How much of the rise in price is due to speculation in the futures market?

Gas price has nearly doubled, demand didnt double, supply didnt shrink by half...



EFS.

thats an overly simplistic approach


the price flux depends greatly on 1. monopoly theory and 2. the elasticity of demand

the more inelastic the demand, the less effect on quantity demanded a price increase has

I think this spike is primarily speculation

Quoted: How much of the rise in price is due to speculation in the futures market? Gas price has nearly doubled, demand didnt double, supply didnt shring by half...

It is all about Futures and made up shortages...........CEO's want more income and shareholders want more return on the money they have invested

Quoted: How much of the rise in price is due to speculation in the futures market? Gas price has nearly doubled, demand didnt double, supply didnt shring by half...

Almost all of it.
Production hasn't fluctuated more than 1%, iirc.
Other than a few weather-related planned shutdowns, and one major refinery fire, there haven't been any other glitches in production.
Been some slight shortage months ago due to EPA-mandated seasonal-regional formulations.

The rest is all Speculators driving it nuts.

I think I even read an analysis that showed China's crude imports even DIPPED sometime durng the last several months while all this craziness has been going on.

Wish there was some way to strip Crude form the Commodities market, or more firmly anchor the price to Reality.

Quoted: How much of the rise in price is due to speculation in the futures market? Gas price has nearly doubled, demand didnt double, supply didnt shring by half...

Most of it. There is no shortage, I have not seen any lines at gas stations, have you.

We should:

1. Start drilling in Anwar today
2. Have President Bush sign an EO making construction of new refineries in Arizona, Oregon, Kentucky, Georgia and Ohio a priority
3. Cut the national tax on gas by half
4. Cut the national tax on deisel by 2/3

Quoted: Quoted: How much of the rise in price is due to speculation in the futures market? Gas price has nearly doubled, demand didnt double, supply didnt shring by half... Most of it. There is no shortage, I have not seen any lines at gas stations, have you.

Yep. I had 3 boats in front of me at the marina this weekend. And I ddn't even need to buy gas.

They are not finished having us bend over and packing the salt there.

Bilster

That's what I thought.