Gas

[Bob Campbell]

Let's see. Refineries, owned by oil companies, losing money on each gallon they refine. And yet the parent companies posting record profits. Hmmm...perhaps losses at one point are more than recouped at another.
Naahhhh....that couldn't happen.

ps from MSNC this morning. All about the value of the dollar.

Oil futures rose modestly Tuesday as investors focused on the dollar’s latest decline rather than new worries about the economy. Gas and diesel prices, meanwhile, retreated further from their recent record levels.

The dollar’s decline against the euro, which ended a greenback rally that began last week, attracted investors back to oil. The U.S. currency’s protracted slide was a big contributor to oil’s march to nearly $112 in recent weeks; many investors regard oil and other commodities as inflation hedges, and turn to such hard assets when the dollar is falling.

[Arp2]

Let's see. Refineries, owned by oil companies,....

Noooo, not necessarily.....

ps from MSNBC this morning.

You really need a better source. Even with CNBC in the family, MSNBC can't get these things exactly right. As a matter of fact, even with CNBC personnel doing or appearing in NBC News stories, NBC News just can't get these things right. By the time the NBC/MSNBC stamp is put on them, these stories appear to show CNBC folks saying things they never did say all day on TV and never would say because they're either wrong or make no sense.

All about the value of the dollar.

That's false. Period. Some might even say "a lie." Me. I would.

Regardless of whatever the dollar does, additional supply keeps the price low and the market almost impossible to push upward. More supply is the solution. Period.

Oil futures rose modestly Tuesday as investors focused on the dollar’s latest decline rather than new worries about the economy.

Already extremely dated.

The truth: oil and gasoline have surged today on less supply! Crude up 4.25 and wholesale gasoline up about .07 to about 2.75 just after noon today...

Again, more supply is the solution....

The dollar’s decline against the euro, which ended a greenback rally that began last week, attracted investors back to oil. The U.S. currency’s protracted slide was a big contributor to oil’s march to nearly $112 in recent weeks; many investors regard oil and other commodities as inflation hedges, and turn to such hard assets when the dollar is falling.

That's a dated and too simplistic way to look at it.

Now, hedge funds -- you know, like the one Chelsea Clinton is richly paid by even though she never actually works there -- tend to drive the market because they must produce gains somewhere. With no additional supply available to the oil market, that's the place to do it....make some buys, create some momentum, sell at higher price. Vicious cycle. It's not necessarily an "inflation hedge" anymore....it's a market that can be manipulated when no other investment vehicles are working.

Supply exceeding demand would make that kind of thing all but impossible. Once again, more supply is the guaranteed solution.

[Bob Campbell]

Today we saw a combination of supply and a weaker dollar. The double whammy put the hurt on oil and gas prices.
By the way, funny thing about gas prices. Refineries have cut back on gasoline production in the last month.

Still the dollar is the big driver in the oil price runup, excluding today. US demand is down in 2008, over a percent. Supply lower because refineries cut down on gas production.

Yo Arp, please name me a refinery not owned directly or by a subsidiary of an oil company.

[The People's DJ]

Yo Arp, Bob;

got fly a fuckin kite!

Locked!