The Wall Street Journal reports that on Wednesday, prices were dropping so fast for some commodities that trading was stopped: …a steep decline in gasoline futures Wednesday led CME Group Inc. (CME) to temporarily freeze activity in three of its most heavily traded contracts on the New York Mercantile Exchange. Just past noon EDT, trading in crude oil, heating oil and gasoline futures was halted for five minutes after gasoline fell to its daily 25 centread more…
Gas prices this morning stand at $3.70/gallon in our town, so I thought I would do a breakdown of what’s behind the price at the pump here in the State of Michigan. 9% Marketing and Distribution Costs = $.333 11% Refining Costs = $.407 13% Federal, State and Local Taxes = .481 67% Price of Crude Oil = $2.479 So, what’s behind the price of crude oil? This isn’t as simple to break down. Supply andread more…
Here in Michigan’s Upper Peninsula, our gas prices went from $3.28 to $3.45/gallon on Friday. On Monday gas rose to $3.50/gallon. Yesterday $3.55. I am a little nervous to see where the prices are this morning when I head out for work. Places like California are closing in on $4.00 gasoline. Periodically I have brought out my Magic Snow Globe to address oil prices (it is my version of “speculation”). The globe seems a bit puzzledread more…
Even though oil prices are down 3.7% since January 1st, there is still considerable talk about gas prices rising to $5/gallon late this year or into 2012. While I continue to speculate that oil prices will drop to $75/barrel via the Magic Snow Globe, I did wonder how $5 gas would impact the family budget. For me, I have a five mile commute to and from my work, and my Saturn Vue gets 25 miles/gallon, soread more…
The Wall Street Journal is singing the higher oil prices song: Some big investors have increased bets that oil prices will continue their ascent. Goldman Sachs, J.P. Morgan and a growing roster of major energy-trading banks expect prices to rise above $100 a barrel in 2011 and stay there. Mr. Waggoner estimates oil could push as high as $130 a barrel next year. The net long position—or bets futures will rise—of hedge funds and other moneyread more…
