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#24 (permalink) |
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Official Instigator!
![]() Join Date: Jun 2006
Location: Rincon, Georgia
United States
Posts: 2,096
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The real scoop on gas prices have nothing to do with the war in iraq or the president...directly. Crude oil futures are traded on the U.S. stock market in NY. When someone watches the news and sees a bomb go off or some politician do or say something stupid (which is all the time) they get nervous and start buying crude. Other traders see this and start buying. When you have a lot buying and only so many to buy...the price goes up. Some traders then jump ship and sell to others turning a quick profit while not actually doing any work.
When the market closes, the gas refineries see what happened on the NYSE and say 'Let's raise prices!' They charge you more for gas that was produced on average 30 and sometimes as long as 90 days ago. Another group of people turning a profit at our expense! Meanwhile someone in their Public Relations department states that they are sorry to have to raise prices but there is a 'shortage'. If you have followed this far the only thing that has changed hands is pieces of paper! Then the gas station prices are set every morning according to their broker. In the town I live in now, the gas truck deliveres to the stations (all on one truck) every three days. So why do prices change daily when the gas has been at a station for three days, a brokers yard for a week or so, and a month or so at a refinery? And last but not least, everyone on TV blames events in the middle east for the gas crisis...however only 14% of our crude comes from there. So why is 14% making such an impact...too many people are getting to rich off of us suckers!
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