$7.00 a gallon gas hits US

[-Jake-]

Yes, it's called supply and demand. When there is more gas out there than the demand can handle, prices drop.

speculation kind of fucks up your theory.

[stevo]

gas is high because of speculation not because of supply. would making more gas lower prices? I doubt it.

Speculation prices are high due to the fact that the supply outlook is low. Higher supply would drive down speculation prices. I doubt increased supply would increase prices.

Stevo

[-Jake-]

if we ended speculation gas prices would drop overnight.

[-Jake-]

Speculation prices are high due to the fact that the supply outlook is low. Higher supply would drive down speculation prices. I doubt increased supply would increase prices.

Stevo

thats only treating the symptom.

[mikec]

Speculation prices are high due to the fact that the supply outlook is low. Higher supply would drive down speculation prices. I doubt increased supply would increase prices.

Stevo

Not sure I agree with that. In what way is the outlook low? I read articles with regularity talking about how we are one of the largest global suppliers and that we export millions of barrels. Speculation on wall street is the problem, imo.

if we ended speculation gas prices would drop overnight.

Agreed. If we could force them to have to take custody of the oil before they could trade it again the problem would be fixed. At least this is what I've gathered from listening to those that I consider knowledgeable of these things.

[Forever_frost]

if we ended speculation gas prices would drop overnight.

That's just it, you can't end speculation. Everyone is going to guess what their stocks and purchases are going to do in the future. Now, what would fix it is if at the end of the day, speculators had to take possession of the oil they purchased

[stevo]

thats only treating the symptom.

But it will still lower prices.

Not sure I agree with that. In what way is the outlook low? I read articles with regularity talking about how we are one of the largest global suppliers and that we export millions of barrels. Speculation on wall street is the problem, imo.

See post #27.

Agreed. If we could force them to have to take custody of the oil before they could trade it again the problem would be fixed. At least this is what I've gathered from listening to those that I consider knowledgeable of these things.

It would help, but reduced supply will still lead to higher prices, and increased supply will lead to lower prices.

Stevo

[mikec]

See post #27.

Stevo

But we are exporting, so supply is not limited. If supply was limited, we would not be able to export.

Seems simple enough.

[stevo]

But we are exporting, so supply is not limited. If supply was limited, we would not be able to export.

Seems simple enough.

Think 'outlook'... as in the future supply, or rather the lack of it.

Stevo

[mikec]

Think 'outlook'... as in the future supply, or rather the lack of it.

Stevo

I can understand that, but we're sitting on more oil than "the rest of the world" has? How far in the future? 'Cause consumption is down, which will only make it last longer...

And what the hell does that have to do with the price now? I have to pay more now because we might have shortages in 50 years? That's idiotic...

[stevo]

I can understand that, but we're sitting on more oil than "the rest of the world" has? How far in the future? 'Cause consumption is down, which will only make it last longer...

And what the hell does that have to do with the price now? I have to pay more now because we might have shortages in 50 years? That's idiotic...

Consumption is down in the US, but not in the countries that are booming, like China and India.

And I think people are not looking 50 years in the future, more like 5-10 years, the knee-jerk crowd that hears no drilling, no pipeline, and automatically thinks the short-term market will go, which is exactly what happens.

I am strictly speaking from opinion, but I know a sudden increase in supply, in what ever form it was, dropped gas prices at the end of 2008 to $1.69.

Stevo

[SMEGMA STENCH]

I like ya Chris, but I can't believe what an asswipe you are about California.

No one likes commiefornia anymore . Apparently, not even the commiefornians . Seeing as how the states is seeing its people flee to austin TX heh

[mikec]

Consumption is down in the US, but not in the countries that are booming, like China and India.

And I think people are not looking 50 years in the future, more like 5-10 years, the knee-jerk crowd that hears no drilling, no pipeline, and automatically thinks the short-term market will go, which is exactly what happens.

I am strictly speaking from opinion, but I know a sudden increase in supply, in what ever form it was, dropped gas prices at the end of 2008 to $1.69.

Stevo

Your opinion has validity, though the difference is that we had a decent president at that time. Now we have a pos that said early on he wanted our gas prices to be equivalent to Europes. Well, we're well on our way to his goal and I'm not convinced in the least that supply and demand has a damned thing to do with it.

It's the speculators.

[-Jake-]

IF supply has anything to do with it then what explains the $1.65/gallon gas in 2008? Pretty sure we didn't have a sudden surge in production.

[Forever_frost]

IF supply has anything to do with it then what explains the $1.65/gallon gas in 2008? Pretty sure we didn't have a sudden surge in production.

Bush opened up and approved new drilling all over the place. There was potential supply glut and that brought the prices dropping. If Barry opened things back up, we'd see gas drop again