Why are gas prices rising while crude is falling?
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Probably refineries off line, or we had a glut of finished fuel and it sold for a lower price.
I didn't think $1.20/gallon was sustainable. Why would anyone else think prices would stay that low?
I didn't think $1.20/gallon was sustainable. Why would anyone else think prices would stay that low?
Originally Posted By: pbm
Are we getting screwed again?
IMO YES... Crude is cheaper than when I started driving yet the costs at the pump are double... I understand that labour costs have gone up since then but 'cmon.
Bet you we here about another record breaking profit!
Are we getting screwed again?
IMO YES... Crude is cheaper than when I started driving yet the costs at the pump are double... I understand that labour costs have gone up since then but 'cmon.
Bet you we here about another record breaking profit!
Originally Posted By: pbm
Are we getting screwed again?
Not again ,it is still
Are we getting screwed again?
Not again ,it is still
Originally Posted By: javacontour
Probably refineries off line, or we had a glut of finished fuel and it sold for a lower price.
I didn't think $1.20/gallon was sustainable. Why would anyone else think prices would stay that low?
Can't keep us out of our cars.
Probably refineries off line, or we had a glut of finished fuel and it sold for a lower price.
I didn't think $1.20/gallon was sustainable. Why would anyone else think prices would stay that low?
Can't keep us out of our cars.
Originally Posted By: Steve S
Can't keep us out of our cars.
And they know this... That's why it goes up slowly and not all at once.
Just think of a lobster in a pot of water, turn the heat up slowly and it quietly accepts it until it dies. Put the lobster in the boiling water right away and it will revolt!
Lobster = Consumer & Temperature = Gas Prices.
They are slowly turning it up on us and we are just used to it... How long before we feel the effects?
Can't keep us out of our cars.
And they know this... That's why it goes up slowly and not all at once.
Just think of a lobster in a pot of water, turn the heat up slowly and it quietly accepts it until it dies. Put the lobster in the boiling water right away and it will revolt!
Lobster = Consumer & Temperature = Gas Prices.
They are slowly turning it up on us and we are just used to it... How long before we feel the effects?
Originally Posted By: pbm
Are we getting screwed again?
Well, with lubricant.....
Are we getting screwed again?
Well, with lubricant.....
Originally Posted By: Bambam
Originally Posted By: pbm
Are we getting screwed again?
Were we ever not??
Nice!
Originally Posted By: pbm
Are we getting screwed again?
Were we ever not??
Nice!
GREED
A barrel of crude costs $40. A barrel of gasoline costs $53. Does this sound that out of line?
Gas was cheap because they had far more than they could sell, and now supply is back in line with demand.
An oil company here is rumored to be shutting in 400 oil wells (38,000 barrels per day of production) and a processing plant within six miles of my house.
Gas was cheap because they had far more than they could sell, and now supply is back in line with demand.
An oil company here is rumored to be shutting in 400 oil wells (38,000 barrels per day of production) and a processing plant within six miles of my house.
A month or so ago, when gas prices in Toronto dipped below 70 cents/L, half the stations would not sell you gas at that price. They said they were having "supply problems".
Originally Posted By: oilyriser
A month or so ago, when gas prices in Toronto dipped below 70 cents/L, half the stations would not sell you gas at that price. They said they were having "supply problems".
What a coincidence eh?
A month or so ago, when gas prices in Toronto dipped below 70 cents/L, half the stations would not sell you gas at that price. They said they were having "supply problems".
What a coincidence eh?
The refineries aren't repairing. I know people in the business of selling them the gaskets they use and business is really slow for them.
Its because they are refining less crude due to lower demand.Its been in the news.
Originally Posted By: rshaw125
Its because they are refining less crude due to lower demand.Its been in the news.
And what the oil companies tell the news is really the true story!
Its because they are refining less crude due to lower demand.Its been in the news.
And what the oil companies tell the news is really the true story!
For a little while we had a supply issue here, and I talked with a Petro-Canada engineer about it.
"It doesn't help us to break a $3,000,000 piece of equipment to jack the price of gas up to $1.40, because the whole reason it's $1.40 is we don't have any to sell!"
"It doesn't help us to break a $3,000,000 piece of equipment to jack the price of gas up to $1.40, because the whole reason it's $1.40 is we don't have any to sell!"
Well, you can speculate, or you can look at the DOE figures
http://tonto.eia.doe.gov/oog/info/twip/twip_gasoline.html#stocks
Demand is up and production is dropping. Those two factors will increase the price.
http://tonto.eia.doe.gov/oog/info/twip/twip_gasoline.html#stocks
Demand is up and production is dropping. Those two factors will increase the price.
Yep. Intentionally drop the supply, know the demand is staying pretty much the same and watch the price increase.
Saw that crude was $37 a barrel. Watch the wholesale price of unleaded (RBOB) rise steadily. Why? Demand is dropping, the price of crude is dropping, that means profit and revenue are dropping. So they cut supply to reverse the revenue trend.
No different than in, say, the restaurant business. Not as many customers? Average sales ticket decreasing steadily? Then reduce the size of portions, sell cheaper versions of dishes (less beef and chicken breast, more pre-made chicken fingers, more soups and salads). Gotta raise revenue and profit margins somehow, so start cutting supply, services and quality. It's the American Way!!!
Saw that crude was $37 a barrel. Watch the wholesale price of unleaded (RBOB) rise steadily. Why? Demand is dropping, the price of crude is dropping, that means profit and revenue are dropping. So they cut supply to reverse the revenue trend.
No different than in, say, the restaurant business. Not as many customers? Average sales ticket decreasing steadily? Then reduce the size of portions, sell cheaper versions of dishes (less beef and chicken breast, more pre-made chicken fingers, more soups and salads). Gotta raise revenue and profit margins somehow, so start cutting supply, services and quality. It's the American Way!!!
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