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post #1 of 16 (permalink) Old 02-05-2009, 09:35 AM Thread Starter
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Gas prices?

Ok ok... here we go again.

Can someone educate me as to why our prices are still high (relative term)? Oil has been coming down from $47/bbl down to darn near $40 flat, and gasoline keeps rising. Its $1.70 around here right now...up $.10 from just the other day. Just a couple months ago, gasoline prices were $1.27 with the current oil prices. So there must be something between the refineries and the gas stations... Are they shutting down refineries or cutting back gasoline production?

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post #2 of 16 (permalink) Old 02-05-2009, 09:36 AM
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You are not allowed to bitch about gas prices!!
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post #3 of 16 (permalink) Old 02-05-2009, 09:38 AM
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From what i understand the refineries are cutting back causing the price of gas to go up even though the price of oil is actually going down.

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post #4 of 16 (permalink) Old 02-05-2009, 09:39 AM
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I read an article not too long ago they (gas stations) make a higher margin of profit the lower price per barrel goes. Basically, we're not complaining because it ain't $4 gas, and they're milking all they can get away with.

Gas future is showing $1.23 at the moment.
http://www.bloomberg.com/markets/com.../cfutures.html

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post #5 of 16 (permalink) Old 02-05-2009, 09:39 AM Thread Starter
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You are not allowed to bitch about gas prices!!
lol.. Im just trying to understand what is going on in our current oil scene. Fill ups are still way cheaper and I am thankful ($4/gal was a bitch), but I have not read anything lately that has justified the spike in prices...which is why Im wondering why it is happening.

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post #6 of 16 (permalink) Old 02-05-2009, 09:41 AM
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At least diesel has come down to within 25-40 cents of gas now, instead of $1 more.

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post #7 of 16 (permalink) Old 02-05-2009, 09:47 AM
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Originally Posted by 8mpg View Post
Ok ok... here we go again.

Can someone educate me as to why our prices are still high (relative term)? Oil has been coming down from $47/bbl down to darn near $40 flat, and gasoline keeps rising. Its $1.70 around here right now...up $.10 from just the other day. Just a couple months ago, gasoline prices were $1.27 with the current oil prices. So there must be something between the refineries and the gas stations... Are they shutting down refineries or cutting back gasoline production?
blame the refineries...they don't like making very little profit, so they purchase less oil (even though the reserves are ballooning) and, in turn, put less refined fuel on the market, driving up the price. wholesale gasoline was around .90/gallon before the refineries started playing games, and now it's up around 1.25/gallon.

add taxes of .39/gallon and add ~5% profit, and you get what the retail price is.

1.25 + .39 = 1.64 X 1.05 = 1.72.2/gallon


those guys always figure out a way to make the best of a situation...they'll make money when oil is down or up.
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post #8 of 16 (permalink) Old 02-05-2009, 09:55 AM
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Obamas way of stimulating the economy at the refinery level

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post #9 of 16 (permalink) Old 02-05-2009, 09:59 AM
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Supply and demand...
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post #10 of 16 (permalink) Old 02-05-2009, 10:09 AM
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Supply and demand...
the bad part is that demand is steadily decreasing, so the only way to make more money is to shrink the supply.
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post #11 of 16 (permalink) Old 02-05-2009, 10:25 AM
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I am still not complaining. I am loving sub $2/gal fill ups.

Only in this day in age would I wake up after having a nightmare that gas went to $6.06/gal

Man I was happy when I realized it was a dream.




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post #12 of 16 (permalink) Old 02-05-2009, 10:44 AM
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I am still not complaining. I am loving sub $2/gal fill ups.

Only in this day in age would I wake up after having a nightmare that gas went to $6.06/gal

Man I was happy when I realized it was a dream.
Its $2.17 here in california

Makes $1.76 gas look like a bargain.
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post #13 of 16 (permalink) Old 02-05-2009, 10:44 AM
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Quote:
Originally Posted by IHaveAMustang View Post
I am still not complaining. I am loving sub $2/gal fill ups.

Only in this day in age would I wake up after having a nightmare that gas went to $6.06/gal

Man I was happy when I realized it was a dream.
Hopefully that wasn't a prophetic dream. Who knows with Obama. His ass raping of the American public is like the Chinese practice of Ling Chi.

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post #14 of 16 (permalink) Old 02-05-2009, 10:47 AM
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Its $2.17 here in california

Makes $1.76 gas look like a bargain.
what area of cali are you in? i heard that most areas of cali were under $2 just last week...i guess that they've gone up again?
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post #15 of 16 (permalink) Old 02-05-2009, 10:58 AM
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what area of cali are you in? i heard that most areas of cali were under $2 just last week...i guess that they've gone up again?
san diego. It seems to go up about .01 or .02 a day.

I have another theory on this. The producers of gas already know that we've paid $4 a gallon, so anything less than $2 will be seen as a bargain by most. So they slowly ratchet up the price, a penny a day, until they start to meet some price resistance. The fundamentals (oil at $40) suggest that there is no reason for a price increase other than market manipulation. So I look for gas to park just under $2 a gallon until oil takes off again.
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post #16 of 16 (permalink) Old 02-05-2009, 11:11 AM
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Originally Posted by mikeb View Post
san diego. It seems to go up about .01 or .02 a day.

I have another theory on this. The producers of gas already know that we've paid $4 a gallon, so anything less than $2 will be seen as a bargain by most. So they slowly ratchet up the price, a penny a day, until they start to meet some price resistance. The fundamentals (oil at $40) suggest that there is no reason for a price increase other than market manipulation. So I look for gas to park just under $2 a gallon until oil takes off again.
that's the part that's strange, though...we're still slowing down on fuel consumption, so what else do you do besides picket outside of the refineries or something?
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