Not Logged In Log In   Sign Up   Points Leaders
Follow Us    5:42 AM

GasBuddy News Article

58
votes
Over-Paying At The Pump? Boost Speculator Margin Requirements

Forbes -- One of the key things I have learned in analyzing high gasoline prices over the last several years is that the rules of economics do not apply to gasoline prices in the way that I previously thought. Most of us are taught that price changes are a result of changes in the supply and demand for a commodity.

But it turns out that when you analyze changes in the supply and demand for oil, you end up concluding that the price of oil should be either unchanged or lower in 2012. Why? Simply put, the demand for oil is rising more slowly than the supply.

For example, in 2011, world oil demand crept up a mere 0.8% and that demand is expected to rise a mere 0.9% in 2012 to 89.9 million barrels a day, according to the International Energy Agency.


Read the Full Article

Submitted Apr 09, 2012 By: eromitlab
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Over-Paying At The Pump? Boost Speculator Margin Requirements Back to Topics
REPLIES (newest first) Post a Reply
Profile Pic
dave27johnson
Champion Author Chicago

Posts:2,287
Points:893,660
Joined:Feb 2012
Message Posted: Apr 15, 2012 12:46:29 PM

As the article concludes, "For the sake of sustaining economic growth and giving people a chance to spend on something other than gasoline, it may be time for those exchanges to boost speculator margin requirements some more."
Profile Pic
sparky808
Champion Author Honolulu

Posts:5,219
Points:1,123,400
Joined:Sep 2011
Message Posted: Apr 10, 2012 1:29:57 PM

Thank you for posting.
Profile Pic
A2J
Champion Author Richmond

Posts:5,390
Points:1,121,450
Joined:Aug 2011
Message Posted: Apr 10, 2012 9:50:59 AM

Crazy
Profile Pic
Furrykids
Veteran Author Gainesville

Posts:269
Points:1,008,170
Joined:Mar 2011
Message Posted: Apr 10, 2012 9:20:23 AM

More to the oil market than just supply and demand
Profile Pic
jetskijerry
Champion Author North Carolina

Posts:6,260
Points:1,313,335
Joined:Mar 2011
Message Posted: Apr 10, 2012 1:18:00 AM

If everyone stopped driving for a month, it might make a difference. But, it won't happen.
Profile Pic
96sc1
Champion Author El Paso

Posts:8,517
Points:1,367,640
Joined:Mar 2008
Message Posted: Apr 10, 2012 1:02:12 AM

Over-Paying At The Pump, the Grocery Store, the Clinic? Reduce the Size of the Federal Government
Profile Pic
coke_kid
Champion Author Chicago

Posts:1,538
Points:325,410
Joined:Nov 2005
Message Posted: Apr 10, 2012 12:52:29 AM

Gas prices are so high its killing millions of people and the 89 million out of work.. FOOD OR GAS FOR CAR? it must come down or inflation will be more out of control than the All time high this yr of 11% 3 times higher than the year before...
Profile Pic
cverbil
All-Star Author San Jose

Posts:544
Points:508,280
Joined:Apr 2005
Message Posted: Apr 10, 2012 12:50:43 AM

financial blather from the world of MBAs
Profile Pic
gasbanque
Rookie Author Montreal

Posts:4
Points:1,500
Joined:Apr 2012
Message Posted: Apr 10, 2012 12:47:50 AM

interesting about margins.
Profile Pic
onegiraffeAL
Champion Author Alabama

Posts:1,067
Points:495,765
Joined:Jan 2010
Message Posted: Apr 10, 2012 12:47:34 AM

ok
Profile Pic
Matt G
Champion Author Boston

Posts:6,963
Points:3,320,450
Joined:Jun 2004
Message Posted: Apr 10, 2012 12:47:34 AM

Ok
Profile Pic
granitestater
Champion Author New Hampshire

Posts:11,696
Points:1,966,955
Joined:Oct 2008
Message Posted: Apr 10, 2012 12:44:30 AM

Boosting margin requirements only means speculators will band together in groups to buy up contracts like mutual funds. And those groups will have a bigger influence on the market.
Profile Pic
Bubba44612
Champion Author Ohio

Posts:9,740
Points:2,419,105
Joined:Aug 2005
Message Posted: Apr 10, 2012 12:44:11 AM

Wall Street needs to make a profit on every working American's back. Just wrong since we bailed them out, now they are getting millions of dollars in bonuses from this.
Profile Pic
52MPG
Champion Author Dayton

Posts:9,673
Points:2,288,295
Joined:Apr 2006
Message Posted: Apr 10, 2012 12:43:23 AM

Require that delivery be taken on the contract.
Profile Pic
singlemom27
Champion Author Ventura

Posts:5,497
Points:1,181,225
Joined:Apr 2011
Message Posted: Apr 10, 2012 12:42:26 AM

Make speculation illegal and take politics out of big oil.
Profile Pic
2bigtanks
All-Star Author Akron

Posts:772
Points:371,610
Joined:Jun 2011
Message Posted: Apr 10, 2012 12:41:02 AM

We have hammered this one in the ground, get over it.
Profile Pic
otherdave
Champion Author Indiana

Posts:5,838
Points:1,814,740
Joined:Oct 2008
Message Posted: Apr 10, 2012 12:28:59 AM

Time for a new story!
Profile Pic
Rageagainsttm
Champion Author Tampa

Posts:10,572
Points:2,431,160
Joined:Jul 2007
Message Posted: Apr 10, 2012 12:25:36 AM

i doubt it
Profile Pic
flagman420CT
Veteran Author New Haven

Posts:298
Points:1,024,925
Joined:Mar 2011
Message Posted: Apr 10, 2012 12:23:40 AM

nothing works
Profile Pic
BobD2009
Champion Author Long Island

Posts:9,367
Points:1,772,160
Joined:Apr 2009
Message Posted: Apr 10, 2012 12:22:01 AM

The Iran factor.
Profile Pic
jkpsr
Champion Author New Jersey

Posts:5,936
Points:1,574,480
Joined:Jun 2005
Message Posted: Apr 10, 2012 12:21:54 AM

Blame the speculators and cheap money.
Profile Pic
rawdog1313
Champion Author Lexington

Posts:4,878
Points:2,014,445
Joined:May 2008
Message Posted: Apr 10, 2012 12:19:41 AM

Regulate Oil Speculation = lower gas prices!!
Profile Pic
10k
Champion Author North Carolina

Posts:24,532
Points:2,799,875
Joined:May 2006
Message Posted: Apr 10, 2012 12:18:35 AM

simply put: it's called GREED..
Profile Pic
Bigwaynef
Champion Author South Carolina

Posts:14,577
Points:2,626,020
Joined:Dec 2006
Message Posted: Apr 10, 2012 12:15:22 AM

Overpaying at the pump happens after I spend more than $5.00 to fill up!
Profile Pic
gd83goldwinger
Champion Author South Bend

Posts:2,584
Points:794,580
Joined:May 2011
Message Posted: Apr 10, 2012 12:15:19 AM

Ok....
Profile Pic
umitb
Champion Author Indianapolis

Posts:5,725
Points:1,296,100
Joined:Apr 2010
Message Posted: Apr 10, 2012 12:14:02 AM

ok
Profile Pic
jem069
Champion Author Detroit

Posts:4,525
Points:1,149,035
Joined:Jan 2011
Message Posted: Apr 10, 2012 12:12:14 AM

ok
Profile Pic
Dsin44
Champion Author Abbotsford

Posts:1,341
Points:306,765
Joined:Apr 2011
Message Posted: Apr 10, 2012 12:11:24 AM

good article
Profile Pic
Blue_Cruzer
Champion Author Lexington

Posts:8,894
Points:1,942,465
Joined:Mar 2007
Message Posted: Apr 10, 2012 12:11:21 AM

Get rid of the speculators.
Profile Pic
btex49
Champion Author Austin

Posts:5,024
Points:1,053,215
Joined:Aug 2011
Message Posted: Apr 10, 2012 12:10:58 AM

No real excuse for these prices...
Profile Pic
yakstar
Champion Author Montreal

Posts:4,620
Points:1,007,005
Joined:Jan 2012
Message Posted: Apr 10, 2012 12:10:39 AM

boy could I go for a super-dooper triple decker sandwich...
Profile Pic
herndonks
Champion Author Baltimore

Posts:1,116
Points:211,685
Joined:Dec 2011
Message Posted: Apr 10, 2012 12:10:34 AM

Ok
Profile Pic
mabrams184
Champion Author Lexington

Posts:3,803
Points:1,048,200
Joined:Aug 2011
Message Posted: Apr 10, 2012 12:09:42 AM

Something everyone already knows but nobody wants to do anything about.
Profile Pic
chuckwthompson
Champion Author Charlotte

Posts:6,200
Points:1,125,110
Joined:Sep 2011
Message Posted: Apr 10, 2012 12:09:03 AM

Great article!
Profile Pic
tedjm1
Champion Author New York

Posts:5,609
Points:801,050
Joined:Dec 2006
Message Posted: Apr 10, 2012 12:09:01 AM

All in all, a lousy situation.
Profile Pic
rtw777
Champion Author Florida

Posts:11,805
Points:2,387,595
Joined:Jan 2008
Message Posted: Apr 10, 2012 12:08:31 AM

Should have been done years ago.
Profile Pic
vegboy
All-Star Author Massachusetts

Posts:550
Points:106,700
Joined:Feb 2012
Message Posted: Apr 10, 2012 12:08:23 AM

it took this author a few years to learn this, its the speculators and subsidies to big oil, stupid.
Profile Pic
heartbroken2010
Champion Author Ottawa

Posts:6,745
Points:1,442,560
Joined:Aug 2010
Message Posted: Apr 10, 2012 12:07:54 AM

change " economics " to " greed " .
Profile Pic
Jeannemarie
Champion Author Las Vegas

Posts:31,243
Points:2,394,140
Joined:Aug 2005
Message Posted: Apr 10, 2012 12:07:53 AM

I used to say kill the lawyers but now I think Speculators would be a better target!
Profile Pic
cmsense
Champion Author Columbus

Posts:1,358
Points:165,345
Joined:Jan 2012
Message Posted: Apr 10, 2012 12:07:31 AM

Make them take delivery.
Profile Pic
MattieDale
Sophomore Author Cincinnati

Posts:236
Points:207,275
Joined:Mar 2003
Message Posted: Apr 10, 2012 12:07:30 AM

Whatever. The rich get richer and the poor have babies.
Profile Pic
joel27nc
Champion Author Raleigh

Posts:12,958
Points:2,400,745
Joined:Mar 2008
Message Posted: Apr 10, 2012 12:06:47 AM

Speculator should get out of the gas market
Profile Pic
OilOnTheCheap
Champion Author Ventura

Posts:5,224
Points:991,495
Joined:Jan 2012
Message Posted: Apr 10, 2012 12:06:31 AM

Frustrated!
Profile Pic
regout
Champion Author Quebec

Posts:5,340
Points:1,375,130
Joined:May 2010
Message Posted: Apr 10, 2012 12:05:30 AM

It's always the same, profit goes to speculator.
Profile Pic
mcmonsta
Champion Author Honolulu

Posts:5,430
Points:1,354,285
Joined:Sep 2009
Message Posted: Apr 10, 2012 12:04:29 AM

if they want to speculate then they should be taxed straight off..big time
Profile Pic
Z06KY
Champion Author Louisville

Posts:7,608
Points:1,453,640
Joined:Nov 2010
Message Posted: Apr 10, 2012 12:04:20 AM

I agree KrsnaDragon
Profile Pic
Colts13
Champion Author Indiana

Posts:4,000
Points:1,052,910
Joined:Mar 2011
Message Posted: Apr 10, 2012 12:03:14 AM

Ok.
Profile Pic
KrsnaDragon
Champion Author Montreal

Posts:4,887
Points:1,075,240
Joined:Nov 2011
Message Posted: Apr 9, 2012 11:59:33 PM

This simple commonsense reality makes for a very interesting article.
Indeed there are many who have made their wealth betting on unrest and war to set prices on global commodities. As commodities, these things happen to be mundane necessities, like gasoline.
If these types were obliged to take delivery of the product, as working retailers do, my bet is gasoline prices would achieve stability at a reasonable cost for drivers.
My two (2) cents' worth.
Profile Pic
69Bonne
Champion Author Gary

Posts:2,908
Points:881,455
Joined:Sep 2005
Message Posted: Apr 9, 2012 11:59:09 PM

Not much of this makes any sense any more.
Profile Pic
txkrb
Champion Author Texas

Posts:2,543
Points:1,120,440
Joined:May 2011
Message Posted: Apr 9, 2012 11:57:28 PM

Overpriced due to fear of what could happen
Post a reply Back to Topics