Boating & Gas Prices

[Paulkarlsven]

Funny I thought I posted in this thread today but it seems I posted this in a different thread. Anyway I was watching AFN two days ago at work and there was a report on Lybia that showed their pump price for petrol as 12 cents per liter or 45 cents per gallon.

This spike in fuel prices is not due to any reduction of oil out of Lybia as there has been no reduction in oil production from there and even OPEC has stepped up their daily barrel quota to try and stem the price rise due to the hysteria being whipped up by the media.

So if there is no reduction in oil production then what is causing the barrel price to go through the roof? Someone is making a lot of money for no valid reason it would seem.

 

[Four Suns]

I'm not sure why the public thinks that the oil companies set the the prices of oil. Oil is bid and sold on the open market. While it's true that the oil companies get the higher prices, they don't set the prices. It's like if you grew tomatoes in your back yard and someone showed up at your door and said "I'll pay you $100 a bushel for your tomatoes." Then someone else behind him says "Don't sell them to him for $100... I'll pay you $200 for that bushel." What are you going to do? Say "No.. I'm going to sell them for $20 because I'm a nice guy." So what happens is that tomatoes end up in the store for $300 a bushel and everyone is pissed at you for growing them. And then Obama and all the liberal dumb a$$es want to come burn your tomato farm and take all your money because you are an evil tomato grower.

The people to be mad at are the hedge fund and commodity investment people. They are bidding up the price and buying this commodity from the oil companies in hopes of reselling their "tomatoes" for a higher price tomorrow. Check out the profits of Goldman Sachs after this quarter... they'll be at a record... And when the price of oil drops to $45 because the glut on the market and the economy can't support it, Goldman Sachs will have already dumped their tomato holdings and the small investors (via 401(k)'s, etc.) through their "professional financial managers" will be left holding the bag again just like a few years ago. This is basically how these guys suck money out of ordinary people...

The way you stop this is to only allow refiners to buy oil from producers... sorta like prescription drugs... or you can't buy tomatoes unless you are a tomato products company.. You would still have an open market but it would be priced based on true supply/demand economics and not Goldman Sachs ass clowns in the middle.

Domestic oil product (aka drill baby drill) alone is not going to fix the problem... That's like saying if I grow tomatoes here in Virginia, I am only allowed to sell them in the US... all those Italian guys lined up wanting to pay me $200/bushel I have to turn away. A piss ant dictatorship like Libya can do that... but I don't think anyone wants to go there...

 

[Pietro]

Yesterday, Pietro said that gas was $8.46/gal and diesel was $7.75/gal in Italy. At those prices, I would just go hide under the bed.

The only good thing is that prices for buying or renting a slip are going down... but if you own a slip its value is lower that it was five years ago and finding someone to sell it to is almost impossible nowadays.... as I told before, boating is dyeing in the Med...

 

[Summer Fun II]

I was helping a trucker friend yesterday and when I went to refuel the truck up.

Diesel fuel jumped up from $4,09 to $4.19 agal in two days. :wow:. Gas is selling for $3.78 agal now. :smt021

 

[rcknecht]

I was helping a trucker friend yesterday and when I went to refuel the truck up.

Diesel fuel jumped up from $4,09 to $4.19 agal in two days. :wow:. Gas is selling for $3.78 agal now. :smt021

Wayne, That's only becuase you live in the socialist republic of New York... Its cheaper here in Jersey by 50 cents a gallon...

 

[Searaybio270]

Wayne, That's only becuase you live in the socialist republic of New York... Its cheaper here in Jersey by 50 cents a gallon...

Damn man...I am bringing my boat to NJ to save some money. Looks like more boating this year than I thought. :lol::smt043:smt043:smt043

 

[jpk33]

Wayne, I was at my marina to pay for my slip on tuesday - dock fuel prices were $3.42 for gas and $3.19 for diesel - I did ask if I could get a tanker full of diesel and got :smt009

 

[Gunn]

I'm not sure why the public thinks that the oil companies set the the prices of oil.

Great explanation! Enjoyed read that and the example, helped me understand how the whole things works a bit better. Thanks!

Wayne, That's only becuase you live in the socialist republic of New York... Its cheaper here in Jersey by 50 cents a gallon...

Here in Maryland, diesel fuel is about 40 cents MORE per gallon than gasoline... :huh:

 

[comsnark]

I'm not sure why the public thinks that the oil companies set the the prices of oil. Oil is bid and sold on the open market. While it's true that the oil companies get the higher prices, they don't set the prices. It's like if you grew tomatoes in your back yard and someone showed up at your door and said "I'll pay you $100 a bushel for your tomatoes." Then someone else behind him says "Don't sell them to him for $100... I'll pay you $200 for that bushel." What are you going to do? Say "No.. I'm going to sell them for $20 because I'm a nice guy." So what happens is that tomatoes end up in the store for $300 a bushel and everyone is pissed at you for growing them. And then Obama and all the liberal dumb a$$es want to come burn your tomato farm and take all your money because you are an evil tomato grower.

The people to be mad at are the hedge fund and commodity investment people. They are bidding up the price and buying this commodity from the oil companies in hopes of reselling their "tomatoes" for a higher price tomorrow. Check out the profits of Goldman Sachs after this quarter... they'll be at a record... And when the price of oil drops to $45 because the glut on the market and the economy can't support it, Goldman Sachs will have already dumped their tomato holdings and the small investors (via 401(k)'s, etc.) through their "professional financial managers" will be left holding the bag again just like a few years ago. This is basically how these guys suck money out of ordinary people...

The way you stop this is to only allow refiners to buy oil from producers... sorta like prescription drugs... or you can't buy tomatoes unless you are a tomato products company.. You would still have an open market but it would be priced based on true supply/demand economics and not Goldman Sachs ass clowns in the middle.

Domestic oil product (aka drill baby drill) alone is not going to fix the problem... That's like saying if I grow tomatoes here in Virginia, I am only allowed to sell them in the US... all those Italian guys lined up wanting to pay me $200/bushel I have to turn away. A piss ant dictatorship like Libya can do that... but I don't think anyone wants to go there...

Dang. I agree with most of this.

No wonder it's so cold outside. The entire underworld just froze over.

 

[Rick K]

Well, I figure it this way. Last season, gas was $3.46 a gallon at the dock. I'd put $75 bucks in per week, whether I needed it or not. That $75 got me about 22 gallons of gas. We'd use that $75 bucks in gas just cruising around as we normally would. If gas goes to $5 a gallon, I'll need $110 to get the same amount of gas. I figure yeah, the extra $35 a week sucks, but I'm not gonna too much sleep over it.