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Crude Drops As Investors Lock In Gains

Dow Jones Newswires --
Crude-oil futures fell Monday as equities markets declined and investors cashed in winning oil bets after seven straight sessions of gains.

Light, sweet crude for April delivery recently traded $1.18, or 1.1%, lower at $108.59 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $1.20 lower at $124.27 a barrel.

Oil prices declined from nine-month highs hit Friday and traders and analysts said the drop represented investors locking in profits from the recent price surge. Since the beginning of February, futures are up by 11% due to growing tensions between Iran and the West, as well as an improving economic outlook.

Stock markets in Europe fell Monday, while U.S. stock markets also opened lower, after officials from the Group of 20 over th

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Submitted Feb 28, 2012 By: RENEGADEGAS

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honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Mar 3, 2012 7:14:42 AM Ignore honda0105 Report Abuse 1006 are you saying you're rooting for Pig Oil and Specutraitors?
1006 Champion Author Birmingham Posts:1,106 Points:1,371,110 Joined:Apr 2008	Message Posted: Mar 2, 2012 5:35:31 AM Ignore 1006 Report Abuse get on a roll
honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Mar 2, 2012 4:56:39 AM Ignore honda0105 Report Abuse gasokie: they will stay afloat while the rest of the economy is in the pits and the little guy is getting shafted.
gasokie Champion Author Oklahoma Posts:3,487 Points:1,346,755 Joined:May 2007	Message Posted: Mar 1, 2012 9:37:20 AM Ignore gasokie Report Abuse The guy that really gets bruised here is the independent gas guy. And remember, none of those oil companies have a meeting someplace where the words uttered are: 'How can we help the consumer today?" No it's m ore like "How can we make a profit today?" If they don't they will soon be out of business. Sort of like expecting a "speculator" to buy high and sell low. If he does that very often he'll soon be behind the counter selling beer.
honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Mar 1, 2012 5:10:07 AM Ignore honda0105 Report Abuse Gigharbor: Specutraitors.
pse91 All-Star Author Calgary Posts:640 Points:579,025 Joined:May 2011	Message Posted: Feb 29, 2012 1:02:28 PM Ignore pse91 Report Abuse The only thing that matters is that the Futures Boy's pay a large price for gambling and losing. Make it big, big, big.
numbers Champion Author North Dakota Posts:2,801 Points:850,040 Joined:Aug 2004	Message Posted: Feb 29, 2012 6:15:02 AM Ignore numbers Report Abuse Great
OTISFL Champion Author Pensacola Posts:4,745 Points:892,540 Joined:Apr 2009	Message Posted: Feb 29, 2012 4:36:47 AM Ignore OTISFL Report Abuse Bald1usa---a very well written and informative post that you wrote.
bcok Champion Author Los Angeles Posts:2,176 Points:1,554,545 Joined:Oct 2005	Message Posted: Feb 29, 2012 1:05:53 AM Ignore bcok Report Abuse Speculators, speculators, speculators.
gumbyrex Champion Author Fresno Posts:3,436 Points:786,015 Joined:Mar 2011	Message Posted: Feb 29, 2012 1:00:25 AM Ignore gumbyrex Report Abuse Investors? Don't you mean speculators.
Bald1usa Veteran Author District of Columbia Posts:410 Points:869,830 Joined:Mar 2004	Message Posted: Feb 29, 2012 12:49:45 AM Ignore Bald1usa Report Abuse Why doesn't the price drop right away? Well, it is a little complicated but in a way simple, too. Let's look at from wholesaler to retailer to consumer. Your local retailer buys from a wholesale distributor, now some of these are owned by the oil company, but most are under contract (franchised)to carry a specific brand. Let's say that the wholesaler has a 100,000 gal tank. He fills it up @ $1.00 a gal and sells 20k gal in a day. When he orders the 20k from his supplier the cost is now $1.50 gal. Say he sells another 20K and he pays $2.00 a gal. He still has 100k gals of gasoline, but his cost per gal. is higher. The wholesaler averages the price/gal and passes it on to the retailer. Same thing when the price goes down. Because, the wholesaler is charged the current pricing. The retailer has 10K gal of gas and is charged a higher price from the wholesaler...he averages the total cost of his gasoline and adjusts his pump price to recoup his cost of product. The cycle keeps repeating itself. Now when there is a marketable change in the wholesale cost, either up or down, it takes a period of time for the average gal. price to fall/increase. The same holds true for the retailer, however, it may take a longer period for the retail price to average out and adjust. Mainly, because the retailer is not buying/selling in large quantities. Most gas stations use automatic ordering systems. The tanks are equipped with with a reader that automatically orders each grade of product sold. The station no longer phones an order in. The product is ordered and sent automatically. The wholesale cost to the retailer is debited by the wholesaler from the retailers bank account. A fried of mine owns a gas station, he says it is not uncommon when the price decrease is coming (at the wholesale level), his tanks are topped off quickly. He had three or four deliveries in two days. Of course, the wholesaler is getting rid of the more expensive product. That increases the time the retailer has to keep his price higher. Something else to note - since the wholesale purchase price is automatically from the retailers bank account...he has to retain enough money in the account to FILL his station tanks at all times. Now this can be traced all the way back through the supply chain to the oil well head.
DblChek Champion Author San Antonio Posts:2,387 Points:625,135 Joined:Jul 2008	Message Posted: Feb 29, 2012 12:47:24 AM Ignore DblChek Report Abuse Up, up, and away!! 2012
vulcan96 Champion Author Ohio Posts:27,142 Points:3,126,070 Joined:Aug 2004	Message Posted: Feb 29, 2012 12:41:52 AM Ignore vulcan96 Report Abuse another repeat......
hubcapLA Champion Author Louisiana Posts:3,905 Points:940,435 Joined:Apr 2009	Message Posted: Feb 29, 2012 12:27:53 AM Ignore hubcapLA Report Abuse Yet gas prices continue to rise
Vette1967 Champion Author Albany Posts:6,102 Points:1,302,725 Joined:Jun 2009	Message Posted: Feb 29, 2012 12:23:24 AM Ignore Vette1967 Report Abuse I don't see the gas prices lowering any.
Zonk Champion Author Michigan Posts:6,616 Points:2,129,490 Joined:Oct 2005	Message Posted: Feb 29, 2012 12:22:08 AM Ignore Zonk Report Abuse Looks like Speculators win.
no8c Champion Author Ohio Posts:2,934 Points:731,350 Joined:Jul 2008	Message Posted: Feb 29, 2012 12:17:38 AM Ignore no8c Report Abuse Thanks for posting this article!
N5EXY Champion Author Austin Posts:5,629 Points:1,536,805 Joined:Jul 2004	Message Posted: Feb 29, 2012 12:16:20 AM Ignore N5EXY Report Abuse What a crock. 252 days until the ejection.
asog75 All-Star Author Indiana Posts:838 Points:283,245 Joined:Aug 2011	Message Posted: Feb 29, 2012 12:15:15 AM Ignore asog75 Report Abuse only cheap gas is in couch coushions
Ron77095 Champion Author Houston Posts:3,195 Points:629,400 Joined:Sep 2011	Message Posted: Feb 29, 2012 12:12:49 AM Ignore Ron77095 Report Abuse ok.
krobp46 Champion Author Milwaukee Posts:2,853 Points:567,595 Joined:Sep 2011	Message Posted: Feb 29, 2012 12:11:12 AM Ignore krobp46 Report Abuse Hmmm, Crude goes down in price, and gas rises. What's wrong with this picture?
DirtDauber Champion Author San Antonio Posts:6,917 Points:1,654,185 Joined:Nov 2005	Message Posted: Feb 29, 2012 12:09:31 AM Ignore DirtDauber Report Abuse Crude drops, gasoline rises.
Thomtec Champion Author Nashville Posts:2,595 Points:634,420 Joined:May 2011	Message Posted: Feb 29, 2012 12:08:07 AM Ignore Thomtec Report Abuse ok
Krykson All-Star Author Chicago Posts:840 Points:247,385 Joined:Jul 2006	Message Posted: Feb 29, 2012 12:05:28 AM Ignore Krykson Report Abuse Interesting
Tundralimited2009 Champion Author Dallas Posts:38,812 Points:1,447,425 Joined:Feb 2009	Message Posted: Feb 29, 2012 12:05:20 AM Ignore Tundralimited2009 Report Abuse Go Speculators
jetskijerry Champion Author North Carolina Posts:4,031 Points:798,995 Joined:Mar 2011	Message Posted: Feb 28, 2012 11:32:09 PM Ignore jetskijerry Report Abuse The poor get poorer.
jetskijerry Champion Author North Carolina Posts:4,031 Points:798,995 Joined:Mar 2011	Message Posted: Feb 28, 2012 11:31:55 PM Ignore jetskijerry Report Abuse Big Banks Big Oil Big Cov't Big Car Manufacturers
jetskijerry Champion Author North Carolina Posts:4,031 Points:798,995 Joined:Mar 2011	Message Posted: Feb 28, 2012 11:31:24 PM Ignore jetskijerry Report Abuse It'll keep going up.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:575,730 Joined:Mar 2006	Message Posted: Feb 28, 2012 11:30:20 PM Ignore Dodge_Me Report Abuse Two steps forward and five steps backward
heartbroken2010 Champion Author Ottawa Posts:4,480 Points:924,260 Joined:Aug 2010	Message Posted: Feb 28, 2012 11:08:43 PM Ignore heartbroken2010 Report Abuse nothing like it , isn't there.
big_mac64 Champion Author Tennessee Posts:10,600 Points:1,490,130 Joined:May 2005	Message Posted: Feb 28, 2012 11:08:07 PM Ignore big_mac64 Report Abuse futures of oil is up 11% while gas in most places is up close to 20% or more! What's wrong with this picture?
regout Champion Author Quebec Posts:3,090 Points:859,430 Joined:May 2010	Message Posted: Feb 28, 2012 11:07:40 PM Ignore regout Report Abuse The price has just go up of 10 cents a liter. It's mean 40 cents a gal.
billk44077 Champion Author Cleveland Posts:3,315 Points:658,280 Joined:Aug 2011	Message Posted: Feb 28, 2012 11:06:44 PM Ignore billk44077 Report Abuse Crude drops ... pump price skyrockets. WHAT A RACKET
LoneGuy Champion Author Lansing Posts:8,610 Points:2,343,745 Joined:Aug 2005	Message Posted: Feb 28, 2012 11:05:37 PM Ignore LoneGuy Report Abuse I don't know about Monday, but Tuesday in Michigan, home of the presidential primary, gas continued at about as high as $3.78 to $3.81.
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Feb 28, 2012 11:05:31 PM Ignore pastorpaulcg Report Abuse Ok
southrob Champion Author Tucson Posts:3,731 Points:713,925 Joined:Mar 2011	Message Posted: Feb 28, 2012 11:04:23 PM Ignore southrob Report Abuse so does that mean that prices will go down?
herndonks Champion Author Baltimore Posts:1,116 Points:211,685 Joined:Dec 2011	Message Posted: Feb 28, 2012 11:04:01 PM Ignore herndonks Report Abuse Not investors, speculators.
umitb Champion Author Indianapolis Posts:3,812 Points:869,190 Joined:Apr 2010	Message Posted: Feb 28, 2012 11:03:26 PM Ignore umitb Report Abuse ok
dmgas1 Sophomore Author Philadelphia Posts:122 Points:84,715 Joined:May 2011	Message Posted: Feb 28, 2012 11:02:44 PM Ignore dmgas1 Report Abuse until the next round of buying
ShutRBug Champion Author Ontario Posts:1,564 Points:674,615 Joined:Jun 2005	Message Posted: Feb 28, 2012 11:02:13 PM Ignore ShutRBug Report Abuse It's a small start
Alaydown Champion Author Los Angeles Posts:5,249 Points:846,840 Joined:May 2007	Message Posted: Feb 28, 2012 11:01:06 PM Ignore Alaydown Report Abuse If we had an energy plan that increased domestic production of oil, then the price would drop even more.
Blue48 Champion Author Illinois Posts:7,440 Points:1,664,670 Joined:Feb 2007	Message Posted: Feb 28, 2012 10:57:06 PM Ignore Blue48 Report Abuse UP..DOWN..UP..UP!
kuma2000 Champion Author Honolulu Posts:3,358 Points:700,875 Joined:Jun 2011	Message Posted: Feb 28, 2012 10:53:17 PM Ignore kuma2000 Report Abuse temporary.
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Feb 28, 2012 10:53:00 PM Ignore jessek Report Abuse Lets stop them.
BooHooMI Champion Author Michigan Posts:1,556 Points:344,610 Joined:Sep 2010	Message Posted: Feb 28, 2012 10:52:59 PM Ignore BooHooMI Report Abuse love profit
stopforgas All-Star Author Mississippi Posts:996 Points:495,480 Joined:Jun 2011	Message Posted: Feb 28, 2012 10:48:24 PM Ignore stopforgas Report Abuse Oil speculators should be jailed
CaptDave2012 All-Star Author Arkansas Posts:695 Points:24,735 Joined:Feb 2012	Message Posted: Feb 28, 2012 10:45:52 PM Ignore CaptDave2012 Report Abuse When the stock market is UP my oil stocks are usually DOWN. So I lose at the pump while I also lose in the market, usually. I am way dumber than I realize!
B_550i All-Star Author Seattle Posts:720 Points:195,195 Joined:Aug 2011	Message Posted: Feb 28, 2012 10:42:23 PM Ignore B_550i Report Abuse Hmmmm
RAKARWOWSKI Champion Author Chicago Posts:4,135 Points:847,750 Joined:Jan 2011	Message Posted: Feb 28, 2012 10:42:22 PM Ignore RAKARWOWSKI Report Abuse I wish this is how I buy oil.
vtroger Veteran Author Vermont Posts:284 Points:581,470 Joined:Mar 2011	Message Posted: Feb 28, 2012 10:42:00 PM Ignore vtroger Report Abuse So if oil prices are dropping, gas prices should be too right?