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GasBuddy News Article

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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.


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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
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dave27johnson
Champion Author Chicago

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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."
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sparky808
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Message Posted: Apr 10, 2012 1:29:57 PM

Thank you for posting.
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A2J
Champion Author Richmond

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Message Posted: Apr 10, 2012 9:50:59 AM

Crazy
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Furrykids
Veteran Author Gainesville

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Message Posted: Apr 10, 2012 9:20:23 AM

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

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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.
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96sc1
Champion Author El Paso

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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
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coke_kid
Champion Author Chicago

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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...
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cverbil
All-Star Author San Jose

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Message Posted: Apr 10, 2012 12:50:43 AM

financial blather from the world of MBAs
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gasbanque
Rookie Author Montreal

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Message Posted: Apr 10, 2012 12:47:50 AM

interesting about margins.
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onegiraffeAL
Champion Author Alabama

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Message Posted: Apr 10, 2012 12:47:34 AM

ok
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Matt G
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Message Posted: Apr 10, 2012 12:47:34 AM

Ok
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granitestater
Champion Author New Hampshire

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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.
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Bubba44612
Champion Author Ohio

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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.
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52MPG
Champion Author Dayton

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Message Posted: Apr 10, 2012 12:43:23 AM

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

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Message Posted: Apr 10, 2012 12:42:26 AM

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

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Message Posted: Apr 10, 2012 12:41:02 AM

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

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Message Posted: Apr 10, 2012 12:28:59 AM

Time for a new story!
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Rageagainsttm
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Message Posted: Apr 10, 2012 12:25:36 AM

i doubt it
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flagman420CT
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Message Posted: Apr 10, 2012 12:23:40 AM

nothing works
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BobD2009
Champion Author Long Island

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Message Posted: Apr 10, 2012 12:22:01 AM

The Iran factor.
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jkpsr
Champion Author New Jersey

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Message Posted: Apr 10, 2012 12:21:54 AM

Blame the speculators and cheap money.
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rawdog1313
Champion Author Lexington

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Message Posted: Apr 10, 2012 12:19:41 AM

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

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Message Posted: Apr 10, 2012 12:18:35 AM

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

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Message Posted: Apr 10, 2012 12:15:22 AM

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

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Message Posted: Apr 10, 2012 12:15:19 AM

Ok....
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umitb
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Message Posted: Apr 10, 2012 12:14:02 AM

ok
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jem069
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Message Posted: Apr 10, 2012 12:12:14 AM

ok
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Dsin44
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Message Posted: Apr 10, 2012 12:11:24 AM

good article
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Blue_Cruzer
Champion Author Lexington

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Message Posted: Apr 10, 2012 12:11:21 AM

Get rid of the speculators.
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btex49
Champion Author Austin

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Message Posted: Apr 10, 2012 12:10:58 AM

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

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Message Posted: Apr 10, 2012 12:10:39 AM

boy could I go for a super-dooper triple decker sandwich...
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herndonks
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Message Posted: Apr 10, 2012 12:10:34 AM

Ok
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mabrams184
Champion Author Lexington

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Message Posted: Apr 10, 2012 12:09:42 AM

Something everyone already knows but nobody wants to do anything about.
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chuckwthompson
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Message Posted: Apr 10, 2012 12:09:03 AM

Great article!
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tedjm1
Champion Author New York

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Message Posted: Apr 10, 2012 12:09:01 AM

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

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Message Posted: Apr 10, 2012 12:08:31 AM

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

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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.
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heartbroken2010
Champion Author Ottawa

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Message Posted: Apr 10, 2012 12:07:54 AM

change " economics " to " greed " .
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Jeannemarie
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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!
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cmsense
Champion Author Columbus

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Message Posted: Apr 10, 2012 12:07:31 AM

Make them take delivery.
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MattieDale
Sophomore Author Cincinnati

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Message Posted: Apr 10, 2012 12:07:30 AM

Whatever. The rich get richer and the poor have babies.
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joel27nc
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Message Posted: Apr 10, 2012 12:06:47 AM

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

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Message Posted: Apr 10, 2012 12:06:31 AM

Frustrated!
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regout
Champion Author Quebec

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Message Posted: Apr 10, 2012 12:05:30 AM

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

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Message Posted: Apr 10, 2012 12:04:29 AM

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

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Message Posted: Apr 10, 2012 12:04:20 AM

I agree KrsnaDragon
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Colts13
Champion Author Indiana

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Message Posted: Apr 10, 2012 12:03:14 AM

Ok.
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KrsnaDragon
Champion Author Montreal

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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.
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69Bonne
Champion Author Gary

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Message Posted: Apr 9, 2012 11:59:09 PM

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

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Message Posted: Apr 9, 2012 11:57:28 PM

Overpriced due to fear of what could happen
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