So let me get this straight. When gas prices go up you're cheering that people are going broke at the pump. When gas prices go down you're cheering for people in the market to lose their ass. Is that about right?
So let me get this straight. When gas prices go up you're cheering that people are going broke at the pump. When gas prices go down you're cheering for people in the market to lose their ass. Is that about right?
I think my first post here was wondering why he was cheering about people losing money when gold went down.
Some people seem to thrive on the misfortune of others, sadly.
Londo_Jowo
Lifer
I'm not even sure what he's trying to do anymore. This guy has a long history of getting beaten up by people on this forum for saying and doing dumb things, but it seems like in recent months he's abandoned trying to actually discuss his opinions and has just gone towards trying to piss people off. It's pretty weird, and definitely sad.
Londo_Jowo
Lifer
I think I have to post in this thread every few months to say:
"Why in the hell is this troll crap still open?"
That is all.
"Why in the hell is this troll crap still open?"
That is all.
For the first time in a long time Chicago is not the highest in the country.
A refinery down in Washington means the suckers there have to pay more.
Tell me why again when this business is incompetent why the people have to reward them for being incompetent?
If I owned a refinery I would be incompetent 24/7 365 days a year.
6-3-2012
http://www.wwlp.com/dpp/news/local/hampden/gas-prices-on-the-decline
Gas prices on the decline
Gas prices have actually fallen about 20 cents in the past month, and 30 cents lower since April. That's the largest drop since last November.
Dustin Coupal, the co-founder of GasBuddy.com , says the best place to buy gas is South Carolina, where it's below three dollars a gallon thanks to the lowest gas tax in the country.
Washington state has the highest prices, about 4.26 per gallon, because of supply distribution problems.
GasBuddy.com expects some southern states to fall below the three dollar mark soon because their prices are already low and are located near major refining hubs.
A refinery down in Washington means the suckers there have to pay more.
Tell me why again when this business is incompetent why the people have to reward them for being incompetent?
If I owned a refinery I would be incompetent 24/7 365 days a year.
6-3-2012
http://www.wwlp.com/dpp/news/local/hampden/gas-prices-on-the-decline
Gas prices on the decline
Gas prices have actually fallen about 20 cents in the past month, and 30 cents lower since April. That's the largest drop since last November.
Dustin Coupal, the co-founder of GasBuddy.com , says the best place to buy gas is South Carolina, where it's below three dollars a gallon thanks to the lowest gas tax in the country.
Washington state has the highest prices, about 4.26 per gallon, because of supply distribution problems.
GasBuddy.com expects some southern states to fall below the three dollar mark soon because their prices are already low and are located near major refining hubs.
BoomerD
No Lifer
- Feb 26, 2006
- 66,047
- 14,454
- 146
Fuck...I wish.
http://www.modestogasprices.com/
The stations closest to me are still about $4.15 for regular.
Many on the radical right refute the OP of this thread that gas has any effect on the economy.
Many also still swear it is supply & demand when all these articles show that premise has gone out the window a long time ago.
6-4-2012
http://news.yahoo.com/oil-plunges-8-month-low-weak-us-jobs-042537998--finance.html
Oil plunges to 8-month low on weak US jobs report
Oil plunged to fresh eight-month lows below $82 a barrel Monday in Asia as a dismal U.S. jobs report sparked selling of stocks and commodities.
"Friday's employment report was so mind-numbingly bad," energy trader and consultant The Schork Group said in a report.
It was the third month in a row of disappointing U.S. job growth, suggesting the economy is slowing and oil demand will likely grow less than expected this year.
Crude has plummeted 23 percent in the last month amid signs of weak global economic growth. As Europe struggles to contain its debt crisis, signs of sputtering Chinese growth have coupled with a faltering U.S. recovery to undermine investor confidence.
Sustained lower crude prices should eventually bring down the cost of oil products such as gasoline, freeing up cash for consumer spending. The slump in commodities prices should also ease global inflation pressure and give policymakers more leeway for fiscal or monetary stimulus measures.
Many also still swear it is supply & demand when all these articles show that premise has gone out the window a long time ago.
6-4-2012
http://news.yahoo.com/oil-plunges-8-month-low-weak-us-jobs-042537998--finance.html
Oil plunges to 8-month low on weak US jobs report
Oil plunged to fresh eight-month lows below $82 a barrel Monday in Asia as a dismal U.S. jobs report sparked selling of stocks and commodities.
"Friday's employment report was so mind-numbingly bad," energy trader and consultant The Schork Group said in a report.
It was the third month in a row of disappointing U.S. job growth, suggesting the economy is slowing and oil demand will likely grow less than expected this year.
Crude has plummeted 23 percent in the last month amid signs of weak global economic growth. As Europe struggles to contain its debt crisis, signs of sputtering Chinese growth have coupled with a faltering U.S. recovery to undermine investor confidence.
Sustained lower crude prices should eventually bring down the cost of oil products such as gasoline, freeing up cash for consumer spending. The slump in commodities prices should also ease global inflation pressure and give policymakers more leeway for fiscal or monetary stimulus measures.
What exactly do you think is in these articles that shows that?
Or are you under the impression that when crude oil prices shift, that the price of products made from it should magically change overnight?
It does.
They call it rockets and parachutes for a reason.
The slightest change up and the pump prices go nuts, when oil drops a ton the price slowly comes down as if riding on a feather.
Jaskalas
Lifer
- Jun 23, 2004
- 35,513
- 9,731
- 136
So you don't want supply and demand to become a factor. Isn't that communist price controls? How'd that work for their utopian economy?
By all means let us hear your solution.
That doesn't mean that supply and demand aren't at work. It means there are other factors that you aren't taking into account, such as the delay between when crude is pumped and when it gets to your gas station, risk associated with dropping prices in a volatile market, and good old plain profit-maximizing.
If someone runs a business and their costs decrease, they don't automatically run to lower their prices to pass on the savings. They do it only when they are forced to by competition. But when their prices go up, they usually try to pass on the higher costs immediately, unless competition prevents them from doing so. That's just how business works.
Last edited:
heymrdj
Diamond Member
- May 28, 2007
- 3,999
- 63
- 91
That right there states how flawed the current supply and demand system is on oil. If it rockets up it should immediately come back down again when it drops. There should be no legal reason for keeping it up.
Londo_Jowo
Lifer
Let me guess, you would run the equipment until it suffers a catastrophic failure rather than perform scheduled maintenance to ensure proper/more efficient operation and increased up time. Or you would violate EPA regulations and state/local laws that determine what blends of gas must be manufactured/sold in the given region.
If I run a gas station, the cost of the gas in my underground tank is based on what crude oil cost weeks ago, not today.
Do you know what the margins are on gas at gas stations? They're razor-thin. Why do you think every gas station now has a convenience store attached to it? That's the only place they make any real money.
heymrdj
Diamond Member
- May 28, 2007
- 3,999
- 63
- 91
I know the margins on gas, I worked for a country station as a teen
. And again your first sentence explains it perfectly. When oil skyrockets on the market, gas should not go up .30$ a gallon by that evening or the next morning. It should go up weeks from now.A valid point. But I don't really know of any objective data that shows that gas really goes up that fast when crude goes up. It's hard to be sure because people notice price increases more than drops.
werepossum
Elite Member
- Jul 10, 2006
- 29,873
- 463
- 126
Two reasons. First, the station owner has to replace that gas with more expensive gas. Second and more important, supply and demand isn't just about supply, it's also about demand. Things in a capitalistic economy don't cost what they HAVE to cost, they cost the amount thought to present the best compromise between making profit and hurting demand, the price that will return the most profit. There's certainly no shortage of dog turds, but if people regularly came in and bought a mess for five bucks a pop they'd cost five bucks a pop. Station owners jump the price up because if demand doesn't soften too much - if people accept that price increase without demand significantly softening - then they'll make more money and more easily afford that next, more expensive tank of gas.I know the margins on gas, I worked for a country station as a teen
Where Dave has a point is the constriction in the market. It takes an enormous amount of capital and knowledge to enter the oil producing business. Ditto with the oil refining business. And there isn't any unmet demand to incent anyone to make the huge investment required to compete, and there is a HUGE risk of losing money; oil companies historically have done this a significant amount of the time. The combination of collusion in price setting by exporting nations, a fairly small number of producers, a fairly small number of refiners, and a fairly small number of distributors, combined with a product that people MUST have (albeit not in such quantities as we presently use), goes a long way toward defeating market forces that would reduce prices. And this will likely get worse as more and more of the easily obtainable oil is used up.
OIl and Gas is commodity they can charge whatever the market will bear and I've pointed out sticky economics many times. Almost everything is quick to rise and slow to fall, DEAL WITH IT
Supply and Demand is certainly a factor, a BIG one in pricing, however it is not the ONLY factor which you consistently try to take a very complex system and boil it down to singular drivers or flavour of the week when all these work in concert, boooooo
If they are exporting refined product and they are there is more than enough capacity, however there are REGIONAL disparity and you don't pay the same price for every commodity across the nation. Its a fact.
Supply and Demand is certainly a factor, a BIG one in pricing, however it is not the ONLY factor which you consistently try to take a very complex system and boil it down to singular drivers or flavour of the week when all these work in concert, boooooo
If they are exporting refined product and they are there is more than enough capacity, however there are REGIONAL disparity and you don't pay the same price for every commodity across the nation. Its a fact.
werepossum
Elite Member
- Jul 10, 2006
- 29,873
- 463
- 126
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