We were taught demand and supply determines the price.Well there is adequate supply but little or no demand with probably only 6 weeks more of winter left why has not the price of hho collapsed.The over supply for this year will have to be stored until next year which in turn with new production will increase inventories for next year.There seems to be no logic to the heating oil market at this price you should have and I believe do have demand destruction.Yet anywhere I read they state they expect the price to get even steeper any comments?.
heating oil demand and supply theory
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urkiddin
Member
It's called greed. Get as much as you can while you can.Like i've read in numerous articles,the way to stop it is to require speculators to take delivery of the oil they purchase.Can't store it,don't buy it
hoverfly
Minister of Fire
Home heating oil is actually low suffer diesel fuel. So if they have excess supply, the price will stay or drop, and produce accordingly.
The price will never drop. Why? You are paying it now and you will pay for it when it is higher. Why not keep increasing it? PEOPLE WILL PAY
rowerwet
Minister of Fire
if you pay attention the price seems to go according to the quarterly inventory reports, so until somebody puts out a report saying there is plenty of inventory the price won't be effected. another bad mark for us is the pipeline veto by the pres., Canada is looking into shipping the oil to China, and that will keep us from getting it cheaper as we need that supply to the refineries east of the rockies to drive the cost down. Even the good (?) economic news will keep the buyers going higher as any growth will mean more demand. simple news items like that drive the price more than the obvious look out the window at how warm it has been that we would expect.
hoverfly
Minister of Fire
F6hawk said:The price will never drop. Why? You are paying it now and you will pay for it when it is higher. Why not keep increasing it? PEOPLE WILL PAY
Of course the price will drop, but it won't be what you want it to be. Also cheap oil is the thing of the past, bedsides supply and demand issues, producing out of the ground is not cheap any more and prices will reflect that as well.
slls
Minister of Fire
Oil traders like to keep the price up, they make more money that way.
Government likes it up too, conservation and more money for
the oil companies to buy off politicians with campaign contributions.
Government likes it up too, conservation and more money for
the oil companies to buy off politicians with campaign contributions.
jtakeman
Minister of Fire
Futures have the biggest effect on prices. Also China has stepped up large the game and is buying up all they can. They need the energy to build/make all our latest gadgits.
petemal
Member
oil is quoted on us dollars as the value of the dollar drops, which we know it will, the price goes up...... with all the new money this admin has printed 200 here we come
save$
Minister of Fire
Whatever home heating oil is not bought up will remain in the system. Less oil will be used for home heating oil, and the rest will go to other markets where there is still a huge demand. I wouldn't count on prices coming down. There are more influences outside of oil who have a huge agenda in keeping prices up. Some just Gore you!
Ejectr
Minister of Fire
Just watched an article on the news that analysts expect gas prices to be the highest this summer that they have ever been AVERAGING $4.25/gallon. I can just immagine what heating oil will be after this.
Bigjim13
Minister of Fire
Ejectr said:
Scare tactics. Nobody can really tell where oil will be this coming summer. There was an article about 2 weeks ago on MSN saying that gas prices were going to hit $5 per gallon.
The truth is, it may. If it does our economy will come to a screeching halt again and things will get bad again. I doubt either party will want that or let that happen. One thing, and maybe the only thing, both parties agree on is that our economy is very closely tied to the cost of oil/gas.
Ejectr
Minister of Fire
Well, the politicians have to get their hands out of the pockets of big oil for anything to happen..and you know that's not going to happen. It's funny that they mention taxes....healthcare costs.....and a host of other things that drag the little guy down. They're all concerned about a tax break continuing that will give the tax payer an extra $40 a week if it continues. No one ever mentions the extra $40 a week and MORE that everyone is paying because of higher fuel prices. That affects everyone's day to day wallet more than anything else. Maybe if the public had more of this money they spend on fuels in their pocket, they'd spend it on other goods that are manufactured and the jobs would return.
ironpony
Minister of Fire
ewdudley
Minister of Fire
F6hawk said:The price will never drop. Why? You are paying it now and you will pay for it when it is higher. Why not keep increasing it? PEOPLE WILL PAY
I remember hearing this back in '08. Bought 750 gallons at $2.02 in March '09. Still trying to burn it up before it goes bad.
jmcp said:
Because there is a commodities bubble that's why. While the rational price of oil is probably higher than it was 5-10 years ago, it should be nowhere near what it is today.
This bubble will pop just like the housing bubble before it.
Wow, I guess this is working, "Big bad Capitalists!."...may I suggest you watch what they are doing...new sin type taxes on oil...exporting oil...shutting down pipe lines...closing drilling...no fracking for natural gas...shutting down coal...etc...etc, but is this what they are saying, and are these policies helping the folks????
Bigjim13
Minister of Fire
1Dtml said:
What pipe lines are being shut down? I have heard of the pipe line that was SHOT down, they wouldnt let them run the pipe through the middle of the country. As for Fracking? I have watched documetaries on it and have watched people light their faucet on fire because the gas has gotten into their water supply.
I am NOT against capitalism or FOR socialism in any way. But it just seems to me that if you let comanies (large or small) run with no checks in place, well then they worry about only ONE thing and ONE thing ONLY. That would be profits.
FWIW, I don't think its ok that we are paying increasingly higher gas prices and fuel prices when oil companies are making RECORD profits. But, and this is a nice big BUT, that is capitalism.
Bigjim13
Minister of Fire
Bigjim13 said:
You made a strawman argument. Nobody is saying there should be no checks in place.
Fact is pipeline transportation of oil is one of the most environmentally friendly transport methods out there.
With other methods we actually burn oil to transport oil. That doesn't sound very "green" to me, does it? Not to mention risk of crashes/derailments.
Bigjim13
Minister of Fire
Weird tolienish figure said:
The point I was trying to make is that companies want LESS regulation. How many times have we heard that oil would be cheaper if the Obama administration would just LET US DRILL?
Pipeline transportation may be the best option, but are they being shut down at an alarming rate? This is a serious question. I have only heard of the one that Obama veto'd.
I am all for green as long as its affordable. The reality is that we have to get off our oil dependence if we plan to survive.
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