heating oil lock in price for Sept 08- May 09 (Accord: leases, insurance)
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I just got a quote for $3.879 a gallon...and this locking in price is a bunch of crap... these oil companies don't play the futures market...unless they are locking in more than 1 heating oil contract a day which is 42000 gallons... I doubt it...
The NYMEX price is the wholesale price not what your oil company is going to charge you, which includes the driver's salary, transportation and their overhead.
I just got a quote for $3.879 a gallon...and this locking in price is a bunch of crap... these oil companies don't play the futures market...unless they are locking in more than 1 heating oil contract a day which is 42000 gallons... I doubt it...
Who offered you $3.879? That is very good. Can you share thje info?
Actually, I beg to differ. When I lived in Cold Spring Harbor, I had oil and used Marran Oil--they did indeed buy futures. Used them for 17 years and had not a single complaint... (Local Family business, third or fourth generation!)
Quote:
Originally Posted by wickedkhalsa
I just got a quote for $3.879 a gallon...and this locking in price is a bunch of crap... these oil companies don't play the futures market...unless they are locking in more than 1 heating oil contract a day which is 42000 gallons... I doubt it...
wait till september. oil should be $80 a barrel by then and if you buy now, you'll lose.
If you are that certain, you are wasting your time posting here. You can make millions shorting the September sweet crude contract. The fact is that none of us can predict the future. The one thing I am certain of is that come September, oil will either be the same price as today, if not higher or lower.
Oil has been generally rising since 2002. The past two years it has been rapidly rising. The fact that it retreated recently from its highs does not a trend make. As Paul Krugman, from the NY Times, wrote in June, "I wouldn’t be surprised if they slip for a while as consumers drive less, switch to more fuel-efficient cars, and so on — but the long-term trend is surely up."
In my opinion (an opinion shared by others, but not necessarily by Congressional Democrats and other static thinkers), in the absence of any disruption to the flow of Mideast crude into world trade, with the current 3-to-5 year petro complex outlook fixated on declining supplies of crude vs a growing demand for these declining supplies of crude, even the faintest whiff that Congress will allow drilling in the offshore continental shelf (OCS) could see a sharp price reversal to under $100 a barrel, and then further extended price weakness down into the $75.00 to $50.00 a barrel area.
I remember the year before last, WBAB had an agreement with some local oil company where listeners could get discounted prices by being part of the "cartel"... I don't listen to BAB anymore (can't stomach Roger & JP anymore!) but maybe they're doing something similar again?
In my opinion (an opinion shared by others, but not necessarily by Congressional Democrats and other static thinkers), in the absence of any disruption to the flow of Mideast crude into world trade, with the current 3-to-5 year petro complex outlook fixated on declining supplies of crude vs a growing demand for these declining supplies of crude, even the faintest whiff that Congress will allow drilling in the offshore continental shelf (OCS) could see a sharp price reversal to under $100 a barrel, and then further extended price weakness down into the $75.00 to $50.00 a barrel area.
Well, you van hold any opinion that you want but that opinion isn't even shared by the Bush Admin's Energy Department that said that even if drilling started immediately, the soonest oil would flow would be ten years, and it will only effect prices by a few pennies.
It's very simple math. A country that uses 25% of the world's oil but only has 3% of the world's reserves, can't drill itself out of it's problem. Only static thinkers would believe otherwise.
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Good price
