$4 Gas: “There Is No Justification” for High Prices, Says

Discussion in 'General Discussion' started by Quigley_Sharps, Mar 29, 2012.

  1. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    $4 Gas: “There Is No Justification” for High Prices, Says Fmr. Senator Dorgan
    $4 Gas:
  2. ghrit

    ghrit Bad company Administrator Founding Member

    $3.95\9 here yesterday. Close enough for me. I don't need $4 to complete my life.
  3. Tracy

    Tracy Insatiably Curious Moderator Founding Member

    I paid $4.33 for both gas and diesel the day-before-yesterday. :(
  4. DKR

    DKR Raconteur of the first stripe

    I've been paying over 4/gal for some time now.

    Why? Well at least 75c/gal is speculation, maybe more. Why the problem?

    Well, the US used to control that - but that changed when they traders moved to London to circumvent US Law.

    Now that London is falling apart - Geneva will leave London behind and become the world's most important trading hub for physical energy commodities, including oil.
    Spend a few minutes searching hedge funds and oil trading.

    See if Goldman- Sachs doesn't come up - a lot.

    Rumor has it that the man in line for one of the biggest paydays in the New York office in 2005 is Mark McGoldrick, co-head of global proprietary investment for Goldman. In English, that means McGoldrick is the co-chief of the division that makes bets with the firm’s own capital. One New York recruiter told me the word on the street was that McGoldrick’s group had delivered more than $2 billion in profits for the firm this year. That should put him in line for a payday in the realm of $40 million or more. Proprietary traders are the golden boys (and girls) of Goldman these days, and payouts of $15 million to $20 million will not be unusual for top performers.

    Been going on for a while....

    How is this even possible - where is the market - we have a surplus right now, the US is now a net exporter of refined fuel products...

    The oil-storage trade is a trading strategy where oil tank owners and companies that lease storage buy oil for immediate delivery and hold it in their storage tanks, then sell contracts for future delivery at a higher price. When delivery dates approach, they close out existing contracts and sell new ones for future delivery of the same oil. The oil never moves out of storage. Trading in this fashion is only successful if the forward market is in "contango", that is if the price of oil in the future also known as forward prices are higher than current prices or spot prices. Storing oil became big business in 2008 and 2009,<sup id="cite_ref-0" class="reference">[1]</sup> with many participants—including Wall Street giants, such as Morgan Stanley, Goldman Sachs, or Citicorp—turning sizeable profits simply by sitting on tanks of oil.<sup id="cite_ref-1" class="reference">[2]</sup>
    It has been estimated that one in twelve of the largest oil tankers are being used for the storage, rather than transportation of oil,<sup id="cite_ref-2" class="reference"></sup>and that if lined up end to end, the tankers would stretch out for 26 miles.

    Have fun as you wander about the infosphere, try not to have your head explode....
  5. mysterymet

    mysterymet Monkey+++

    Paid $3.83 this morning.
  6. BTPost

    BTPost Stumpy Old Fart,Deadman Walking, Snow Monkey Moderator

    Guess how many times the ownership of a Tanker full of CrudeOil changes hands while that ship is on it's way from out MiddleEastern suppliers, to the Refineries that make the Gasoline and Diesel Fuel out of it?????
    If you say, Once or Twice, you would be WAY UNDER the mark. Now figure that at each sale, the price goes UP 5-10%, and each owner takes out his 5-10% as profit, and then sells it off to the NEXT Guy. Then when it finally arrives at the Refinery, it now costs 40 or 50% more, than it did when it was loaded on the ship. It is a SCAM, that all the Traders use to make profits, all the while the Oil is in transit. Ever wonder why Gasoline in Ecuador is $1.25US a Gallon, and it is $4.00US a Gallon here.... and Ecuador has no OIl of their own, to refine? Duh, Someone is ripping you and "Me" off, and making BIG Bucks doing it.... These are the Banksters that need Lynching, not the guys down at the local Branch making House & Car Loans... ..... YMMV.....
  7. Alpha Dog

    Alpha Dog survival of the breed

    I paid $3.89 to fill up yesterday and the station owner told me it would prob go up again first of the week.
  8. goinpostal

    goinpostal Monkey+++

    I know it's kinda twisted thinking,but I wish it would go to$7.00pg or more,and stay that way till after the election.
    The only way Obama would get re-elected after that would be massive voter fraud.
  9. STANGF150

    STANGF150 Knowledge Seeker

    Same way he already gonna get reElected then huh? what with whatever putz the Republicans finally choose
  10. Tikka

    Tikka Monkey+++

    Another reason gas is so high is the dollar is worth a lot less since 0bama took office.
    Thaddius Bickerton likes this.
  11. Seawolf1090

    Seawolf1090 Retired Curmudgeonly IT Monkey Founding Member

    There is no 'justification' for much of the woe we are suffering, at the hands of Fed-Gov and others in power - but we suffer anyways. We are cattle to be used and discarded.
    oldawg likes this.
  12. mysterymet

    mysterymet Monkey+++

    It was down to $3.79 yesterday afternoon. I might just go top off later today.
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