MOST of the gas price rising is supply manipulation NOT other factors PERIOD

[uponit7771]

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We are using LESS fuel now than we were in the 80s, that is a FACT PERIOD!!

The US is PRODUCING less fuel now because of refinery closings (enter Big Oils Excuse here)

http://www.usatoday.com/money/industries/energy/story/2012-01-28/cnbc/52825378/1

The external factors have NOT spiked out of regular progression (google keywords Motor Gasoline Consumption)

http://www.ogj.com/articles/2011/08/eia-forecasts-decline-for-us-oil-demand-this-year.html


THIS IS MARKET MANIPULATION PERIOD

Your take

Regards

[tridim]

1. But the news just told me it's because a refinery "went out of business" on the East coast

They didn't even mention big oil's public threat over the XL pipeline.

Gee, thanks "news"!

[Spider Jerusalem]

2. who is "we"?

Helpful hint: America is not the world. Global oil consumption is at 89 million barrels a day. That's around 30 MILLION barrels a day more than in the 1980's. Oil is a commodity traded on international markets. The market price is determined by global demand, not local demand.

[Newest Reality]

7. I think the focal point

in the OP is about the price of refined products, particularly gasoline, here in the US.

Thanks though, for your larger perspective on the amount of oil used as the basic commodity worldwide. That's worth noting.

Do you see a relationship between gasoline prices and refinery capacity and output in the US?

[Spider Jerusalem]

8. Not as much as between retail fuel prices and the underlying per-barrel cost of crude oil

a gallon of unleaded, without taxes factored in, costs about the same in the US as it does in France, or Germany, or the UK. Which is probably the largest indicator that no, it's not refinery capacity driving retail cost, it's market pricing and worldwide demand.

[Gold Metal Flake]

3. Isn't it true that total US gasoline production exceeds US consumption?

I believe I read recently that the US is the world's largest exporter of gasoline.

We have more than we can burn. But the prices still spike every year now.

How much of the price of a gallon of gasoline during the spring spikes is due to commodities trading?

Obviously, the above does not refute what you are saying. Just more fuel for your fire.

[bullwinkle428]

4. "Obama's new regulations are forcing the refineries to close!!1!1!!1!"

I see that one all the time, posted at other sites!

I then ask them to explain why we've been exporting more gas than ever in recent history.

[Gold Metal Flake]

5. Just like Gray Davis was responsible for power plants shutting down at peak consumption periods.

Nothing to do with Enron at all. Not at all.

[bullwinkle428]

6. "Follow the money" has always proven to be perhaps the most sage advice

one could ever follow when trying to explain nearly anything.

[demosincebirth]

9. Any time a (any) country farts it's an excuse to raise oil prices. I don't know who's to blame the

speculators or the oil companies. I think both because they both benifit. I hate them.

[BumRushDaShow]

10. It's pure speculation

I remember when they even featured one such jackass who really got the ball rolling.

[Warpy]

11. That's been the case for several years

and one of the major players is Koch Industries.

[KrazeeKrewe]

12. Tax increase at the pump is 100% responsible for the rise in Gas Price

Tax increase at the pump is 100% responsible for the rise in Gas Price.

Every gallon of gas sold at the pump contains 10% ethanol & is called E10. Ethanol had replaced 15% of the gasoline sold in this country. 10% was sold as E10 & 5% was sold as E85. On January 1, 2012 the 45 cent tax cut on ethanol was not renewed because the USG needs more tax money. This increased the tax everyone paid at the pump by 5 cents since all gasoline is E10. For E85 users the tax increased by 38 cents per gallon. E85 users switched to E10 gasoline driving up gasoline demand 5% since then. The sudden price spike on the first day of 2012 is the tax hike & the continuing rise is caused by demand increase until the price rises by 38 to 45 cents so E85 use will compete once again holding gas prices in check. Also North Carolina increased their gas tax by 20 cents on the same date.