Pump prices are +/- 2.60 and futures are listed at 1.47 today. How far out are the futures prices and should gas ever get to this price if we get to that date?
2006-09-20 08:29:49 · 3 answers · asked by lowscore65 2 in Business & Finance ➔ Other - Business & Finance
no
2006-09-20 08:30:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are looking at the overnight spot cash price, yes. If you are looking at LEAPS (long term futures) sort of. This is due to volatility that can occur between today and the far away time the contract is settled.
The key element to keep in mind in regards to the market to-at the pump price is that by the time the commodity reaches the pump there are freight fees, taxes, and some regional variance due to pipeline constraints and and regional demand. So movement of the underlying commodity will effect the base price at retail, but with all the adjustments, it is sometimes hardly recognizable.
2006-09-20 17:00:24 · answer #2 · answered by MagicalMke 4 · 0⤊ 0⤋
right here is the component: speculators believe the fee is going to bypass up, so as that they purchase futures and sell for a earnings. in the event that they are incorrect relating to the marketplace, they lose a gaggle of funds. the only result they have is to tender out value ameliorations that would happen besides - value steadily will develop extremely of spiking to a miles better point, and steadily decreases extremely of bottoming out. hypothesis would not fee you something interior the long term. by the way, did you be attentive to that 40 8.a million cents consistent with gallon of gas is going to taxes?
2016-10-17 08:31:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋