Gas Prices

[sauerkraut]

quote:Originally posted by patric

Gas prices actually went UP yesterday, from $1.34 to $1.49.

What happened, did somebody throw a shoe at the president or something?

Nope, I think it's just about a OPEC meeting about how much to cut back oil production to raise the price of a barrel of oil. OPEC is mad that oil is so cheap, and since we can't drill for our own oil, we are hooked on OPEC for our life blood. OPEC has warned that we can expect a huge cut in oil production 2-3 million barrels and that is alot. If it's a 3 million barrel cut  we may start to see gasoline prices around $2.50 a gallon once more. OPEC is cutting pretty heavy here. We need to drill for our own oil and break away from OPEC..[xx(]

[Hoss]

quote:Originally posted by sauerkraut

quote:Originally posted by patric

Gas prices actually went UP yesterday, from $1.34 to $1.49.

What happened, did somebody throw a shoe at the president or something?

Nope, I think it's just about a OPEC meeting about how much to cut back oil production to raise the price of a barrel of oil. OPEC is mad that oil is so cheap, and since we can't drill for our own oil, we are hooked on OPEC for our life blood. OPEC has warned that we can expect a huge cut in oil production 2-3 million barrels and that is alot. If it's a 3 million barrel cut  we may start to see gasoline prices around $2.50 a gallon once more. OPEC is cutting pretty heavy here. We need to drill for our own oil and break away from OPEC..[xx(]

There's the FUD again...

[xx(]

As of my posting, oil is down a half-dollar and yet the speculators know the cut is coming.  Our demand is down.

While we may see 2.50 a gallon gasoline, I don't think it will be next month.  Maybe closer to summer.

[sauerkraut]

quote:Originally posted by Hoss

quote:Originally posted by sauerkraut

quote:Originally posted by patric

Gas prices actually went UP yesterday, from $1.34 to $1.49.

What happened, did somebody throw a shoe at the president or something?

Nope, I think it's just about a OPEC meeting about how much to cut back oil production to raise the price of a barrel of oil. OPEC is mad that oil is so cheap, and since we can't drill for our own oil, we are hooked on OPEC for our life blood. OPEC has warned that we can expect a huge cut in oil production 2-3 million barrels and that is alot. If it's a 3 million barrel cut  we may start to see gasoline prices around $2.50 a gallon once more. OPEC is cutting pretty heavy here. We need to drill for our own oil and break away from OPEC..[xx(]

There's the FUD again...

[xx(]

As of my posting, oil is down a half-dollar and yet the speculators know the cut is coming.  Our demand is down.

While we may see 2.50 a gallon gasoline, I don't think it will be next month.  Maybe closer to summer.

The speculators don't know how much the cut will be, oil is still around $45.00 a barrel the last time I looked at the Bloomberg report, but pump prices are creeping up, I think that creep up in pump prices is to help absorb the price shock to consumers when OPEC meets. That way gas stations won't have to raise prices by huge amounts upsetting many customers and raise talk about price gouging when it's really not, it's just the market adjusting to a oil price shock coming. JMO.

[citizen72]

Oil down $ 3.45 today settling at $ 33.67 at 4:00 p.m. OPEC's oil reduction rattlings doesn't seem to have much force here. Further gas price reductions to follow for sure.

[dbacks fan]

I was just comparing prices on gasbuddy.com, and for the first time in a long time the average in Tulsa is almost the same as Phoenix, at ruoghly $1.49.

[YoungTulsan]

If $33 oil holds for a couple of days, we will be down to $1.15

If it breaches $30, we will see gas below $1.00

This has to be near the bottom of this pendulum swing...  Surely?

* Correction.   Oil is $36 not $33, I think citizen72 made a typo and I repeated it.

$36 would be mean about $1.20 in the next week.

[citizen72]

quote:Originally posted by YoungTulsan

If $33 oil holds for a couple of days, we will be down to $1.15

If it breaches $30, we will see gas below $1.00

This has to be near the bottom of this pendulum swing...  Surely?

* Correction.   Oil is $36 not $33, I think citizen72 made a typo and I repeated it.

$36 would be mean about $1.20 in the next week.

Opps you are so right. Fingers not following instructions.

[patric]

quote:Originally posted by YoungTulsan

If $33 oil holds for a couple of days, we will be down to $1.15

If it breaches $30, we will see gas below $1.00

I guess the 14-cent spike was pre-gouging in anticipation of the ice storm...

[citizen72]

For sure gouging as there is no economic reason for it otherwise. Their going to fight tooth and nail all the way to sub-dollar gas. "Ain't" it grand.

[YoungTulsan]

Actually, oil briefly shot back up to $50 a few days ago.  That may have just as much to do with it as the ice storm conspiracy.  We all know they shoot the prices up much quicker than they drop them down with regards to the outlook on oil.

[Red Arrow]

The price of gas was explained to me as follows:

If the wholesale price of gas is expected to go up, the retailer has to make enough money on his present stock to buy the new stock.

If the wholesale price is expected to go down, the retailer still has to pay for the high priced stuff he already bought.

I claim there is a time discrepancy involved regarding which money will buy or has bought the gas.  I don't expect to get too far with it.

[citizen72]

quote:Originally posted by Red Arrow

The price of gas was explained to me as follows:

If the wholesale price of gas is expected to go up, the retailer has to make enough money on his present stock to buy the new stock.

If the wholesale price is expected to go down, the retailer still has to pay for the high priced stuff he already bought.

I claim there is a time discrepancy involved regarding which money will buy or has bought the gas.  I don't expect to get too far with it.

Exactly, We have our boat at a small Marina on Grand. The poor guy still has gas in his tank of the $ 4.50 retail range. He can't compete with the larger high volume guys because of it.

[polly.karim6]

I agree with Red Arrow, But a fact is that sometimes retailers hold back the stock waiting for the prices to rise as the demand increases. Such exercises are performed in groups where the consumers are left with no choice but to pay more for their basic necesities.

[Red Arrow]

quote:Originally posted by polly.karim6

I agree with Red Arrow, But a fact is that sometimes retailers hold back the stock waiting for the prices to rise as the demand increases. Such exercises are performed in groups where the consumers are left with no choice but to pay more for their basic necesities.

I don't think anyone is restricting any stock except by raising prices.  There are some instances where damage to a refinery may have restricted stock but I don't consider that to be market amnipulation.