A Christmas story of how "BIG BAD OIL" became "small saintly oil".

[Villages PL]

Once upon a time there were BIG BAD OIL COMPANIES that knew how to drive up the price of oil. They would buy oil-futures contracts and reap huge profits, like billions upon billions of dollars.

But this year they could see that Christmas was fast approaching and they didn't want to get lumps of coal in their Christmas stockings. It would be big lumps of coal, indeed, in big stockings because they have big carbon foot-prints. ;) And they didn't want that. Oil companies don't like coal in their stockings!!!!

What happened to bring about this change in attitude was mainly due to the following event: One night when all the oil company executives were fast asleep they had terrible visions like those of Ebeneser Scrooge.

When they awoke they vowed to reform their ways and give the "little guy" a break. No longer would they drive up prices by buying oil-futures contracts. There would be higher wages for oil workers, a free Christmas Turkey and more taxes paid to the government.

With these reforms they would be universally loved by everyone and everyone would live happily ever after. The end.

[kcrazorbackfan]

Yea, but the downside is the "tanking" of the stock market; noticed that lately?

[Villages PL]

Yea, but the downside is the "tanking" of the stock market; noticed that lately?

Nothing like a little reality to spoil a good story. ;)

Actually, I thought they said cheaper oil would give the economy a boost because people would have more money to spend on housing and other consumer items.

[Hankg42]

Nothing like a little reality to spoil a good story. ;)

Actually, I thought they said cheaper oil would give the economy a boost because people would have more money to spend on housing and other consumer items.

I've given up trying to apply any sort of logic to how the stock market reacts to change.

[eweissenbach]

i've given up trying to apply any sort of logic to how the stock market reacts to change.

^^^^this^^^^

[TheVillageChicken]

When are the oil companies going to do away with that antiquated 9/10 of a cent on their price per gallon? They have trained us to look at the price and mentally round it down by 9/10 rather than round it up by 1/10.

[eweissenbach]

When are the oil companies going to do away with that antiquated 9/10 of a cent on their price per gallon? They have trained us to look at the price and mentally round it down by 9/10 rather than round it up by 1/10.
Seems to me you answered your own question oh fowl one.

[gomoho]

Maybe the airlines will get with the program as well? Why are we still paying a fuel surcharge when the price of fuel has dropped???

[Shimpy]

When are the oil companies going to do away with that antiquated 9/10 of a cent on their price per gallon? They have trained us to look at the price and mentally round it down by 9/10 rather than round it up by 1/10.

I've said that for years.....Someday.......It took the stock market how many years to drop the 1/8 of a dollar and go to the decimal dollar system?

[CFrance]

Maybe the airlines will get with the program as well? Why are we still paying a fuel surcharge when the price of fuel has dropped???
Because you are not flying on fuel purchased today.

[gomoho]

Because you are not flying on fuel purchased today.

So you really believe they will drop fares accordingly??? Schumer of NY is already calling for an investigation on this.

[justjim]

There are those that believe (including me) that the OPEC strategy is to let the price of crude fall to where they will hurt the new shale oil production of the United States. It cost 60.00 a barrel to produce the shale oil so they are really putting the "squeeze" on the shale oil producers. Bah Humbug!

[Villages PL]

Once upon a time there were BIG BAD OIL COMPANIES that knew how to drive up the price of oil. They would buy oil-futures contracts and reap huge profits, like billions upon billions of dollars.

But this year they could see that Christmas was fast approaching and they didn't want to get lumps of coal in their Christmas stockings. It would be big lumps of coal, indeed, in big stockings because they have big carbon foot-prints. ;) And they didn't want that. Oil companies don't like coal in their stockings!!!!

What happened to bring about this change in attitude was mainly due to the following event: One night when all the oil company executives were fast asleep they had terrible visions like those of Ebeneser Scrooge.

When they awoke they vowed to reform their ways and give the "little guy" a break. No longer would they drive up prices by buying oil-futures contracts. There would be higher wages for oil workers, a free Christmas Turkey and more taxes paid to the government.

With these reforms they would be universally loved by everyone and everyone would live happily ever after. The end.

Oops, I forgot to mention one of their important reforms: According to the story, in the future, all of their oil rigs will be solar powered!!! How about that. :)

[CFrance]

So you really believe they will drop fares accordingly??? Schumer of NY is already calling for an investigation on this.
I'm saying they buy ahead and hedge their bets on fuel prices. The fuel they are using now was contracted for in the past. Who knows what price they agreed upon back then.

Fuel hedging - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Fuel_hedging)