Oil

MMDad

MMDad

Lem Putt
Crude Oil Oct 12 (CLV12.NYM) was over $100/barrel on Friday, and is now at $93. I don't get it. The CW is that middle east unrest always causes oil prices to spike, and the embassies show that exists. Iran is saber rattling. Isreal is getting closer to a pre-emptive strike. There are war games coming in the Straits of Hormuz that will further shake up Iran.

So why would prices be dropping? It seems that the market/speculators think the value will go down since the December contract is also at $93. What do they know that I'm missing?

Conspiracy theory alert: can oil prices really be manipulated as we approach the election?
 
GWguy

GWguy

*
The price of fuel has always been manipulated.

Now that summer is over, we're being told that pump prices WILL drop. Horse manure. In about a week, you'll hear, 'Oh, it's time to ramp up for winter home fuel production, so gas will be limited and prices will go up."
 
MMDad

MMDad

Lem Putt
GWguy said:
The price of fuel has always been manipulated.

Now that summer is over, we're being told that pump prices WILL drop. Horse manure. In about a week, you'll hear, 'Oh, it's time to ramp up for winter home fuel production, so gas will be limited and prices will go up."
Click to expand...

Pump prices I can see being manipulated. That is something that can be influenced at many points in the supply chain.

But the prices I'm talking about are the world market crude oil prices. Is it really possible to influence the market that greatly just for an election?

Seasonal variations aren't really a big factor in oil prices, at least not as much as the gasoline prices. Our driving ramps down, but our heating ramps up. The arctic areas are already buying their heating oil before they can't get ships in.
 
MMDad

MMDad

Lem Putt
One more thing - QE3 just devalued the dollar. That should affect oil prices. I understand it's too early to make them rise yet, but I would think it would prevent them from falling.
 
GWguy

GWguy

*
MMDad said:
Pump prices I can see being manipulated. That is something that can be influenced at many points in the supply chain.

But the prices I'm talking about are the world market crude oil prices. Is it really possible to influence the market that greatly just for an election?

Seasonal variations aren't really a big factor in oil prices, at least not as much as the gasoline prices. Our driving ramps down, but our heating ramps up. The arctic areas are already buying their heating oil before they can't get ships in.
Click to expand...

Yeah, I knew what you meant, just had to add my 2 cents....
 
T

tommyjo

New Member
MMDad said:
Pump prices I can see being manipulated. That is something that can be influenced at many points in the supply chain.

But the prices I'm talking about are the world market crude oil prices. Is it really possible to influence the market that greatly just for an election?

Seasonal variations aren't really a big factor in oil prices, at least not as much as the gasoline prices. Our driving ramps down, but our heating ramps up. The arctic areas are already buying their heating oil before they can't get ships in.
Click to expand...

Actually you are follwoing the wrong price...common mistake.

World oil prices are based on Brent, not West Texas Intermediate (WTI).

Brent also sets the price for gasoline.

The other point is that Saudi Arabia announced an increase in production to offset the rising price.
 
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