gas prices


Old 07-07-12, 05:01 AM
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gas prices

What happened to gas prices this week? I bought gas for $2.86 a gallon last week, went to town tuesday and they were down a penny. Went out with my wife to eat last night and every station I passed was $3.09. Over 20 cent rise in 3-4 days seems extreme
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Old 07-07-12, 05:06 AM
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Probably because of July 4th week. A lot of people on vacation going places, so a way to make some extra bucks!
Old 07-07-12, 05:18 AM
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No, there must have been something else. I was going to post a note this morning. Thursday p.m. (post 4th obviously) I paid $3.07 and Friday morning driving by my favorite fill-up the price was $3.25. I figured some oil speculator sneezed.
Old 07-07-12, 08:32 AM
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I saw a report on the news trhis AM that oil prices were headed back up. They blamed Iran's threat to close the Straights of Hormuz. IMO it's all BS. The news media has the same guys guessing why oil prices go up and why the stock market goes down. Idiots. A speculator sneezing is a lot more likely.

In my area gas stations are shifting to cash price vs credit card price to squeeze more money out of the customer. Cash $3.65, credit card $3.75 and they consider debit and ATM cards the same as credit.
Old 07-07-12, 12:50 PM
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Gas went up slightly (10 cents) over the past few days, but diesel has remained the same and is trending downward for the time being. They sneeze through their mouth and nose, and I don't think that is where it is coming from
Old 07-07-12, 06:58 PM
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We produce oil here in the USA correct? Who should irans threat or if oils fields in Kuwait blow up affect our prices. its just a excuse to raise prices. gas stations don't see any profits in gas anyway. they make money off of food and other stuff they sell.
Old 07-08-12, 06:57 AM
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We don't produce enough oil in the US partly because of restrictions on exploration and drilling. What many don't realize is that the US is also a major petroleum product exporter. Annual exports have risen dramatically in the last decade.

The real problem with prices is speculators. Any uncertainty in production and they sieze on it as an opportunity to make money. The US competes in a global market and emerging industrial nations like China and India have made that market even more competitive. Especially since they are buying thier oil with American dollars.

Don't believe the BS that gas stations don't make money on sales of gasoline.
However, retailers are not the driver in gas prices. They may make more on sales of fat pills but their net averages 7-8 cents per gallon a lot smaller margin than the fat pill but still a profit.
Old 07-08-12, 08:01 AM
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Oil is sold on a global market. If it wasn't, then the politics in the middle east wouldn't affect our prices. You can see some of that at work with the spread between west texas crude and brent crude. All that new oil production in the upper midwest and Canada can't find its way out to the global market. So that is causing the price of west texas to be lower than brent. Once they put those pipelines in, the price will go up.
Old 07-30-12, 08:18 AM
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"The news media has the same guys guessing why oil prices go up and why the stock market goes down. Idiots."


Old 07-30-12, 09:29 AM
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With what appears to be a poor corn harvest this year, and much of the corn committed foreign countries and to making ethenol, things could get really interesting later this year.
Old 07-30-12, 10:33 AM
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The North Dakota will not make a real dent in the supply since the costly facilities are being constructed and the distribution systems are following. The process of getting the crude/sand ready for shipping to refineries and the construction cost is great and manpower is limited. Commutes for very costly construction workers from a costly location to the work site can be 100 miles per day and local housing is not available at a half-way reasonable price since it is short term. That is a double whammy to get into the pipeline and the oil could go almost anywhere based on the market price.

Differences in the market price of gasoline in comparison to diesel depend on the available inventories, storage capacities of the refiners and distributors. If there is an excess inventory of one type of product, the price goes down to unload it. If they are short, they raise the price because it is more valuable. the product and products produced by refiners is made long in advance of the actual resale of the particular product.

It is not as simple as the cost of production, since the market is determined by many other sources. That is the reason so much oil is exported to countries like China is because the price paid is higher than what can be made by refining and selling in the U.S. - The low value of the dollar contributes to that.


Last edited by Concretemasonry; 07-30-12 at 10:58 AM.

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