What's up with Fuel Prices ....
- Thread starter UNC201
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"then why are the big oil companies making such HUGE profits, considerably higher than before, even though there are "supposedly" shortages or refinery problems? Seems to me if the raw meterial was more expensive, prices would go up but profits wouldn't increase exponentially"
Kev - It's simple. It costs the oil co. $15-20/barrel to bring the product to market, then the market determines the price the producer is paid at the time of sale. Twenty dollar cost, 25 dollar sale, 5 dollar profit. 65 dollar sale, 45 dollar profit. This is what people refer to as the 'windfall profit'.
Mike
Kev - It's simple. It costs the oil co. $15-20/barrel to bring the product to market, then the market determines the price the producer is paid at the time of sale. Twenty dollar cost, 25 dollar sale, 5 dollar profit. 65 dollar sale, 45 dollar profit. This is what people refer to as the 'windfall profit'.
Mike
Oil company profits are not out of line. Their profit margins are not that high, they just have such massive volume.
Don't like them making money? Do something about it.
Don't like them making money? Do something about it.
On my way home today I noticed the Shell station was at $2.79, up from $2.65 yesterday. About 100 feet down the road, QuikTrip hadn't increased their price yet, so I made sure to stop and fill up; the place was packed too, I guess everyone made the same observation.
Regular unleaded here has went up 8 ¢ a gallon in the past week and now is @ $2.70 a gallon.
Looks by summer driving season which is just around the corner we will be paying over $3.00 a gallon.
Understand that it is already over $3.00 a gallon in some parts of the country?
Looks by summer driving season which is just around the corner we will be paying over $3.00 a gallon.
Understand that it is already over $3.00 a gallon in some parts of the country?
I couldnt' have said it better myself, everyone will become more and more negative towards spending
You really need to discount all of the people from California when you have a discussion like this because they "NEED" 300 different blends to satisfy their stupid socialist state EPA....then they all run and buy Toyota hybrids and believe they are saving the planet...which is really a joke because if they wanted to save anything 50% of them would move somewhere else and close the border to Mexico. Yet they keep on whining and attempting to take control of America so they can turn us all into fake tree huggers. Yet if they cared about the environment they would move away since the State is severely overpopulated for the geography......but none of them care so they just add more regulations and point fingers at us.....
Exactly.
The beauty of the capitalist system is that you can go from being a consumer of gas to a owner of gas with a few clicks of the button via Etrade.
When oil company profits went up, I added oil company stock to my portfolio. I now no longer care whether gas prices are up or not. Either way, I benefit.
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You really need to discount all of the people from California when you have a discussion like this because they "NEED" 300 different blends to satisfy their stupid socialist state EPA....then they all run and buy Toyota hybrids and believe they are saving the planet...which is really a joke because if they wanted to save anything 50% of them would move somewhere else and close the border to Mexico. Yet they keep on whining and attempting to take control of America so they can turn us all into fake tree huggers. Yet if they cared about the environment they would move away since the State is severely overpopulated for the geography......but none of them care so they just add more regulations and point fingers at us.....
No, we don't need 300 different blends, only 49 in summer and 37 in winter. That why the gas price in California is more than $3.00 more than a month ago, and it was $3.45 yesterday near my home.
Yes, it is severely overpopulated in the LA basin, that why the housing cost here is way out of whack. But I bought my house 10 years ago so that I am not worry about the current housing cost.
Yeah, all those "stupid socialist" mandates sure don't do anything...
Figure 1:
Average Number of Days per Year
Exceeding the Federal One-hour and Eight-hour Ozone Standards, 1975 - 2004
Figure 2: Percent of U.S. Monitoring Locations
Violating the Federal One-hour and Eight-hour
Ozone Standards, 1975-2004
If you could go back to last year, you would most likely find yourself saying the same thing. The recent rise in the price of gasoline is part of an annual cycle. If you were to look at a historical price chart, you would notice that the same trend happened around the same time last year. Here is one:
http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=24
The gradients on the curves are almost identical. It is almost eerie.
He would have to buy the stock during the winter when fuel prices are at their lowest, as when the fuel prices shoot up during the spring, people (myself included last year) rush to buy stock in oil companies and the stocks begin trading near/at their yearly highs; then the stocks decline and stay away from their highs until the following spring.
To summarize a long monologue giving a precise explanation of why the following statement is correct, anyone that wants to make money should stay out of the stock market to avoid losing it in the first place.
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Yeah, all those "stupid socialist" mandates sure don't do anything...
Figure 1:
Average Number of Days per Year
Exceeding the Federal One-hour and Eight-hour Ozone Standards, 1975 - 2004
Figure 2: Percent of U.S. Monitoring Locations
Violating the Federal One-hour and Eight-hour
Ozone Standards, 1975-2004
There are better ways to achieve those very same results than mandates that raise the cost of living. There are people that these mandates directly impact who refuse to live on welfare. Not to mention, many of these federal mandates are unconstitutional because they regulate intra-state commerce.
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Yeah, all those "stupid socialist" mandates sure don't do anything...
Figure 1:
Average Number of Days per Year
Exceeding the Federal One-hour and Eight-hour Ozone Standards, 1975 - 2004
Figure 2: Percent of U.S. Monitoring Locations
Violating the Federal One-hour and Eight-hour
Ozone Standards, 1975-2004
Awesome. Worth every penny and then some.
You don't live here and breath our air. Smog has been greatly reduced in LA. Yeah it costs more to live in CA, but it also costs more to live in the USA than the Third World.
There are many reasons to be in the stock market, not all of which involves "making money". There are investors, speculators and hedgers. When fuel prices are volatile, holding a counter-position on the supply side means you are hedged against price volatility....basic risk management 101. You buy and you hold. You don't try to time the market.
I agree that speculating on oil company stocks (i.e. trying to time the market) is, on average, a losing proposition.
We're up over a dime a week the last month or so here. Paid 3.01 for Sunoco regular, Exxon was 3.05 a few blocks down (location, location, right?)the road, Shell was 3.03.
Even the junk-gas stations are 2.95 or so.
Even the junk-gas stations are 2.95 or so.
Noticed today that regular unleaded had shot up another 9 ¢ a gallon?
Looks like soon it will be over $3.00 a gallon and summer driving has not even started yet?
Looks like soon it will be over $3.00 a gallon and summer driving has not even started yet?
You are CORRECT Sir!
I mean, Sr..
I mean, Sr..
*needs a CNG retrofit kit asap*
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