Gas Prices~

It's pretty ridiculous that the price per gallon hasn't dropped, it's trading between $90 to $91/barrel . . . gas was $3.99/gallon when it was at $112/barrel. It just doesn't make sense that it's still $3.74/gallon. Oh well, not much we can do about it, other than keep trying to reduce consumption.

give the boomers something to throw money at that has a return - and the problem is fixed.

3.99/gallon divided by 112/barrel = 3.5625%

90./barrel X 3.5625% = $3.20/ gallon


Too bad it can't be that simple!!

its like 3.40 in FArgo

the only thing that will drop gas prices is us.  as long as we keep buying it, the prices will keep going up no matter how much oil is available.  speculators just keep pushing the price up until consumers start buying less, then they back off a bit until we're used to paying the new price...and so on.

multi,thats exactly one reason they opened up the reserve,less demand nationally and over supply plus opec did'nt stepup last quarter,further they claim they want to help the consumer and force the speculators to bet on how low the crude prices go rather than how high.

But doesn't the world like consume more than 60 million barrels a day?  I think the US consumes something like 18 million a day.  so 60 million is a "Drop in the Barrel".

I'm suprised gas goes down at all, ever. So many things are related to fuel and all of them are going up in price. Groceries for instance are about to take a big jump again and food like most thing are directly related to fuel costs whether its farming/ranching processing or shipping. Tack the fact on that people are putting food into their gas tanks make groceries go up even higher. Mainly however if comodity prices did fall, the effect seen on the consumer side(where me and you buy it) is very minimal and in many cases nonexistant. Might see a few cents cheaper on milk or eggs or produce, but never even close to something comparable to a large drop in price from a producers standpoint. Even more if by some craziness wheat and barley were to fall through beer would never be cheaper, going to a restaurant will never be cheaper, taking the family out for the day will probably never be cheaper. There are a few exceptions that i can think of but they are mainly competition based look at pizza hut, a person can feed a pile of people for $40. A good example of much of this is the oil boom out here, there is a lot more activity and commerce and population however the price of everything skyrockets. Many people say all these guys working in the oilfield are making so much money but these guys pay the same bills everyone else does so are they really scoring as big as people on the outside are saying? Not really. I wish gas would go down just like many other things but like I said I'm suprised it fluctuates as much as it does in the downward direction at the pump because basically if people are going to buy enough at $4/gal to justify having the price that high then there is no reason for anyone in the business to lower it.

seaofgreen Said:
But doesn't the world like consume more than 60 million barrels a day?  I think the US consumes something like 18 million a day.  so 60 million is a "Drop in the Barrel".

I believe the world consumes around 85M barrels per day, and I think you're correct on the US consumption. That 60M barrels is pretty much worthless in helping with prices.

US consumption of crude oil runs around 20 - 21 million barrels a day. Crude oil is traded on the commodity exchange market, just like other commodities such as heating oil, unleaded gasoline, natural gas, grain, cattle and oranges.

Just because gasoline is made from crude oil doesn't mean it follows the same trends in pricing in the commodities pits. The people trading in the gasoline market watch demand and usage for that product as much as they watch the price of crude oil. Add to that the fact that gasoline (and crude) is priced and bought on a future delivery date and you start to understand why gasoline prices hang up there as high as they do for as long as they do.

I watch the markets every day and gasoline hasn't dropped as much on the commodities markets as crude has, but it's dropping all the same and we should start seeing some relief by next month I'm guessing unless the prices start going the other way.

Crude has very little to do with the price of Gas.  The U.S. has not increased refining capacity in 40 years.  Right now we have Crude Oil sitting at the pier waiting to be refined.

CPO Said:
Crude has very little to do with the price of Gas.  The U.S. has not increased refining capacity in 40 years.  Right now we have Crude Oil sitting at the pier waiting to be refined.

This is a large part of the problem.  I'm not sure of all the hang ups behind building refineries other than EPA for sure. 

fisherman25 Said:

CPO Said:
Crude has very little to do with the price of Gas.  The U.S. has not increased refining capacity in 40 years.  Right now we have Crude Oil sitting at the pier waiting to be refined.

This is a large part of the problem.  I'm not sure of all the hang ups behind building refineries other than EPA for sure. 

This has a significant amount of validity.  The price of crude already dropped $25 a barrel 120 to 95 before they released this strategic reserve today.  IMHO it is a political play in order to help the current administration.  It will do little for prices at the pump, but help the view of our "chosen one" when prices were coming down on their own already.  Almost everything our current commader-in-chief has done has related to his agenda and little to do with helping our country.  I hope we can figure a way out of our current situation.  I think we can, we just need very good leadership.  It is obvious this is a political play, because the last time we did this was for much better reason(Hurricane Catrina).  God Bless this country.

Captain Ahab Said:

fisherman25 Said:

CPO Said:
Crude has very little to do with the price of Gas.  The U.S. has not increased refining capacity in 40 years.  Right now we have Crude Oil sitting at the pier waiting to be refined.

This is a large part of the problem.  I'm not sure of all the hang ups behind building refineries other than EPA for sure. 

This has a significant amount of validity.  The price of crude already dropped $25 a barrel 120 to 95 before they released this strategic reserve today.  IMHO it is a political play in order to help the current administration.  It will do little for prices at the pump, but help the view of our "chosen one" when prices were coming down on their own already.  Almost everything our current commader-in-chief has done has related to his agenda and little to do with helping our country.  I hope we can figure a way out of our current situation.  I think we can, we just need very good leadership.  It is obvious this is a political play, because the last time we did this was for much better reason(Hurricane Catrina).  God Bless this country.

Impossible.   Our Tormentor-In-Chief would never play politics.   I'm actually surprised he didn't try to ban all domestic oil and gas production in a perceived attempt to save the environment.   He case so much you know.    He and his admin have said they need high gas prices to successfully implement their "green energy" plans.    Now I know why they call it "green energy" it's because their plan sucks the green right out of your pocket book.

So, it seems that there is a consensus that the price per barrel has little to do with gas prices. To me that seems to go only one way, when prices soar (per barrel), the price per gallon also goes way up, however, when it drops back down, the price per gallon does not. The whole system just sucks, we get screwed no matter what.

Nanky Said:
So, it seems that there is a consensus that the price per barrel has little to do with gas prices. To me that seems to go only one way, when prices soar (per barrel), the price per gallon also goes way up, however, when it drops back down, the price per gallon does not. The whole system just sucks, we get screwed no matter what.

My thoughts exactly.  Whenever oil jumps, gas prices go up accordingly and they usually give higher oil prices as the reason.  When oil goes down you hear..."gas isn't really linked to crude oil prices."  Screw job for sure

finance.yahoo.com/news/Why-Gas-Prices-Should-Be-dg-1083875141.html

Yahoo had a great article regarding gas prices this morning, it's worth a read. Here's the real answer for why prices don't fall:

Yes. Crude oil prices have fallen more than 20 percent from their May peak. But don't expect a sharp decline in the price at the pump in the next few weeks. Gasoline station owners buy new supplies every couple of days. So when their costs rise, they feel compelled to pass along the higher prices to consumers instantly — as a matter of survival. The opposite dynamic takes hold when oil prices are falling.  As wholesale gas falls in price, profit margins expand, and station owners are in no rush to ratchet down the price at the pump.

Ask any gas station owner and they will tell you that they don't make any money on gas, what a load of crap. They raise prices based on future contracts, then keep it high when the price is cheap . . . I'll just bend over right now, hopefully they will use some lube this time.

Why is gas in Lisbon ND on Wednesday $3.44 and $3.74 in Bis? 

polarisman Said:
Why is gas in Lisbon ND on Wednesday $3.44 and $3.74 in Bis? 

Because almost all the gas stations in Bis are all owned by 2 families, so they raise and lower prices together (colusion) . . . and we have no where else to fill up. So, again . . . because they can.

Nanky,.

You pretty much hit the nail on the head,yeah it sucks big time~