Oil and Gasoline Futures in free fallgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread
-- cpr (firstname.lastname@example.org), July 21, 2000
AWL: LINK http://126.96.36.199/futures/quote/1CL.html
-- cpr (email@example.com), July 21, 2000.
Charles, I think someone forgot to tell the gas retailers out here in Southern California about this downward spiral.
-- Ra (firstname.lastname@example.org), July 21, 2000.
Is this not the operation of simple interest tables? In other words, I sell you a item worth $100 with delivery in one year. The value today is the future value discounted for interest for one year so at 10 per cent, you are only willing to pay $90 today, $95 in 6 months or $99 in 11 months. There is no discount if you pay in one year for delivery in one year.
-- Ed Norton (Ed@notstupid.gom), July 21, 2000.
CPR has used the term 'free fall' in the past. Trouble was, prices started going up again not long after that. It's actual supply that ultimately determines prices. Prices do go down temporarily each time OPEC or Saudi Arabia make another empty promise about increasing production.
Unleaded Gas Options in Free Fall, rest of Energy Sector down
Links to latest "nearby" options: STILL DON'T THINK OPEC HAS PRODUCT??? They found the "price of pain" and now are backing off. http://aol2.marketwatch.com/data/dbcfiles/curcommt.htx?source=blq/aol
Unleaded Gas Futures
Links to most major heavily traded options: (energy link expanded)
-- cpr (email@example.com), March 15, 2000
-- I'm hoping for lower prices but not (firstname.lastname@example.org), July 22, 2000.
And the prices in March went down immediately so that if you had short term options or contracts you got wiped. Discuss this with "Sgt. Friday".
NEXT: This is an INVERTED MARKET. It has nothing to do whatsoever with present value or future value of money. If you take delivery of Oil in July, you have to **ADD** "carry" in the form of storage charges, insurance and lost oppurtunity to the price of what you sell THE SAME OIL for in DEC. That *should* be obvious. The Dec Contract calls for delivery of oil not greenbacks. That is why an INVERTED MARKET implies a "SPOT SHORTAGE".
-- cpr (email@example.com), July 23, 2000.