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2005-04-07 Home Front: Economy
Oil Prices Drop Sharply As Gas Plummets
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Posted by Steve 2005-04-07 3:09:40 PM|| || Front Page|| [12 views since 2007-05-07]  Top

#1 Hummm..... Mark E! what's the word, is the inventory build up due to fear or a softening in demand?
Posted by Shipman 2005-04-07 3:52:34 PM||   2005-04-07 3:52:34 PM|| Front Page Top

#2 For whatever reason that the price of oil drops "sharply", the price of gas never does. But it's funny how most of the time, when oil prices rise, the price of gas rises almost as fast.
Posted by Bomb-a-rama 2005-04-07 4:34:06 PM||   2005-04-07 4:34:06 PM|| Front Page Top

#3 The inventory build up is both - a drop in demand due to price (i.e. you dont drive as much when it cost you an arm and a leg), but the main factor is fear, which has driven the market since 2003. Fear of the IRaq warhosing things, fear of Iran messing htings, fear of russian instability, fear of Nigerian instability, fear of that looney in Venezuela hosing things up... etc. Been one thing after another driving market price spikes, and NONE of them has come to pass.

For the fiscal element - look no further than the hedge funds, who have been leveraging the hell out of things, adn causing futures contracts to run irrationally. They screwed up the international system a few years back by shorting massively in the financial markets (they needed Greensapn to bail them out), and apparently have run amok again, this time in the oil sector.
Posted by OldSpook 2005-04-07 5:23:17 PM||   2005-04-07 5:23:17 PM|| Front Page Top

#4 A market equalizes supply and demand by changes in price. That is the sole and only purpose of a market. When someone says 'based on fundamentals the price should be x or y' they don't know what they are talking about. Markets make value. The correct price is the one set in the market.
Posted by phil_b 2005-04-07 6:24:52 PM||   2005-04-07 6:24:52 PM|| Front Page Top

#5 Hedge funds game the system and screw up the "natural" order of market equilibrium.
Posted by gromky  2005-04-07 7:24:24 PM||   2005-04-07 7:24:24 PM|| Front Page Top

#6 We need to seak an alternative to this ever so common problem--relying on other's for our gasoline.

It makes my job in sales (out on the road) so difficult and costly. Can anyone think of a better alternative? Other than horse and carriage!

Andrea
Posted by Not so guliable  2005-04-07 7:27:52 PM||   2005-04-07 7:27:52 PM|| Front Page Top

#7 Shell Game Alert...

Anyone bet $3.00 average before years end?
Posted by BigEd 2005-04-07 8:18:01 PM||   2005-04-07 8:18:01 PM|| Front Page Top

#8 Naturalized squirrels and home grown naked mole rats.
Posted by Google Images 2005-04-07 8:22:11 PM||   2005-04-07 8:22:11 PM|| Front Page Top

#9 What Andrea, hamster or gerbil powered turbines?
Posted by Sobiesky 2005-04-07 8:36:49 PM||   2005-04-07 8:36:49 PM|| Front Page Top

#10 The inventory build up is both - a drop in demand due to price (i.e. you dont drive as much when it cost you an arm and a leg), but the main factor is fear, which has driven the market since 2003. Fear of the IRaq warhosing things, fear of Iran messing htings, fear of russian instability, fear of Nigerian instability, fear of that looney in Venezuela hosing things up... etc. Been one thing after another driving market price spikes, and NONE of them has come to pass.

For the fiscal element - look no further than the hedge funds, who have been leveraging the hell out of things, adn causing futures contracts to run irrationally. They screwed up the international system a few years back by shorting massively in the financial markets (they needed Greensapn to bail them out), and apparently have run amok again, this time in the oil sector.
Posted by OldSpook 2005-04-07 5:23:17 PM||   2005-04-07 5:23:17 PM|| Front Page Top

#11 Off-topic or abusive comments deleted]
Posted by OldSpook 2005-04-07 5:23:17 PM||   2005-04-07 5:23:17 PM|| Front Page Top

18:04 phil_b
18:04 phil_b
00:02 Mark Espinola
00:01 Old Patriot
23:59 RWV
23:51 BigEd
23:31 Barbara Skolaut
23:18 Rex Rufus
23:16 Ominter Pheart2665
23:12 Chuck Simmins
23:10 jackal
23:09 Sobiesky
23:07 jackal
22:57 DMFD
22:51 3dc
22:49 DMFD
22:47 3dc
22:14 Frank G
22:07 Frank G
22:06 Alaska Paul
22:01 Frank G
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