Gas prices rising??

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  #1  
Old 07-11-11, 05:31 AM
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Gas prices rising??

Last weekend I filled up my wife's car at $3.27 per gallon, this past thursday and friday I filled up my jeep and truck for $3.29 per gallon. Yesterday every gas station I drove past had prices from $3.49 to $3.54

I thought gas prices were supposed to still be on a downward slide. I've not heard anything in the news that would make you think oil prices were going back up. Have I missed something? what gives?
 
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  #2  
Old 07-11-11, 08:16 AM
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Went up $.10-15 here in the last week or ten days.
 
  #3  
Old 07-11-11, 08:25 AM
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Here in Kansas, I bought gas for $3.19 last Monday, and by last Friday, it had hiked up to $3.59. I never saw anything on the news as to why the sudden increase.
 
  #4  
Old 07-11-11, 08:32 AM
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Two weeks ago I paid $3.57 and now it's $3.89, so we're seeing the same trend.

I would have expected a spike before the 4th of July weekend, not till afterward is a little surprising.
 
  #5  
Old 07-11-11, 10:52 AM
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Third cousin twice removed of the Emir in one of the Persian Gulf Emirates sneezed.
 
  #6  
Old 07-11-11, 11:05 AM
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Part of it with the value of the U.S. dollar.

As the dollar goes down in value, it buys less crude oil because the foreign demand is increasing at a greater rate. A part of the pricing is controlled by the price refiners expect to pay for crude to replace the crude that will be needed. No one will buy, refine and process a raw material without a profit, so speculaters and future producers force the price of crude oil up.

China (1,400,000,000 population) has passed the U.S in auto sales and demand is going up dramatically and will continue as long as they get along on their relatively new growth after opening up. They are probably the worlds largest auto producer, but cars are not exported and they just import to make up for the demand.

India (1,200,000,000 population)is similar since they have been relying on the worlds most efficient and economical rail system to connect the separated large cities (2,000,000 to 18,000,000 population), but the construction of freeways has increased the use of cars. You can buy a new 4 door TATA Nano with AC for $2800 in India, but they refuse to export to the U.S. or most other areas. The company is huge and also bought Jaugar and Rover from Ford that allowed Ford to escape the "bail-out" requirements. The country has the technology and wealth to do whatever they want, but they are very selective.

Dick
 
  #7  
Old 07-11-11, 11:33 AM
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As you are pointing out Dick, the big picture isn't as pretty as most Americans would like to think. In so many ways we are at the mercy of very powerful economies that are growing while ours is shrinking.

As for the recent jump, I thought it might be tied to Venezuela, when they learned the Hugo was off for cancer treatment. They said Ven was our 4th largest supplier and did not like the outlook if Hugo relinquishes power to the many factions that will follow. Even Cuba is nervous as they receive 50% of their oil at a reduced price.

The recent release of strategic reserves was such a shallow gesture, like we could live off of our reserves for any meaningful length of time.

Bud
 
  #8  
Old 07-11-11, 11:38 AM
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Wow...they released some from the reserves? I didn't even know that. Do they not understand the meaning of strategic? It has nothing to do with gas pricing.....
 
  #9  
Old 07-11-11, 12:14 PM
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GG, I agree. Nothing to do with a crises, but everything to do with re election.
 
  #10  
Old 07-12-11, 05:06 AM
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I second Goldstar's comment.
 
  #11  
Old 07-12-11, 05:36 AM
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Me too, you would have to be terribly naive to believe otherwise.
 
  #12  
Old 07-12-11, 08:38 AM
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I don't know what you guys are griping about, gasoline prices here haven't dropped below about $3.60 a gallon for many months and that's the price at Sam's Club! Most stations are at least a dime more.

Kind of strange, I would think that the farther from a refinery the higher the cost of the finished product but we have at least three refineries in northwestern Washington.
 
  #13  
Old 07-12-11, 09:04 AM
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I know the tax on gas varies depending on the state but I've never paid much attention to how much that tax is. One thing I know for sure is if my gas tank is full - my wallet is empty
 
  #14  
Old 07-12-11, 09:40 AM
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Gas prices have wild ranges and the factors affecting them are just as strange.

Taxes are one factor that has very defined area controls. In MN where many people work in MN and live in WI (15 miles away), WI residents fill up on the way home daily and on the way in depending on the tank levels - the tax in MN is lower than in WI and the metro volume has lower prices (especially when you get away from a freeway). Unfortunately the prices can vary depending on the demand and day of the week - they go up after noon on Thursday and down after 10:00 AM on Monday because of the 200,000 or so leaving for weekends at the lake homes.

In Europe, the taxes one reason for the much higher - A few years ago, 2 times the prices than the U.S., but they also include some other costs like government mandated car inspections that make the cars safer and last longer.

A couple of years ago, Iran imported gasoline because they did not have refineries even though they exported a large amount of crude. The government subsidized the gas prices, so they were well below $1.00 per gallon and lower, but the volume was less.

On top of those factors, the crude oil is used in many other products, some of which are seasonal and create "spikes" in the demand and affect the price of other products. The shipment of crude is cheap and is not as dependant on distance because it is a bulk commodity traveling on water and can easily go to any country at the turn of a wheel, since shipping cost is oddly not thant dependant on the fuel cost.

Dick
 
  #15  
Old 07-12-11, 09:51 AM
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I do exactly as Dick mentions - I never buy gas in WI if I can help it, the gas tax is $0.10 higher per gallon there than in MN.
 
  #16  
Old 07-12-11, 10:13 AM
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This may be an unpopular comment, but do you have the option of driving less? I try to bike anywhere if it's less than 30 miles away (I have a child, too--she rides in the trailer). It's good for your health and wallet!
 
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Old 07-12-11, 10:23 AM
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I don't even own a bike, I sold it last year
 
  #18  
Old 07-12-11, 10:59 AM
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Mine may be an even more unpopular comment. Driving less is number two for reducing the amount of gas you use. Buying a more fuel efficient vehicle is number one. Somehow the vehicle of choice has to become something better than a truck. I love them. They do work for me and serve a purpose more so than just getting from point A to point B. But aerodynamically, they are like pushing a big brick through the air. It used to be you could go diesel and save a little, but now that is 20 cents more.

No, 60 mpg just takes a very small vehicle with a very small engine, yuck!

Bud
 
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Old 07-12-11, 11:08 AM
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I agree. Been years since we drove a car with an engine bigger than 4 cyl, (not counting the wrecker; not much I can do there). Wife's Camry gets 25/32; daughter's Corolla even better than that.
 
  #20  
Old 07-12-11, 12:07 PM
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Absolutely right about the right car to minimize the fuel costs. The U.S. probably has the lowest gas prices (per gallon) in the developed world.

I drive a 1999 4.3L GMC Jimmy (because that works for my needs) that gets 17 mpg daily in town and will regularly get 23 mpg on a real trip on freeways. I would like an excuse to get a different car, but at 170,000 miles, no rust, good tires, I have not been moved to change. Buying a new car may involve payments, sales tax, higher annual licensing, etc.

My most economical cars on an mpg basis were some 1980's Oldsmobile sedans (sequential fuel injection) that were always 28-30 on a long trip and my 1995 Corvette that could get 25-29 on a trip (much less in town and nothing in the winter in northern Michigan because it was stored and not usable).

Dick
 
  #21  
Old 07-12-11, 01:50 PM
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Big DUH moment for me, of course it is the state gasoline taxes that force the prices in Washington state higher than the national averages.

As for the "right" car...I have never owned a car that had more than a four-cylinder engine. I got rid of my mini-pickup because I only used it as a truck a couple of times a year. Now that I'm retired and drive less than 5,000 miles a year the cheapest vehicle for me is the '97 Camry I own. Not sexy, not particularly fuel-efficient on the short trips but it is paid for and that goes a long way to making it economical versus a new vehicle.
 
  #22  
Old 07-12-11, 02:15 PM
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The price of a new car payment - will buy a lot of gas! Every so often you hear the politicians say we need to get the old cars of the road because they aren't as efficient as the new ones..... but how much impact does producing a new car have on the environment? Not to mention those of us who can't afford to pay for a new car every few years.

While my wife and kids have had plenty of 4 bangers, I think the only one I've ever had is my 1953 ford tractor Now if they could only build a good AND economical 4x4!
 
  #23  
Old 07-12-11, 02:34 PM
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Both my vehicles are also paid for...2001 V-6 Tribute and 2004 I-6 Verona.....we use less than a tank of gas (more like 1/2 tank) per month unless we go for one of my wifes races or something. Trib gets about 24mpg and Verona gets about 26 (if I'm driving).

Even with the expense of having the Tributes trans redone to the tune of $2800 (about 7-8 months of a normal car payment w/o a good trade-in)....there's no way moving to a 35 mpg vehicle will pay off for us.

I wish I had a truck...but since the neighbor lets me use his whenever I rarely need one....whats the point.

Also...since they are both older vehicles my registration and insurance are way way below what a new vehicle would run.
 
  #24  
Old 07-12-11, 02:34 PM
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Lowest I've seen up here is 3.49 then .54 then .59 and yesterday it was 3.69

I guess it is because they can.

This Week In Petroleum
 
  #25  
Old 07-12-11, 03:02 PM
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....my registration and insurance are way way below what a new vehicle would run.
Exactly! Friend of mine, around 80, buys a new GMC pickup every 4 years or so. I don't know why, he never goes anywhere. On top of that, he has it rust-proofed. Makes no sense to me to pay the high license and insurance....at least it won't rust while he has it.

Vic: I just hit the high for the day....68.6 F.
 
  #26  
Old 07-12-11, 05:15 PM
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Last story I read was the speculators were guessing the supply might go down in 2012. The price went up 17 cents the next day. Florida might get a hard freeze next year too, but I didn't see orange juice prices spike.
 
  #27  
Old 07-13-11, 03:46 AM
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Well if prices didn't spike tremendously when that preacher predicted the second coming, weather, war, supply, etc is pure political hype (translated "control"). Of course with the second coming there won't be a need for anything, so logic must have kicked in.
The only price I keep an eye on is the bottom one. Diesel can change 20 or 30 cents in a day!! One station has it for $3.89, while one down the road 3 miles is $4.12. Not a lot of customers at station #2.
 
  #28  
Old 07-13-11, 06:53 AM
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I heard a report this morning (I think it was T.Boone Pickens) that the Obama administration has released 30 million barrels of oil in an effort to drive down prices. He said that most of that oil was purchased by speculators and put in storage in anticipation of higher prices.
 
  #29  
Old 07-13-11, 08:35 AM
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Jumped another dime today to 3.79

Something stinks somewhere.
 
  #30  
Old 07-13-11, 01:12 PM
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Baldwin -

Despite the foreign issues, it gets down to consumer demand. - When people can and want to drive, they will do it if the weather is good and they have the time.

I don't know where you are in northern MN, but the weekends have an effect on the demand and prices. This applies evrywhere. People like to roam on week-ends or when they time off. When 200,000(+or-) people head out to the north they have a to fuel up, buy gas for boats and fe-fuel to return home that pushed up the demand and the price. It is now temporarily increased by the number of state employees (laid off by the Governor's shut down of the state's economy) with free time to go to the "lake" that is usually "up north".

Dick
 
  #31  
Old 07-13-11, 08:45 PM
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Dick

Sorry, I can't make any sense from you post. If it matters, I live about 50 miles north of Duluth on Da Range.

I notice you only mention 'demand' and not what we've heard for a hundred years, supply and demand. If you look at the link I posted earlier you'll see we have plenty of supply. Remember a month or two ago when Saudi Arabia said they were going to cut back because the world is awash in oil? Go figure.

People like to roam on week-ends....
Not sure where you're going there, this was wednesday morning.

My niece works for the MPCA and they aren't going anywhere worrying about when the next check will be in.

(laid off by the Governor's shut down of the state's economy)
Sorry, I'm not touching that with a ten foot pole lest I get banned.

Set your alarm, The (British) Open comes on at 3 AM.
 
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