gas/oil prices

get456 · 09-03-2008, 01:43 PM

how is oil down approx 40$ which is 30% ish from the all time high... yet gas is barely down 10%.....

why are we a nation of sheep?

NWMUSCLE · 09-03-2008, 01:51 PM

It is how we roll brotha!

Sitting in front of the monitor or TV and bitching rather than a REVOLT!

RagingBull666 · 09-03-2008, 01:56 PM

Gas rises instantly with the cost per barrel but it drops very, very slowly. It's assanine that they jump prices for gas when crude jumps as that gas we have was made months ago. The whole thing is horseshit!! Do as I do and contact your congressmen and senators to complain. SS, RB

2ez2brich · 09-03-2008, 02:28 PM

I was told that the price we pay is not just for Crude Oil. You also need to consider other cost like Refining Cost and Profits, Distribution and marketing, Taxes; in addition to the Crude Oil price.

So when this is considered….even though the Crude Oil price has increased / decreased….the price at the pumps may not be as significant because the other cost stays constant.

There is econometric evidence of an asymmetric relationship which many believe implies something fishy with the Oil Companies.....ie. Monopoly power and this is why you see the Oil Companies explaining its position before congress.

My nephew works for a wholesaler out of Africa (Nigeria) and Panama. Here is his reply:

Generally crude oil prices can play a part with the gasoline prices but the gas station owners are always slow to drop the gas prices mostly bc of greed bc the prices they pay us for the fuel directly from the pipeline is reflective of the crude prices

Sent via BlackBerry from T-Mobile

Big Sky Guy · 09-03-2008, 04:11 PM

It is profit taking time...seems like it is this way every late summer/early fall

thedreamthief · 09-03-2008, 04:28 PM

I have a related question:
I notice more and more stations (at least here in GA) are selling with 10% ethanol.

Doesn't that mean we should be paying for 90% gasoline price + 10% ethanol price instead of 100% of gasoline price?

I don't know much about ethanol production to reliably state how, if at all, it is affected by crude oil prices.

I hope that makes sense.

rmexico · 09-03-2008, 04:50 PM

The answer is that retail gasoline doesn't tend to move as much as oil does in the short run. From 3/31 to 6/30, oil increased by 43%, but retail gas increased by just 24%.

There's a lot of competition between gas stations, so it's not easy for them to screw consumers--if everyone else is charging a high price, one station could lower its price and get all the customers. But as someone mentioned, there's some evidence of short-run asymmetry.

Iron God · 09-03-2008, 05:27 PM

I am paying 3.19 for regular here in NJ

cipherkingtoo · 09-03-2008, 05:43 PM

Quote:

Originally Posted by Iron God

I am paying 3.19 for regular here in NJ

3.19? where. how far are you from philly? i need to get to that station. its still 3.49 in the city.

Big Sky Guy · 09-03-2008, 05:49 PM

3.86 is the best you can get here....

Mickey · 09-03-2008, 06:38 PM

The reason is that crude oil that is traded on the market is traded in futures I believe. That means the price that you see them close at today is actually the price for future delivery of the product.

DrewDog · 09-03-2008, 06:40 PM

Quote:

Originally Posted by thedreamthief

I don't know much about ethanol production to reliably state how, if at all, it is affected by crude oil prices.

I hope that makes sense.

gas prices have an effect on ethanol costs because gas is need to transport the corn for processing and the ethanol to refineries and refineries to stations

09-03-2008, 01:43 PM	#1 (permalink)
get456 Gold Member Join Date: Dec 2007 Posts: 737 Rep Power: 14990	gas/oil prices how is oil down approx 40$ which is 30% ish from the all time high... yet gas is barely down 10%..... why are we a nation of sheep?

09-03-2008, 01:51 PM	#2 (permalink)
NWMUSCLE Proud American Join Date: Feb 2007 Posts: 1,584 Rep Power: 94785	It is how we roll brotha! Sitting in front of the monitor or TV and bitching rather than a REVOLT! __________________ "Qui desiderat pacem, praeparet bellum." Flavius Vegitius Renatus

09-03-2008, 01:56 PM	#3 (permalink)
RagingBull666 I'm an Epic Asshole Join Date: Apr 2008 Location: Peoria and Tucson, AZ Posts: 1,680 Rep Power: 271380	Gas rises instantly with the cost per barrel but it drops very, very slowly. It's assanine that they jump prices for gas when crude jumps as that gas we have was made months ago. The whole thing is horseshit!! Do as I do and contact your congressmen and senators to complain. SS, RB __________________ Try not Do or do not There is no try Yoda That which does not kill us makes us STRONGER - Friedrich Nietzsche "So what we'll be calling on is blunt force trauma. Let's start building some hurtin bombs." Rocky www.azapf.com http://www.prowriststraps.com/store http://www.andersonpowerlifting.com http://www.prowriststraps.com/jr_bol...n_powerlifting

09-03-2008, 02:28 PM	#4 (permalink)
2ez2brich Connoisseur of Women Join Date: Feb 2002 Location: New York, but I love Philly. Posts: 2,018 Rep Power: 111251	I was told that the price we pay is not just for Crude Oil. You also need to consider other cost like Refining Cost and Profits, Distribution and marketing, Taxes; in addition to the Crude Oil price. So when this is considered….even though the Crude Oil price has increased / decreased….the price at the pumps may not be as significant because the other cost stays constant. There is econometric evidence of an asymmetric relationship which many believe implies something fishy with the Oil Companies.....ie. Monopoly power and this is why you see the Oil Companies explaining its position before congress. My nephew works for a wholesaler out of Africa (Nigeria) and Panama. Here is his reply: Generally crude oil prices can play a part with the gasoline prices but the gas station owners are always slow to drop the gas prices mostly bc of greed bc the prices they pay us for the fuel directly from the pipeline is reflective of the crude prices Sent via BlackBerry from T-Mobile Last edited by 2ez2brich; 09-03-2008 at 02:47 PM..

09-03-2008, 04:28 PM	#6 (permalink)
thedreamthief Gold Member Join Date: Apr 2007 Location: Atlanta Posts: 490 Rep Power: 26386	I have a related question: I notice more and more stations (at least here in GA) are selling with 10% ethanol. Doesn't that mean we should be paying for 90% gasoline price + 10% ethanol price instead of 100% of gasoline price? I don't know much about ethanol production to reliably state how, if at all, it is affected by crude oil prices. I hope that makes sense. __________________ Understeer is when you hit the wall with the front of the car and oversteer is when you hit the wall with the rear of the car. Horsepower is how fast you hit the wall, torque is how far you take the wall with you.

09-03-2008, 04:11 PM	#5 (permalink)
Big Sky Guy Join Date: Feb 2002 Location: MT Posts: 2,692 Rep Power: 311494	It is profit taking time...seems like it is this way every late summer/early fall

09-03-2008, 04:50 PM	#7 (permalink)
rmexico Gold Member Join Date: Feb 2008 Posts: 159 Rep Power: 13118	The answer is that retail gasoline doesn't tend to move as much as oil does in the short run. From 3/31 to 6/30, oil increased by 43%, but retail gas increased by just 24%. There's a lot of competition between gas stations, so it's not easy for them to screw consumers--if everyone else is charging a high price, one station could lower its price and get all the customers. But as someone mentioned, there's some evidence of short-run asymmetry.

09-03-2008, 05:27 PM	#8 (permalink)
Iron God Super Moderator Join Date: Feb 2000 Posts: 2,085 Rep Power: 21298	I am paying 3.19 for regular here in NJ

09-03-2008, 05:49 PM	#10 (permalink)
Big Sky Guy Join Date: Feb 2002 Location: MT Posts: 2,692 Rep Power: 311494	3.86 is the best you can get here....

09-03-2008, 06:38 PM	#11 (permalink)
Mickey Gold Member Join Date: Feb 2001 Location: Florida Posts: 2,283 Rep Power: 20983	The reason is that crude oil that is traded on the market is traded in futures I believe. That means the price that you see them close at today is actually the price for future delivery of the product.

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