The Kalmyk's Tinfoil Hat Happy Hour (aka Most Useless Thread on MTBNJ)

rick81721 said:
Pat's business 101 grade:

View attachment 205811
Click to expand...

You are confusing Business with Economics.

Not to mention, the BBL price is the spot price. Large companies buy on the futures market, and round out their needs on the spot market.
If they don't need add'l supply, the spot price dives. If it dives below their futures price, they let it expire, and pick up a new contract.
Yet they still use the spot market price in setting their refined prices.
So you are still wrong that the price at the pump is driven by the advertised price of a bbl of crude - as they have secured their supply
at a much lower price.
 
Patrick said:
You are confusing Business with Economics.

Not to mention, the BBL price is the spot price. Large companies buy on the futures market, and round out their needs on the spot market.
If they don't need add'l supply, the spot price dives. If it dives below their futures price, they let it expire, and pick up a new contract.
Yet they still use the spot market price in setting their refined prices.
So you are still wrong that the price at the pump is driven by the advertised price of a bbl of crude - as they have secured their supply
at a much lower price.
Click to expand...

You apparently have no understanding of correlation coefficients!
 
rick81721 said:
I will remind you of your erroneous statement that initiated the fun!

"It has nothing to do with the cost of energy production. ie the gas prices in summer of 2020 vs 2022."
Click to expand...

Your coefficients are like weighing yourself in kg in the morning then eating breakfast and weighing yourself in lbs afterwards and saying they are correlated.

I stand by my statement. Getting crude out.of the ground and through a refinery has nothing to do with the pump price.
 
Patrick said:
Your coefficients are like weighing yourself in kg in the morning then eating breakfast and weighing yourself in lbs afterwards and saying they are correlated.

I stand by my statement. Getting crude out.of the ground and through a refinery has nothing to do with the pump price.
Click to expand...
You 'slightly' changed your tone though, 'getting crude out of the ground' is not the same as 'price of crude' as you seemed to infer earlier on...also, there's a direct correlation between your weight in Kg and your weight in lbs...
 
JDurk said:
multiplying or dividing by 2.205
Click to expand...
Does that consider having breakfast between the two weighting session? Asking for @Patrick
muttley.gif
 
Patrick said:
Your coefficients are like weighing yourself in kg in the morning then eating breakfast and weighing yourself in lbs afterwards and saying they are correlated.

I stand by my statement. Getting crude out.of the ground and through a refinery has nothing to do with the pump price.
Click to expand...

More silliness. You obviously need some help here so... economics.help to the rescue!

https://www.economicshelp.org/blog/glossary/costs-of-production/

"Costs of production relate to the different expenses that a firm faces in producing a good or service.

Types of costs​

  • Fixed costs – costs that don’t vary with output
  • Sunk costs – costs that cannot be recovered on leaving industry, e.g. advertising
  • Variable costs – costs relating to how much is produced (e.g. raw materials"
 
serviceguy said:
You 'slightly' changed your tone though, 'getting crude out of the ground' is not the same as 'price of crude' as you seemed to infer earlier on...also, there's a direct correlation between your weight in Kg and your weight in lbs...
Click to expand...

That was the point inn both cases.
 
You must log in or register to reply here.
Back
Top Bottom