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SportTrac Discussion
Engine & Drivetrain
The Law of Supply and Demand At Work
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<blockquote data-quote="TrainTrac" data-source="post: 565257" data-attributes="member: 55399"><p>I'll agree with you, Tom, on futures speculation having an impact on the prices also. However, even during August and September, the market continued to work as it's supposed to. If all the cries of price gouging had resulted in government intervention and price controls, then supplies would have been depleted or diminished to dangerously low levels, which would then resulted in higher prices. Just look at everyone who thought that we'd run totally out of gas, paniced and started hoarding all the gas they could get their hands on. The prices at that time helped to control that panic buying to some degree. If there would have been gov't price controls, the ready supply of fuel would've been depleted even more.</p><p></p><p></p><p></p><p>And prior to the hurricanes, gas prices were already beginning to increase anyway, as demand was rising due to people traveling more on their last vacations of the summer. Also, refineries were beginning to retool to produce more home heating oil for winter. This is a cycle that happens every year, the hurricanes were just a stroke of bad luck that severly impacted production. Futures speculators probably did overreact to the hurricanes, and this obviously had an impact on the rising gas prices.</p></blockquote><p></p>
[QUOTE="TrainTrac, post: 565257, member: 55399"] I'll agree with you, Tom, on futures speculation having an impact on the prices also. However, even during August and September, the market continued to work as it's supposed to. If all the cries of price gouging had resulted in government intervention and price controls, then supplies would have been depleted or diminished to dangerously low levels, which would then resulted in higher prices. Just look at everyone who thought that we'd run totally out of gas, paniced and started hoarding all the gas they could get their hands on. The prices at that time helped to control that panic buying to some degree. If there would have been gov't price controls, the ready supply of fuel would've been depleted even more. And prior to the hurricanes, gas prices were already beginning to increase anyway, as demand was rising due to people traveling more on their last vacations of the summer. Also, refineries were beginning to retool to produce more home heating oil for winter. This is a cycle that happens every year, the hurricanes were just a stroke of bad luck that severly impacted production. Futures speculators probably did overreact to the hurricanes, and this obviously had an impact on the rising gas prices. [/QUOTE]
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SportTrac Discussion
Engine & Drivetrain
The Law of Supply and Demand At Work
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