Gas shortages

[California]

I'm guessing the World Bank.

Steve

Thanks.

Out here (California) there are major refineries near San Francisco and Los Angeles processing local and (I think) Alaskan crude. So there should be little effect from the Houston shutdowns.

Looking at Gasbuddy I see +18 cents between two stations that are usually identical so we must be seeing some increase as new truckloads get delivered to them. $2.61 and $2.79. Both are within the range of normal fluctuations.

 

[turnkey4099]

Very true - gas has a very short shelf life. And that is why the raw product is simply left in the ground or stockpiled in very large above ground storage.

Any port in a storm, ANY excuse at all - - raise those final product prices.

And raise it as soon as you see the price quote, not when you need to restock. Works the otehr way around when prices are dropping, then they don't drop the price until then need to restock. I keep all my tanks full when price goes up and near empty when it is coming down. Doesn't really beat them at their game but it helps a bit.

 

[/pine]

How have the economics changed? Are you claiming that the demand for oil is no longer inelastic? There has been a technological change resulting in a supply shift, but are you claiming something else has shifted the supply curve for oil?



What does this mean? How are you defining a "shortage"? My working definition is that a shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.




If you have a link, please post it. I am not interested in chasing vague conspiracy theories.

Steve

The whole dynamic has changed...it's not just about the gas you pump into your car or the diesel in your tractor...The cash flow for related goods and services moved from foreign to native productions just look at the surge in wire line services etc...

There a big difference between the refineries being out of service for a few weeks or a truckers strike etc., etc...and raw crude production...(supply chain)...

Off hand I do not have a link without searching myself...it's old news and hardly a conspiracy...it's the way of the world it's all about who controls the monies...Yes the World Bank...learn how the futures markets work and who controls them...

 

[rekees4300]

No shortages but price is going up 5 cents a day.

 

[sseelhoff]

I'm guessing the World Bank.

Steve

Do they have free ATMs? I thinking about making a change.

 

[smstonypoint]

The whole dynamic has changed...it's not just about the gas you pump into your car or the diesel in your tractor...The cash flow for related goods and services moved from foreign to native productions just look at the surge in wire line services etc...

There a big difference between the refineries being out of service for a few weeks or a truckers strike etc., etc...and raw crude production...(supply chain)...

Off hand I do not have a link without searching myself...it's old news and hardly a conspiracy...it's the way of the world it's all about who controls the monies...Yes the World Bank...learn how the futures markets work and who controls them...

Hardly a conspiracy? Then it must be be written up in a credible source. I can't claim to be completely up to date on the literature, but I have never seen this "theory" discussed in any of the academic journals or blogs. If you have a source, post it and let others judge its credibility.

I have been studying futures markets for 45+ years and my dissertation was on futures. Since that time I have published several articles on futures and options. I think I understand how those markets work.

Steve

Addendum

Here's an ungated paper by James Hamilton that purports to explain crude oil prices: .http://econweb.ucsd.edu/~jhamilto/understand_oil.pdf.

It has been several years since I last read the paper, but I do remember that it furthered my understanding of the price discovery and price determination processes in oil markets. I don't recall reading anything in the paper about the IMF and WB.

BTW, I consider James Hamilton a credible source. Do you?

 

[California]

I have been studying futures markets for 45+ years and my dissertation was on futures. Since that time I have published several articles on futures and options.

Aw man no fair bringing a gun to a knife fight.

 

[/pine]

Hardly a conspiracy? Then it must be be written up in a credible source. I can't claim to be completely up to date on the literature, but I have never seen this "theory" discussed in any of the academic journals or blogs. If you have a source, post it and let others judge its credibility.

If have been studying futures markets for 45+ years and my dissertation was on futures. Since that time I have published several articles on futures and options. I think I understand how those markets work.

Steve

Yet you seem to miss the fact that they that have the most money have the most control...There is no conspiracy, there is no theory it's as simple as that...

 

[coobie]

Another reason we have two 300 gal. farm tanks one diesel one gas.Gravity fed no power to pump them.

 

[smstonypoint]

Yet you seem to miss the fact that they that have the most money have the most control...There is no conspiracy, there is no theory it's as simple as that...

But there is such a "theory" -- it's part of the Marxist "theory" of how capitalism works.

Steve

 

[polo1665]

What's the WB?

Warner Bros.

 

[ning]

Don't forget it's also Labor Day weekend.

 

[/pine]

But there is a theory -- it's part of the Marxist theory of how capitalism works.

Steve

IMO economists are about as credible as astrologists...they will almost all tell you something different...

 

[smstonypoint]

Warner Bros.

Good point -- I didn't think of that as a possibility.

Steve

 

[polo1665]

Good point -- I didn't think of that as a possibility.

Steve

I think the possibility is getting more credible as the thread goes on.

 

[/pine]

LoL...Economists create theories, Warner Bros. make movies...I see the relationship...

 

[txdon]

Lots of shortages in central Texas. I passed eight filling station 7 were out of gas and one was charging $2.71 a gallon yesterday it was $2.49 the day before $2.09. Brother in Dallas found gas at Sam's club yesterday at $2.39 BIL in Houston Gas station was closed.

 

[rekees4300]

Whenever there's a crisis isn't it amazing how quickly gas prices go up and how slowly after the crisis they go down. Smell a rat?

 

[polo1665]

LoL...Economists create theories, Warner Bros. make movies...I see the relationship...

Not exactly what I was thinking, but hey, whatever floats yer boat.......as they say.

 

[jk96]

We owned a convenience store for about 10 years. We were always the bad guy. Holding prices high even though the load in our tanks came in at a cheaper price. Raising prices just because our competitor raised his, not because our cost increased, etc. To be honest we were lucky to break even on fuel sales. Any money made was on inside sales. On average our margin was typically 5-6 cents a gallon. At that time gas averaged around $3.50. At 2.2% credit card fee we lost .02 cents for every gallon of gas we sold. On the rare instance that we were selling a cheaper load of fuel at the same price because our competition had not lowered prices yet we didn't feel guilty about it, we were just happy we weren't loosing money for a change.