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The price of oil......


beemerboy

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....has me wondering how much per gallon I'll be paying on my way out to and back from this year's Un. I'm thinking something in the $4/gal range, what say you? Also, has the sudden spike if gasoline prices caused you to rethink your '11 travel plans?

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I think it's going to be closer to $4.50 - $5.00 around here (Chicago area). Our vehicles use premium, and that's already at $3.84/gallon at our nearby stations (93 octane).

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I'm not too worried. Some of our savings are in a Natural Resources mutual fund (Fidelity FNARX). When oil/gas goes up, the fund goes up. It makes me more than what I spend extra on gas.

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I'm not too worried. Some of our savings are in a Natural Resources mutual fund (Fidelity FNARX). When oil/gas goes up, the fund goes up. It makes me more than what I spend extra on gas.

 

I work in the energy business and stand to profit quite well from what's going on. In addition to that I own shares in many energy related companies and have already seen very nice gains in my holdings. That being said not everyone here enjoys this sort of largesse so this upheaval impacts them differently.

 

And now to do some research on FNARX......(thanks, Paul :grin:)

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It would be nice if the consumer was able to buy gasoline at today's prices for tomorrows fillup. Something like 5,000 gallons on a investment or speculative market? Price goes up, you win, price goes down you lose.

I'd also like to see an emerging market in underground gas storage tanks for residential use. Put a lot of unemployed construction industry back to work. I bet getting a building permit for an underground tank might be a wee bit difficult though.

The way things are going in Libya, I'm not optimistic for summer driving. The cost of gas trickles down to all business who use gas..expect a price spike at your local grocery store soon.

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Those of us living in remote rural areas will be hit hard, not only will it cost us more to go anywhere (nearest grocery store 16 miles) but things there will cost more and fewer tourists will visit our area damaging businesses here too. I suppose UPS will re-instate the fuel surcharge to bring me things from internet stores, oh well, I'll just stay home and grow my own food.

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John Ranalletta

A client just asked me to finalize cost for an April event in Shanghai. I'm anxious to see what happens to biz class fares that were at $8.8k last week.

 

Paradoxically, there's some evidence that big spikes in oil are followed by deflation due to impaired economic activity; so, maybe it all evens out.

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John Ranalletta

Think you're good enough to trade oil for profit?

 

 

sniffing-glue.jpg

 

 

Oil supply or non-supply is not driving price, traders are. When west Texas intermediate crude can be bought cheaper

than stuff that has to travel across an ocean, the local tanks are full.

 

 

Oil%207%20Sigma_1.jpg

 

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:thumbsup: Absolutely, positively true. The last "spike" was entirely based on speculation, without a shred of proof that supply was compromised.

 

My dad's off gas completely with his new Volt and his short commute to work. I congratulated him yesterday on that smart purchase.

 

-MKL

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Notwithstanding the comments regarding trader driven prices, I feel, if as the result of the populus of those oil producing Middle East countries' demanding (and getting) their liberty, higher prices at our pumps are but a small price to pay.

Just watching CNN and wringing our hands is but a token gesture. Those folks over there pay a much higher price.

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John Ranalletta

I agree, but the larger issues are (1) will the new governments understand how to continue the oil enterprise; and, (2) will human nature take over meaning the new ruling class (and there will be one, certainly) hoarding the wealth?

 

I'm betting the old pigs will be replaced by new pigs. Always was, always will be.

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chances are they will have to go thru a few painful iterations before they get it right, for themselves and for those of us who depend on their precious product.

Good luck to all of them.

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The correlation of 95.3% is surprisingly tight. I would not have thought so, given the general perception that pump prices are out of proportion with fluctuating oil prices.

Interesting charts, Thanks.

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