rise in gas prices

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  #1  
Old 03-14-16, 01:11 PM
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rise in gas prices

Has anything happened in the last 24 hrs to justify a 20 jump in gas prices? Yesterday [like most of the previous week or so] most stations were at a $1.59 per gallon but when we went out today the same stations had $1.79 on the signs.
Not going to complain too much though as it sure beats $3 per gallon gas
 
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  #2  
Old 03-14-16, 01:41 PM
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So far, we didn't have that much of an increase. However, I assume that someone realized that the increase in production that occurred awhile ago wasn't the best idea. The increase started in America & spread to the mid-east. The other reason that gas prices dropped was simply because people have less money to spend. At least we had a little vacation from high prices.
 
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Old 03-14-16, 01:46 PM
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It is still a high price vacation
Before gas prices fell the first time it was approaching $4 a gallon locally
 
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Old 03-14-16, 01:48 PM
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It was over $4 in some places. Enjoy the vacation!
 
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Old 03-14-16, 02:06 PM
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Prices here have gone up a few cents in the last week or so. Next week the airlines will probably raise their fares by 10% due to increased fuel costs.

My SIL and daughter get a small monthly check from an oil company that pumps oil from wells on his father's family farm. The low oil prices have them torn between whining about smaller checks and enjoying paying less at the pump since they both have 80 mile daily commutes.
 
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Old 03-14-16, 02:23 PM
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It is just a supply/demand storage capacity experience that is not anything new. There is only so much storage for oil in the near term shipping and refined oil is not better. The oil producers pump as much as necessary to the refineries capacity/storage and balance that against the long term reserves.

We see a lot of short term pricing tactics by gas dealers here. - Especially before and after a week-end where there are a few hundred thousand people evacuating for a nice week-end or deer season.

It is supply and demand on a short term basis (days not months).

At least the gas dealers are getting a chance to replace the 3's and 4's and use up the 1s and 2's.

Dick
 
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Old 03-14-16, 02:45 PM
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Gas stations make profit on volume not on price unless they are "price gouging".
 
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Old 03-15-16, 07:18 AM
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About 1 1/2 weeks ago I heard on the radio that OPEC had decided the "every man for himself" approach wasn't working so they planned to go back to limiting supply. I filled up that afternoon. Next day every station I passed on my 30 mile commute had gone up 20-30 cents.

Funny how while the prices were so low the airline tix didn't come down and shipping fuel surcharges never went away...They'll probably use the recent increase as an excuse to ratchet them up even more.
 
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Old 03-15-16, 07:25 AM
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Around here, gas reached a low of around $1.41, thanks to a gas war between 2 competing stations. But most stations stayed around $1.55 for quite a while. Then when the news reported that oil had risen 10%, prices quickly jumped 25%. Now its around $1.99.

This is definitely price gouging. At that rate, if oil ever gets back to where it was... $90-100/barrel... gas will be $10/gal.

I'm sure they will blame it on the transition from winter blends to summer blends or something that sounds plausible.
 
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Old 03-15-16, 07:28 AM
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About 2 weeks ago it jumped about .16 overnight; hasn't changed much lately. Running average of $1.79 currently (have to keep the prices high to gouge the snowbirds you know).
 
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Old 03-15-16, 07:36 AM
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Lowest I saw a few weeks ago was $1.39 but I didn't need gas that day. Two days later when I did, that station was up to $1.59. I saw $2.09 driving in this morning.
 
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Old 03-15-16, 08:54 AM
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Just seems to me that if oil goes up 10%... the price of gas should not go up MORE than 10%. In fact, it should go up LESS than that, since the oil itself is not the most expensive part of the refining process.... while the price of oil is a factor, the cost of refining it into gasoline remains basically the same.

Kind of like the changing price of corn doesn't affect the price of Corn Flakes that much... the corn itself is not the most expensive part of making the product. Its running the facility, paying the workers, shipping the product... and all those factors remain constant. The price of crude oil should not affect the price of gasoline so dramatically. Its all hype and futures trading.
 
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Old 03-15-16, 09:23 AM
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I agree how they raise prices doesn't make sense. What really bugs me is how they raise the price of the fuel that is already in the station's tank. It would seem to me that the fuel would have a set price when it's delivered and the cost shouldn't vary until the next shipment but they have dozens of reasons why that ain't so
 
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Old 03-15-16, 10:03 AM
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The daily price of the crude actually has little to with the daily price of gas.

There is a big time lag, many processes (piping or tankers, etc.) just to get it to refinery and then into to a local dealer if he has the storage capacity to take advantage of the short term price changes. There will usually be price differences between states. - It is hard for a small local pumper/station to make a profit. No sane person would sell gas based on the price they paid to fill the station tank and they just have to compete with other.

It not a simple as equating gas or diesel prices changes to the price of crude oil in Saudi Arabia.

Dick
 
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Old 03-15-16, 10:04 AM
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Funny how prices can jump up so dramatically in a couple of days, but take weeks (or more) to go down a few cents.

IMO, there's no reason gas ever needs to be more than $2/gal.
 
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Old 03-15-16, 12:36 PM
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You wouldn't believe how quickly prices can raise around here. They say it's because of demand or special blends. I'm convinced they only do it because they can. The prices always increase around Thursday or so, just before the weekend.
It's been good lately though even with gouging, about $2.75 or less. A few years ago I was paying over $5.00 a gallon and that hurt.
 
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Old 03-15-16, 01:13 PM
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We got up to about $4.25 a gallon at the peak and that was when my wife and I were driving 60,000 miles a year between us. I estimated we were spending $600/month on gas at that point.
 
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Old 03-15-16, 01:21 PM
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Don't tell your insurance company that you drive that much. The will raise your rates.
 
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Old 03-15-16, 01:31 PM
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I don't any longer, work is now 1 1/4 miles from home
 
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Old 03-15-16, 06:56 PM
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Dick's (Concreremasonry) explanations are about as accurate as you gonna get. You're spot on.

It's catch 22. Right now the solar industries and electric car industries are taking a beating. But if they hold on it will come back to there side.

It may take awhile but I think we are seeing the beginning of the end for the petroleum industry as being the primary economic force in the energy field. Similar to the whale oil industry of two centuries ago.
 
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Old 03-16-16, 04:58 AM
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Well, the spike hit here yesterday, up .20/gal to $1.99.
 
  #22  
Old 03-16-16, 05:22 AM
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Forty years ago during the first "oil crisis" we were told that the world was running out of oil and new sources of energy would have to be found. By the time the artificial crisis had passed, prices had tripled and supply returned to normal. Four decades later, while oil reserve numbers can be disputed, there is zero indication that the supply will diminish anytime in the foreseeable future.

Oil prices, reserves and production are all about politics, speculation and marketing. As long as there is oil available it will continue to be the primary energy source. Given the increased pressure to reduce emissions from coal burners the demand for oil will probably increase.

Alternative energy sources (solar, wind) have a long way to go to replace petroleum. They have their own problems with cost and (in)efficiency. I don't think any of us will still be around when that happens. Even if electric cars were to replace gas guzzlers, oil would probably be the fuel that provides their electricity.
 
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Old 03-16-16, 02:35 PM
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Gas has gone up 40 cents in two days. Diesel has only gone up 10 cents or so. I like that. Gotta fill up tomorrow, so I hope it doesn't spike overnight.
 
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