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| Crude Oil Stocks hit 20 Year High | |
| 2006-06-14 | |
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| Posted by:lotp |
| #7 Stocks have nothing to do with supply and demand, Large supplies tend to deamplify price swings. Think of the ice reserve. |
| Posted by: 6 2006-06-14 15:37 |
| #6 Prices are based on a combination of current market conditions and future expectations/risks. Because there is a risk of a general Mideast conflagration (US military action against Iran because of the nukes after our midterm elections for example) the oil markets would be truly irrational if they didn't price this risk factor into the market. Hence, we have high prices in spite of high stocks, without any need of market manipulation by the big oils. It actually provides good opportunities to short the market provided one only does it for short swings downward before the next bullish news. (Warning: this is for pros; do not attempt this at home.) PS: strictly speaking, stocks are considered part of 'supply' by traders and it's best to look at year-end stocks as a percentage of yearly demand. |
| Posted by: Odysseus 2006-06-14 09:23 |
| #5 Supply versus demand determines prices. Disagree. The fluxes around actions in Iran and Iraq have nothing to do with supply and demand and everything to do with speculation. Its pure market manipulation. Second when the spot market goes up the price of the pump is immediated adjusted up. When those same spot prices drop, there is no similar drop at the pump. If the rational for raising prices is because of costs that will have to eventually be paid is justification for the immediate increase, that works for an immediate drop. Never happens. Once the handful of companies see they can get away with a wink and nod to keeping the prices up, they stay up. No President has the balls to RICO some of these players. Yeah, yeah, the profit margin is small. However, it is Hollywood bookkeeping. Each transaction: exploration, extraction, transportation, refining, distribution, each carry the overhead 'cost' load of the company. Its just like mafia skimming. |
| Posted by: Glolulet Gratch4509 2006-06-14 08:54 |
| #4 1. although stocks of crude are above average, stocks of gasoline are below average 2. although supply is up, demand is up; works the same way in housing - we have more housing stock than at any time in history; about 10% increase over the past 5 years (twice the increase in population) - but demand is up too |
| Posted by: mhw 2006-06-14 08:07 |
| #3 Supply versus demand determines prices. Stocks have nothing to do with supply and demand, except to the extent that the greater the demand, the higher the stocks held. |
| Posted by: phil_b 2006-06-14 02:31 |
| #2 Hmmm... as crude prices go down, and storage is maxed out, the pump price keeps going up. Until of course the inevitable energy recession. The last one in the 1970s took a decade to get over. Of course the blisteringly obvious collusion by oil traders in Europe, Asia, and the US have no effect on prices! After all its the marketplace! |
| Posted by: Hupomoling Hupineck8936 2006-06-14 00:22 |
| #1 So... why is the price higher? |
| Posted by: 3dc 2006-06-14 00:10 |