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$5 Gas By Summer Is Seen as Iranian Situation Festers
NY Sun ^ | Ap 24 06 | Dan Dorfman

Posted on 04/24/2006 8:41:25 AM PDT by churchillbuff

click here to read article


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To: waverna

Bunk. Futures run up has been going on for at least the past 3 years.. has nothing to with Iran... just a bubble drivin by a an easily corruptable market and greed.


41 posted on 04/24/2006 9:07:34 AM PDT by HamiltonJay
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To: Bloody Sam Roberts
Interesting that $75 per barrel has the effect it does on prices at the pump since the gas at the pump is derived from oil that was purchased by contract at a much lower price up to 3 months ago. The spot price of $75 per barrel today has nothing to do with the price at the pump for gasoline today.

You obviously don't understand how a retail business works. Regardless of how much a retailer actually pays for his inventory, the price of his product is largely dictated by how much it will cost him to replenish his inventory.

If I bought 10,000 gallons of fuel three months ago for $1 per gallon, I can get a 25% profit margin by charging $1.25 per gallon today (let's ignore all my other operating expenses for the sake of this argument). My $10,000 yields $12,500 in gross revenue.

But if I know today that my next delivery of fuel is going to cost $2 per gallon, then even a 25% "profit" will leave me $7,500 short when it comes to replenishing my inventory. If I know that my next delivery is going to cost $2 per gallon, then getting anything less than a 100% "profit" (i.e., charging $2 for the fuel I bought for $1) on my current inventory would be financially disastrous and grossly irresponsible.

42 posted on 04/24/2006 9:07:54 AM PDT by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: zarf

Just fine, thanks for asking.


43 posted on 04/24/2006 9:08:29 AM PDT by Graycliff (Long haired freaky people, need not apply.)
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To: Proud_USA_Republican

Again not true, not enough refining would not affect the crude price of oil... secondly demand for end product is actually DECREASING.... thirdly demand is no greater now than 3 years ago, and since refinery capacity has been relatively flat since the 1970s. Forth, since the fed reduced requirements for many gormet blends following Katrina et al, there is even less issues limiting refining to the pump.

The argument that refinery limitations are behind the run up don't hold water.


44 posted on 04/24/2006 9:10:03 AM PDT by HamiltonJay
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To: MurryMom

You might want to wipe your chin there. Seems there's a little drool dribbling out.


45 posted on 04/24/2006 9:13:47 AM PDT by reagan_fanatic (Someday we'll look back on all this and plow into a parked car)
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To: churchillbuff

Lance the festuring mullah made mess..


46 posted on 04/24/2006 9:16:14 AM PDT by sheik yerbouty ( Make America and the world a jihad free zone!)
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To: JZelle

Jaaba?


47 posted on 04/24/2006 9:16:51 AM PDT by sheik yerbouty ( Make America and the world a jihad free zone!)
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To: HamiltonJay
We have so much crude right now we can't even unload it.. because we have nowhere left to store it.. not only here in the US, but also in Japan and other countries around the world.

Demand, worldwide is actually declining.

Could you please provide a source for your statements ?

48 posted on 04/24/2006 9:16:58 AM PDT by simon says what
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To: TrogdortheBurninator

Dream comes true for Daddy. This is just what BushI said Americans should be paying for their gas.


49 posted on 04/24/2006 9:17:39 AM PDT by B4Ranch (Immigration Control and Border Security -The jobs George W. Bush doesn't want to do.)
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To: simon says what

Article was posted here on FR just in the last 2 or 3 days.

Crude supplies are at record highs, and demand is actually dropping.


50 posted on 04/24/2006 9:19:57 AM PDT by HamiltonJay
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To: Cold Heat

I am presuming that you can make that statement by observing ripples in your toilet. Or do you just have s*** for brains?


51 posted on 04/24/2006 9:22:27 AM PDT by B4Ranch (Immigration Control and Border Security -The jobs George W. Bush doesn't want to do.)
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To: HamiltonJay
Wouldn't matter if we were.. its futures manipulation not supply shortages that have been driving gas prices through the roof for the past few years... Even if we tapped ANWAR the price would still be going up, because the markets being manipulated.

Tankers are SITTING in harbors because we have no place left to store the crude we have such oversupplies around the world, but the price keeps going up.. its a speculative manipulated bubble driving up prices for the past few years, not war in Iraq or issues with Iran.. just pure old greed by a few powerful folk.

I would guess a significant portion of this speculation is politically motivated and manipulated by George Soros and his ilk. They are deliberately trying to affect Bush's poll numbers and the November election.

52 posted on 04/24/2006 9:24:18 AM PDT by jamaly (I evacuate early and often!)
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To: churchillbuff
Repent, the end is near!!

http://www.cartoonstock.com/lowres/mne0014l.jpg


53 posted on 04/24/2006 9:24:44 AM PDT by MaDeuce (Do it to them, before they do it to you! (MaDuce = M2HB .50 BMG))
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To: TrogdortheBurninator; All

We don't need to drill for more oil. We need increased refinery capacity.


54 posted on 04/24/2006 9:27:56 AM PDT by taxed2death (A few billion here, a few trillion there...we're all friends right?)
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To: HamiltonJay

Yeah, not much happening in the Middle East these past three years to cause any uncertainty.


55 posted on 04/24/2006 9:30:32 AM PDT by waverna
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To: Alberta's Child
If I know that my next delivery is going to cost $2 per gallon, then getting anything less than a 100% "profit" (i.e., charging $2 for the fuel I bought for $1) on my current inventory would be financially disastrous and grossly irresponsible.

So this is the model that the larger oil companies are using to make sure they break even and don't go out of business?
Yeah...that's what they're doing...just breaking even.

56 posted on 04/24/2006 9:31:17 AM PDT by Bloody Sam Roberts (I can't complain...but sometimes I still do.)
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To: HamiltonJay

This is of course all Bush's fault. This morning on the local news, their lead off story was that Americans are BLAMING Bush for the higher gas prices. That he should be doing something about it, bla, bla, bla. New pols showed that something like 75% of Americans say Bush is at fault, so says the local leftist news this a.m.


57 posted on 04/24/2006 9:31:58 AM PDT by RetiredArmy (Politicians are in it for themselves, to get reelected, to benefit them, not we the people.)
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To: pabianice
If all of that happens, which I agree with the current level of stupidity in this country, we WILL have total socialism with a dem congress and WH at the same time. Count on it. The damage they do will not be repaired for decades, if at all.
58 posted on 04/24/2006 9:33:59 AM PDT by RetiredArmy (Politicians are in it for themselves, to get reelected, to benefit them, not we the people.)
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To: HamiltonJay
Article was posted here on FR just in the last 2 or 3 days.

Crude supplies are at record highs, and demand is actually dropping.

Could you provide a link ?

According to this article the Department of Energy reported crude stocks dropped unexpectedly last week by 800,000 barrels. article

59 posted on 04/24/2006 9:36:25 AM PDT by simon says what
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To: HamiltonJay
Long term contract for delivery was available long before a futures market existed in the US....

You didn't answer my question.

Why would the all-powerful world manipulators of oil prices allow anyone to enjoy very large quantities of fuel at half the going price?

What's wrong with this picture?

60 posted on 04/24/2006 9:36:55 AM PDT by Publius6961 (Multiculturalism is the white flag of a dying country)
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