Crude oil prices going up....Gas prices going down...

[Xenon14]

Originally posted by: gwlam12

Originally posted by: Xenon14

Originally posted by: gwlam12
So if crude oil prices are going up, why is gas price going down?

There are other factors at work than price per barrel of oil. People tend to do more driving in the summer than in the winter. Consequently, mid July is when the demand for oil tends to peak (demand increases price). Although the marginal drop in price (5-10 cents where I live) from previous months seems counter-intuitive due to increase in the raw price of oil, the decrease in demand for gas has contributed to recent price drops for consumers

Decrease in demand for gas? Was there really a decrease in demand? I thought summer was the season where everyone goes on vacation so I figured demand would go up.

But whatever the case, almost every post here was pretty informative. Thanks all.

You're right, but trends show that travel/demand peaks around mid July. As it is already mid-august it would make sense to see the demand taper off. Although I have no hard evidence for the demand of oil, based on yearly trends, it would make sense that this summer's traveling patterns are similar to previous summers.

 

[dmcowen674]

Originally posted by: gwlam12

Crude oil prices going up....Gas prices going down...
Topic Summary: Why? Doesn't make sense to me.

Well, how long before they raise the Gas prices now that Oil is just shy of $50 a barrel???

Based on the jump from $1 a gallon to $2 a gallon going from $25 a barrel to $25 barrel, Gas should already be at $4 a gallon.

Like I said the Oil/Gas Companies will probably posting record losses next quarter instead of record profits because they are holding back the price from what it should be.

Wonder why they are doing that? Could it be $4 a gallon would instantly cripple most of the U.S. and world??? Nawwwwwww.

 

[Eli]

Originally posted by: dmcowen674

Originally posted by: gwlam12

Crude oil prices going up....Gas prices going down...
Topic Summary: Why? Doesn't make sense to me.

Well, how long before they raise the Gas prices now that Oil is just shy of $50 a barrel???

Based on the jump from $1 a gallon to $2 a gallon going from $25 a barrel to $25 barrel, Gas should already be at $4 a gallon.

Like I said the Oil/Gas Companies will probably posting record losses next quarter instead of record profits because they are holding back the price from what it should be.

Wonder why they are doing that? Could it be $4 a gallon would instantly cripple most of the U.S. and world??? Nawwwwwww.

...

Most of the world already pays 4$/gallon.

 

[RbSX]

Originally posted by: gwlam12
So if crude oil prices are going up, why is gas price going down?

What they are bidding on is the crude oil prices for september. Not this month. Thats why if you look at crude oil futures now, you can see what the price of gas will do in a month.