It seems to work like this. In April, some prognosticator issues a report that there will be lots of hurricanes this year. So the oil producers raise the price of oil for delivery in November (the future). The gas companies then raise the prices at the pump IMMEDIATELY, even though the gas they're selling today only cost them half that to produce. Both the gas and the oil company reap huge profits. Then the prediction of the hurricanes does not happen, so in retrospect we all paid excessive prices for gas in order to offset the impact of a shortage that never occurred.
That pretty much cover it?
2006-10-12 18:17:47 · 4 answers · asked by Chredon 5 in Politics & Government ➔ Politics
Pure economics my friend. When you have a gas at a certain price, and there is hint that the price of oil is going up, you have to charge an amount that will allow you to buy the same amount at a higher price. If you don't, you might only be able to buy half the gas than before and we will have a shortage. Does that cover it?
2006-10-12 18:31:28 · answer #1 · answered by haterade 3 · 0⤊ 0⤋
Invest in the upcoming E85 Companies, You might wish to think about buying shares now if you want to be a millionaire in a few years.
2006-10-13 01:20:42 · answer #2 · answered by froggy010101 4 · 0⤊ 0⤋
the big corp has Bush in their pockets
2006-10-13 01:20:32 · answer #3 · answered by blue_eyed_southernman 4 · 0⤊ 0⤋
sure...no future at all
2006-10-13 01:26:28 · answer #4 · answered by Katie 4 · 0⤊ 0⤋