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GasBuddy News Article

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Speculation - not demand or regulation - behind dramatic gas price increases

McClatchy Newspapers -- U.S. demand for oil and refined products - including gasoline - is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.

Yet oil and gasoline prices are surging.

On Tuesday, oil rose past $105 a barrel and gasoline averaged $3.57 a gallon - thanks again in no small part to rampant financial speculation on top of fears of supply disruptions.

The ostensible reason for the climb of crude prices on the New York Mercantile Exchange, where contracts for future delivery of oil are traded, is growing fear of a military confrontation with Iran in the Persian Gulf's Strait of Hormuz, through which 20 percent of the world's oil passes.



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Submitted Feb 26, 2012 By: pzini
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Speculation - not demand or regulation - behind dramatic gas price increases Back to Topics
REPLIES (newest first) Post a Reply
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roadrunnin
Champion Author Richmond

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Message Posted: Feb 27, 2012 10:26:39 PM

maybe we need a pipeline to the east coast
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blupupher
Champion Author Houston

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Message Posted: Feb 27, 2012 7:54:25 AM

Yet another article says just the opposite but I agree with this one. There is no correlation between price and supply/demand.
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gawxnative
All-Star Author Atlanta

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Message Posted: Feb 27, 2012 7:43:23 AM

Yep same basic story..there is a complete disconnect between US Supply/Demand for refined product
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remay
Champion Author Houston

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Message Posted: Feb 27, 2012 7:41:18 AM

Wow! The article posted just BEFORE this one claims:

"Well, At Least They Aren't Blaming 'Speculators' For Skyrocketing Oil Prices This Time..."
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el_fr
Champion Author Massachusetts

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Message Posted: Feb 27, 2012 12:24:01 AM

Absolutely
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des7902
Veteran Author Virginia

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Message Posted: Feb 26, 2012 10:31:12 PM

What a shock.
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DerHahn
Champion Author Illinois

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Message Posted: Feb 26, 2012 8:03:58 PM

even bloomberg has admitted to this problem. others still deny the speculators have anything to do with the high prices.
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alterman156
Champion Author New York

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Message Posted: Feb 26, 2012 6:54:22 PM

Speculators are probably helping to drive up oil prices.
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BobBG
Champion Author Albany

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Message Posted: Feb 26, 2012 6:22:49 PM

I love it. This article says blame speculators while the next article says " you can't blame speculators this time". One thing is for sure "opinions are like ***holes, everybody has one."
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VomVom
Champion Author Calgary

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Message Posted: Feb 26, 2012 6:01:15 PM

So what has Obama done about the speculators after 3 years in office? NOTHING!
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30mpg80
Champion Author Lexington

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Message Posted: Feb 26, 2012 1:28:11 PM

Oil futures are overpriced, and the bubble is about to burst!
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glorioussnookie
Champion Author Tennessee

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Message Posted: Feb 26, 2012 12:53:33 PM

I agree with Night Owl once again, wall Street should not be controlling what price we pay and plain and simply that is what is happening!
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dr047
Champion Author Cleveland

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Message Posted: Feb 26, 2012 12:21:56 PM


We can Whine Forever or we can change How we Drive and What we Drive.
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TXRanger09
Champion Author Dallas

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Message Posted: Feb 26, 2012 11:46:17 AM

Oil speculation is a game of musical chairs, who ever is holding the most inflated oil futures when the music stops, loses. Please, enough with the Strait of Hurmuz! If any military action does takes place, it won't be in the Strait.
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Night Owl
Champion Author Toronto

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Message Posted: Feb 26, 2012 11:22:44 AM

When is President Obama's April 21st task force on high oil and gas prices finally going to report back? Obama should be stopping greedy Wall Street oil speculators. He should get the CFTC to do its job and stop all oil speculators. Supply and demand should be controlling oil prices, not Wall Street.
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WalkingWV
Champion Author West Virginia

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Message Posted: Feb 26, 2012 10:42:06 AM

Required reading for drill baby drillers.
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gawxnative
All-Star Author Atlanta

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Message Posted: Feb 26, 2012 10:27:47 AM

They ("big oil" are exporting because the market pricing. They are following demand for product
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gawxnative
All-Star Author Atlanta

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Message Posted: Feb 26, 2012 10:24:28 AM

Plus the factor of weaker dollar...in long term may help by reducung imports of other items, which could start a slowdown of other economies/demand (China, etc)
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brbaritone
Champion Author Virginia

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Message Posted: Feb 26, 2012 10:13:51 AM

I think most people who participate in these forums have been aware of this for quite a while. It is good to see that the news media is finally admitting and reporting the phenomenon.
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fowlcan
Champion Author Oklahoma City

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Message Posted: Feb 26, 2012 9:45:45 AM

Oh those pesky Speculators. Isn't there a bug spray that would get them?
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jrs4125
Champion Author Indiana

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Message Posted: Feb 26, 2012 9:28:02 AM

If the US government continues to let the speculators set prices on fuel we're in for a wild ride.
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investmentdr
Champion Author Cleveland

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Message Posted: Feb 26, 2012 9:13:56 AM

more regulation; more regulation, because it is just too hard for consumers to change bad habits, or even admit to them.

[Edited by: investmentdr at 2/26/2012 10:17:03 AM EST]
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bwatchingu
Champion Author Arkansas

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Message Posted: Feb 26, 2012 9:01:24 AM

ok
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investmentdr
Champion Author Cleveland

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Message Posted: Feb 26, 2012 8:57:21 AM

MidNJ, another explanation could be a preponderance of ignorance
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investmentdr
Champion Author Cleveland

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Message Posted: Feb 26, 2012 8:55:42 AM

life is speculation
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MidNJ
Champion Author New Jersey

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Message Posted: Feb 26, 2012 8:53:04 AM

Interesting how some who comment on GB continually defend the speculators.

My bet is there a number of speculators in our ranks.
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fuel2use
Champion Author Seattle

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Message Posted: Feb 26, 2012 8:49:41 AM

BEE smart. So true.
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YaBassa
Champion Author Michigan

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Message Posted: Feb 26, 2012 7:39:06 AM

The rising cost per barrel is just the selling price, Big Oil is still making huge profits. Speculators on Wall Street are making profits on the rise of the cost of oil. Regulate Baby Regulate
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DerHahn
Champion Author Illinois

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Message Posted: Feb 26, 2012 7:11:05 AM

how about the lack of regulations on the speculators? don't forget to add in the exportation of refined fuels to keep supplies down.
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Evilmaddog
Champion Author British Columbia

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Message Posted: Feb 26, 2012 7:02:07 AM

$$$$$
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NGC4565
Champion Author Reading

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Message Posted: Feb 26, 2012 6:40:55 AM

Oil and gasoline are both global commodities. US demand is only a piece of global demand. Prices react to aggregate global supply and demand, not just US demand.
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MontanaMac
Champion Author Washington

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Message Posted: Feb 26, 2012 6:37:08 AM

Opinion piece from a financial analyst, not an industry expert.
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grandpadon28110
Champion Author Charlotte

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Message Posted: Feb 26, 2012 6:21:45 AM

A matter of opinion.
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doeslayersr
Champion Author Illinois

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Message Posted: Feb 26, 2012 6:09:17 AM

The article is incorrect, speculation, regulation AND demand (or lack of one or more of the three) are ALL factors in the determination of fuel prices.

Expect more of this type of propaganda to essentially say, it is not the Big O's fault. It was George Washington's fault, it was Abraham Lincoln's fault, it was.......... but it is not President Obama's fault. What a joke, because some doofuses and dunderheads will fall for it.
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BBopp
Champion Author Dayton

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Message Posted: Feb 26, 2012 5:58:05 AM

This is why we need strict laws governing speculation. World wide laws.
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dsaine
Champion Author North Carolina

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Message Posted: Feb 26, 2012 5:43:49 AM

Ok!
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kenji554
Champion Author Charlotte

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Message Posted: Feb 26, 2012 5:32:28 AM

Yes.
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wrunner
Champion Author Virginia

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Message Posted: Feb 26, 2012 4:19:30 AM

Indeed!
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bills299
Champion Author Atlanta

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Message Posted: Feb 26, 2012 3:59:56 AM

True, True , and True!!
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JohnofGB
Champion Author Flint

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Message Posted: Feb 26, 2012 3:05:55 AM

Threats and crude. There are plenty of both but threats trump a plentiful supply. Yep, speculation.
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jrschl
Champion Author Louisville

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Message Posted: Feb 26, 2012 3:03:57 AM

Seems pretty self-evident.

The gov't is picking the wrong battles to fight, and leaving the people to get bent over.
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djgunrunner
Champion Author Salt Lake City

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Message Posted: Feb 26, 2012 3:02:59 AM

Speculation and the fact that Big Oil is selling the fuel that we need here in America overseas is the reason. Big oil causes the shortage and then raises the price because there is a shortage.
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lgwhitlock
Champion Author Chico

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Message Posted: Feb 26, 2012 2:26:48 AM

A long time ago speculation was illegal. It should be again it seems...
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Double_Golden
Champion Author San Francisco

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Message Posted: Feb 26, 2012 2:21:29 AM

Speculation sucks
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anascom
Champion Author Hamilton

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Message Posted: Feb 26, 2012 2:17:56 AM

nothing new!
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Amplion
Champion Author Oregon

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Message Posted: Feb 26, 2012 2:15:53 AM

OBOZO has no clue what to do !!!
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chuckwthompson
Champion Author Charlotte

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Message Posted: Feb 26, 2012 2:09:35 AM

Outlaw speculators...better yet, convict speculators!
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Vette1967
Champion Author Albany

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Message Posted: Feb 26, 2012 2:08:16 AM

Agree....
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UseLessGasFolks
Champion Author Iowa

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Message Posted: Feb 26, 2012 2:06:47 AM


Time to cut out these useless middle men.
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MN1
Champion Author Twin Cities

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Message Posted: Feb 26, 2012 1:48:40 AM

True, legalized gambling.
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eppylover
Sophomore Author Grand Rapids

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Message Posted: Feb 26, 2012 1:46:46 AM

Why isn't speculation ILLEGAL? Spec has proven to be nothing but tragically detrimental to the entire country, everyone ~ except the greedy bastards who profit from it.
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