And just when I go green for the day, 5 different issues out on loan. Nice!
*Investors Blog*
- Thread starter Warstud
- Start date
T talk moving the markets this am 
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Gas prices here are the same they were a year ago - even with a big decrease in oil prices. Do you think it has anything to do with how much gasoline the US exports?Wasn't paying attention today - other important matters. However looking now - things were a bit of a mess it seems. You had a terrible 20 year auction - fat tale, low bid to cover - which caused your sudden collapse at around 1:00PM - 10 year and 30 year are back at the levels that makes everyone real nervous. At the same time you had a big surprise build in oil inventories (gas here still up though)
I may ease into some hedges tomorrow, there still pretty cheap comparatively.
What is your take on why gasoline has such high profit margins currently?
Loans were returned yesterday.
So how much do you make for a 2 day loan - roughly?
Around $60. Not much, but no work involved and doesn't impact normal interest paid.
Was not a full two days, closer to one day actually.
The odd part, I have the same amount of shares in three different accounts. These shares the $ worth is exactly the same in each account. They were loaned out at the same time*, at the same rate, yet each amount paid is slightly different this AM.
*I think it must be a time thing. Interest by the hour, the minute?
You mean beyond price fixing? Honestly your asking the wrong guy. Retail gas goes up on a Rocket and comes down on a glider. I can only speculate why.
A generic answer is gasoline price is a function of crude, refining, transport, and retail margins. Refining is currently expensive because we lack capacity. Transport is roughly constant. Retail margins change based on time of day?
My guess is the prices are high because its Memorial Day. If travel this year is low we might see cheap prices this summer. If lots of people drive we will not.
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I saw this as a opportunity to ask someone who has shown knowledge on the oil industry in the past.
I understand gas prices lag the oil prices, it seems to be a lengthy lag this time around. Memorial day sounds like the logical answer.
Well any expertise I pretend to have ends at the local distribution depot.
Having said that, you can look at it pragmatically and try to figure it out. Here are all your numbers. Wholesale price of gas (which would include everything to the depot - is around $2 except in California. https://www.eia.gov/todayinenergy/prices.php
And average retail is $3.20. You can see from the chart below or the link, that almost every input is going down, but retail prices changed 0%. I am sure your shocked / sarc.
So yes, I do believe that retail prices are highly manipulated. Its really the only thing that can explain the difference in spreads.
FYI, in the greater SF Bay Area, rag is close to $5 per gallon which is almost 50 cents cheaper than last year at this time, I believe.
I don't think about it much because I think retail margins are the biggest part of it. I can literally drive around South Carolina and find prices being a dollar difference at different places across the state. Realize Its a pretty small state. $2.61 this morning at one place. All the others were almost $3
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The go up quickly but come down slowly when the oil price changes. It's as if a signal for all independent parties to act in unison.
Gasoline prices here are down 10+ % compared to Jan. This may be the tip of the iceberg.
WTI is falling and so are the pump prices, I saw $2.09 in town today.
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Hopefully that fall comes our way. Currently 3.49 is the low end here in Illinois.
Our fuel is always higher than national average, due to the EPA mandated summer blend with a lower vapor pressure.
reduced refining capacity
WA state says here hold my beer
$5.48 a gallon near the UCLA campus.
