It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by manticore
Perhaps this has been discussed a few days ago. However, I follow the trends and I remember when the price of a barrel of oil hit $147 less than two weeks ago; I knew the speculators had crossed the line. This seems to be an area of high resistance. Not only that, they have now created DEMAND DESTRUCTION. GM and other car manufacturers are at the brink of bankruptcy. Demand for SUV/Pickups is low. People are driving less, etc. It seemed that for a long time these speculators thought the American people would continue paying thinking the price elasticity was infinite. Not this time.
Every day, with every dollar that the price of barrel rose, I followed the local gas stations and how they slowly, but surely, increased their prices. However, in the past few days the price of oil has gone down (relatively a lot). From $147, it went to $143, to $140, and today it is trading at $128. Where is the mainstream media? I really don't see that much focus on this. Furthermore, it is estimated that the barrel of oil should be hitting $75-80 and that's where it should stay. I say, more in the $93 range. And the price per gallon should be in the mid-high $2s.
To everyone's surprise, even with this decrease, the price at the pump has not gone down. I know it takes time before the price actually makes it to the market. But isn't it clever of the gas stations to raise the price, even before they get their new shipments based on the most current price?
To me, these are the most positive news in a long time. Oil is what keeps the economy going, as everything revolves around oil prices. I'd be curious to know of your comments on this. Thank you for reading.
[edit on 18-7-2008 by manticore]
Just when you think big oil companies like ExxonMobil might be content with tens of billions of yearly profits, they surprise you by grasping for pennies. This time it's not just the driver at the pump being squeezed, but corner gas station owners and gasoline wholesalers. Exxon is running the stations out of business, and refineries are cutting out wholesalers from blending ethanol into gasoline, now that ethanol is cheaper.
Exxon is selling off its 820 company-owned stations and 1,400 stations run by independent dealers on company-owned land. It's the end of the independent corner gas station, because Exxon will sell the stations to only to its big distributors. Translation: no more independent corner gas stations, owned by people who might complain publicly about their rapacious landlords squeezing them out of business. From the Washington Post story:
"Consumers aren't likely to notice any outward difference in the stations, and about 9,200 other ExxonMobil stations will not be affected. Those stations are owned and operated by distributors, who deliver fuel and often own several stations.
"But it will mean the end of small independent gasoline station operators such as Sohaila Rezazadeh, who owns an Exxon franchise in Oakton but pays rent to Exxon, which owns the land. Rezazadeh, who has complained about rising rent and tight profit margins, has not been able to afford new gasoline supplies for the past week. After 12 years as an Exxon dealer, she is closing her doors today."
Originally posted by manticore
reply to post by yellowcard
Yellowcard, why is it that immediately after the price of oil goes up a dollar or two you see the gas stations changing prices accordingly? I'm only saying the same doesn't happen when it goes in the opposite direction.
Originally posted by Mason mike
reply to post by manticore
the answer is so simple it might scare you.
are you ready?........
because they can.
And we can't do anything about it. the gas station owners can't do anyting about it. The price is set but the people who do that and they are in control. we can complain, we can even threaten to not buy gas. but when the tank is empty, we go back. We have more control over President Bush than we have over the price of gas.
Originally posted by manticore
Yellowcard, why is it that immediately after the price of oil goes up a dollar or two you see the gas stations changing prices accordingly? I'm only saying the same doesn't happen when it goes in the opposite direction.
Originally posted by isa75
I've noticed that too. But I also know that gas prices at the pump are a month behind. Because the gas we are using today was from probably may/june. So we are paying what prices per barrel were sold for in May/Jun. If oil is dropping now then in Aug/Sept. we will notice it going down.