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Old 11-14-2018, 04:13 AM
 
65,420 posts, read 66,872,597 times
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Just buy a stock like USO which is oil as a hedge . If the price goes up you benefit and offset other costs.

Instead of complaining about the dealer learn to play the hand your dealt

 
Old 11-14-2018, 04:29 AM
 
Location: Brackenwood
2,725 posts, read 1,046,546 times
Reputation: 5473
Quote:
Originally Posted by maineguy8888 View Post
For one basic reason: when the price of crude rises (even a little), it almost instantly affects the price that consumers pay. But when crude prices drop, it takes MUCH longer for them to drop, even a little. This makes no sense, other than some perverted form of capitalism.
They have every right to be greedy and/or engage in collusion. And I have every right to wish them ill for it.
You're barking up the wrong tree. Demand spikes caused by uncertainty is a consumer-driven cost, not a supplier-driven cost. And no, it doesn't always take "MUCH longer for them to drop, even a little." I remember the 2008 oil crash when pump prices dropped by more than half in just a few weeks.


Quote:
Originally Posted by JonathanLB View Post
There are like 19 people who are bummed to read oil prices are down and they are owners of oil companies. And honestly, as you said, screw them, who cares what they want.
Them, and also people who recognize energy prices are often a leading economic indicator. The layman's celebration of the 2008 oil price collapse was a short one indeed.

Last edited by Bitey; 11-14-2018 at 04:39 AM..
 
Old 11-14-2018, 04:34 AM
 
Location: USA
13,965 posts, read 7,517,590 times
Reputation: 10106
Track U.S. gasoline prices as a function of inflation over the last thirty or so years, and see where it stands. Go ahead, I'll wait. Also, see what the major oil companies profit margins (gross margin) are compared to many other industries.
 
Old 11-14-2018, 05:05 AM
 
Location: Kuwait
3,093 posts, read 1,222,880 times
Reputation: 2390
Quote:
Originally Posted by maineguy8888 View Post
For one basic reason: when the price of crude rises (even a little), it almost instantly affects the price that consumers pay. But when crude prices drop, it takes MUCH longer for them to drop, even a little. This makes no sense, other than some perverted form of capitalism.
They have every right to be greedy and/or engage in collusion. And I have every right to wish them ill for it.
You should walk or buy an electric car...problem solved.
 
Old 11-14-2018, 05:39 AM
 
4,932 posts, read 2,353,120 times
Reputation: 9116
This thread is like the guy typing on a computer made of parts from Asia about how much we should buy American and boycott Asia.
 
Old 11-14-2018, 05:50 AM
 
Location: Cebu, Philippines
2,426 posts, read 888,399 times
Reputation: 4774
In 1950, my dad paid 25c a gallon for gas. Same as he paid for a pack of Camels, a paperback novel, or eight postage stamps. Now, gas is the cheapest item on that list.
 
Old 11-14-2018, 07:15 AM
 
4,487 posts, read 5,361,641 times
Reputation: 4589
Quote:
Originally Posted by Bitey View Post
You're barking up the wrong tree. Demand spikes caused by uncertainty is a consumer-driven cost, not a supplier-driven cost. And no, it doesn't always take "MUCH longer for them to drop, even a little." I remember the 2008 oil crash when pump prices dropped by more than half in just a few weeks.



Them, and also people who recognize energy prices are often a leading economic indicator. The layman's celebration of the 2008 oil price collapse was a short one indeed.
I was still excited about it. Gas in L.A. was like $5/gallon, the economic downtown had less effect on me than the price of gas did, frankly. At least, at the time. I guess when I sold my condo, it was a bummer, but since I bought during the recession too and got a bargain, I'd call it a wash, and I got to refinance my condo long before I sold it, so I was enjoying a cheaper mortgage because of the lower interest rates, too.
 
Old 11-14-2018, 08:01 AM
 
65,420 posts, read 66,872,597 times
Reputation: 43781
Quote:
Originally Posted by cebuan View Post
In 1950, my dad paid 25c a gallon for gas. Same as he paid for a pack of Camels, a paperback novel, or eight postage stamps. Now, gas is the cheapest item on that list.
I paid 29 cents in the early 1970ís
 
Old 11-14-2018, 08:08 AM
Status: "True liberal" (set 9 days ago)
 
3,853 posts, read 1,722,793 times
Reputation: 5267
Quote:
Originally Posted by maineguy8888 View Post
For one basic reason: when the price of crude rises (even a little), it almost instantly affects the price that consumers pay. But when crude prices drop, it takes MUCH longer for them to drop, even a little. This makes no sense, other than some perverted form of capitalism.
They have every right to be greedy and/or engage in collusion. And I have every right to wish them ill for it.
If I owned a gas station this is how I'd run it. Say I bought gas at $2 a gallon. Then the price went down to $1.50. I'd try my damndest to get back at least my $2 that I had put into the gas I bought. I might lower it little, gradually. But I'd do my best to get back my $2 because I have to pay that to the supplier.

Now, if the price I paid went up to $2.50, I'd raise my price immediately. Because my customers would have no alternative. All the other gas stations would do the same.

This happen all the way up and down the oil delivery chain.
 
Old 11-14-2018, 08:25 AM
 
1,707 posts, read 403,229 times
Reputation: 1473
There are TWO components of pricing...supply and demand. People get concerned about dropping oil prices when it's demand driven and it often signals an upcoming recession. HOWEVER, in this case it's supply driven. US is producing way more than they have in the past so it's causing an oversupply, hence, the dropping price of oil. It always takes longer to show up at the pump when the price drops. I am sure there is some economic reason for it. I don't know what it is. Maybe they are burning off inventory bought at higher prices?
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