|
|
Member
Posts: 2680
Location: Essexville, MI./Saginaw Bay. | Guys.
According to all the eggheads, a gas price hike is coming this summer and it won't be pretty. They say prices as high as $3.00 per gallon for regular unleaded.
And I don't suppose I have to tell you that marina gas prices are always about 10 to 50 cents a gallon higher at their pumps, because of both the convience and the (were else you gonna go) factor.
Being in the line of business I'm in, where burning 35 gallons a day on a charter is a blessing, I'm very much concerned about what this may mean for me as well as everyone who both travels and fishes on a regular basis.
I'm a little confused and a lot P O'd at those dark skinned Arabian neighbors of ours. Not only because of gas prices but for current and historical affairs they seem to have their hands in. They can mess with a lot of things and keep me just verbally complaining, but don't mess with my pleasure time.
A lot of people would give the nod to a lot of drastic things (policy wise) concerning them, if they feel this kind of discomfort.
|
|
| |
|
Member
Posts: 67
Location: Sth/side Chicago | Actually Marina prices are higher because of something like the Wallup/breaux tax.. I think I might have the name wrong, but this is the very same tax that adds extra cost to all of our fishing and hunting gear. The money from the tax goes back to fish and wildlife..or at least it is supposed to. it is part of the reason I don't mind spending the extra coin at a marina every once in a while. [If the price hits $3 I think we need to get the oil barrons out of power. (Sorry about my little political statement)...] I run nothing but premium in my boat motor so this would hurt my pocket if it does goes up, but unless someone wants to give me a new honda 4 stroke for free I'll just have to deal with it. |
|
| |
|
|
Yep, I would change my habits a bit. Probably would concentrate on areas closer to my launch point.
Any ideas (business reasons) on why the increases? |
|
| |
|
Member
Posts: 2680
Location: Essexville, MI./Saginaw Bay. | Originally written by Rick Larson on 2004-02-23 4:06 PM
Yep, I would change my habits a bit. Probably would concentrate on areas closer to my launch point.
Any ideas (business reasons) on why the increases?
Rick.
Haven't really heard any factual reasons yet. They have been saying this on some of the Fox news network shows for about 2 weeks now. All the stock market pungents are saying it going to happen.
|
|
| |
|
Member
Posts: 2567
Location: Manitowoc, WI | Sorry, but I don't buy it. Almost sounds like wishful thinking by the oil barons of the world. If it is true, I would by a "put" in the oil options market for the month of April. At least you can then make some money on the rising oil prices. But, this amount ($3.00 per gallon) has been predicted for the last three years and I've yet to see $2.00 per gallon for regular unleaded where I live. Let's hope they're wrong again. |
|
| |
|
Member
Posts: 42
Location: Fergus Falls, MN | They give the same reasons every year for a price hike. Typically all a bunch of BS. I wish we could just hear the truth..."Because we can".
Supply and demand is my favorite. Especially when it comes to natural gas. "Oh, demand increased in November so we had to raise our prices." Yea, like they've got no idea it'll get cold in November and people will start heating their homes. Shocker! And supply and demand is based on raising and lowering prices to curb or increase demand, not to gouge because you can. Like I'm going to selectively choose to heat my home. Auto gas isn't a lot different, but recreational use can be curbed.
|
|
| |
|
Member
Posts: 378
Location: Omro,Wi. | I'm going to stick my two-cents worth in also on this topic.If there "ever" was a shortage of Natural Gas,Fuel Oil,or Gasoline there would be Rationing,not price increases.What it boils down to is the oil magnets,cut back production,so the market isn't flooded with fuels,causing the price,drops because of competition between companies.The old gas war syndrome.Every time the consumer cuts back on usage,they cut back on production.By raising the prices,they use less man power,and natural resources,to make, the same money,as they did before.In many other companies,there is a limit on "How Much Profit" they can make.This is to keep things even across the board.Unfortuneately the over seas markets,are not bound by this rule.Also our President,and Vice President have their hands,in the oil bussiness too.Thats where their family money originated from.I'll do my part to keep the price down,by buying bigger outboards and driving 20 miles in my gas guzzling truck,to fish!.....and I don't even want to get started on the "pull start,towel heads"....hafe
Edited by Hafe 2/23/2004 4:41 PM
|
|
| |
|
Member
Posts: 300
Location: Lincoln Park, Mi | Much friendlier on this side of the walleye world, huh Dan? Geez.
I'd sure like to hear their business reasons, AGAIN! They're running out of them. For a few summers, it was because they weren't tooled yet to meet the demand of summer blends. Then assorted pipeline problems. Conflicts here and there. Long winter last year. What could it be this year? The price seems to never quite make it back to where it was though.
Edited by terroreyes 2/23/2004 5:02 PM
|
|
| |
|
|
Well, its very hard for me to believe the market can be so easily manipulated without someone being investigated and charged with such. Not to say another Enron situation exsists, but there are good reasons for price fluctuations.
For instance, it wasn't to long ago when the price of natural gas was very low. This lead to an increase in its use by the producers of electricity. At the same time, it didn't make much sense for those companies that drill new wells for the stuff - to do so.
Now that the price is high, there will be more "alternative" sources of energy coming on line. Also those companies who drill will begin anew in hopes of gaining high profits. Hopefully, less use and more gas will lead to lower prices.
IMNSHO 
|
|
| |
|
Member
Posts: 2680
Location: Essexville, MI./Saginaw Bay. | "pull start,towel heads"....hafe
Oh My God hafe.
Good thing you aren't posting on that other walleye board. I'm being called everything but a BABY KILLER for calling the arabs our Dark Skined Neighbors.
Edited by walleye express 2/23/2004 7:53 PM
|
|
| |
|
| Jerry -
Buying a put would give you the right, but not the obligation to sell oil in April at a specified price. Current spot price for WTI crude oil at $34.54 with April future at $34.35. If you bought an at the money put now that expires in April, you'd be betting on a drop in oil prices between now and April. If prices rise, as your post and this thread suggest they may, you make nothing and lose your option premium. If you think oil and gasoline prices are going higher from here, you buy at-or-slightly out of the money calls, or sell puts. Going long calls the safer option, as the most you lose is your premium if prices fall. Shorting puts riskier, as your loss potentially unlimited. |
|
| |
|
Member
Posts: 2567
Location: Manitowoc, WI | Yes, you are correct.......I would invest the money in a bull call spread....if I understand this all. Does that sound correct? |
|
| |
|
| Jerry -
Would be a viable investment option. Long call position at lower strike price benefits if prices rise. Short call position at higher strike price allows you to collect premium on call sale, partially offseting premium payment on long call purchase. Potential upside on long call position capped by short call position. Strike prices important, as this is a "range" trade. If oil prices fall dramatically (as we all hope.....I fish too!), your long call position expires worthless and short call position will also expire without you having to take any action. At that point, you have lost the net premium (difference in price you paid to buy calls versus what you received to sell calls).
Wanna talk soybeans, or how 'bout live cattle!?!? |
|
| |
|
Location: Rhinelander | I am not into futures trading, but AM into running my boat. It would cost me $150 to fill her up with prics at $3 a gallon. That would cause me to put pressure on my clients to pay me more so I can afford my current standard of living, and if they do so, apply upward pressure on their pricing to the consumer which in turn will apply upward presure for a wage increase on their employers which....if this is a long term rise to much higher pricing, our vanquished old friend inflation might make a comeback! |
|
| |
|
| Well put, Sworall! To continue....rising inflation pushes interest rates higher. That new walleye boat that you or I, or that anyone reading this post has been eyeballing would become notably more expensive and more costly to finance in this scenario.........thus.......I think I'll go buy a new boat NOW!!!!!
There's the silver lining to this cloud! Think the wife will "buy it?" |
|
| |
|
|
Heck, bought 3 different new boats the last 10 years and never once did I ask the wife! |
|
| |
Would higher gas prices change your fishing habbits?