Why have gas prices risen 60-70 cents per gallon in the last 2-3 weeks?

[WI_DEM]

What have I missed? or is big oil trying to help Rmoney?

[The Velveteen Ocelot]

1. They have?

They've been fairly stable around here.

[WI_DEM]

3. Really? here a few weeks ago we were at 3.27 per gallon now last I looked it was 3.95 per gallon

[BlueStreak]

21. Artificial supply constraints

They always blame it on crude oil prices -- you know, blame the "ragheads". But the fact is that the per-bbl price is worth about 3 cents/gal for each change of 1 dollar in the crude price.The crude prices have been relatively stable recently -- only varying by 2 or 3 dollars, and have actually come down 5-10% since May.

These prices are manipulated by the domestic handlers: refineries and pipelines mostly. When prices shot up on the west coast last month, it was because a major refinery was shut down "for routine maintenance". Now why would you plan to shut down a major refinery right in the middle of the peak travel season?

The spike currently in the Midwest apparently is related to a pipeline that is shut down. I heard something about that but have not seen details.

There is another factor, which is the creation of an oligarchy in retailing. In my area, there used to be loads of independent retailers. Now the market is dominated by BP, Shell, and Marathon (which also operates the fast-growing Speedway brand). Prices can move 40 cents in a couple of hours and virtually every retailer in the area moved their prices to the sale point at the same time.

[LiberalFighter]

32. It doesn't help when capacity of refineries is less.

Crude Oil
1982 - 181,165,000 barrels
1990 - 174,490,000 barrels
2000 - 159,815,000 barrels
2010 - 153,181,000 barrels

Here is a Congressional Service Report
[link:http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=19&ved=0CF4QFjAIOAo&url=http%3A%2F%2Fwww.fas.org%2Fsgp%2Fcrs%2Fmisc%2FR41478.pdf&ei=CKgeUIOlMa-WyAHumoHoBQ&usg=AFQjCNGV9Bq7VGZoBwnWql7u7im0evSvAw&sig2=-zmsIzrPyamLdupzH27eLQ|The U.S. Oil Refining Industry: Background
in Changing Markets and Fuel Policies - Federation of American Scientists]

10 years ago there were 158 refineries now there are about 124.
Breakdown of refineries and barrels per day by region
East Coast - 12 - 2,083,000 barrels
Midwest - 25 - 3,579,000 barrels
Gulf Coast - 44 - 8,802,100 barrels
Rockies - 15 - 614,750 barrels
West Coast, AK HI - 27 - 3,251,200 barrels

[BlueStreak]

40. Any idea of the ownership of these refineries?

I assume the Kochs are heavily involved. I just wonder is the ownership is interlocked enough that it is effectively a cartel.

Even if there were 158 separate owners (which I doubt), it wouldn't be particularly hard to get them to coordinate their activities for fun and profit.

[LiberalFighter]

41. It's in the pdf file

[BlueStreak]

44. I do not see that

I saw some listed as Conoco Phillips ... for example. I think we can assume the ownership of those based on the name. But most of them have names such as "Flint Hills Pine Bend Refinery". That doesn't tell us who owns them.

I am guessing that if somebody researched this, they would find the same names appearing on a lot of the boards that control these "no name" refineries, and that those interlocking directorates have a lot to do with controlling the price we pay for the juice.

Basically they just have to agree to take turns shutting their plants down, especially during the heaviest travel periods.

[The Velveteen Ocelot]

36. It's up a bit but not 60-70 cents.

There always seems to be a lot of regional variation, maybe having to do with refinery output. I hesitate to attribute political motives relating to the U.S. where something is traded globally. Other countries, notably China, are getting to be major oil consumers so their petroleum usage is as important as ours. The real cause of much of the extreme price fluctuation is, and for years has been, the speculators.

[Motown_Johnny]

2. I dunno but it jumped about 50 cents in the last week around here

in the Detroit area.

[TroglodyteScholar]

12. Same in thd Milwaukee area

When I left to visit family in AL on Tuesday, gas was $3.55. Came back yesterday to $3.95 gas. Wtf happened?

[edhopper]

4. Up only

10 or 20 cents around here, normal variations.

[Gidney N Cloyd]

5. The drought and the poor corn crop?

[liberal N proud]

6. Because I have a cross country road trip next week

Driving two cars across country taking our youngest daughter to college.

My guess is, the speculators need some cash to spend on Labor Day island vacations.

[russspeakeasy]

19. S P E C U L A T O R S !!!

[demosincebirth]

38. Poor speculatiors. They always get the blame.

[russspeakeasy]

39. If they were required to take delivery, instead of just moving their

mouse, we could get rid of them in one day.

[demosincebirth]

46. You got a point there.

[we can do it]

7. No clue, but they are up abot 60 cents this week in ohio

[OneTenthofOnePercent]

8. before four days ago they were $3.28 steady... on Friday they jumped to $3.90+ everywhere.

[leftyohiolib]

9. in cleveland O it was about 329 it has qucikly gone to 389 now

[twizzler]

10. Went from $3.01 to $3.24 overnight here

Gotta distract us from Romney's tax problems I guess.

[boxman15]

11. "A rare combination of pipeline and refinery problems"

MADISON, Wis. (AP) - A rare combination of pipeline and refinery problems has exacerbated already rising gas prices in the Great Lakes region, leading to surges of around 35 cents per gallon in just one week, officials said Friday.

snip

The Midwest has seen a confluence of freak problems during the past few weeks that have tightened supplies and pushed prices. An Enbridge Energy Partners pipeline that transports crude from Superior, Wis., to Chicago-area refineries ruptured July 27, spraying about 50,400 gallons of crude into a southern Wisconsin field.

It was Enbridge’s second break in the region in just more than two years. An Enbridge pipeline broke in Marshall, Mich. in July 2010, spilling 840,000 gallons. Federal officials have barred the company from re-opening the Wisconsin line until it submits a re-start plan. A company spokeswoman didn’t immediately respond to an email seeking an update on the plan Friday.

Meanwhile, equipment problems have closed parts of refineries in Whiting, Ind., Lemont, Ill., and Wood River, Ill., said Patrick DeHaan, a petroleum analyst at GasBuddy.com

http://stlouis.cbslocal.com/2012/08/04/why-did-gas-prices-shoot-up/

Here in the Detroit area, it's been really bad. Prices have risen from around $3.30ish to $3.99 over the course of about 3-4 days.

[TroglodyteScholar]

13. Thought I was going crazy.

Thanks for providing some actual info....

[Proud Liberal Dem]

15. Who knows (for sure)

I think that every day the oil industry execs get together and spin a wheel to decide on what the "reason" for high gas prices is going to be for the day.

[boxman15]

18. I'm sure there's a bit of price fixing going on.

Do the refinery problems justify an increase in gas prices? Probably. But this much, all overnight? I'm guessing not.

[Proud Liberal Dem]

20. Their shoddy plant maintenance records don't inspire much confidence either.

Yet we're supposed to love our oil industry execs (just as much as we worship our "job creator overlords) and their fluffy "energy independence" PR campaign schtick!

[MANative]

14. Up to $3.95 in CT

Bad corn crop means more expensive ethanol, and speculators are making hay, so to speak. Last hurrah for driving for the next five weeks of prime vacation time.

[Proud Liberal Dem]

17. Not much of "prime vacation time" left

since a lot of schools are already back in session. I can remember growing up in the 80's not going back until Labor Day. My how the times have changed.

[TransitJohn]

16. They haven't here in Colorado.

Paid $3.13/gal for 85 octane yesterday.

[sunwyn]

22. A few weeks ago it was reported by several news outlets

that gas would not be as high this summer as they thought and that it would not reach the 4 dollar a gallon mark. Two weeks later we suddenly have a refinery problem and now we are flirting with 4 bucks a gallon. Pretty damn convenient if ya ask me...

[alfredo]

28. Also, the economy is improving so use is up.

[grantcart]

23. Gas prices way down in California

http://gasbuddy.com/gb_retail_price_chart.aspx

to see the dramatic difference create two charts, a one year chart for Los Angeles and a one year chart for Cleveland OH.

Huge difference.

[msongs]

24. deliberate and premeditated price fixing nt

[DefenseLawyer]

25. Because they can.

Not to worry though, I'm sure the justice department is mounting an investigation into price fixing as we speak!

[valerief]

27. OMG, great minds. I posted the same thing as you seconds later. nt

[Fumesucker]

42. With sternly worded letters to follow, no doubt.. n/t

[valerief]

26. Because they can. nt

[Efilroft Sul]

29. Jumped about 20 cents around Pittsburgh this last week.

From $3.46 to $3.66, on average.

[1-Old-Man]

30. Israel is being belligerent to Iran again, and the US is complicit with it

You start talking seriously about blowing up any country in the mid east and the price of gas is certain to rise.

[etherealtruth]

31. I was in Michigan's UP the last week in August

Reportedly, there had been a serious pipeline issue in the fair State of Wisconsin; it had already effected gas prices there

Sadly, I filled up this morning at 4.09/ gallon

[AnotherMcIntosh]

33. Yesterday, at one gas station in Northern Illinois, I watched the price jump from $3.65 to $4.15

while waiting at a traffic light.

The pump prices further North of the Wisconsin-Illinois border always seem lower, but it is a long way to drive to fill-up unless driving up to buy groceries or something else.

[L0oniX]

34. Kick em when they'er down. God bless America.

[SheilaT]

35. Here in Northern New Mexico gas prices have dropped in

the past week or so, from approximately $3.50/g to a low of $3.15/g at the least expensive chain. About $3.29 or $3.35 at the others.

[HiPointDem]

37. because they can.

[crimson77]

43. Boston here, 3.74 today

[JFN1]

45. About two weeks ago gas was $3.37 where I fill up...

Thursday it was $3.68...

Saturday morning as I went to work (and had to get gas, dammit!) it was $3.98...

Today the price per gallon settled back down to $3.97...whooppiieeeee!!!!!

So gas has gone up fully 60 cents a gallon here (So. Illinois) in the last couple of weeks...

I'm with the OP - can't figure out why -- no weather events, no refinery shortages, no sudden rise in oil prices, no new wars, no blockades, no threats...can only be one thing, I suppose...

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