I bet the oil companies find a way to jack the price to $4.50 next week because of Hurricane Dean. Whether any damage is done or not, that's my prediction.
I bet the oil companies find a way to jack the price to $4.50 next week because of Hurricane Dean. Whether any damage is done or not, that's my prediction.
I bet the oil companies find a way to jack the price to $4.50 next week because of Hurricane Dean. Whether any damage is done or not, that's my prediction.
...Anyone with commodities experience or knowledge will tell you - the c-markets react to news viscerally and violently, with an apparent complete lack of reason.
....
It's almost...as if...the commodities market...is a microcosm of humanity!
Good analysis, by the way.
Thanks. Just 5 minutes with Excel, a little bit of data, and I can make any set of numbers dance to prove a point
What is most interesting, to me at least, is the unified movement of demand and pricing changes through Labor Day, followed by the blow out. What's even more interesting is the variance and wave-like swings of gasoline prices, while underlying fundementals regress back to the mean.
Translation - final product prices (gasoline, a refined product) move in a decreasing amplitude wave surroudning large emotional events that cause a measurable break from the fundementals.
Holy crap, I sound like a quant. I need to go and get some bourbon, stat.
Cheers,
-Andrew
What I thought was interesting is that it looks like price drops while demand goes up and supply remains comparitively stable.
Boy and I felt overwhelmed by my writtens!Too... many... numbers... and... graphs!!!! Head... going... to... explode!!!
Chill, dude... don't get ahead of yourself!Too... many... numbers... and... graphs!!!! Head... going... to... explode!!!
While the oil companies retain some influence, at the end of the day, it will be speculation within the market by commodities traders that will heavily impact pricing.
2) Commodities trading supported irrational prices, which was not met with a commensurate drop off in demand [did happen] [20% change in price, 2% change in demand]...
Demand didn't drop because the outrageous gas prices didn't last long enough. Dropping demand means that people have to dump their Excursions, Tahoes, and Hummers. They can't do that short term. Most can't even change driving habits (much) short term. Let them pay $100+ for fill-ups for 6 months and they'll be lined up buying 25MPG crossovers.