Is there a chart or graph somewhere that correllates Oil barrell price to avg US gas price?

[dmcowen674]

Originally posted by: Queasy

Originally posted by: DrPizza

Originally posted by: ElFenix
they're not going down as fast because prices are sticky downward. if you're a gas station (most of which are not owned by the company whose name is on the marque), you're going to be as slow going down as you can be. you bought that gas at last week's price with the previous weeks' money and now you have to sell it at this week's price.

But, why do they go up nearly instantly when some bad news is announced from the middle east? "During peace talks, the ambassador from Iran sneezed" is greeted with station owners rushing out the door to raise the price a nickel.

Because it is tough to pay your wholesaler $3.50/gal for gasoline when you're selling it for $3.49/gal.

Proof

 

[BarneyFife]

Originally posted by: Queasy

Originally posted by: mooseracing

Looking at the Michigan gas history, the average price went all the way down to $3.80 on 7/30 (barrel of oil was at $126.77) and is at $3.83 now. One month ago the average price for Michigan $4.16 when the price of a barrel of oil reached $147.

Too bad that chart is way off. At the end of July when gas prices were falling, they hit 3.5x North of Detroit and over in the Southwestern Corner.

It is an average for the state of Michigan as a whole. I can drive from my job to my house and see prices vary by as much as 10 cents depending on the gas station. If I went into Atlanta, it could be 10 to 20 cents higher.

The point is that it was 3.70 when it was $130 barrel and now its 3.80 when its $114. Admit that you have no idea what the hell you're talking about.

 

[dualsmp]

Originally posted by: DrPizza
But, why do they go up nearly instantly when some bad news is announced from the middle east? "During peace talks, the ambassador from Iran sneezed" is greeted with station owners rushing out the door to raise the price a nickel.

Essentially because they can, and also it benefits them $$$. The station owners pay up front for all the gas in their tanks below ground, so there shouldn't be a price increase until the next load of gas shows up. But they get away with jacking it up anyways. So when a new Bin Laden tape appears, or a new tropical storm makes an appearance -- up goes the price.

Think about 10 years ago when hurricanes rolled into the Gulf, there was no panic about gas prices. Now every time a new tropical storm brews up off the coast of Africa the speculators knees start shaking, and the crude price magically gets jacked up. $$$

No worry though for awhile while elections are in the mix. The gas prices go below $3 bucks a gallon in many states, but after elections are over all bets are off. Watch for bin Laden to pop up again after inauguration.

 

[dmcowen674]

Originally posted by: BarneyFife

Originally posted by: Queasy

Originally posted by: mooseracing

Looking at the Michigan gas history, the average price went all the way down to $3.80 on 7/30 (barrel of oil was at $126.77) and is at $3.83 now. One month ago the average price for Michigan $4.16 when the price of a barrel of oil reached $147.

Too bad that chart is way off. At the end of July when gas prices were falling, they hit 3.5x North of Detroit and over in the Southwestern Corner.

It is an average for the state of Michigan as a whole. I can drive from my job to my house and see prices vary by as much as 10 cents depending on the gas station. If I went into Atlanta, it could be 10 to 20 cents higher.

The point is that it was 3.70 when it was $130 barrel and now its 3.80 when its $114. Admit that you have no idea what the hell you're talking about.

:laugh:

 

[Fern]

Originally posted by: dualsmp
[-snip-
Essentially because they can, and also it benefits them $$$. The station owners pay up front for all the gas in their tanks below ground, so there shouldn't be a price increase until the next load of gas shows up.

I have gas station clients, that's not how it works for them. I suppose it might for some gas station somewhere.

But for those I know about, the gas in put into the station's tank(s), the credit card payment's at the pump go directly to the gas company's account, not the station's. The station only collects for cash purchases.

At the end of the month, the gas company settles up with the station. Basically, if the cash payments recieved by the station were greater than their commission, they send payment to the gas company. If the cash payments were insufficient, the gas company sends the station a payment.

The stations get a call in the afternoon from the gas company telling them what the new price is. Then they go post it etc.

Fern

 

[Queasy]

Originally posted by: BarneyFife

Originally posted by: Queasy

Originally posted by: mooseracing

Looking at the Michigan gas history, the average price went all the way down to $3.80 on 7/30 (barrel of oil was at $126.77) and is at $3.83 now. One month ago the average price for Michigan $4.16 when the price of a barrel of oil reached $147.

Too bad that chart is way off. At the end of July when gas prices were falling, they hit 3.5x North of Detroit and over in the Southwestern Corner.

It is an average for the state of Michigan as a whole. I can drive from my job to my house and see prices vary by as much as 10 cents depending on the gas station. If I went into Atlanta, it could be 10 to 20 cents higher.

The point is that it was 3.70 when it was $130 barrel and now its 3.80 when its $114. Admit that you have no idea what the hell you're talking about.

I admit it. You have no idea what the hell you're talking about. If you want to know why a particular gas station is selling for $3.80 right now, go ask them. I showed the average price for Michigan as a whole and explained that regional differences when dealing with refineries, blends, taxes, wholesalers, transportation, etc will cause price variations. Not all gas stations in a city much less a state or across multiple states will have the exact same gas price. Who knows what the particular issue with Michigan is right now. You live in Michigan, ask around.

 

[Queasy]

Originally posted by: dmcowen674

Originally posted by: Queasy

Originally posted by: DrPizza

Originally posted by: ElFenix
they're not going down as fast because prices are sticky downward. if you're a gas station (most of which are not owned by the company whose name is on the marque), you're going to be as slow going down as you can be. you bought that gas at last week's price with the previous weeks' money and now you have to sell it at this week's price.

But, why do they go up nearly instantly when some bad news is announced from the middle east? "During peace talks, the ambassador from Iran sneezed" is greeted with station owners rushing out the door to raise the price a nickel.

Because it is tough to pay your wholesaler $3.50/gal for gasoline when you're selling it for $3.49/gal.

Proof

Basic economic business common sense. Gasoline is sold on razor thin margins. Which is why the stuff inside the store is overpriced. And since gas can be a volatile commodity, gas stations have to react accordingly.

The sales from the gas sitting in a station's tank right now will pay for the next shipment of gas from the wholesaler/distributor. If the wholesale price of gas starts to go up, so does the price at the tank.

 

[dmcowen674]

Originally posted by: Queasy

Originally posted by: dmcowen674

Originally posted by: Queasy

Originally posted by: DrPizza

Originally posted by: ElFenix
they're not going down as fast because prices are sticky downward. if you're a gas station (most of which are not owned by the company whose name is on the marque), you're going to be as slow going down as you can be. you bought that gas at last week's price with the previous weeks' money and now you have to sell it at this week's price.

But, why do they go up nearly instantly when some bad news is announced from the middle east? "During peace talks, the ambassador from Iran sneezed" is greeted with station owners rushing out the door to raise the price a nickel.

Because it is tough to pay your wholesaler $3.50/gal for gasoline when you're selling it for $3.49/gal.

Proof

Basic economic business common sense. Gasoline is sold on razor thin margins. Which is why the stuff inside the store is overpriced. And since gas can be a volatile commodity, gas stations have to react accordingly.

The sales from the gas sitting in a station's tank right now will pay for the next shipment of gas from the wholesaler/distributor. If the wholesale price of gas starts to go up, so does the price at the tank.

Stop with the falacies and lies.

There are more gas stations with no store here in New Jersey than with a store.

Gas only and they pump it even.

In fact even clean the windows and it's not any higher than places that do happen to have a store.

Razor thin my ass

 

[Queasy]

Originally posted by: dmcowen674

Originally posted by: Queasy

Originally posted by: dmcowen674

Originally posted by: Queasy

Originally posted by: DrPizza

Originally posted by: ElFenix
they're not going down as fast because prices are sticky downward. if you're a gas station (most of which are not owned by the company whose name is on the marque), you're going to be as slow going down as you can be. you bought that gas at last week's price with the previous weeks' money and now you have to sell it at this week's price.

But, why do they go up nearly instantly when some bad news is announced from the middle east? "During peace talks, the ambassador from Iran sneezed" is greeted with station owners rushing out the door to raise the price a nickel.

Because it is tough to pay your wholesaler $3.50/gal for gasoline when you're selling it for $3.49/gal.

Proof

Basic economic business common sense. Gasoline is sold on razor thin margins. Which is why the stuff inside the store is overpriced. And since gas can be a volatile commodity, gas stations have to react accordingly.

The sales from the gas sitting in a station's tank right now will pay for the next shipment of gas from the wholesaler/distributor. If the wholesale price of gas starts to go up, so does the price at the tank.

Stop with the falacies and lies.

There are more gas stations with no store here in New Jersey than with a store.

Gas only and they pump it even.

In fact even clean the windows and it's not any higher than places that do happen to have a store.

Razor thin my ass

SmartMoney

Stations earn on average between 10 and 15 cents on a gallon of gas. Ironically, they earn the least when prices are highest. As fuel climbs, gas stations must shrink their profit margin to remain competitive, meaning they earn less per gallon than usual. But another big cost during tough times is something they can't do anything about credit card fees, which add up to about 2.5% of all purchases. When gas is at, say, $2 a gallon, the station pays credit card companies 5 cents a gallon; when gas hits $3, that fee becomes 7.5 cents more than half the station's entire average profit. Last year gas stations' revenue from fuel grew 25%, while the fees they paid to credit card issuers jumped 40%, to $5.3 billion. "Those credit card fees are miserable for the gas station business," says Mohsen Arabshahi, who owns five Southern California gas stations.

How do station owners make up for lost revenue? "Prices go up like a rocket and come down like a feather," says Richard Gilbert, a professor of economics at UC Berkeley. For several weeks after wholesale prices drop, stations can earn as much as 20 cents a gallon before retail prices are lowered to reflect the change.

USA Today

Rising gas prices have not only punished consumers. Increasingly, they're also squeezing many gas-station owners.

As gas prices have jumped, station owners' profit margins have shrunk because they now must pay higher fees to credit card companies to process payments. Those fees are so high, says the National Association of Convenience Stores, that they've slashed already slim profit margins and made it hard for stations to make money on gas sales.

If they can't turn a profit at the pump, station owners say, they may have to ask drivers to share the financial burden ? in the form of higher prices for convenience-store sundries such as drinks and candy. And some gas stations have just stopped accepting credit card payments.

...

As gas prices rise, many station owners say they've had to lower their profit margin per gallon to try to attract more customers.

Eagle Tribune

Despite skyrocketing gas prices, individual stations operate with only a tiny profit margin at the pump, local owners said.

The profit, when there is one, comes from selling items such as cigarettes and bottled water in attached convenience stores.

And, based on state figures, the number of gas stations in New Hampshire has been declining for more than a decade.

This year, 1,201 facilities in the Granite State hold licenses for underground diesel and gasoline storage tanks, according to Jim Martin of the state Department of Environmental Services.

Ten years ago, nearly twice that number, or 2,083, held licenses, according to Martin. A decade before that, in 1988, there were 5,093 licenses.

Not all gas stations hold underground storage licenses ? some store fuel above ground ? and the numbers are not an exact reflection of the total number of gas stations in New Hampshire, Martin cautioned. Despite that, he said, the figures might reflect an overall trend.

Rashid Sucar, who has owned Oasis Gas and Mini Mart in Windham for four years, said Friday that he was actually losing 3 cents a gallon on most gas purchases.

Sucar's profit margin on gasoline Friday was only 4 cents, but credit card companies charge a 7 cent per-gallon transaction fee. That meant, at yesterday's prices, Sucar was losing money every time a customer used a credit card.

"I'll be honest with you," Sucar said. "This is the worst time (to be running a gas station)."

 

[jman19]

Originally posted by: ElFenix

Originally posted by: Cattlegod
wouldn't lag provide opportunity for arbitrage?

with the regional blends that are required from place to place, and the fact that the stuff has to be transported, arbitrage would involve significant risk merely due to the time involved and the limited market. this isn't like bank computers arbitraging various electronic markets nearly instantaneously.

Real world arbitrage often carries risks.