12 votes

Oil hits $80.00 a barrel today...

Then why is gasoline still hovering around $3.50 a gallon?
Has inflation and the drop of the value of the dollar increased the price of gas over a dollar since the last time the price of oil was at this level?
Or is it just the greed of the oil companies? If the price oil would start to go up. There would not be a lag in the time the rates would raise. So why is it taking the gas prices so long to sink?

on this link if you scroll down you can see the price of oil compared to the price of gas in the past years...
http://www.democraticunderground.com/discuss/duboard.php?az=...




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so what?

10 f**king years ago it was less than 20 !!!!!

donvino

It was nearly $4/gal. a couple of months ago. Now it's $3.12.

It also happens to be summer driving season; and, I believe gasoline is refined in the winter and diesel in the summer. So I wouldn't expect it to drop too far until close to the election, to give Obama a boost.

Also, remember how Alex's Jones' "minister to the Oil elites" was predicting $200/barrel by fall? Either the guy was always a crank or the elites are losing their grip.

most likely that was for the July or August contract

the price 30-60 days from now will reflect the change. oil is sold on various contracts - you have to look for the dates.

Just adding besides other

Just adding besides other factors, summer is always more expensive because of government regulation, taxes, and requiring them to refine the oil into gasoline differently depending on what area you are from. That means the market is fragmented around the United States with different costs.

All that drives up the price artificially.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Its $3.24 around me.

Its $3.24 around me.

To climb the mountain, you must believe you can.

They've gotten people used to paying $3.50/gal

Please remember- oil is a commodity just like lumber, wheat or screwdrivers. If the market has grudingly accepted 3.50, what would YOU do if you were an oil company CEO (who's job it is to maximize profits for shareholders) in a free market- Lower prices? Energy is a business FOR MAXIMUM PROFIT. If oil went to a dollar a barrel, but people recognized SO MUCH VALUE in a gallon of gasoline that they were still willing to pay 3.50 for it, would you lower the price just because you're a humanitarian?

Get government COMPLETELY OUT OF ENERGY and the free market will determine exactly what is the appropriate price for a barrel of oil.

SteveMT's picture

Gasoline isn't coming down because it's being exported,...

along with diesel and jet fuel. They were the three biggest U.S. exports last year. Believe it.

1/3/2012 Gas, Diesel, Jet Fuel are Top U.S. Exports

America is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. A decade ago, fuel wasn't even among the top 25 exports.

While exports of refined petroleum products are up in dollar terms, export volumes are still dwarfed by America's much, much larger imports of crude oil. According to the Associated Press, from January to October, the country imported 2.7 billion barrels of crude oil worth roughly $280 billion, while fuel exports in the same period totaled an estimated $88 billion.

The U.S remains the world's largest importer of crude oil and the country is still a long way from energy independence, but this upward trend in fuel exports is significant.
http://www.truckinginfo.com/news/news-detail.asp?news_id=75660

I don't think you know what you are talking about.

I mean to a point you are correct.

But the reason why that is ...

is because of exactly what one person said below and you told that person they didn't know what they were talking about.

Refinery capacity dictates supply.

All those things have something in common that crude oil lacks.

It needs to be refined.

The multinationals prefer to refine in this country because there is reason to believe that this country is least likely to nationalize their operation. Additionally there is some proprietary technologies involved and this country tends to protect that stuff unlike countries like China.

There are a limited number of refineries for many, many reasons.

But the fact is that there are not enough to bend the supply curve steeper than the demand curve.

It is that simple.

Gasoline prices are set at the market. The market is a world market. Anybody from anywhere in the world can buy and sell gas futures. Your explanation seems to be retarded of that fact.

Carry on.

SteveMT's picture

Read the link. Attack them not me, rhino.

Your attacking me seems much more retarded. You can go back to your cave now.

In a first, gas and other fuels are top U.S. export
Updated 12/31/2011 2:18 AM
http://www.usatoday.com/money/industries/energy/story/2011-1...

America’s top export in 2011 was . . . fuel?
Posted by Brad Plumer at 02:17 PM ET, 12/31/2011
http://www.washingtonpost.com/blogs/ezra-klein/post/americas...

Again ... I think you are completely wrong.

"We have plenty of refineries. They are shipping 30% over seas. World supply and demand and not national is driving prices. We are not in control any longer."

You posted that.

Additionally, the article is simply pointing out why the price of gasoline is still high. It points to higher demand abroad.

You are mixing apples and oranges.

If we had plenty of refineries, gas would be under $2.00.

I don't think you understand simple economics.

I am sorry you feel attacked.

I was merely pointing out some facts.

And I didn't call you retarded.

That would have been a personal attack (either upon you or those that other's consider retarded.)

SteveMT's picture

Say "they are wrong," not I am wrong. There is a big difference.

I am bringing the facts, and you are bringing your opinions with nothing backing them up. Argue with them. I posted this information as an FYI. Take it or leave it. You don't have to belief it. Argue with them.

Where does it say ....

"There are plenty of refineries."?

I am trying to figure out if you are being obtuse or stubborn.

To which shall I attribute your dishonesty?

SteveMT's picture

If the U.S. is exporting finished gasoline, deisel, & jet fuel,

do we lack refineries? We have plenty of refinery capacity because the U.S. is in a depression. We are not consuming like before. There are millions out of work. We have excess refinery capability because of this depression we find ourselves in. The excess is being sold to other countries.

Why do you keep attacking me? Now, I'm dishonest, stubborn, and obtuse. You need an attitude adjustment.

Why Is Gasoline Consumption Tanking?
See chart at link.
http://www.zerohedge.com/news/guest-post-why-gasoline-consum...

Quote ...

"We have plenty of refineries because we are in a depression."

O.K. ... maybe there was a third option. Sorry about that.

By the way ...

The sun is shining because my car is running.

The water is cold because my computer is on.

And my foot hurts because my daughter turns 9 next month.

Carry on.

I thought the US's biggest exports were

terrorism through drone strikes and debt. But I'll take your word for it and add in your 3. lol

SteveMT's picture

Officially reported exports.

You're right. Terrorism is our main export.

The two business models go hand in hand and can't exist without

each other, Oil and Terrorism. Just ask the FED.

"A vote for the lesser of two evils is a vote to keep things the same", Buckminster Fuller..
A choice for liberty is always a choice for liberty.

Largest importer & exporter of same stuff! Who could imagine?

Such are refined stories. Leaves me to wonder.

[Hammock gently swings on the back porch.]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Calling JZneff.

Can we get an APB out for jzneff?

screw that guy..

screw that guy..

I knew that would get your gander up.

Seriously, I felt like you and JZ were almost always saying the same thing but both of you refused to concede an inch and admit that you basically agreed except around the edges.

I think that is on both of you not just JZ.

Nothing about oil

even comes close to a free market.
Even from the start, it is supplied by a cartel, and then it gets worse from there.

Inputs costs, supply and demand - imponderable

The cost of crude is only one factor in the cost of gasoline. The stuff has to be refined, distributed, stored, and dispensed.

Supply is only one side of the equation. The other is demand.

It is all imponderable. Leave it to the invisible hand to sort it out.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

55 gallon drums are shipped w/ about 42 gallons of crude oil.

$80 / 42 = 1.91 Dollars per gallon of crude. Somewhere near 1/2 the Dollar price of gas iis crude in the United States of America.
... --- ...
Using an elastic Dollar to measure anything is suspect. The Fed: Loaning you blind, since 1913.
... --- ...
Exxon ™ ~ Crudely distributing crudeness to the world. Politicians are slippery when greased.
... --- ...
This is not an offer to solicit nor purchase products nor politicians for sale. Prices may vary. Taxes, terms & conditions apply. See your retailer for details. Bulk shipment of politicians are Free-On-Board.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Refineries.

The government won't let us build more refineries, and some are even being decommissioned, that's why gas prices are still at 3.50 a gallon.

SteveMT's picture

We have plenty of refineries right now.

They are shipping 30% over seas. World supply and demand and not national is driving prices. We are not in control any longer.

greed

greed

They will just add more state and federal tax on it

Some states already announced it. But soon we will all be running on
that diesel made from natural gas they claim it will be around a dollar a gallon cleaner and fuel that comes from America.

Cover-up for a lie

Gas should be around $2. a gallon, not $3.75 like it is near me. People frequently say that gas is getting cheaper. I will believe that crony absurdity when the 3 is replaced with a 1.

When I was pumping gas at my

When I was pumping gas at my dad's filling station as a lad in the early 60's gasoline never cost less than a silver quarter a gallon. With silver at $27/oz, that translates to gasoline at $4.86. Should silver cost $11?

What does "should" mean? Who, uh, should decide what gasoline should cost?

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln