Oil is still below $50.00 dollars per barrel , yet today the price of 1 liter of gas is $1.05 to $1.08 , greed , greed .greed!
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Oil is still below $50.00 dollars per barrel , yet today the price of 1 liter of gas is $1.05 to $1.08 , greed , greed .greed!
Prices sure seem unexplainably high.
I know that many refinery big gasoline producing units take their turnarounds during off season(winter) when vacation driving (demand) is low.
However there seemed to be a big surplus(validated by how many oil rigs are being shutdown). Bad news is, price seems artificially high now and when more rigs shutdown(because of crude continued low barrel price.)
Then surplus falls off, running into need/demand, causing prices to be unbelievably high as crude barrel price rise enough to be financially feasible to restart rigs and and meet that demand, and then begin surplus building again. A big cycle.......
Lot depends on world demand. 7
Locally it was 93/L .....79/L status, yesterday.
Up to 1.10 here
I noticed that too.....oil prices are down but profits are higher.... doesn't matter to them..... they just need to make and make and make as much as they can.....your right......greed....greed....greed
Oil goes down $50, gas goes down $0.50.
Oil goes up $1, gas goes up $0.40.
Hmm
Paid .93 Sunday evening.
It's what shareholders want, they expect results quarterly.Quote:
Originally Posted by fratri
I trust you have investments and want a return on it correct?
I have substantial investments in oil and the price at the pumps means nothing with regards to the stock price. Pump prices have been going up over the last 3-4 weeks, price of the barrel has been sliding for over a week now. Oil stocks fluctuate with the price of the barrel, they don't go up and down based on the price at the pumps...Quote:
Originally Posted by Bandwagon
Oil company revenues and margins have a direct impact on stock prices, the price at the pump also contributes to the demand. That's basic economics, all of these are contributing factors.Quote:
Originally Posted by JeffBondar
Economics 101 "Elasticity of demand"
Stock prices will not fluctuate in a 3-4 week stint in Canada based on our small market...
You don't think your stocks price would fluctuate is gas was 0.25 a liter or 3.00 at the pump?
Of course it does but it's minor. The biggest impact of oil stock prices is speculation followed by supply and demand....Quote:
Originally Posted by Bandwagon
Huh? From Sept to Dec of 2014 Canadian Oil stocks dropped by 60+% resulting in billions of dollars.... They most certainly will fluctuate in short time frames.Quote:
Originally Posted by Bandwagon
That's obvious.... I was speaking to a global market, see were I mentioned Canada and our "small market"Quote:
Originally Posted by JeffBondar
It's relative to who your investments are with.
You're correct Jeff - I'm underweight on CDN energy stocks, so I've dodged that a bit.Quote:
Originally Posted by JeffBondar
The entire crude oil and gasoline pricing is all based on speculation, and the two aren't particularly linked in the short term.
I usually agree with you Jaycee - but on this corporate greed thing - sure there are a lot of guys at the top of corporations who are making more money than any person deserves...and as a shareholder, I'm doubly annoyed, because that's my money he's taking home. But until shareholders figure out how to deal with that were screwed.
But as far as the corporations being greedy - well there are guys like me with no pension other than the investments I make, about two thirds of them in publicly traded corporations. And I need these greedy buggers running them to get me the best return on my investment I can so I can hope to retire - be it gasoline, telcos, insurance, banks - yup, pretty much everyone (except the gov't) that's putting the screws to John Q. Public.
And before you PS pension people get to righteous - you might want to take a look at what OMERS, OTTPB and the like are up too - same stuff.
I'm hopping this is an opportunity for me at this age to take advantage of the low oil stock prices. I hope it's not unreasonable to modestly assume I can double up over the next 5 years (dividends included) on my recent initial investment and average an annual 20% return as opposed to other areas of the market where I might be happy with 3-5% return.
In the short term, I'll be happy I'm paying around $1 a litre and not north of $1.30 like we were just 6 months ago....
Our "small" market has an impact on liquidity. In essence relatively speaking compared to elsewhere we are illiquid. Just look at the daily volumes on the TSX say versus the NYSE.Quote:
Originally Posted by Bandwagon
Without getting into long discussions liquidity or the lack thereof is deemed as bad/risky thing. In short, liquidity provides stability, lack of it you get volatility in price fluctuations. It can be all over the map. Up 10% one day, down 10% the next.
The more "volatile" something might be, the riskier it is.
http://www.investopedia.com/terms/l/liquidityrisk.asp
When the public says or thinks "risk". Most think of the "the risk something might go down/tank".
To us, risk is a measure of volatility.
Many don't like short sellers for example. How often are hedge funds, etc "blamed" for things? Often.
However shorting adds liquidity to markets...Selling short is meeting demand. Adding liquidity, reducing volatility. What happens if there are lots of buyers and no sellers (illiquid), or not enough shares outstanding and in the float? The price sky rockets.......Demand>>>>>>>>>>>>>>>>Supply (this is where short selling will add liquidity, and........) . The opposite holds true as well.
YEP, something they always seem to conveneiently over look when slamming corporate greed.Quote:
Originally Posted by werner.reiche
:)
Corporate greed hurts us all.....what ever happened to share the wealth?
I guess the whats best for me mentality is alive and well..... Too bad money has such a great impact on our lives....
It ($) makes the world spin F. Whether that's a good or bad thing, shades of grey.
Some will complain/slam/discuss corporate greed. See so many threads, discussions about it, or about Companies that pull up stakes because labor is cheaper in Mexico, China... Slam them for exec bonuses etc, or when times get tough it's always the little/middle people getting laid off..
Then complain, when their investments aren't returning 5%-10%-15% or dividends get cut etc.
The problem with "sharing the wealth" is if it get "shared too much", there is no incentive for anyone to create wealth. And then there is no wealth for anyone. The extreme opposite of the corporate greed we see in America and Canada today is the soviet communist economy. No incentive to create wealth - therefore, not wealth and nothing to share.Quote:
Originally Posted by fratri
Lets not blame the corporations... they are in fact just pieces of paper representing inanimate legal entities.
Blame the shareholders - they are the ones who's will the 'corporation' follows.
Wants and needs..... We (humans) have a very hard time satisfying our wants.... In most cases we always seems to WANT more than we need.... Its just the way we humans have become/learned/trained to be. The big corps just take advantage of this.
Fear and Greed F.
Two the more primal emotions we can feel, and they can color anyone's decisions.
Gas prices here jumped 7 cents overnight, oil is still at $50/barrel but gas is now at $1.119 in Ottawa.
Corporations are people. People with jobs who in turn spend earnings on necessities and luxuries. The bigger the corp the more people they employ. Retirement/invest funds own corporations. They do not all earn big money but that is unavoidable. Even in communist countries there is a very distinct pecking order and equality is a fallacy. Kim Jong Un isn't fat because of a thyroid condition I would guess. Most Koreans are skinny.
And as already said Government and union pension plans need to invest somewhere. They don't invest in government as it doesn't create wealth or produce anything. They invest in large corporations yet many hard left corporate haters are unionized? Funny that.
I think you have got that right, at least the ones around here are, there are quite a few that own small convenience stores and they sure are NOT FAT, also I find them very friendly and pleasant to talk with , one fellow in particular is always interested in what I am hunting.Quote:
Originally Posted by terrym
I agree that speculation is the biggest driver of gas prices these days. When oil hit its peak prices a few years back, I believe it was going for $148 a barrel. Gas at the time maxed around $1.45/l. Roughly $1 per barrel increase equaled 1¢ per liter gas increase. Oil is now in the area of $50, and gas is around $1 per liter. Instead of a 1¢:1$ ratio, it is now at a 2¢:1$. When oil once again hits the $100 mark, it will be interesting to see if the trend continues, and if we are paying $2 per liter.Quote:
Originally Posted by JeffBondar
You can bet those corporate giants will get out their bean counters and see if we (the general public) can afford it or not.... If the corps believe they can get away with it without hurting the economy you can bet they will leave prices high....Quote:
Originally Posted by delmer
Its how much can the big corps get out of the average family without hurting the economy... all about numbers.
Corporate giants look at the big picture.... How much can we (the big corps) take from the average family before we (the big corps) start hurting our profits in our other businesses...
Its like fishing.... 90% of the money is owned by 10% of the people.......unfortunately those 10% control the economy....