This definately falls into the advice "my mind is made up, don't confuse me with facts".

http://finance.yahoo.com/expert/article/business/102403

The Commodities Futures Trading Commission (CFTB) has found that financial firms speculating for themselves or for clients hold 81 percent of oil futures contracts on the New York Mercantile Exchange....

81% you say?

The CFTB, after looking at its books, found that Vitol was buying oil contracts as investments, not to actually deliver oil, and at one point in July held 11 percent of all NYMEX oil contracts.

But the CFTB still does not think speculators are to blame.... huh?

I love the "it's just supply and demand" ... big business wouldn't EVER try to screw folks purposely. Plus, if folks can't get in with the high-flyers, too da** bad, it's their own fault. Fair? Who need's fair.

What shocks me is how many slugs buy into the false rhetoric.

Well, to furthur D-Rod's anti big business point, here is the straight percentages:



Ok, I know there has to be some lag time for the gas price to catch up, but not 1.5 months. I don't think the big oil companies are the ones gouging us right now though. It's either the refiners or the local (or non-local) station owners. Does anyone know how much the rack price has come down at the refinery?

So in this case, you are partially right D-Rod. While supply and demand is working, as evidenced by the lowering crude price, someone is manipulating the market, as evidenced by gas price reductions that are only half of what they should be.

Any time you have a middle man between the producer and consumer you have a price change. Usually an increase since no one goes into business to lose money. How someone can claim that those that buy something in high demand and sale it later without doing anything to process the product and then claim that does not effect the final price is beyond me.

It the same in any product. Any grain sells for "X" amount per bushel (Or hundred weight if cattle") speculators buy it hoping it will go up. They add nothing to the final product except their profit and the final consumer covers all of this.

This is one reason co-op buyers tend to pay lower prices for supplies, they toss in together and buy in bulk and take out some of the mid line costs.

Just my opinion, nothing else.

My beer would be cheaper if the grain futures did not effect it so much.

It would also be cheaper if you brewed it yourself. Consider...

I have brewed many a batch. I love it....
Just can't brew my own fuel...

Yes you can. Tis called Bio Diesel

Mark, any info on those crack spreads?

Not yet. I am out of town again. In Denver funny enough. Get back Thursday and then go to The Delta early Friday morning. Travelling an awful lot lately.

Mark

What the?????!!!!! I just wrote 3 new jokes. Only one has to do with oil.....sorta.

At the risk of inciting another riot here on BABC on oil topics, I will state that it is my considered opinion that it has been obvious for a while now that oil prices have nothing to do with the garbage reasons that are widely reported, and everything to do with profits.

+1

More proof that the oil business is out of control

http://money.cnn.com/2008/09/10/news/economy/oil_officials.ap/index.htm?postversion=2008091015

1)How many oil platforms in the gulf total? Doesn't matter what part of the gulf...
2) How far apart are they?
3) What percentage of oil do they REALLY supply per rig? DOH! DUH?!?!
3) What's the circumference of a hurricanes "EVIL" winds? Can that 100 MPH take out the whole frickin gulf?
4) How many ships are waiting to unload an already existing overflowing reserve?

DOH! DUH! Wake up!!!!!!!!!

The station up by our shop went up 25 cents overnite. God [censored] dothead owners said it was the Ike approaching. I didn't buy but tossed in my 2 bits.