This is some thing I've been discussing with people both in and outside of the industry. I think something needs to be done to curtail the volatility of fuel. I think the constant up, down is what gets people frustrated. I recently read that they're trying to do something about speculators but it won't effect all speculators.

Now, I'm no Einstein (at least that's what my wife tells me) but perhaps it should be a rule that if you want to speculate on fuel you must take delivery on it.

What's everyone's thoughts here?

 

Forcing these speculators to take possession of the fuel would probably help. The irony of this is that it is the oil companies such as Pilot are some of the ones who are speculating. In fact, it is my understanding that speculating on the futures market is what got Flying J into trouble. I believe that these speculators received much of this bailout money. Now that they are solvent they are doing it again.

 

Airlanes use the market as well to hedge against higher fuel costs, but they actually take delivery of fuel. These big hedge funds can really sway the price of fuel and the consumer is left to pay the bill. Let's face it the stock market is just a big casino, but I don't think you should play with peoples food or energy.

 

flying J did speculate on the oil market, but not as a speculator as defined within the commodity market's. it speculated by borrowing on credit witch was based on current oil prices at that specific time. when the prices dropped the speculation on profits & net worth from high oil prices were reconfigured to a much lower asset price & ten's of millions were due immediately. kinda like you borrow $100,000 on your home, witch is deemed worth $100,000 & you & the lender speculate the home will keep or exceed it's current value, but 6 months later the home drops to a worth of $60,000 now the lender does not want you owing them $100,000 on a house only worth $ 60,000. they want $40,000 back immediately.

 

I can remember a time not long ago, the role of supply and demand, rather than speculation, was considered the prime reason for rising oil prices.
Now speculation itself drives demand. Large financial institutions, hedge funds, pension funds, and other investment funds drove the energy commodities markets.

Nothing is being done to stop this practice, because it is connected with financial institutions and Washington. The people we've placed in a position of trust have betrayed us, and remain above the law.

Wall Street is right back to business as usual. You'd have thought the first thing done, even before the bail out, would have been an immediate stop to all criminal practice, and prosecutions being the big news.

 

What does volatility mean?

 

It describes my relationship with all my ex's.

So I think it means wimmin who can't stand you.