I'd have told you not to watch TV news if you'd just asked! John Robinson
ratchet
· 2 years ago
Umm... I don't suppose you know of or agree with the logic behind HEDGING (which is a very large part of how oil is bought and sold). Hedging will delay any pricing of crude oil and its effects showing up at the pump near your house.
Ben Hwang
· 2 years ago
Using hedging is an excuse if I ever saw one. Real world facts. When crude goes up, you see it reflected at the pump. Period. I've watched gas and crude prices almost parallel in trends in positive fluxuations. Yet, if you look at the drops in crude pricing? It's never in the same instance. Always delayed drops. Hedging is a way to protect the company from potential high risk. But that doesn't explain the trends.
Quintius
· 2 years ago
If the price of crude oil goes up and the price of gasoline at the gas station goes up at the same time, then that's capitalism. Feel free to not buy the gasoline if you feel you are being gouged. A change in price of crude oil (hedged or not) as a component of cost gasoline is always reflected in the future. Try it yourself. Buy a barrel of oil from Saudi Arabia on January 1st, ship it, refine it, ship the gasoline to your gas station, and see when you are selling it. Not in January. Probably not in February. Oil from the U.S. may make it in a couple of weeks.
All Comments
John Robinson
Hedging will delay any pricing of crude oil and its effects showing up at the pump near your house.
Real world facts. When crude goes up, you see it reflected at the pump. Period. I've watched gas and crude prices almost parallel in trends in positive fluxuations.
Yet, if you look at the drops in crude pricing? It's never in the same instance. Always delayed drops.
Hedging is a way to protect the company from potential high risk. But that doesn't explain the trends.
A change in price of crude oil (hedged or not) as a component of cost gasoline is always reflected in the future.
Try it yourself. Buy a barrel of oil from Saudi Arabia on January 1st, ship it, refine it, ship the gasoline to your gas station, and see when you are selling it. Not in January. Probably not in February. Oil from the U.S. may make it in a couple of weeks.