"Duane Bozarth" wrote in message
...
Doug Kanter wrote:

"Duane Bozarth" wrote in message
...
Doug Kanter wrote:

"Jim Yanik" . wrote in message
.. .

Oil prices are up because Communist China is using much more oil

Only indirectly. Unless there is a REAL shortage (which there is not),
the
price is determined in the same way as many other investments, such as
stocks: Speculation and mood. Next time a suicide bomber strikes
within
Saudi Arabia, watch the price of oil closely, even if the bomb was
detonated
in a restaurant.

In the US specifically, retail prices are being controlled by a lack of
increased refining capacity which makes any real or threatened
perturbation to daily supply subject to market speculation. If you
could get your friends to support siting such facilities, we'd have a
whole lot less volatility initially followed by a drop in price at the
pump...

Speculation. Exactly. Definition: A bunch of suits who also bet on hog
bellies and orange juice.

Again you miss the essential point--if there were increased refining
capacity, there would be no significant "fear factor" to spur the short
term speculation as reserves would be ample and short term interruptions
from such things as Dennis would be essentially immaterial.

I know what you're saying, but speculators only make money when prices move.
Ever notice that if Wal Mart announces less then fabulous earnings, Sears
stock goes down?