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Are you kidding me. Explain the jump of 12 cents in the past week alone. What did the drillers or the refiners or truckers or sellers labor union all of a sudden negotiate a new contract. How else could price jump that quickly if there is not speculation and inflation along the way. I thought we were purchasing a product that who's reserves are pretty deep and thus a week worth of news does not cause such a drastic increase in price but I guess there is no inflation in the process and this increase has been coming for the past 3-6 months the way normal price increase works.
I know the single mom who purchased 50gallons last month or whatever and budgeted the same money for another 50 gallon this month don't share your opinion when they are deciding what not to pay this week so they can come up with the extra few dollars to fill up the car and get the minimum delivered.
Quote:
Originally Posted by Walter Greenspan
First you explain, " ...the price is inflated every step of the way."
so you're telling me you would be ok if your insurance company came to you a few days from now and said look we did a study and there is a street in your area that has a lot of accidents on Wednesday and because we think you may go there and get into an accident we need to up your premium?
Yes there is fair but all the supplies are flowing regularly and right how there is no issue so why are we being gauged when the problem has not even accrued as yet and who does the price increase benefit in the mean time? Also how much do you think things would come down if we all went back to playing nice with each other?
so you're telling me you would be ok if your insurance company came to you a few days from now and said look we did a study and there is a street in your area that has a lot of accidents on Wednesday and because we think you may go there and get into an accident we need to up your premium?
Yes there is fair but all the supplies are flowing regularly and right how there is no issue so why are we being gauged when the problem has not even accrued as yet and who does the price increase benefit in the mean time? Also how much do you think things would come down if we all went back to playing nice with each other?
Where are you going with this rant? Suggesting price controls or something similar? Because Walter has been rather patient in helping you understand how this works.
I locked in at $3.69 with a free service contract.
Glad I did it now.
The difference is COD consumers are not LOCKED IN to having to buy oil when they don't want to.
With a contract, you are getting oil delivered monthly. I can wait out a month, two months, three months... The moment I went COD I saved money.
MikeyKid: Please read my prior comments. I agreed with Walter about the need for nuclear plants. I am not sold on the opening up of areas for more drilling until the industry can do better to protect the environment. Our discussion or rant as you call it is about weather or not the pipeline would change things much and the inflation at every step. I think I understand pretty well so I am not sure what he has been pretty patient in helping me understand.
My point still is and will be that you cannot say there is no inflation or speculation if prices can jump 12cents in one week on the possibility of something happening when nothing has happened to disrupt our reserves.
Quote:
Originally Posted by MikeyKid
Where are you going with this rant? Suggesting price controls or something similar? Because Walter has been rather patient in helping you understand how this works.
MikeyKid: Please read my prior comments. I agreed with Walter about the need for nuclear plants. I am not sold on the opening up of areas for more drilling until the industry can do better to protect the environment. Our discussion or rant as you call it is about weather or not the pipeline would change things much and the inflation at every step. I think I understand pretty well so I am not sure what he has been pretty patient in helping me understand.
My point still is and will be that you cannot say there is no inflation or speculation if prices can jump 12cents in one week on the possibility of something happening when nothing has happened to disrupt our reserves.
I did... and read Walter's - who I rarely ever agree with. But in this case he has it correct. Iran provides roughly 5% of the world's oil - so even the fear of the Israeli's (or us for that matter) bombing them is going to have an impact.
Peak Oil aside. The ramp up, cost, and benefits from any proposed pipeline is a strawman at best... weighing that against 5% of current supply is folly.
I still don't get the "inflation at every step" thing. Are you sure you're using the term "inflation" correctly?
Look at it like this...almost all oil companies are only locking in for 6 months due to the instability of oil pricing. I will only need one more fill up to last me till August. COD is up to $3.70 right now. Im paying $3.69 with a free contract which includes a cleaning and tune up. Win win if you ask me. If anything prices will keep creeping up with all the b.s. over in Syria and Iran.
Quote:
Originally Posted by scottzilla
The difference is COD consumers are not LOCKED IN to having to buy oil when they don't want to.
With a contract, you are getting oil delivered monthly. I can wait out a month, two months, three months... The moment I went COD I saved money.
So again MikeKid please read where my initial comment that the pipeline won't make a difference. I understand their supply impact but most countries that are part of the UN do not buy oil from them, also we assume this impact is based on all the current producers producing at peak capacity and cannot handle anything else.
Ok let me correct my wording. Yes I understand the threat to a major portion of the world's oil supply but the natural course of price adjustments or inflation normally takes longer than a week before we see it in our economy so 12c jump in one week can only be explained by external forces to the process inflating the prices. The same way when prices go down it takes forever to reach the consumer but as soon as there is a possibility of anything happening it reaches us immediately.
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