Comments on: Why do we listen to reporters?

By: Quintius

Quintius — Tue, 27 Nov 2007 19:50:11 +0000

If the price of crude oil goes up and the price of gasoline at the gas station goes up at the same time, then that’s capitalism. Feel free to not buy the gasoline if you feel you are being gouged.
A change in price of crude oil (hedged or not) as a component of cost gasoline is always reflected in the future.
Try it yourself. Buy a barrel of oil from Saudi Arabia on January 1st, ship it, refine it, ship the gasoline to your gas station, and see when you are selling it. Not in January. Probably not in February. Oil from the U.S. may make it in a couple of weeks.

By: darkmoon

darkmoon — Tue, 27 Nov 2007 02:08:12 +0000

Using hedging is an excuse if I ever saw one.
Real world facts. When crude goes up, you see it reflected at the pump. Period. I’ve watched gas and crude prices almost parallel in trends in positive fluxuations.
Yet, if you look at the drops in crude pricing? It’s never in the same instance. Always delayed drops.
Hedging is a way to protect the company from potential high risk. But that doesn’t explain the trends.

By: ratchet

ratchet — Tue, 27 Nov 2007 01:03:34 +0000

Umm… I don’t suppose you know of or agree with the logic behind HEDGING (which is a very large part of how oil is bought and sold).
Hedging will delay any pricing of crude oil and its effects showing up at the pump near your house.

By: John Robinson

John Robinson — Mon, 26 Nov 2007 15:26:37 +0000

I’d have told you not to watch TV news if you’d just asked!
John Robinson