BIBE-PJ GASOLINE GAME

[badknees]

Still Cheaper than milk.

Elasticity of milk much higher than gasoline...

When oil gets to $300/bbl and gas is $15/gal - you will see a demand change. Hence my point it is still cheap and elasticity somewhat irrelavant at these levels......STILL CHEAPER THAN STARBUCKS( and milk)

[SHANEA]

When oil gets to $300/bbl and gas is $15/gal - you will see a demand change. Hence my point it is still cheap and elasticity somewhat irrelavant at these levels......STILL CHEAPER THAN STARBUCKS( and milk)

Oh, I think there would be a huge change in the demand curve well before $300. 

 

[badknees]

When oil gets to $300/bbl and gas is $15/gal - you will see a demand change. Hence my point it is still cheap and elasticity somewhat irrelavant at these levels......STILL CHEAPER THAN STARBUCKS( and milk)

Oh, I think there would be a huge change in the demand curve well before $300. 

 

I agree. We ALL have no right to bit%h about the price of gas and at the same time not change our habits.

[SHANEA]

I really expected it to top $100bbl today.  I'm somewhat disappointed.   

Milk prices also rose 1.0 percent in September and have
 risen 19.3 percent since the beginning of the year. 

http://www.bls.gov/news.release/cpi.nr0.htm

(All prices below on a per gallon basis).  Of course, a relatively large factor of milk prices is based on the price of oil, petro, electricity, transportation costs, etc.)
(Whole Milk) $3.83 sample average for October 2007.  Overall average $3.55.
(Skim Milk - yuk) $3.76 sample average for October 2007.  Overall average $3.46.
http://www.ams.usda.gov/dyfmos/mib/rtl_mon_whl_07.pdf

[badknees]

A different look.



Chevron's 3Q Profit Slides 26 Pct for Steepest Decline in 5 Years


SAN RAMON, Calif. (AP) -- Chevron Corp. third-quarter profit slid 26 percent, the steepest decline in five years as the energy market's unpredictable pendulum swung against the second-largest U.S. oil company and most of its peers.
The San Ramon-based company said Friday that it made $3.72 billion, or $1.75 per share, in the three months ended in September, down from net income of $5.02 billion, or $2.29 per share, at the same time last year.
Analysts were bracing for a lower profit, but the erosion was far worse than their average earnings estimate of $2.07 per share, based on a survey by Thomson Financial.
Revenue growth also was lackluster during the quarter, edging up just 2 percent to $55.2 billion.
The results weighed on Chevron stock, which fell 56 cents Friday to finish at $88.48. The shares still have gained 20 percent so far this year.


Big Oil gets the wind knocked out of profits

By Steve Gelsi, MarketWatch
 
NEW YORK (MarketWatch) -- Wall Street largely underestimated the profit dips by Exxon Mobil, Chevron, BP and ConocoPhillips this past quarter and if the price of oil continues to hold at record levels, the story could repeat itself in the coming months, industry analysts said Friday.
One would think that crude at $80, $90 or $100 a barrel would immediately fatten the pockets of Big Oil. But that hasn't been the case for a variety of reasons spelled out in their latest batch of quarterly updates.
The value of crude pumped out of the ground continues to jump for the exploration and production end of the business, but petroleum giants have reported snags tied to rising costs and production sharing agreements with host governments.


This article also has some insight on the relationship between interest rate cuts leading to weaker dollar and it's effect on oil prices

http://www.econbrowser.com/archives/2007/10/does_dollar_wea_1.html

[SHANEA]

Yea Baby...

[badknees]

I was waiting for you to get back in this one! 

I guess we "celebrate" at $100.

Helps my 401k!

[BigBendHiker]

With respect to oil and gasoline prices, I came across this the other day.   Someone mentioned peak oil, so I Googled it and found a couple of interesting sites...

http://en.wikipedia.org/wiki/Peak_oil


This second one, Olduvai Theory, it quite interesting...

http://dieoff.org/page125.htm


Not sure what to make of either of these, but if the predictions were to come true, things are going to get much more interesting in the long run...


BBH

[badknees]

Interesting theories.

I like this one......

We will never actually run out of oil. At some point recoverable oil will become so expensive to extract, it will not be worth cost of extraction. Somewhere during this price rise, alternative energy will replace oil demand. Bye,bye black gold.

[SHANEA]

Personally, I think the market is being manipulated by the global Illuminati powers, part of the global conspiracy of a one world government, the Trilateral Commission, the Council on Foreign Relations and a few others we've never even heard of.   

But, seriously, the market is being manipulated by OPEC and others - it's not behaving according to the true laws of supply and demand.  Too much money involved, futures, spiders, etc.  The market is simply reacting to manipulation on this run up.  Oh, a butterfly flapped it's wings in Paraguay, thus the market shoots up some more.  It's become a speculation market.   

[SHANEA]

$98.62
Market
is on
FIRE!

SINGAPORE (AP) -- Oil prices jumped to a new trading record above $98 a barrel Wednesday amid expectations of declining U.S. supplies and following news of an attack on a Yemeni oil pipeline.

[badknees]

Personally, I think the market is being manipulated by the global Illuminati powers, part of the global conspiracy of a one world government, the Trilateral Commission, the Council on Foreign Relations and a few others we've never even heard of.   

But, seriously, the market is being manipulated by OPEC and others - it's not behaving according to the true laws of supply and demand.  Too much money involved, futures, spiders, etc.  The market is simply reacting to manipulation on this run up.  Oh, a butterfly flapped it's wings in Paraguay, thus the market shoots up some more.  It's become a speculation market.   

I agree, current estmates may indicate as much as $30/bbl attributed to speculation and not market forces.


STILL CHEAPER THAN STARBUCKS

[SHANEA]

STILL CHEAPER THAN STARBUCKS

I'm so happy that we can have a fun "banter" w/o getting all wrapped up in it and take it personally!  I smile every time I pass by the Starbucks on my way to the gas station!   I'm looking forward to discussing the world of economics and starbucks v. oil with you around the campfire sometime.  Perhaps the economic rule should change from guns and butter to starbucks and oil!   

[Undertaker]

Win Win with oil stocks and pass through for fuel in business. But don't get me started on how I really feel

[badknees]

STILL CHEAPER THAN STARBUCKS

I'm so happy that we can have a fun "banter" w/o getting all wrapped up in it and take it personally!  I smile every time I pass by the Starbucks on my way to the gas station!   I'm looking forward to discussing the world of economics and starbucks v. oil with you around the campfire sometime.  Perhaps the economic rule should change from guns and butter to starbucks and oil!   

I look forward to the campfire