It’s really slow around here so I’ll attempt to stir the pot.
Gas prices here have dropped $.50/gallon here over the last couple of weeks. As of Friday, 67 percent of the U.S. Gulf’s 1.5 million barrels per day of oil output was still shut in following the storms. Six refineries were also still shut, accounting for nearly 10 percent of U.S. refining capacity.
How can this be?
Probably has to do with Nazi popes on steroids or something…
It’s after Labor Day, summer vacation driving season is over. Also, some states (Cali & Colo.?) drop their requirements for different gasoline formulations after summer ends, and others have suspended them temporarily. Also, local market conditions may be dictating that gas in your area was overpriced. We haven’t noticed a significant drop in prices here, and in fact, one major local convenience store chain still can’t seem to get gas.
What’s it cost there? We’re dipping under $2.50/gallon here for regular in Indianapolis.
It’s really slow around here so I’ll attempt to stir the pot.
Gas prices here have dropped $.50/gallon here over the last couple of weeks. As of Friday, 67 percent of the U.S. Gulf’s 1.5 million barrels per day of oil output was still shut in following the storms. Six refineries were also still shut, accounting for nearly 10 percent of U.S. refining capacity.
How can this be?
First of all, even with the refinery closures, there never was a shortage of gasoline in the US (there was enough excess capacity to handle the demand). My guess is the futures market is responsible.
How can this be?
Pretty simple, the price of wholesale unleaded gasoline and crude oil has been dropping steadily for a while now. This worldwide open market is what drives the price of gasoline and not the actual amount of production.
This worldwide open market is what drives the price of gasoline and not the actual amount of production.
I have to think Ken is closer to being right that you are. Else, why the big spike in oil prices after Katrina?
This worldwide open market is what drives the price of gasoline and not the actual amount of production.
I have to think Ken is closer to being right that you are. Else, why the big spike in oil prices after Katrina?
Price gouging?
I have to think Ken is closer to being right that you are. Else, why the big spike in oil prices after Katrina?
Fear in the market driving the price of wholesale gas way up.
http://biz.yahoo.com/ap/050830/oil_prices.html?.v=15
Katrina Drives Energy Prices to New Highs
Tuesday August 30, 11:17 pm ET
By Brad Foss, AP Business Writer Katrina Drives Energy Prices to New Highs; Oil Tops $70 a Barrel; Gas Could Reach $3 a Gallon
The potential damage to oil platforms, refineries and pipelines that remain closed along the Gulf Coast drove energy prices to new highs Tuesday, with crude futures briefly topping $70 a barrel and wholesale gasoline costs surging to levels that could lead to $3 a gallon at the pump in some markets. Here are the current prices http://www.nymex.com/gas_fut_cso.aspx Note the near $1 difference in prices.
Notice the rather large spike and subsequent drop.
Wait til people get their winter heating bills, it will make them forget about the price of gasoline.
I have to think Ken is closer to being right that you are.
I read this again and what did Ken and I say that was different? We both said the market was responsible for the price increases and not the amount of production.
Natural gas prices don’t look to be too consumer friendly either.
We are still around $2.87 at most places, but some reports of as low as $2.59. Since one of our local “discount” gas chains hasn’t had gas, I think some of the other places haven’t had much impetus to lower prices. But, it looks like that situation is starting to resolve itself.
In addition to the world-wide and national market influences, there are also local market influences. Most (all?) gas chains have competitive local market strategies that result in their gas selling at different prices in different locations in the same city. For example, if you like Texaco, Mobil, Exxon, or some other national brand of gas, you can get it cheaper at a gas station across the street from a Sam’s Club than you can get it at a station where there is no discount station nearby.
I was shocked when I saw $2.34 a gallon on my way to work this morning. Most stations are still in the $2.60 range. Cleveland Ohio.
2.55 in CT
Mark
.
where in cleveland? i spent the past year trying to find the cheapest gas stations. pretty hard to do in the cleveland heights/cwru area
And yet diesel has been at record highs and is still climbing. The Fed is hiking interest rates because of inflation fears but at these prices the economic effects will be far reaching and it will be because of the higher cost of shipping. Everything shipped by ground (truck and freight train) runs on diesel, public and school buses too. Small trucking firms have been dropping like flies the past two years due to increasing fuel costs. Snow removal season is approaching fast, again diesel. It’s harvest time and most farmers that already survive on the thinest of margins are paying double for diesel from a year ago. New low-sulfur diesel requirements go into effect in 2006 which will probably cause further increases if the refineries have to change production. Independent truckers are barely breaking even right now and rumors of a trucking strike on Oct.31 just might come true. 40% of cars in Europe are diesel because the new diesels get great mpgs and the emissions standards are higher there, so pollution is lessened. World demand for diesel is up and the oil companies and refineries have decided to focus on gas production to quiet the natives. Diesel and home heating are cheap and easy to refine, if production isn’t ramped up soon the cost of EVERTHING will go up soon and this economy might just be dead in the water.
I remember back in the good ole days when gas was $1.75 - oh wait that was less than a year ago...Not that I ever drove unnecessarily before, but now I try to drive as little as possible. My totally uneducated opinion is that prices are being artificially inflated. Whether this is intentional or a knee-jerk reaction from the market. I know that we need to build more refineries but will it help if we can we find a reason to invade Saudi Arabia also?