$10 Gas. What are you going to do?

[comsnark]

Why all the speculator bashing? What do they do that's wrong? Illegal? Here ia a post of mine from a few weeks ago, tell me where I'm wrong.

I was with you until the speculators comments. Speculators don't cause prices to rise they just precede the rise and sell when the rise stops, actually speeding the fall, as well a the rise. They also hold and sell, offering oil to end users and reducing hoarding by them. All oil is a commodity sold at market prices no matter who holds the paper. I don't think they change the market prices much and seem to stabilize both price swings and availability

Mike;

We have indeed discussed this before.

First: Let me say that I don't think there is anything illegal about it. It is capitalism in action. Just like the price of electric generators can be expected to rise during hurricane season.

If all "speculators" did was hold and sell; smoothing the markets by holding/releasing oil (for a suitable fee), then yes. . .they certainly would be stabilizing. Especially for "availability".

I think part of the problem is that there is a suspicion that some speculators are not industry specialists, but rather opportunists that normally DO NOT buy oil, but are buying now at $100/barrel hoping to resell at $120. If this was happening, then what you would have is actually an increase in demand during times of crises, which magnifies the applitude of a supply driven price fluctuation.

Now. . the fact that gas at my two local gas stations rose 5 cents yesterday and 10 cents today. .that's not merely speculators at work, right?

 

[Daniel P Thomas]

Scott
My boat is going in this year no matter what happens.
Not sure yet where the marina fees are coming from yet though.
Hopefully some additional work will come in sooner, than later.

Still have about 150-175 gallons of fuel.
Will take it slow and easy.

Luckily for us in Hammond we do a lot of shared boat rides between a few of us.
Lots of dinghy and wave runner rides to the beach.

You know you are always welcome over in Hammond even if you decide to trailer the Whaler over.

Beer, Wine, BBQ Dinners and Music are the staples of the 'R' Dock.
Always an Open House.
We even let Jeff stop by from the 'T' Dock too!

This might be the only sanity left for this year.

Dan

 

[Gunn]

Can't fish, State of Maryland might not open Rock fish season this spring.
Can't drink, State or Maryland is raising tax on booze.
What are you going to do? :huh:

Maryland is pissing me off... I'm gonna buy my booze and my boat fuel in Delaware.

Same here! Now what's this about Maryland and the Rockfish season??:wow:

 

[rickyp52]

I wish we had a Bush in the White House right now, either of the former would do. Our current clown is more interested in talking out of both sides of his mouth than actually taking a leadership role. Apparently Labor Unions are more important than worldwide chaos.

That's a really good one. You made me spit my drink all over my computer screen it was so funny. I'm actually glad we have a president who's concerned about labor unions here in our own country, and who doesn't fancy himself as a cowboy imposing his (and his theiving buddies) will upon the world in general. These people need to be left alone to govern themselves. And the only reason anyone on the right cares about Libya is because of oil and gas prices. They could care less about the people there, hell, they don't even care about their own people here in the USA.

 

[wvsundancer]

Gas got to $5.00 here last time and I filled up to make our biggest trip of the year 70 miles out and 70 back so what are you going to do? Yes we will not go down river 12 miles " just to go get lunch" but the boat is getting wet on April 9th no matter what.

 

[giff1]

Gunn,
There has been Rockfish poaching by commercial netters out of Kent Island. The DNR shut down all commercial Rockfishing. The tonnage the poachers took exceeded the amount the DNR lets all of us catch in a year. Last time this happen, about 25 years ago, Rockfishing was banned for a few years. This was on the Baltimore news.

I'm trying to not be pessimistic.
I'm just a little ticked off.
I wish my boat was in the water.

 

[sdarc]

My boat is STILL the cheapest waterfront property I know of. I'll sit, eat, drink, watch the bikinis and then pass out. Not much different than last year.

 

[Woody]

Mike;

We have indeed discussed this before.

First: Let me say that I don't think there is anything illegal about it. It is capitalism in action. Just like the price of electric generators can be expected to rise during hurricane season.

If all "speculators" did was hold and sell; smoothing the markets by holding/releasing oil (for a suitable fee), then yes. . .they certainly would be stabilizing. Especially for "availability".

I think part of the problem is that there is a suspicion that some speculators are not industry specialists, but rather opportunists that normally DO NOT buy oil, but are buying now at $100/barrel hoping to resell at $120. If this was happening, then what you would have is actually an increase in demand during times of crises, which magnifies the applitude of a supply driven price fluctuation.

Now. . the fact that gas at my two local gas stations rose 5 cents yesterday and 10 cents today. .that's not merely speculators at work, right?

Right.

 

[Quint4]

Man what a depressing thread.

 

[Big Island Lifer]

I just paid $3.69 to fill up. This is gonna get brutal! Gas on our lake is usually $1.25 to $1.75 more then the gas station price. I am not looking forward to 5-6 bucks a gallon this summer.

 

[Cincy Aquaholic]

I'm jumping in late even though I'm getting sick over the scam that oil pricing has become but here's my thought . . .

No way gas can get to $10/gallon or even $7.00 for any appreciable period of time BECAUSE 80% of the U.S. population couldn't afford it! No one making $7.25 an hour (minimum wage is going to spend $200/ week on gas to make $200/week. Unfortunately, there are way too many people living to close to paycheck to paycheck if not already over extending themselves with credit to be able to absorb this kind of hike. Not only will impact them at the pump it will at the grocery store and everywhere else. And what will happen is, the entire economy will tank again. I'm convinced $4.00 gas 3 years ago had more to do with the downturn than people want to admit.

Bottom line, you will price out such a large part of the population that demand is going to tank again, the oil producers will be scared to death to be back at $30/per barrel and it will even out again. As my dad would say . . . Mark my words!

 

[tdschafer]

Look at the bright side....

No need to make advance reservations at the "hot spot marinas" this year...

Wow, look at Gary providing a ray of sunshine to this dreary thread!! :smt038

We sold plenty of gas at $4.20 a gallon last time we got hosed by speculators.....Gas will not get to $10 a gallon in the US because the economy can't handle that. ......... It may peak at $5 but the demand at $4 dropped so fast they had to lower prices last time. Americans just will not pay $5 a gallon I believe. ...... They can't eat oil in the desert so let's just jack up the cost of food we export.....that will start a real war no the current chicken crap! ............. The scarry part is Glenn Beck is more right than wrong.....His message is wake up people or should I say sheep, Mike.

I agree with you on several points here.
The last time gas went over $4.00 a gallon here, the restaurant business tanked!! People just did not go out to eat anymore. That seems to be the first thing they cut out. Fortunately they still drank to forget their problems as this offset our food losses.
Not a bad idea on the food exports.......IMHO.
Glenn Beck predicted the housing crash a year before it happened. I remember watching him on CNN in his old format and thinking "What a negative Nelly". Well, he hit the nail on the head with that one! I can't really get into his current TV format as I feel like I'm listening to a lecture......ZZzzzzzz.

I can't speak for the others, but I certainly have seen it. Our grocery bill has doubled in the last couple of years, and that is not insignificant. My income has not doubled, nor has my wife's.

For us, the boating season is teetering on being canceled this year, and it really ticks me off. I love boating as much as anyone on the board, but housing, food and family come first.

Scott,
Are you sure that the grocery bill isn't due to the boys rapid growth at this stage?? I know my boys are eating me out of house & home!!:smt043 Hang in there and get her wet this year!! I am referring to your boat!:grin:

The world can't sustain that price which why it will never get that high.quote]

When you stop and think of all things that oil is used in, or needed to produce, oil truly is the currency of our era. If oil rises to high everything will rise with it slowing economies worldwide. Most of the countries with oil need the money to payoff their subjects, they will not let it get too high.

MM

I agree, except as long as the developing nations continue their demand for oil the desert rats will have someplace to sell!!

 

[MonacoMike]

I think part of the problem is that there is a suspicion that some speculators are not industry specialists, but rather opportunists that normally DO NOT buy oil, but are buying now at $100/barrel hoping to resell at $120. If this was happening, then what you would have is actually an increase in demand during times of crises, which magnifies the applitude of a supply driven price fluctuation.quote]

What would they buy for if not to profit? Yes they spur demand but also must sell at some point. You seem to believe that they always time the market and make a killing. I’m sure the road is littered with losers. Keep in mind this is all on the futures market not in real time, so actual production and delivery is not affected only the lock in rate.

 

[Gofirstclass]

We'll still go boating. We spend days aboard after cruising 2-8 miles to a place to drop the hook. The cost of diesel to get there is minimal compared to the pleasure we derive from spending a few days on the hook. The diesel is definitely cheaper than blood pressure medicine.

Barlow, you sure have a nice, gentle way of putting things in perspective. Thank you.

 

[MonacoMike]

I'm jumping in late even though I'm getting sick over the scam that oil pricing has become but here's my thought . . .

No way gas can get to $10/gallon or even $7.00 for any appreciable period of time BECAUSE 80% of the U.S. population couldn't afford it! No one making $7.25 an hour (minimum wage is going to spend $200/ week on gas to make $200/week. Unfortunately, there are way too many people living to close to paycheck to paycheck if not already over extending themselves with credit to be able to absorb this kind of hike. Not only will impact them at the pump it will at the grocery store and everywhere else. And what will happen is, the entire economy will tank again. I'm convinced $4.00 gas 3 years ago had more to do with the downturn than people want to admit.

Bottom line, you will price out such a large part of the population that demand is going to tank again, the oil producers will be scared to death to be back at $30/per barrel and it will even out again. As my dad would say . . . Mark my words!

This is well said. MM :smt038

 

[Moose]

If you have a boat, you don't ask what the price of fuel is. Otherwise get rid of her as much as you don't want to.

 

[Oar Play]

People like my own father as smart as he is will never get it. He drives 25 miles to work. 50 per day. 5 days per week. His car gets 25 mph. If gas goes up $1.00 per gallon, Dad is out an extra $12.50 per week. Not a big deal. But that $1.00 increase in diesel adds cost to everything else you buy. That hurts way more, yet the media only focusus on gasoline.

Now gasoline price hikes kill all other recreational use of gas. Boating encluded. That a plainly do understand.

Look at it like this. You can survive a gunshot wound. But what about 10,000 needle pricks

Also. This recession was triggered by the fuel prices in late '08. Didn't help that as a society we were mortgaged to the teeth with everything having the "Low low monthly payment."

:smt043That's what Heidi Fleiss said!!:lol::smt043:lol:

 

[ch435]

I And what will happen is, the entire economy will tank again. I'm convinced $4.00 gas 3 years ago had more to do with the downturn than people want to admit.

I totally agree with you. I think $4 was the trigger that started the whole collapse of the economy. People started spending less on other items and exposed how fragile things were.

 

[jitts3]

:smt043That's what Heidi Fleiss said!!:lol::smt043:lol:

Figures:huh:

 

[Boji Fan]

We will keep boating as well, As gas prices go up ,I will appreciate the fuel economy of the 3.0 and the 60 hp 2 stroke on the pontoon instead of wishing for bigger motors!!!