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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 330.09+0.2%Nov 7 4:00 PM EST

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To: Investor2 who wrote (386)7/20/2000 9:43:11 AM
From: edward miller  Read Replies (1) of 10065
 
If you think about the way the futures markets work then
you have to realize that the big crude oil users, meaning
the refineries, will buy futures contracts.

That means what they get in May might have been fixed in
price by their futures contract back when the going rate
was - of all things $24. How amazing.

Since this is now reflected in May pricing, we can also
conclude that much of the surge in oil prices has yet to
ripple into the economy. Expect CPI and PPI numbers to
remain firm, if this is correct.
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