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Re: [RC] Gas price survey - Joe LongOn Wed, 5 Mar 2003 15:53:10 -0800, "Typef" <typef@xxxxxxxxx> wrote: I think the oil companies are trying to scam us AGAIN! They are using the excuse of "war" but there is no war yet...seems to me it is another big excuse to reach into our pockets and I'm really angry. Crude oil, like everything from pork bellies to corn, is traded on a commodities market ... with futures contracts. An anticipated future shortage raises prices. Also, the U.S. gets a lot of its oil from Venezuela, and the general strike there crippled their output, raising prices worldwide. The future of oil prices is uncertain. If a war happens quickly and is over quickly, they will likely fall back to normal quickly. If there is a protracted period of "war is immenent," or if war comes but goes badly, they could go much higher than now. And, that very uncertainty is what drives the price of "oil futures" up. In any commodities market, the price of contracts for future delivery affect prices today, reflecting the cost to the supplier for replacing his inventory. -- Joe Long jlong@xxxxxxxx http://www.rnbw.com =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Ridecamp is a service of Endurance Net, http://www.endurance.net. Information, Policy, Disclaimer: http://www.endurance.net/Ridecamp Subscribe/Unsubscribe http://www.endurance.net/ridecamp/logon.asp Ride Long and Ride Safe!! =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
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