Quote:
Originally Posted by xoxoxoBruce
I agree that the sensational headlines are misleading. That's the nature of the media now. I also feel the public should take a jaundice eye at the headlines, and realizing how the media works, dig a little deeper before condemning (or praising) any person or organization.
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Returning to the question of higher gasoline prices. Why? There is no Katrina, etc to justify it?
I believe these oil traders have learned lessons from 2005 Katrina and from last year. They had to stock up in order to meet long term contracts. They did so too late last year. Therefore they had to sell oil off at a loss in the fall. I suspect oil traders were simply buying earlier so as to not be hurt by higher summer prices. IOW that price rise may actually be a good thing - industry preparing for a possible summer oil crisis. This is speculation based upon recent events and comments made by industry insiders. Appreciate the market. Even those participating in trading that is running up prices cannot be sure why prices are rising - because the market is that large.
Prices are not something to be controlled. Prices are the one real messaging system we have when a market is so big.