leftyladyfrommo
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:05 PM
Original message |
How Come Oil is at all time high - yet our prices are lower than they have |
|
been in months and months. Our gas is $2.459 today. It has been going steadily down for several weeks. Now watch, it will probably jump to $3.50 overnite.
I don't get it.
|
AlCzervik
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:07 PM
Response to Original message |
1. $3.09 a gallon here in norcal, the lowest i've seen in the past few months was $2.80. |
closeupready
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:08 PM
Response to Original message |
2. Now, of course, your prices are going to rise since you pointed out how low it is. |
soothsayer
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:16 PM
Response to Reply #2 |
6. exactly! thanks alot! grrrr |
glowing
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:09 PM
Response to Original message |
3. All the refineries should be up and operating... which is supposed to |
|
save us money... Also, we are out of summer fueling, which is a different blend that costs more.. believe me, gas smells much dirtier in the non-summer days. Also, if they hit consumers with more gas increases, there wouldn't be a Christmas spending and buying of SUV's for the end of the year. Happens all the time, then in January they hit with the increase, when people need fuel and their Christmas credit cards hit. If it was a big election year, I'd bet those prices would be even smaller.
|
gateley
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:18 PM
Response to Reply #3 |
7. That's very interesting - thanks. nt |
TahitiNut
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 11:43 PM
Response to Reply #3 |
17. Just watch what happens when the refineries switch over to winter output. |
RB TexLa
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:11 PM
Response to Original message |
4. You do understand you are talking about two different markets, right? |
|
Edited on Tue Oct-16-07 01:13 PM by RGBolen
The market for crude oil and the market for gasoline. The cost of gasoline is directly affected by the cost of crude oil but it's not the sole factor affecting retail gasoline costs.
|
whistle
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:13 PM
Response to Original message |
5. In Orlando FL the gas prices are swinging like crazy |
|
...I paid $2.689 per gallon for regular 2 weeks ago and now it is up to @2.789 at the same station and as high as $2.849 at neighboring stations. I suspect it will go to over $3.00 per gallon very shortly
|
pampango
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:18 PM
Response to Original message |
8. In SW Ohio our prices have dropped from $2.84 to $2.61 in the couple of months |
|
while the cost of oil has gone up a lot. This is must be largely because we are past the summer peak driving season and before the winter heating season. Demand is relatively low at this time of the year. When the cold weather hits and demand spikes up, I bet the cost of gas goes up.
|
SergeyDovlatov
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:18 PM
Response to Original message |
9. How come there is a gasoline shortage in Iran and it had to import it? |
|
Raw crude is only one part of the price of gas. Refining, regulations and taxes are a huge chunk that dwarfes the crude component.
Also, it is oil futures price we are talking about. (Meaning speculators predictions on what happen to oil price in the future).
So far, market predicts US will bomb Iran and thus price shoots up.
|
ProfessorGAC
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:55 PM
Response to Reply #9 |
|
You're correct. It is only one part, but it is the majority. Look:
(($80/41.4 gallons/barrel) / 96% yield as burnable fuels)+ operating burden (HR, electricity, catalyst expense, environmental disposal of waste, etc.). This brings it to about $2.10
But, just the $80/41.4 gives $1.93!
So, you can see the preponderance is the raw material price. The Professor
|
YankmeCrankme
(576 posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 02:13 PM
Response to Reply #11 |
14. I think it all depends on what level of profit the oil companies are willing to take |
|
Especially, in relation to how it affects the economy and, even more so, the politicians they support. If they accept lower profits as price/barrel goes up and it keeps the price of gasoline at the pump "reasonable" people won't get as disaffected or disgruntled. Just a thought.
|
ProfessorGAC
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 02:22 PM
Response to Reply #14 |
|
However, i did show that $3/gallon gas, when oil is $80 per barrel is 64% RMC.
Now, remember that the oil companies put the finished gas onto the market at a starting price, upon which bidding commences. This is based upon a cost-plus business model, which means the higher the raw material price, the more profit they get. Without changing the mark-up number, a cost of $2 and 18% mark-up is 36 cents per gallon. At a cost of $1.80 and the same mark-up, it's only 32.4 cents per gallon. So high oil prices actually favor the refiners, financially.
And, ever notice that this is the only major industry in which not one major participant competes by using the price lever? Things that make you go Hmmmmmmmm. The Professor
|
SergeyDovlatov
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 11:39 PM
Response to Reply #11 |
16. Indeed. For US market it does not dwarf it, it is about half |
sinkingfeeling
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:49 PM
Response to Original message |
10. All stations in my town jumped from 9 to 13 cents a gallon overnight. |
Subdivisions
(1000+ posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:57 PM
Response to Original message |
12. Gas prices will lag as the cheaper oil is consumed and |
|
Edited on Tue Oct-16-07 01:58 PM by Texas Explorer
the more expensive oil replaces it.
Edited to add: Oil is $15-$20 more per barrel today than it was in August when it was as low as the mid-60s.
|
sandnsea
(1000+ posts)
Send PM |
Profile |
Ignore
|
Wed Oct-17-07 02:31 AM
Response to Reply #12 |
22. As low as the mid-60s??? |
|
It was $3.00 a gallon in 2006 when oil was $66. Why not this year? The oil companies were making record profits because we let them. When we started getting restless, they lowered the prices. The 'market' is long gone.
|
MadinMo
(519 posts)
Send PM |
Profile |
Ignore
|
Tue Oct-16-07 01:59 PM
Response to Original message |
13. $2.43 yesterday and up to $2.59 today. eom |
Lugnut
(1000+ posts)
Send PM |
Profile |
Ignore
|
Wed Oct-17-07 12:20 AM
Response to Original message |
JesterCS
(627 posts)
Send PM |
Profile |
Ignore
|
Wed Oct-17-07 12:47 AM
Response to Original message |
19. Jumped from $2.60 to $2.88 Today in SW Ohio. N/T |
pinniped
(1000+ posts)
Send PM |
Profile |
Ignore
|
Wed Oct-17-07 02:22 AM
Response to Original message |
20. Some crazy Chevron idiots are charging $3.49 9/10 for 91 in Sf. |
|
Edited on Wed Oct-17-07 02:23 AM by pinniped
It must be that BS summer driving season crap excuse again.
F-them.
|
sandnsea
(1000+ posts)
Send PM |
Profile |
Ignore
|
Wed Oct-17-07 02:26 AM
Response to Original message |
21. Been asking this since August |
|
When oil first started breaking record prices. People don't see it because nobody on the teevee told them to look.
|
DU
AdBot (1000+ posts) |
Thu Apr 18th 2024, 08:19 PM
Response to Original message |