Price of gas and falling price of oil question

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Old 05-10-10, 11:36 AM
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Price of gas and falling price of oil question

Hi all,
Anyone ever notice the way the price of gas follows the price of a barrel of oil, almost immediate rising with increases in the price of oil ... but now that the price of a barrel of oil is some $10 - $13 off its recent highs that the price of a gallon of gas is still $2.95 at least here in the northeast?
Just wondering if anyone has heard if and when the gas price will begin following the oil price down?
Thanks,
Greynold99
 
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Old 05-10-10, 02:38 PM
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IMO they use any excuse they can think of to raise gas prices
Gas prices will go down when they have more than they can sell.

Local gas prices have slowly been creeping upward but a few days after the oil rig explosion they jumped 10-15 cents [$2.85 -2.90]
 
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Old 05-10-10, 03:06 PM
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I agree with the "any excuse" conspiracy theory. If the right person sneezes in the Middle East, pump prices go through the roof; it happens too often to be a coincidence. It's unfortunate that the oil/gas business is capitalism at its best/worst. Supply and demand rules this industry as much as, if not more than, any other. And, as with any other business, the primary goal of the oil and gas business is to turn a profit. Nothing wrong with profit; that's what I want my business to do. My $0.02 worth. - Chris
 
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Old 05-11-10, 09:19 AM
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Funny how the explosion of a platform that wasn't even producing anything can somehow affect the price at the pump the next day.... hmmmm.

But, beyond that, prices going up even when demand is going down is all part of the artificial demand that speculators in the "futures" market create when they all get together for their seasonal feast on the little people. They jump into the futures market on the speculation that demand will rise when the weather improves and America "hits the road" for the summer months. This "used" to be the norm and they would make a killing in the futures market.
Well, that was then and this is now. The "demand" isn't what it used to be because prices are too damned high, but the "demand" created by these speculators buying up futures becomes a self-fulfilling situation because of the way prices are set at the pumps on a daily basis. The "paper demand" is fulfulled almost immediately by the prices at the pumps now, when in the "olden days" there was a big lag time between the futures market and the pump price at the local gas station.
That's how the pump price went to almost four bucks a gallon when actual demand was falling a few summers ago. This could all be fixed by licensing those that speculate on oil and gas futures, but cries of limits on free markets will bamboozle people that know nothing about it into a complete frenzy, so THAT ain't gonna happen.
YOU DID WANT TO KNOW ALL THIS, RIGHT???? Have a nice day....
 
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Old 05-11-10, 07:12 PM
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Every time I see Smokey and the Bandit on TV, I feel depressed when I see those gas prices even though I never paid that little for gas. Cheapest I ever paid was $0.959 per gallon.
 
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Old 05-12-10, 03:39 AM
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Growing up in the 60's, no one cared about MPG. Heck, gas wasn't but 30 cents a gallon. We were running 409's with three deuces. Miracle we lived through it.
 
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Old 05-12-10, 05:12 AM
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I could never figure out how one gas station's price was always higher than others in the area.
 
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Old 05-12-10, 05:36 AM
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Gas stations [and now convenience stores] want your business. Most sell their gas for just pennies more than it costs them. Their real intent is to get you to stop and buy other products from them. Also volume still makes for lower prices. A big chain store can buy their gas cheaper than a little mom and pop store.
 
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Old 05-12-10, 06:27 AM
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Two stations in my neighborhood are consistently $.10-$.20 more a gallon than stations a mile or so around the area.
The one that is $.20 a gallon just happens to be a BP. Hmmm!
 
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Old 05-12-10, 07:10 AM
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Originally Posted by NEsportsfan View Post
Every time I see Smokey and the Bandit on TV, I feel depressed when I see those gas prices even though I never paid that little for gas. Cheapest I ever paid was $0.959 per gallon.

When I was in high school in the late 60's, gas got as low as 22 cents/gallon when the gas wars got going. I remember putting $2 worth of gas in my old '59 Ford and being able to drive to school for two weeks on that.
 
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Old 05-12-10, 08:36 AM
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Beachboy, that sounds incomprehensible to me. Wow, that word starting with I is more than half the minimum 25 charcters.
 
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Old 05-12-10, 09:07 AM
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when i was a kid in the 60's,the gas pumps had a different mechanisim in the fill nozzle. i could ride around,after the local stations closed - & drain the hoses in to the tank of my singile cyl 'mustang' motor scooter. would only get a couple of ounces at each pump. but hec a 16 year old had lots of time.
the price was only 18/20 cents a gal!
 
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Old 05-13-10, 05:18 AM
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Also had a mechanical reset that could be pushed during pumping that would click the $ and gals back to zero. Not that I ever did that myself.
 
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Old 05-13-10, 09:00 AM
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Down to just above $74/barrel of oil

Hey everyone,

Oil is down another couple of bucks since I first posted...
And the price of gas fell .06 Cents - $2.89/gallon
whoopee! I'm going out to dinner tonight... NOT!

That's the other thing I've noticed - when it goes up it's by 10 cents or more a gallon but when if falls, it's by nickles each time. If I'm remembering correctly, the last time a barrel of oil was $74 plus, the gas cost $2.39 a gallon.

greynold99
 
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Old 05-13-10, 10:22 AM
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It was $2.95 at the BJ's acoss the street from work. Paid $3.01 for a gallon to make mix for my weedwacker at a 7th Heaven near my house. 20 miles between home and work.
 
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Old 05-18-10, 11:09 AM
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Follow up to original post

Well still tracking price of barrel of oil vs. price of gas and the oil price is down nearly $20 from near $90 high two months ago.
Gas is down only $.06 from those highs but appear to be falling in city-areas nearby. Guess it won't get very far as we approach the Memorial Day Holiday...

One thing I've noticed I'm hoping someone can explain and I know it's tied to the oil markets being opened 24hrs/7days a week worldwide... but, when I left Friday oil was priced around $73.00/barrel, on Monday morning first thing it showed $77.00/barrel and has fallen in price consistently since then to just over $70.00/barrel.
Does anyone have a reason for what/why that price cycles over the weekend - usually higher on the International markets only to fall when the US Market opens?
Thanks
Greynold99
 
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