Is The Media Irresponsible Reporting about Oil Prices?

Question

The price of oil over the past 5 days has gone down about $16 a barrel-price at the pump has not gone down at all. There has been 3 news stories. The first story was about oil dropping that first day. Then after two days of going down I saw a premature story about oil ‘rebounding’, gaining back $3. That day oil closed for a $5 loss! This morning I saw the same premature story how oil is gaining- up only .75 over yesterday with 7 hours till market close. Why is this a story when the markets have not closed? Doesnt these reports fuel the speculators and give merit to keep the prices high at the pump? With the current oil crisis should the media be ‘banned’ from reporting anything about the price of oil as they clearly cant get the story straight or severly misrepresent what is happening. I wonder what would happen if they reported OIL IS DOWN $16 THIS WEEK–LIKE IT IS! Maybe the price at the pumps would go down instead of gouging us. Anyone else see incompetence?

Answer 1

On the other hand, the media is going bonkers over the price being down $16 bucks this week. Nightly newscasts are falling all over themselves proclaiming the end of the bubble. The speculators watch the prices directly. The media gets the same information, and reports it or not. The gas stations base their price on what the last load of gas cost & what nearby gas stations are charging if they are independent.

Answer 2

The drop in gas prices on the exchange does not translate to your pump. The guy at the pump is just the guy at the pump. The companies call those prices based on other factors. The distance from refineries, shipping, trucking routes etc.

The media talks about the figures as they relate to consumers, unless they specifically state it's the market. When it is the market, they are speaking directly to traders, pitch makes and others whose jobs it is to work in the speculative areas of the economy. The media has served them quite well and if you speak with a trader you would understand. I supported traders for over 8 years technologically so I know a bit about them.

It is not simply that the price rises or falls on the exchange and the numbers update at the pump. It doesn't work like that.