Gas jumped more than 5 dollars?

Question

What reason is there behind the new spike in oil but speculation? Oil jumped 5 dollars because they fear the hurricane could get destructive when its not even to the gulf of mexico. Doesnt this hurt our economy more than help it? If damage was to occur, then the prices should jump, not as a just in case. What are your thoughts? No politics either, McCain gets to live in the cheapest gas area, he has 7 houses to choose from. And Obama just paid cash for his million dollar home.

Answer 1

if you knew the price of beer was going up tomorrow ..would you buy today or wait....the price moves because of speculation but doesn't stay up because of it....obama thinks if we stop drilling the country will automatically switch to "clean" fuel...what a dope...and McCaine  has no clue...how did we end up with those two jokers...very sad

Answer 2

It is purely speculation.  Their is a possibility that oil drilling platforms or refineries could be knocked out, this would cause a decrease in supply, and therefore an increase in price at the pump.  If you purchase oil now, and this happens, you stand to make good money.  It's not really right nor fair, but it is legal, I don't see how you could outlaw this without outlawing a lot of other common legal practices.

Anything that threatens to tighten the supply of oil is going to cause an increase in price, real events, and as in the case of speculators, perceived ones as well.

It both harms and helps the economy.  It hurts the average consumer, who has to pay more for gas.  It hurts retailers which must raise their prices when significant increases in gas increase the cost to transport goods.  It helps investors trying to make money through oil investments.  Many Americans also have 401Ks and IRAs that invest in oil, this activity certainly helps them.

Answer 3

You forgot that Obama's house was paid for partially with the funds raised by convicted felon Tony Rezko. So I digress....politics suck.

It is crazy how volatile oil has gotten in the last 2 years all due to speculation.

One say, there is an abundance and the next there is a deficit. It is all hogwash spewed to the media outlets to try to justify investor greed.

In a way, the terrorist have won.  The US needs to start using it's own oil and stop making other countries richer and ours poorer.