barrel of oil 64$ why is gas still expensive?

Originally posted by swdecord
However...(yes, y'all are laughing)...I think that a gallon of gas above $1.00 is ridiculouys and usuary...

But, considering that Exxon Mobil (one of a few) needed to pay Lee Raymond's "FAT a**" a $400MM retirement "plan" in 2006...

abcnews.go.com...

No wonder we're paying at the pump...

it makes a nice sentiment....but is patently untrue and illogical in every concievable way.

exxon mobile benefits from the high price of oil, not the high price of gas. no one has gotten rich selling gas in the last 2 years.

Originally posted by FerTheBetter
with the price of a barrel dropping dramatically, why is the price of a gallon still around 3$ a gallon? shouldn't it be a lot lower or atleast around 2.30$ a gallon.
www.msnbc.msn.com...

Yes, It should be. I filled up yesterday with gas at $2.27 on the fort. But all public stations are at $2.68+

I wish I knew why the 40 to 60 cent difference existed, can't help there, but your hunch of $2.30 is dead on for my county. Soon enough it should get down to that price where you and I are... Hopefully.

[edit on 25-10-2008 by beaverg]

Originally posted by beaverg

Originally posted by FerTheBetter
with the price of a barrel dropping dramatically, why is the price of a gallon still around 3$ a gallon? shouldn't it be a lot lower or atleast around 2.30$ a gallon.
www.msnbc.msn.com...

Yes, It should be. I filled up yesterday with gas at $2.27 on the fort. But all public stations are at $2.68+

I wish I knew why the 40 to 60 cent difference existed, can't help there, but your hunch of $2.30 is dead on for my county. Soon enough it should get down to that price where you and I are... Hopefully.

[edit on 25-10-2008 by beaverg]

don't you get the tax break on base? That would splain it.

this article explains some of the issue:

www.mywesttexas.com...

Originally posted by bigfatfurrytexan
don't you get the tax break on base? That would splain it.

I agree...I'm retired Navy and do receive a lot of discounts on base, including liquor

Good point...the tax on gas is huge...didn't even think about it...

BTW, your user name is funny as heck...

reply to post by bigfatfurrytexan


Yeah, state and federal taxes would add up to about *40cents a gallon. Still a little off, I imagine the other parts are franchise fees that the retailer has to pass off to the customer.

[edit on 26-10-2008 by beaverg]

Recently, there have been tankers wandering around out in the ocean, with nowhere open for them to unload. A GLUT of oil. I have said it before, I will say it again; we have enough oil in the US to last us 1,000 years at current consumption. And that consumption is dropping. But the Communist Party won't let us access it. Without any increased access to it, our gas prices should still fall shortly, to $1.50 a gallon. That is IF Israel does not nuke Iran. If they do, in the next few weeks, the price will once again skyrocket. Why? It's called Free Market Economics. But that spike would only be for a short time, barring unforseen events such as the arrival of Nemesis. If the weather probs get worse, we won't have any sea shipping or offshore drilling anymore. But a big drop in demand, or use. Rather interesting, in my opinion.

Originally posted by Gregarious
Recently, there have been tankers wandering around out in the ocean, with nowhere open for them to unload. A GLUT of oil. I have said it before, I will say it again; we have enough oil in the US to last us 1,000 years at current consumption. And that consumption is dropping. But the Communist Party won't let us access it. Without any increased access to it, our gas prices should still fall shortly, to $1.50 a gallon. That is IF Israel does not nuke Iran. If they do, in the next few weeks, the price will once again skyrocket. Why? It's called Free Market Economics. But that spike would only be for a short time, barring unforseen events such as the arrival of Nemesis. If the weather probs get worse, we won't have any sea shipping or offshore drilling anymore. But a big drop in demand, or use. Rather interesting, in my opinion.

This is true...but i also think that the current economic troubles will keep oil down lower than the crazy 140 a barrel. There just isn't as much cash available out there for prospectors to drive up the cost with.

Gasoline as with all commodities are purchased via unleaded gasoline futures.

You have to realize that crude doesn't just magically turn into gasoline overnight. The Crude oil is refined into gasoline and distributed to wholesalers where it is then finally sold to retail gas stations.

The prices we're paying at the pump are a result of what the refineries paid for crude and what the wholesalers paid for gasoline made from that crude when the gasoline was originally refined into gasoline and stored at least a month ago.

Lowest iv seen is $1.98. Im in SC.

Arn't they investigating a bunch of places for price gouging? Could be wrong about that, will look into it a bit.

Lowest I've seen was $2.39 a couple of days ago (near Raleigh, NC). I have a BJ's membership that should let me get it even cheaper.

I have said it before, I will say it again; we have enough oil in the US to last us 1,000 years at current consumption

very untrue
the US produces 58% of the oil it needs
remember oil doesnt only get used for gasoline, thats just a by-product
and think on if u get the idea you are hard done by
in the UK ( geat britain england whatever u call us lol)
its $1.53 a litre x 4.54 litres for a gallon ( yep ours is different slightly)
so we pay $6.95 for a UK gallon of gasoline(petrol )

and the price of base oils that indutries use to make lubricants has gone from
30 cents a litre to $1.12 a litre in the last 2 years and it has not come down in price at all over the last 12 months as the oil companies know that public pressure and demand will and can lower prices as the majority of people have access to the interenet and prices of crude oil with a quick search but know they get companies to pay full whack as they dont have the same pressure as the masses.

The lowest I saw yesterday in Washington was 2.29 a gallon at an independent station the next lowest was ARCO at 2.35.

Oil has gone up to 70 dollars a barrel today supposedly due the the Arabs tightening the oil supply. Just remember who did what to force the prices back up again - they are not our friends and we need to eliminate our need for their oil.

I think the price is fine right now and I'm happy that it's not 4 dollars a gallon anymore if it stays around $2.50 I can function without feeling like I can't go anywhere.

Most of all I'm looking forward to 100mpg automobiles coming withing the next two years. I will celebrate around the fire when the oil producing greed mongers begin to bleed.

[edit on 4-11-2008 by verylowfrequency]

Gas is still relatively expensive in comparison to the current price of a Barrel of Oil because the oil used to make the gas in the pumps was bought at a higher price.

The price in the markets for oil is for 'futures'.

A very good read to help explain is this pdf:
Crude Oil and Gasoline Prices: An Asymmetric Relationship?

It is written by Nathan S.Balke, who is a Economics professor at SMU and a Researcher from the Federal Reserve Bank of Dallas. He seems to know his stuff.

DocMoreau

We are at approx. $1.95 in my area of Ohio.

I am certainly not complaining about that. Even cheaper in the greater Kansas City area.

Yes, it has not dropped to where it should be if you do the math based on percentages. In addition, the price of food sky rocketed here in Arizona when the price of gas went up. The food prices are still high. $50 more per week then what I was spending before. Now, $150 per week for 2 adults and 2 children. We are buying stuff that is marked down and also not buying pre-made stuff, like microwave dinners, etc..

I'm going to start writing my representatives after the elections.

reply to post by DocMoreau


Yeah it is the futures for the refineries, but for many gas stations there is a reflection the next day - I guess allot of hype and speculation is involved.

Personally I think the media reporting the oil prices rising causes the prices to rise more, just like reporting school shooters creates more shooters.


[edit on 5-11-2008 by verylowfrequency]

reply to post by jibeho


were exactly in ohio are you? the prices of were i live are up around 2.60$ a gallon but im in albany NY

I saw $1.99 all around today in Columbus, Ohio.

Christmas come early!

Its November 17 and oil is now 54 a gallon, gas should be wayyyyyy down!! This is so wrong that these comapnies are getting away with this!!