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

"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?

But markets' volatility is directly owing to external factors--removing
the limiting factor would eliminate the mindset of possible shortage.
There must be a driving mechanism to fuel the speculation. Not all
market fluctuations would be eliminated entirely, of course, but the
excessive volatility would disappear overnight if refinery capacity were
increased Monday.

Probably. I see a shortcut to that goal, but nobody would agree to the idea.