Wall Street Gecko

Energy Pricing
Conspiracy Theory

persons curious about energy stocks investment would tend to
monitor the current price being charged for gasoline
in attempts of obtaining some perspective as to whats going on

quite strange, as the news reports higher and higher crude oil pricing
the "gecko" has not seen a corresponding proportionate rise in price at the gas pump

unless the "gecko's" understanding of business concepts is incorrect,
profit is the result of the difference between what it costs to produce,
and what the final product sells for

in oil refining; that differnential is refered to as "crack spread"
the profitability of breaking down ("cracking") the long carbon chains of crude oil
into smaller, more volatile, molecules such as gasoline

if the price of the raw material (crude oil) goes up
without the refiners being able to pass such increases
along to consumers in the form of higher prices at the gas pumps;
well, that's refered to as declining crack spread margin,
as oil refining becomes less profitable

hmmm, why would "reptilians" allow that?

well, the "gecko" realizes that some might believe in altruism,
however the "gecko" prefers to consider conspiracy theory

first conspiracy suspect would be to conceal inflation;
now the "gecko" realizes that the price of energy
is ignored in government inflation reports,
but hey, even government might need to maintain some credibility,
just what is the capacity of people to ignore
how much its costing them to fill up their gas tank
as they're listening to government reports of no inflation?

next conspiracy suspect is timing,
we are now in the season of new automotive model "year" debuts;
how many consumers would be rushing out to purchase
the latest model SUV gas guzzler
while retail gas prices are dramatically rising?

the "geckos" understanding of the automotive industry
is that SUV's provide auto-manufacturer's a much higher profit margin
then economy models offer

thereby fueling the concept of: "greed is profitable"

now there's a concept a gecko can understand

well, unless there occurs a dramatic decrease in the price of crude oil
the "gecko" is expecting a substantial increase in the price of retail gasoline
shortly after the automotive new model year debuts have dissapated

but don't worry, the "gecko" also expects
governmental inflation reports
to continue to ignore such increase in fuel price

oh, and as long as nobody goes to see Al Gore's movie
the "gecko" would expect SUV sales to continue unabated.


please note, as usual:
these quips only present a (reptilian brained) "gecko's" perspective,
its up to the reader to decide whether such concepts
will (and/or should/should not) prevail in the market


the Wall Street Gecko's opinions DO NOT represent the views
of this website, Wall Street, nor even the writer(s)

this webpage was last updated on: October 31 2007