What is your price per gallon for diesel?
#17
12-31-2010, 07:01 PM
$3.43 in southeast Pa. Don't believe the crap you read about China sucking up all the oil, there in a recession also. You remember when the sand dwellers cut back production several million barrels a day of their production? They never increased the numbers since, why should they when they found out the oil income was still the same. The reason why crude is $90+ a barrel is white shirts bidding it up in speculation. Oil would come down if only registered actual users of crude were the only ones to bid on it.
Less then 1% of actual contracts get transacted at the CME(used to be CBOT) which actually controls futures trading. They do trade futures at the NYSE, but it's governed by the CME, they NYSE has it's on "portal" to it. A lot of people think it happens at the NYSE, because of that.
Oil people(both suppliers and buyers) as well as speculators go to the futures market for hedging ultimately. They trade on the CME in order to(as much as they can) lock in a price that they would be happy with it. When it gets close to the end of the contract, if the local spot price is better then the their CME contract price, they go to a speculator to close out the contract and sell their wares for the spot price at their local market.
This is actually a very bare bones nuts and bolts version of it, but whether or not we like speculators, think they are evil or what not, they are needed. Not by us mind you, but by the oil suppliers. Remember, they aren't doing this for our health, they are doing this for a profit. A lot of people lose sight of that and think it should be done cheaper.
but it's 3.35 locally by me in southern Illinois.
#22
12-31-2010, 09:01 PM
Cargo Master
#24
12-31-2010, 09:57 PM
Posting Guru
#25
12-31-2010, 09:57 PM
#28
12-31-2010, 10:40 PM
Posting Guru
#29
12-31-2010, 10:47 PM
