Diesel prices
So what's up with the price of diesel fuel? In my area it goes up each day and today I saw $4.45 a gallon. I don't believe I have ever seen it much higher than this!!! It's practically one dollar...
Forum Discussion
seen on tv the congressman asked the oil man why fuel price was so high? oil man stands up and say cause we can set the price where ever we want, and sat down. oil rules the world not the gov.
Oil and gas are bought sold on the market.. futures, the producer "oilman" says he has 300,000bbls of oil for March delivery, market says he'll buy that 300,00 for $95 USD/bbl. Price of oil goes up March 3rd to $115/bbl, good for the futures guy not so for the oilman cause he already sold his oil for $95/bbl. As a oil/gas producer I have to set my nominations(amount of oil/gas I will produce and put into the system) before the last day of each month for the following month. If I come up short I have to buy the short from someone and most likely at a higher price to make up, if over produce I get penalized or if lucky another producer may require a "top-up" and I can sell my "extra" to him.
You see, there is a lot more to this business then what you see on TV.
