient way to manipulate prices, wouldn't you say?In addition, Banker observed that in turbulent times about one-third of the cost of a gallon is driven by trading considerations -- or what traders believe will happen in the future -- and two-thirds by the normal costs and margins of the supply chain. During less turbulent times, with a more predictable future, supply and demand trading considerations become much less influential on price, he said.
So in effect, the prices we're paying today reflect the supply-line "trading" that is constantly occurring while the oil/gas is on it's way to the pump. This explains why within days of some "negative" event or information, the next trade made along the supply chain will reflect the increase/decrease. Sounds to me like we need to have Walmart get into the gas business.....
Z-