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Over-Paying At The Pump? Boost Speculator Margin Requirements

Forbes -- One of the key things I have learned in analyzing high gasoline prices over the last several years is that the rules of economics do not apply to gasoline prices in the way that I previously thought. Most of us are taught that price changes are a result of changes in the supply and demand for a commodity.

But it turns out that when you analyze changes in the supply and demand for oil, you end up concluding that the price of oil should be either unchanged or lower in 2012. Why? Simply put, the demand for oil is rising more slowly than the supply.

For example, in 2011, world oil demand crept up a mere 0.8% and that demand is expected to rise a mere 0.9% in 2012 to 89.9 million barrels a day, according to the International Energy Agency.

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Submitted Apr 09, 2012 By: eromitlab

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dave27johnson Champion Author Chicago Posts:1,788 Points:409,045 Joined:Feb 2012	Message Posted: Apr 15, 2012 10:46:29 AM Ignore dave27johnson Report Abuse As the article concludes, "For the sake of sustaining economic growth and giving people a chance to spend on something other than gasoline, it may be time for those exchanges to boost speculator margin requirements some more."
sparky808 Champion Author Honolulu Posts:3,003 Points:598,710 Joined:Sep 2011	Message Posted: Apr 10, 2012 11:29:57 AM Ignore sparky808 Report Abuse Thank you for posting.
A2J Champion Author Richmond Posts:3,075 Points:602,950 Joined:Aug 2011	Message Posted: Apr 10, 2012 7:50:59 AM Ignore A2J Report Abuse Crazy
Furrykids Sophomore Author Gainesville Posts:230 Points:556,490 Joined:Mar 2011	Message Posted: Apr 10, 2012 7:20:23 AM Ignore Furrykids Report Abuse More to the oil market than just supply and demand
jetskijerry Champion Author North Carolina Posts:3,901 Points:773,245 Joined:Mar 2011	Message Posted: Apr 9, 2012 11:18:00 PM Ignore jetskijerry Report Abuse If everyone stopped driving for a month, it might make a difference. But, it won't happen.
96sc1 Champion Author El Paso Posts:8,517 Points:1,367,440 Joined:Mar 2008	Message Posted: Apr 9, 2012 11:02:12 PM Ignore 96sc1 Report Abuse Over-Paying At The Pump, the Grocery Store, the Clinic? Reduce the Size of the Federal Government
coke_kid Champion Author Chicago Posts:1,536 Points:324,370 Joined:Nov 2005	Message Posted: Apr 9, 2012 10:52:29 PM Ignore coke_kid Report Abuse Gas prices are so high its killing millions of people and the 89 million out of work.. FOOD OR GAS FOR CAR? it must come down or inflation will be more out of control than the All time high this yr of 11% 3 times higher than the year before...
cverbil All-Star Author San Jose Posts:544 Points:405,255 Joined:Apr 2005	Message Posted: Apr 9, 2012 10:50:43 PM Ignore cverbil Report Abuse financial blather from the world of MBAs
gasbanque Rookie Author Montreal Posts:4 Points:1,500 Joined:Apr 2012	Message Posted: Apr 9, 2012 10:47:50 PM Ignore gasbanque Report Abuse interesting about margins.
onegiraffeAL Champion Author Alabama Posts:1,015 Points:429,175 Joined:Jan 2010	Message Posted: Apr 9, 2012 10:47:34 PM Ignore onegiraffeAL Report Abuse ok
Matt G Champion Author Boston Posts:4,538 Points:2,774,015 Joined:Jun 2004	Message Posted: Apr 9, 2012 10:47:34 PM Ignore Matt G Report Abuse Ok
granitestater Champion Author New Hampshire Posts:8,829 Points:1,431,725 Joined:Oct 2008	Message Posted: Apr 9, 2012 10:44:30 PM Ignore granitestater Report Abuse Boosting margin requirements only means speculators will band together in groups to buy up contracts like mutual funds. And those groups will have a bigger influence on the market.
Bubba44612 Champion Author Ohio Posts:7,396 Points:1,877,080 Joined:Aug 2005	Message Posted: Apr 9, 2012 10:44:11 PM Ignore Bubba44612 Report Abuse Wall Street needs to make a profit on every working American's back. Just wrong since we bailed them out, now they are getting millions of dollars in bonuses from this.
52MPG Champion Author Dayton Posts:7,267 Points:1,742,680 Joined:Apr 2006	Message Posted: Apr 9, 2012 10:43:23 PM Ignore 52MPG Report Abuse Require that delivery be taken on the contract.
singlemom27 Champion Author Ventura Posts:3,113 Points:640,185 Joined:Apr 2011	Message Posted: Apr 9, 2012 10:42:26 PM Ignore singlemom27 Report Abuse Make speculation illegal and take politics out of big oil.
2bigtanks All-Star Author Akron Posts:772 Points:371,610 Joined:Jun 2011	Message Posted: Apr 9, 2012 10:41:02 PM Ignore 2bigtanks Report Abuse We have hammered this one in the ground, get over it.
otherdave Champion Author Indiana Posts:3,393 Points:1,269,160 Joined:Oct 2008	Message Posted: Apr 9, 2012 10:28:59 PM Ignore otherdave Report Abuse Time for a new story!
Rageagainsttm Champion Author Tampa Posts:8,308 Points:1,903,955 Joined:Jul 2007	Message Posted: Apr 9, 2012 10:25:36 PM Ignore Rageagainsttm Report Abuse i doubt it
flagman420CT Veteran Author New Haven Posts:257 Points:687,405 Joined:Mar 2011	Message Posted: Apr 9, 2012 10:23:40 PM Ignore flagman420CT Report Abuse nothing works
BobD2009 Champion Author Long Island Posts:6,994 Points:1,240,760 Joined:Apr 2009	Message Posted: Apr 9, 2012 10:22:01 PM Ignore BobD2009 Report Abuse The Iran factor.
jkpsr Champion Author New Jersey Posts:4,084 Points:1,102,880 Joined:Jun 2005	Message Posted: Apr 9, 2012 10:21:54 PM Ignore jkpsr Report Abuse Blame the speculators and cheap money.
rawdog1313 Champion Author Lexington Posts:3,304 Points:1,643,780 Joined:May 2008	Message Posted: Apr 9, 2012 10:19:41 PM Ignore rawdog1313 Report Abuse Regulate Oil Speculation = lower gas prices!!
10k Champion Author North Carolina Posts:21,259 Points:2,254,995 Joined:May 2006	Message Posted: Apr 9, 2012 10:18:35 PM Ignore 10k Report Abuse simply put: it's called GREED..
Bigwaynef Champion Author South Carolina Posts:11,480 Points:2,081,735 Joined:Dec 2006	Message Posted: Apr 9, 2012 10:15:22 PM Ignore Bigwaynef Report Abuse Overpaying at the pump happens after I spend more than $5.00 to fill up!
gd83goldwinger Champion Author South Bend Posts:1,428 Points:504,980 Joined:May 2011	Message Posted: Apr 9, 2012 10:15:19 PM Ignore gd83goldwinger Report Abuse Ok....
umitb Champion Author Indianapolis Posts:3,681 Points:844,415 Joined:Apr 2010	Message Posted: Apr 9, 2012 10:14:02 PM Ignore umitb Report Abuse ok
jem069 Champion Author Detroit Posts:2,543 Points:688,055 Joined:Jan 2011	Message Posted: Apr 9, 2012 10:12:14 PM Ignore jem069 Report Abuse ok
Dsin44 Champion Author Abbotsford Posts:1,272 Points:272,660 Joined:Apr 2011	Message Posted: Apr 9, 2012 10:11:24 PM Ignore Dsin44 Report Abuse good article
Blue_Cruzer Champion Author Lexington Posts:7,525 Points:1,670,560 Joined:Mar 2007	Message Posted: Apr 9, 2012 10:11:21 PM Ignore Blue_Cruzer Report Abuse Get rid of the speculators.
btex49 Champion Author Austin Posts:2,720 Points:531,080 Joined:Aug 2011	Message Posted: Apr 9, 2012 10:10:58 PM Ignore btex49 Report Abuse No real excuse for these prices...
yakstar Champion Author Montreal Posts:2,420 Points:480,520 Joined:Jan 2012	Message Posted: Apr 9, 2012 10:10:39 PM Ignore yakstar Report Abuse boy could I go for a super-dooper triple decker sandwich...
herndonks Champion Author Baltimore Posts:1,116 Points:211,685 Joined:Dec 2011	Message Posted: Apr 9, 2012 10:10:34 PM Ignore herndonks Report Abuse Ok
mabrams184 Champion Author Lexington Posts:2,104 Points:534,015 Joined:Aug 2011	Message Posted: Apr 9, 2012 10:09:42 PM Ignore mabrams184 Report Abuse Something everyone already knows but nobody wants to do anything about.
chuckwthompson Champion Author Charlotte Posts:3,755 Points:577,185 Joined:Sep 2011	Message Posted: Apr 9, 2012 10:09:03 PM Ignore chuckwthompson Report Abuse Great article!
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Apr 9, 2012 10:09:01 PM Ignore tedjm1 Report Abuse All in all, a lousy situation.
rtw777 Champion Author Florida Posts:9,396 Points:1,841,995 Joined:Jan 2008	Message Posted: Apr 9, 2012 10:08:31 PM Ignore rtw777 Report Abuse Should have been done years ago.
vegboy All-Star Author Massachusetts Posts:550 Points:106,700 Joined:Feb 2012	Message Posted: Apr 9, 2012 10:08:23 PM Ignore vegboy Report Abuse it took this author a few years to learn this, its the speculators and subsidies to big oil, stupid.
heartbroken2010 Champion Author Ottawa Posts:4,344 Points:897,535 Joined:Aug 2010	Message Posted: Apr 9, 2012 10:07:54 PM Ignore heartbroken2010 Report Abuse change " economics " to " greed " .
Jeannemarie Champion Author Las Vegas Posts:27,700 Points:2,035,640 Joined:Aug 2005	Message Posted: Apr 9, 2012 10:07:53 PM Ignore Jeannemarie Report Abuse I used to say kill the lawyers but now I think Speculators would be a better target!
cmsense Champion Author Columbus Posts:1,358 Points:165,345 Joined:Jan 2012	Message Posted: Apr 9, 2012 10:07:31 PM Ignore cmsense Report Abuse Make them take delivery.
MattieDale Sophomore Author Cincinnati Posts:236 Points:207,275 Joined:Mar 2003	Message Posted: Apr 9, 2012 10:07:30 PM Ignore MattieDale Report Abuse Whatever. The rich get richer and the poor have babies.
joel27nc Champion Author Raleigh Posts:10,537 Points:1,858,370 Joined:Mar 2008	Message Posted: Apr 9, 2012 10:06:47 PM Ignore joel27nc Report Abuse Speculator should get out of the gas market
OilOnTheCheap Champion Author Ventura Posts:2,102 Points:450,385 Joined:Jan 2012	Message Posted: Apr 9, 2012 10:06:31 PM Ignore OilOnTheCheap Report Abuse Frustrated!
regout Champion Author Quebec Posts:2,955 Points:832,705 Joined:May 2010	Message Posted: Apr 9, 2012 10:05:30 PM Ignore regout Report Abuse It's always the same, profit goes to speculator.
mcmonsta Champion Author Honolulu Posts:3,232 Points:818,770 Joined:Sep 2009	Message Posted: Apr 9, 2012 10:04:29 PM Ignore mcmonsta Report Abuse if they want to speculate then they should be taxed straight off..big time
Z06KY Champion Author Louisville Posts:5,145 Points:905,715 Joined:Nov 2010	Message Posted: Apr 9, 2012 10:04:20 PM Ignore Z06KY Report Abuse I agree KrsnaDragon
Colts13 Champion Author Indiana Posts:1,576 Points:549,085 Joined:Mar 2011	Message Posted: Apr 9, 2012 10:03:14 PM Ignore Colts13 Report Abuse Ok.
KrsnaDragon Champion Author Montreal Posts:2,412 Points:531,525 Joined:Nov 2011	Message Posted: Apr 9, 2012 9:59:33 PM Ignore KrsnaDragon Report Abuse This simple commonsense reality makes for a very interesting article. Indeed there are many who have made their wealth betting on unrest and war to set prices on global commodities. As commodities, these things happen to be mundane necessities, like gasoline. If these types were obliged to take delivery of the product, as working retailers do, my bet is gasoline prices would achieve stability at a reasonable cost for drivers. My two (2) cents' worth.
69Bonne Champion Author Gary Posts:1,155 Points:474,125 Joined:Sep 2005	Message Posted: Apr 9, 2012 9:59:09 PM Ignore 69Bonne Report Abuse Not much of this makes any sense any more.
txkrb Champion Author Texas Posts:1,563 Points:639,340 Joined:May 2011	Message Posted: Apr 9, 2012 9:57:28 PM Ignore txkrb Report Abuse Overpriced due to fear of what could happen