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9/22/2017 12:11:25 AM
Posted: 9/21/2005 3:22:22 PM EDT
On oriellys show today. he was asking the name of the person who says that now the price will be 3 bucks a gallon per say. Any thoughts as to who really does make that decision?

And you are not allowed to say the market decides. It has to be a person.
Link Posted: 9/21/2005 3:23:52 PM EDT
[DU]George Bush[/DU]
Link Posted: 9/21/2005 3:24:10 PM EDT

Originally Posted By Stormtrooper:

And you are not allowed to say the market decides. It has to be a person.



It's a BULLSHIT question, because you have eliminated the correct answer as a possibility.
Link Posted: 9/21/2005 3:26:36 PM EDT
[Last Edit: 9/21/2005 3:28:18 PM EDT by Janus]
No single person has much say in U.S. oil prices.

But if you are looking for one individual who yields the most influence: Hugo Chavez.
Link Posted: 9/21/2005 3:26:38 PM EDT
2 Guys

<­BR>

Mr. Supply and Mr. Demand.
Link Posted: 9/21/2005 3:32:37 PM EDT
The Markets

The Markets

The Markets

The Markets

I can and did.
Link Posted: 9/21/2005 3:36:33 PM EDT
The guy on the right.

Link Posted: 9/21/2005 3:37:37 PM EDT
Silly rabbit. Don't you know that the Bilderbergs control the world!

http://www.bilderberg.org/index.htm
Link Posted: 9/21/2005 3:37:44 PM EDT
You do.......and everyone else who buys it.
Link Posted: 9/21/2005 3:39:50 PM EDT
[Last Edit: 9/22/2005 11:19:04 AM EDT by xinflt]
Edit: OOPS!

dbl tap

Link Posted: 9/21/2005 3:42:55 PM EDT
[Last Edit: 9/22/2005 11:18:46 AM EDT by xinflt]
Edit : Holy Crap!

A Triple Tap!

Sorry!!
Link Posted: 9/21/2005 3:49:57 PM EDT
We do
Link Posted: 9/21/2005 4:15:11 PM EDT
Ok, O'reilly said that in order for the price of oil to be 3 dollars a gallon, it would have to cost 95 dollars a barrel. At 65 dollars a barrel, there is some price gouging going on, and has been going on since before Katrina so you cant say it is because of that. Granted, Katrina and the refinery shortage has brought the gouging to the forefront.

So I ask you again, who controls the price of oil? And if you say we do I am going to punch you in the face. Why would I want to gouge myself?
Link Posted: 9/21/2005 4:27:38 PM EDT

Originally Posted By Stormtrooper:
Ok, O'reilly said that in order for the price of oil to be 3 dollars a gallon, it would have to cost 95 dollars a barrel. At 65 dollars a barrel, there is some price gouging going on, and has been going on since before Katrina so you cant say it is because of that. Granted, Katrina and the refinery shortage has brought the gouging to the forefront.

So I ask you again, who controls the price of oil? And if you say we do I am going to punch you in the face. Why would I want to gouge myself?



You forgot the pipeline pumps not having electricity after katrina......and mr. supply and mr. demand
Link Posted: 9/21/2005 4:56:43 PM EDT
The point of O'Reilly's little speech was that there are 5 major oil companies here that basically control almost all of the gas/diesel/home heating fuel/etc production. All of the companies basically charge the same amount for their product. He contacted or had someone contact the companies and ask how their prices were set, and who had the final say on who sets the price. He recieved numerous answers to this question, and everyone he would contact would send him somewhere else. Studies he cited stated oil would need to be 95 dollars a barrell to be over 3 dollars a gallon, given the reasoning for the gas price hikes.

If there are 5 companies that produce all of the petrol products used here and the prices rise unaccountably to within pennies of each other, is it a monopoly? How hard is it for 5 huge companies to get together and price-fix? It doesn't seem like it would be very hard, and would be easily hidden in the multitude of peoples that work within those companies.
Link Posted: 9/21/2005 5:02:35 PM EDT
[Last Edit: 9/21/2005 5:03:00 PM EDT by Old_Painless]

Originally Posted By Dance:
If there are 5 companies that produce all of the petrol products used here and the prices rise unaccountably to within pennies of each other, is it a monopoly?



No.


How hard is it for 5 huge companies to get together and price-fix?


It is impossible and illegal. And closely monitored by government agencies.


It doesn't seem like it would be very hard, and would be easily hidden in the multitude of peoples that work within those companies.



The large number of people make it more difficult, not less, to hide price fixing.

The price is controlled by Supply and Demand.

Not what you want to hear, but the truth nonetheless.
Link Posted: 9/21/2005 5:03:57 PM EDT
The A Rabs
Link Posted: 9/21/2005 5:05:17 PM EDT
Link Posted: 9/21/2005 5:10:53 PM EDT
There's a couple places where the price of oil is determined. First is the futures market, which can be seen here. Here's how this works. You put in a buy order at any price you want. If somebody wants to sell their oil at that price, they'll buy your future at your price and you're good to go. That's how the market works. I know, you'd rather believe that BOR knows what he's talking about.... but then there are always those pesky facts lying around to trip over.

Another place that determines the price of oil is the owner/seller of the oil. For example, Hugo Chavez. He can sell V's oil at any price he wants to. He could sell it for a dollar a barrel directly to you if he wanted. The House of Saud could sell us oil at ten bucks a barrel if they wanted to. They charge as much as they can get 'cause why shouldn't they? If oil becomes too expensive, somebody will come up with an alternative that's more attractive, right?

One more is the oil companies. They need to operate at a profit, so they're going to buy it and spend money transporting it here, refining it, and delivering it to gas stations. So... they need to charge you more for that gas than they spent in that process, and they determine their margins.

And that, my friend, is in a very general way how the price of oil is determined.
Link Posted: 9/21/2005 5:12:21 PM EDT
I do.

And I'm making a killing! One day I'll be able to afford a SHRIKE!
Link Posted: 9/21/2005 5:12:23 PM EDT
Link Posted: 9/21/2005 5:14:03 PM EDT

Originally Posted By Stormtrooper:
Ok, O'reilly said that in order for the price of oil to be 3 dollars a gallon, it would have to cost 95 dollars a barrel. At 65 dollars a barrel, there is some price gouging going on, and has been going on since before Katrina so you cant say it is because of that. Granted, Katrina and the refinery shortage has brought the gouging to the forefront.

So I ask you again, who controls the price of oil? And if you say we do I am going to punch you in the face. Why would I want to gouge myself?



There's no such thing as price gouging.
Link Posted: 9/21/2005 5:14:25 PM EDT
[Last Edit: 9/21/2005 5:17:17 PM EDT by Gregory_A]
Speculators are the main culprit IMO. There is a very large group of people that make shitloads of cash speculating on the effects of natural disasters.

Supply and demand are a part of it,but how do you explain a sudden increase at 3AM in the morning with nobody in line and the hurricane has yet to touch ground ?

The price of oil jumped $4.00 a barrel yesterday(I think) this was caused by speculators,not supply and demand.The supply was there,and the demand was the same,yet prices rose $4.00 a barrel.

90% of the blame for high oil prices are due to speculators and our free market system.A good example of supply and demand is a 8 cent increase of the friday of a Labor day weekend.What we are seeing now is specualtors artificially raising the prices,so they can sell it later for a profit.

Edit:Peak oil pretty much said what I said,but in a more knowledgable fashion
Link Posted: 9/21/2005 5:22:36 PM EDT
Capitalism: IT WORKS!!

If you don't like go to a commie country where all the prices are fixed and see how well their economy is doing

Quantity and price are related. Price goes up, quantity demanded goes down. Quantity demanded goes up, price goes up. Then you have what can be supplied thrown in there on another curve.

Problem is that world wide there is more demand than can be produced, so there is always going to be a minimum price range on oil. If USA doesn't like it, China will pay the price; and so on.

If you want your gas, then pay for it. If you don't, no one is forcing you to buy it. Move to the inner city and ride a bike to work. Thems your choices.

Personally I like the system. I can afford the gas, so I should get it. Setting price caps will just cause shortages. Just look at rent control in big cities, no one who wants one can get an apartment.
Link Posted: 9/21/2005 5:52:00 PM EDT
Well it's a well known fact, Sonny Jim, that there is a secret society of the five wealthiest people in the world,known as.....The Pentaverate, who run everything in the world...including the newspapers... and meet tri-annually at a secret country mansion in Colorado known as......The Meadows. It consists of....The Queen, The Vatican, The Gettys, The Rothchilds and Colonel Sanders before he went tits up. Ahhhh....I hated the Colonel with his wee beady eyes and that smug look on his face...
Ohhhhhh, you're gonna buy my chicken......
Link Posted: 9/21/2005 5:52:13 PM EDT
a) most crude oil do not go through the futures market. The oil producers use that free market system to determine the value of a barrel of crude by grade. Since most crude oil is sold by contract, those contracts do allow pricing variances based upon the free market.
b) OPEC uses this futures market to determine their production output of crude oil. They usual want to accomplish several items: maximize profits, minimize the threat of substitute goods, and maximize political capital.
c) about 45% of the price of gasoline is due to the cost of crude oil; 55% is due to other costs.
d) There are five large-scale refinery operators that produce most of the USA gasoline. The operators are made of up other corporations in a partnership. Some partners are the big oil companies like Chevron, and some are actually exporters of crude oil like Saudi Arabia.
e) The last refinery built in the US went online in 1976 in Garyville, LA. Yes, that is right, 1976!
Link Posted: 9/21/2005 7:45:56 PM EDT
Link Posted: 9/21/2005 7:49:40 PM EDT
The club or fraternity that Homer Simpson belongs to.
Link Posted: 9/21/2005 8:21:23 PM EDT
The Consumer.
Link Posted: 9/22/2005 12:20:35 AM EDT

Originally Posted By sherrick13:

Originally Posted By stator:
a) most crude oil do not go through the futures market. The oil producers use that free market system to determine the value of a barrel of crude by grade. Since most crude oil is sold by contract, those contracts do allow pricing variances based upon the free market.
b) OPEC uses this futures market to determine their production output of crude oil. They usual want to accomplish several items: maximize profits, minimize the threat of substitute goods, and maximize political capital.
c) about 45% of the price of gasoline is due to the cost of crude oil; 55% is due to other costs.
d) There are five large-scale refinery operators that produce most of the USA gasoline. The operators are made of up other corporations in a partnership. Some partners are the big oil companies like Chevron, and some are actually exporters of crude oil like Saudi Arabia.
e) The last refinery built in the US went online in 1976 in Garyville, LA. Yes, that is right, 1976!




However it has a HUGE influence on oil prices.



Yes, about 45% of the price per item c.
Link Posted: 9/22/2005 12:26:21 AM EDT

Originally Posted By crazyquik:
The Consumer.



Yes, but not entirely. Some of the price of gasoline is due to federal and state regulations. Some states more than others like CA with CARB. For example, in the warmer season, CA mandated clean air gas formula yields 10% less gas from crude.

Gasoline is heavily regulated, but not from the Nixon-era price controls that brought long lines and rationing at the gas pumps (if you are old enough, you WILL remember that). Regulation nowadays is done from various clean air acts (from Congress) and various clean air bodies like the EPA.

Another example is Ethanol which actually has price controls and price subsidies at the federal level.
Link Posted: 9/22/2005 12:56:50 AM EDT
[Last Edit: 9/22/2005 1:00:23 AM EDT by prk]

Originally Posted By Old_Painless:

Originally Posted By Dance:
If there are 5 companies that produce all of the petrol products used here and the prices rise unaccountably to within pennies of each other, is it a monopoly?



No.


How hard is it for 5 huge companies to get together and price-fix?


It is impossible and illegal. And closely monitored by government agencies.


It doesn't seem like it would be very hard, and would be easily hidden in the multitude of peoples that work within those companies.



The large number of people make it more difficult, not less, to hide price fixing.

The price is controlled by Supply and Demand.

Not what you want to hear, but the truth nonetheless.




Impossible? One word: Enron

Price-fixing DOES happen, and government agencies do a lousy job of monitoring and prosecuting it, along with other anti-competitive behaviors. Look at the "phase of the moon" scheme in this article: 209.217.49.168/vnews.php?nid=208

Even when they get the evidence, the case can collapse under the sheer weight of managing large amounts of evidence. Illegal is one thing; proving it, another. Jury selection can do wonders for the defense. For example in a consolidated group of 70 asbestos case(s), one in the first 12 seats was on the "A" side of this exchange that I heard:

Q: "Who do you work for?"
A: "The welfare department"
Q: "Is that federal, state, or local?"
A: "Both"

As we could see from Enron, the fact that scams will come to light doesn't keep them from happening. There were plenty of people involved in that one. It still happened.

Link Posted: 9/22/2005 1:06:08 AM EDT

Who controls the cost of the oil?


You do. By buying it.
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