Quote:
Originally Posted by JL8Jeff
Speculation really doesn't have much effect on gas prices, people are grasping at straws on that one. Look a the price of a barrel of oil after Katrina/Rita, it was in the $60-65 range and gas was $3.25 a gallon. Now oil was recently up at $144 a barrel and gas was around $4.25. Oil more than doubled but gas only went up around 30%.
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but oil is purchased from OPEC at a certain price, and the other percentage of our oil supply is also purchased at a certain price. It reaches the states. Then the speculators on Wall Street decide how much over that purchase price the oil companies obtain the oil for. So if we buy oil from OPEC for $35/barrel, then the speculators are setting the selling price $100/barrel over purchase. Thats a $65/barrel profit. At a rate of even just 10 mil barrels a day, thats a DAILY profit of 650 million dollars.