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Futures VS Cushing Spot - Public Perception of Crude Oil Price

 
sweep
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User ID: 581061
United States
12/28/2008 01:14 AM
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Futures VS Cushing Spot - Public Perception of Crude Oil Price
As the price of Crude Oil has fallen, CNN and other media have switched the benchmark they are broadcasting as the price of crude oil from the 'WTI Cushing Spot' to the 'NY Mex Crude Future'.

If you look on CNNmoney.com or mainstream sites, they are now reporting the Futures price vs the price of WTI Cushing spot. The WTI has been the standard of Crude Oil price reporting in the summer and I've followed this closely.

Now on CNNmoney.com it lists 'Oil' at a cost of $37.71 a barrel... while the WTI Cushing Spot @ $32.35 on Bloomberg.com. Now, why does this matter? Where's why I think.

If the public saw oil really trading @ $32.35 a barrel, we'd have an expectation of the retail cost of gasoline at the pump to be even lower. And it should be.

However, if you show the public; that doesn't know any better that you report the futures as the cost of crude of $37.71, you can get away with a very gradual decrease of pricing while easing profits for the petrol companies while paying a lower cost in the actual market. Let me know if this makes sense and if you have any knowledge on validating the price of oil vs the impact on retail cost.

I'm not an expert in commodites trading, however I've followed the reporting of prices for the different crude oil on Bloomberg.com vs CNN / CNBC and have found this descrepency in reporting starting about 6 weeks ago.

Thanks!

sweep
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User ID: 513812
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12/28/2008 01:23 AM
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Re: Futures VS Cushing Spot - Public Perception of Crude Oil Price
That is interesting,ihe inflated price of oil has been based on market speculation for years,the same is true of real estate and the stock market,just a gang of shysters running the show,speculation is the name of the bubbles that are popping,massive overvaluations.
The opinion of the MSM lost face a long time ago,get your data elsewhere.
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06/20/2010 08:30 AM
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Re: Futures VS Cushing Spot - Public Perception of Crude Oil Price
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