Stock market and crude oil

[PunisheR]

Maybe im a little confused, or mis-educated.

I follow the stock market every day, mainly the euro, dollar, and crude oil prices..

Why is it that oil can be $147.00 a barral, and the price at the pump is $4.10 a gallon, and when oil hits 105.00 a barrall its $3.63?

Makes no sense to me, if my resorce is right, last year when the crude oil price was 100.00 a barrall I belive the price was $2.73 for unleaded?

your telling me that 5.00 a barral is going to cause the price to drop 1.00 a gallon? The ratio is WAY OFF..

what gives?

It really bothered me when oil dropped $9.27 per barral the other day and the price did not move at the pump.. $3.59 a gallon..

The other thing that gets me is diesel has dropped .80+ cents a gallon, I think that is some BS inflation crap..

Does anyone know if oil is on a F.I.F.O meathod of pricing? or does the daily price change even if the fuel was bought at a lower price?


-Jordan

[ChinookFE]

The price of crude, while it has some effect on the price at the pump, is not the only contributing factor. A big factor that determines pump price is the speculation of oil futures

[Alphacowboy]

as mentioned above, the price on the market today is futures, meaning the price on the table right now being traded is for ~9 months from right now. So, in 9 months, hopefully fuel costs drop substantially. And you can bet that if Baracky gets elected, and prices drop 9 months from now, he will take all the credit for not doing a damn thing.

[Spawn_X]

the STOCK MARKET IS MANIPULATED

if you think you can study it, you are wrong. you can only study the manipulation

[superhawk2002]

Whatever the reason -- it is TOTAL BS. They raised gas prices in Indiana 30 cents overnight due to a hurricane that has not caused any damage yet (Hurricane Ike). Will I get a refund if the hurricane does no damage -- maybe a 30 cent drop on top of yesterday's rates (gas down to 3.30 a gallon), something? Will the gas price drop the moment the hurricane goes away or when the price of oil maintains it's 105 bux a barrel? NOPE.


To all oil companies, OPEC, and our government -- !

[Off_Road_Ram_01]

Yeah something else in IN has had to have changed though. Before gas was at least 15 cents more at my house in Upper Michigan, now the past month it is cheaper up there then it is here in NW Indiana.

Also found this article today - could be interesting:

The death of OPEC
Posted Sep 11 2008, 07:01 AM by Douglas McIntyre Rating: Saudi Arabia walked out on OPEC yesterday. It said it would not honor the cartel's production cut. It was tired of rants from Hugo Chavez of Venezuela and the well-dressed oil minister from Iran.

As the world's largest crude exporter, the kingdom in the desert took its ball and went home.

As the Saudis left the building the message was shockingly clear. According to The New York Times, “Saudi Arabia will meet the market’s demand,” a senior OPEC delegate said. “We will see what the market requires and we will not leave a customer without oil."

OPEC will still have lavish meetings and a nifty headquarters in Vienna, Austria, but the Saudis have made certain the the organization has lost its teeth. Even though the cartel argued that the sudden drop in crude as due to "over-supply", OPEC's most powerful member knows that the drop may only be temporary. Cold weather later this year could put pressure on prices. So could a decision by Russia that it wants to "punish" the US and EU for a time. That political battle is only at its beginning.

The downward pressure on oil got a second hand. Brazil has confirmed another huge oil deposit to add to one it discovered off-shore earlier this year. The first field uncovered by Petrobras has the promise of being one of the largest in the world. That breadth of that deposit has now expanded.

OPEC needs that Saudis to have any credibility in terms of pricing, supply, and the ongoing success of its bully pulpit. By failing to keep its most critical member it forfeits its leverage.

OPEC has made no announcement to the effect that it is dissolving, but the process is already over

[02bbcummins]

I didnt read all of the replys but i have an answer for ur question and i dont know if it was already said. The reason for that is because the U.S. dollar has significantly lost its value. just look at gold. ten years ago u could have bought say (this is just hypathetical since i have no idea of exact prices), a pound of gold for 100$. that same pound of gold will now cost u 150$ now since the value of our USD has decreased. same reason why if u got 100$ worth of canadian money 5 years ago when it was worth less then the USD u could trade that in and get say 150$ USD. just a guess again i dont know exact value. that is my hypothesis. dunno if it is correct or not.

[Alphacowboy]

Billy, you are slightly correct on that, as that does have an effect, as oil is traded on the market using US dollar.

Ed, if that is true about the Saudi's walking out, that is GOOD news! Screw Iran and Chavez, those two idiots can kiss my arse.

I think if the US is finally allowed to drill, not only will we finally start to supply our own demand, but we will end up finding oil reserves we never even knew existed due to the ban on certian areas to drill. I bet they find one of the biggest oil reserves in Alaska that they have no clue even existed! Whats interesting is the large oil reserves seems to be around the equator and the polls, at least from what I have read and gathered. Who knows...

[Zed]

Quote:On 2008-09-13 13:15, 02bbcummins wrote:
a pound of gold for 100$. that same pound of gold will now cost u 150$ now since the value of our USD has decreased.

You are right about the devaluation of the dollar, but a "POUND" of Gold?

Not meaning to be rude, but it's priced by the ounce dude. and atm its around $760 (it was at $900 an ounce a few months ago) and was at $350 ish an ounce in the late 80's.

[King Nothing]

Quote:On 2008-09-13 19:10, Zed wrote:


You are right about the devaluation of the dollar, but a "POUND" of Gold?

Not meaning to be rude, but it's priced by the ounce dude.

If you took the time to read and understand his post it would be obvious that he was using the "pound" as a hypothetical example. he stated as much.