A Horrible EIA Oil Inventory Report

[FWAAA]

You must own oil stocks. Statement makes no rational sense.

Makes perfect sense to me and sounds very rational. Except I'd be happier with $5 or $6 per gallon. But $3 to $3.50 makes more sense to me than does $1.099.

Everyone should own oil stocks, given everyone's complete dependence on gasoline and other oil-derived products. Was pretty obvious to me by time I turned 16 that oil company stocks might be the best way to hedge against my insatiable appetite for gas. I wasn't born a Bush or into any other oil-rich family, and I was unlikely to discover oil on my own (ala Jed Clampett), so buying some Exxon seemed like a good move.

The strategy seemed like a good one throughout the 1970s and early 1980s. Didn't look so good from 1986 until 2000. But staying the course paid off in spades, as 2001 to present has made it very profitable.

 

[JS]

Makes perfect sense to me and sounds very rational. Except I'd be happier with $5 or $6 per gallon. But $3 to $3.50 makes more sense to me than does $1.099.

Everyone should own oil stocks, given everyone's complete dependence on gasoline and other oil-derived products. Was pretty obvious to me by time I turned 16 that oil company stocks might be the best way to hedge against my insatiable appetite for gas. I wasn't born a Bush or into any other oil-rich family, and I was unlikely to discover oil on my own (ala Jed Clampett), so buying some Exxon seemed like a good move.

The strategy seemed like a good one throughout the 1970s and early 1980s. Didn't look so good from 1986 until 2000. But staying the course paid off in spades, as 2001 to present has made it very profitable.

If everyone bought oil stocks, it wouldn't create more oil or refined products. All that will do is drive up the price and benefit the people who owned the stock before everyone else bought it (of course, I'm sure you would love that, too 🙄 ). This is very common with penny stocks, where people send out spam encouraging everyone else to buy the stock so they can get rich quick.

It's great (NOT) to hear that you would prefer that our economy, which is presently based on cheap oil, be destroyed by $6 a gallon gasoline. Your attitude of me first, screw everyone else, is disgusting. :down:

 

[PITbull]

Makes perfect sense to me and sounds very rational. Except I'd be happier with $5 or $6 per gallon. But $3 to $3.50 makes more sense to me than does $1.099.

Everyone should own oil stocks, given everyone's complete dependence on gasoline and other oil-derived products. Was pretty obvious to me by time I turned 16 that oil company stocks might be the best way to hedge against my insatiable appetite for gas. I wasn't born a Bush or into any other oil-rich family, and I was unlikely to discover oil on my own (ala Jed Clampett), so buying some Exxon seemed like a good move.

The strategy seemed like a good one throughout the 1970s and early 1980s. Didn't look so good from 1986 until 2000. But staying the course paid off in spades, as 2001 to present has made it very profitable.

Yup, I can sure tell you are full of gas . B)

Someone, open a window please.

 

[Prince of PAWOBs]

Makes perfect sense to me and sounds very rational. Except I'd be happier with $5 or $6 per gallon. But $3 to $3.50 makes more sense to me than does $1.099.

Everyone should own oil stocks, given everyone's complete dependence on gasoline and other oil-derived products. Was pretty obvious to me by time I turned 16 that oil company stocks might be the best way to hedge against my insatiable appetite for gas. I wasn't born a Bush or into any other oil-rich family, and I was unlikely to discover oil on my own (ala Jed Clampett), so buying some Exxon seemed like a good move.

The strategy seemed like a good one throughout the 1970s and early 1980s. Didn't look so good from 1986 until 2000. But staying the course paid off in spades, as 2001 to present has made it very profitable.

I understand FWAAA's rationale as an investor, even if I disagree with his attitude toward the working class of our country. But since we allow freedom of speech in the US, I guess we just have to grin and bear it when the greedy want to show us "how much smarts weez got!"

That's okay FWAAA. You just keep tuned into Jim Cramer and follow his advice like you would in any other cult of personality. You will soon be rich beyond all dreams of avarice. Then you can fly to Guyana and have a cup of Kool Aid!

 

[PITbull]

Boo-yah!

 

[BoeingBoy]

Not to put words in FWAAA's mouth, but I really think he was saying two things:

1 - the longer gas is relatively cheap (and even $3/gal is cheap compared to several places in the world), the longer before meaningful conservation and cost effective alternatives will take to affect consumption. Higher gas prices would accelerate both.

2 - if you want to be like WN and hedge against higher gas prices, buy stock whose price will go up if gas prices go up.

Jim

 

[RowUnderDCA]

Re: point #1

No, Jim that was MY point, but sometimes I think it's hopeless with some of these folks. abuse BEFORE comprehension... gotta love it.

 

[BoeingBoy]

Me bad, Row. I was thinking of these comments by FWAAA:

"We really need to reduce our appetite for oil. Not just imported oil - but for all oil."

"One great way to start weaning people from oil is to jack up the price."

and completely forgot your comment:

"I'd suspect that $3.00 to $3.50 per gallon of gasoline at the pump for the rest of the decade might be the best thing for our children's future in the U.S."

My apologies for leaving you out. 😳

Jim

 

[whlinder]

1 - the longer gas is relatively cheap (and even $3/gal is cheap compared to several places in the world), the longer before meaningful conservation and cost effective alternatives will take to affect consumption. Higher gas prices would accelerate both.

Count me on this bandwagon as well.

 

[FWAAA]

Laugh. Let it out at my expense. My point may be a bit absurd, but it is accurate.

SpinDoc: Absurd? You posted that gasoline and diesel should cost no more than $1.09/gal. and that a fair market price of a barrel of crude was $25 to $30. You then went on to claim that anything above that is evidence of price gouging (whatever the hell that means). Yep - it was absurd.

I have three questions that the elitist media should be hammering the President, Congress, and the oil company executives with, but strangely, they are not.

2. Why did the oil companies close down a number of perfectly good refineries in the 1990's, after all of the mergers? There is only one answer, and it is greed, pure and simple.[/quote]

Ya know, I keep hearing about all the closed refineries, but from this week's petrol report by BoeingBoy:

Now for something I'll call the Spin Doc section.....

Domestic Refinery capacity:

Jan 1990 - 15,732,000 bbls/day
Jan 1995 - 15,216,000 bbls/day
Jan 2000 - 16,317,000 bbls/day
Jan 2005 - 16,925,000 bbls/day
4/14/06 - 17,335,000 bbls/day

That's an increase in refining capacity, not a decrease. Whom to believe? B)

Maybe we really do need even more refining capacity - perhaps located in areas less vulnerable to hurricanes, as last August showed us. But in my perfect world, our gasoline/diesel/jet fuel demand would decline each year, reducing our demand for refining capacity, not increasing it.

3. Why have we not put major political and economic pressure on OPEC to deliver oil at a much lower cost? After all, the US is the largest consumer of OPEC oil in the world, and if we threatened to boycott them, they would crap their sandy pants.

Boycott OPEC oil? Huh? You're kidding, right?

I'm confused. In some posts, you claim that oil is pricey right now due to greedy speculators like me and their NYMEX contracts, not because the intersection of the supply and demand curves occurs between $70 and $75/bbl. (depending on the day). This post seems to abandon that rationale. (BTW, my only "speculative" participation in the oil market is thru long positions in oil company stocks.)

The reason OPEC won't sell us oil for less than the current world market price is the same reason that USAir won't sell me a First Class walkup transcon LAX-PHL for $200 this afternoon. It's why I can't buy any Google stock at $85/sh anymore. The same reason I can't buy new Corvettes for $5,000 anymore. The same reason I can no longer buy any gold for $300/oz. Or $35/oz. And the very same reason that I can't buy any more houses on my street here in the suburbs of LA for under $1 million each. In each case - the market price is up. For many of them, WAY UP. New 707s used to cost $3 million each many years ago. Now, new 763s cost over $100 million each. Which of these situations, exactly, is "price gouging?"

 

[PITbull]

Not to put words in FWAAA's mouth, but I really think he was saying two things:

1 - the longer gas is relatively cheap (and even $3/gal is cheap compared to several places in the world), the longer before meaningful conservation and cost effective alternatives will take to affect consumption. Higher gas prices would accelerate both.

2 - if you want to be like WN and hedge against higher gas prices, buy stock whose price will go up if gas prices go up.

Jim

In parts of the world like IRAN, gasoline is $.40 a gallon. In fact, there is such a high demand in IRAN that the gov. has to put restrictions on when folks can fuel up and on what days just because of emmissions.

Oil is only expensive once it hits the shores of US and goes into the refineries.

Then it becomes GAS GOUGING.

 

[whlinder]

Then it becomes GAS GOUGING.

I am really tired of being gouged for soda at the store. I mean evil Coca-cola makes 21% profit for each dollar of sales. GOUGING! Their obscene profit should be more along the lines of 9%, like ExxonMobil.

 

[FWAAA]

I am really tired of being gouged for soda at the store. I mean evil Coca-cola makes 21% profit for each dollar of sales. GOUGING! Their obscene profit should be more along the lines of 9%, like ExxonMobil.

Courtesy of Pynchonesque of Flyertalk, this instant classic from earlier this week:

I demand an inquiry into Google stock price-fixing

A year ago, my broker sold Google stock sold for $220 a share. Now, they sell it for $440 a share. All my friends' brokers have similarly raised prices.

Anyone who is trying to take advantage of this situation while American families are forced into making tough choices over whether to buy Google stock or severely cut back their budgets should be investigated and prosecuted.

I demand for this blatant price-gouging to stop, and for the fatcat brokers making money off of it to be brought to justice. Whoever manages to get the price of Google stock under control will win my vote.

That is all.

http://www.flyertalk.com/forum/showthread.php?t=551448 (sorry - link will likely only work for those with permission to view)

 

[PITbull]

I am really tired of being gouged for soda at the store. I mean evil Coca-cola makes 21% profit for each dollar of sales. GOUGING! Their obscene profit should be more along the lines of 9%, like ExxonMobil.

Weak analogy! :down:

It is not a necessity to by Coke, or any soda. Water is cheap, and it comes directly to your home affordably. You are not in job jeopardy or financial crisis if you don't by Coke, Pepsi, Soda or Google.

Fuel is a commodity that most if not every citizen (or non) who works for a living needs to purchase in order to go back and forth to work etc...if you can't afford to go to work, than, you lose your house, job, medical and the walls come crashing down.

GASOLINE NEEDS MAJOR REGULATION...AND NOW!

Major inflation and recession is around the corner...just as soon as most Americans max out their credit cards and/ or gas cards from buying gasoline! There is only so much disposable income, and folks need to eat, keep a roof over their heads, clothe their families, have access to affordable health care, pay taxes. Minimum wage hasn't been raised since 1990.

These issues never have an impact o n the wealthy or rich, it impacts the middle class and poor specifically.

Sick of the arrogance on these threads. :angry:

If the illegal aliens can do an organzied work stopage and not get fired...all of America should pick a day and not go to work, and don't use their vehicles in PROTEST. The Oil companies will lose $1 billion a day in lost revenue.

 

[FWAAA]

GASOLINE NEEDS MAJOR REGULATION...AND NOW!

Major inflation and recession is around the corner...just as soon as most Americans max out their credit cards and/ or gas cards from buying gasoline! There is only so much disposable income, and folks need to eat, keep a roof over their heads, clothe their families, have access to affordable health care, pay taxes. Minimum wage hasn't been raised since 1990.

These issues never have an impact on the wealthy or rich, it impacts the middle class and poor specifically.

Sick of the arrogance on these threads. :angry:

If the illegal aliens can do an organzied work stopage and not get fired...all of America should pick a day and not go to work, and don't use their vehicles in PROTEST. The Oil companies will lose $1 billion a day in lost revenue.

Arrogance? Sure. "Gasoline needs major regulation . . . and now!" Isn't that arrogant as well?

Dunno how much revenue those big, bad oil companies would lose in a day, but if nobody in the USA did any work for a day, the lost income to the workers would be staggering - and would be many billions of dollars in the aggregate.

What does the minimum wage have to do with oil prices? If you worked 4,000 hours a year for the current minimum wage, you still couldn't afford a car, insurance, rent, food, clothing, and heat, let alone gasoline - at any price. You'd need free gasoline. Even then, you wouldn't have enough money to go around.

For far too many years, we have been spoiled by very low gas prices. Now it's up in price, and suddenly its price needs regulated? No thanks. Our country has already been down that path and fortunately, most learned some lessons from those dismal failures. Nothing good comes from price controls. Not on gasoline or any other product we consume.