PSA: Gas shortage in CA spikes prices...

[drebo]

Short of stripping CARB of its power I don't see anything happening.
I mean how much more pollution can come from the gas blend sold in the other western states vs the California only one.

None. The governor even admitted that there was a negligible increase.

I'm all for the states' rights to choose this, but CA voters need to put on their fucking britches and vote these idiot politicians out of office.

Yes, some places in CA have a smog problem...but that has more to do with geography than anything else, and it's likely not going to change regardless.

 

[CPA]

Well, well, well, apparently wholesale prices have plummeted in overnight trading, which will lead to retail prices coming back down.

Why you ask? It must be because those greedy corporations filled their pockets enough and have decided to give the plebs a break, right?

Well, actually, it's because Governor Brown has signed an early release of the winter fuel blend. This is allowing oil companies to use supplies they couldn't use yesterday.

So, any of you who didn't think this was a regulatory issue, open your eyes and read a little. You might learn something other than "corporations are eeeeeevvvviiilllll."

 

[highland145]

CPA, some already drank the cool aid......and liked it.

 

[drebo]

Well, well, well, apparently wholesale prices have plummeted in overnight trading, which will lead to retail prices coming back down.

Why you ask? It must be because those greedy corporations filled their pockets enough and have decided to give the plebs a break, right?

Well, actually, it's because Governor Brown has signed an early release of the winter fuel blend. This is allowing oil companies to use supplies they couldn't use yesterday.

So, any of you who didn't think this was a regulatory issue, open your eyes and read a little. You might learn something other than "corporations are eeeeeevvvviiilllll."

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

 

[CPA]

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

Futures markets, which oil and gasoline are part of, are nothing but a play on speculation. Other commodities that are priced on speculation: beef, hogs, corn, oranges, dollars. I'm not sure how that has anything to do with corporate greed, particularly if you have no proof of manipulation. I would go further to say that I find it difficult to believe, particularly after Enron, that Cali would be blind to this. Again, this was a regulatory issue that drove prices up.

 

[Brovane]

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

The regular gas stations yes. However I would expect Costco gas to drop fairly quickly as the spot market drops. Usually Costco goes down quickly as gas prices drop.

 

[drebo]

Futures markets, which oil and gasoline are part of, are nothing but a play on speculation. Other commodities that are priced on speculation: beef, hogs, corn, oranges, dollars. I'm not sure how that has anything to do with corporate greed, particularly if you have no proof of manipulation. I would go further to say that I find it difficult to believe, particularly after Enron, that Cali would be blind to this. Again, this was a regulatory issue that drove prices up.

How was there not market manipulation? There was never a real shortage.

There was a SCARE of a shortage based on the fact that there was a rumor of contamination in a pipeline, a fire at a refinery, and a power outage at another refinery. But there wasn't any actual shortage.

 

[CycloWizard]

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

What should the slope of the cost curve be? If there is a 2.5% decrease in supply and demand has increased, how much should it cost? The answer, of course, is whatever people are willing to pay or as little as your competitors are charging. This is an ongoing problem with our nation's new theory that we are entitled to everything - that gas, drinking water, and other things that people produce with their own labor are ours by right. This is a very flawed theory that you cling to at your own risk.

 

[LTC8K6]

Cap and Trade really kicks in for California on January 1st. That should also raise gasoline prices. That's when compliance is required after a year long "soft start" in 2012.

http://en.wikipedia.org/wiki/Global_Warming_Solutions_Act_of_2006

 

[dmcowen674]

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

Notice the CPA guy never admits there was ever an actual shortage.

 

[dmcowen674]

10-9-2012

http://finance.yahoo.com/news/oil-price-soars-supply-jitters-164859120.html

Oil price soars on supply jitters

Oil jumps above $92 a barrel as Syria conflict, North Sea shutdowns raise supply worries



The price of oil rose more than 3 percent Tuesday on concerns about supplies from the Middle East and the North Sea.



Wholesale gasoline rose 6.6 cents, or 2.3 percent, to finish at $2.96 per gallon.



Prices rose again in California, although by the smallest amount in days. Drivers in the state are paying an average of $4.67 per gallon, up 49 cents in a week.

 

[Miramonti]

Syria and North Sea excuses are a load of cr@p. This is just standard price jacking from the standard market trading jackoffs.

 

[Corporate Thug]

Well, to be fair, while CA's unique gasoline blend is partly to blame, it seems as though the prices were driven up over SCARES of shortage, not actual shortage. It was reported that supply is down only 2.5% year-over-year. That shouldn't be enough to cause a 30% increase in the wholesale price of gas.

Speculation, combined with California's unique gas blend, caused this shit.

I have no doubt that the market was manipulated during the last week. I can see a scare causing a 5-10% increase, but 30%? That's absurd.

Also, gas prices won't fall back to where they were (and still should be) for weeks. They'll ride these current prices as long as they possibly can. Even if wholesale gas goes back to ~$3.50 overnight, gas at the pump will only fall $0.05 - $0.10 per week.

30 percent increase over what period?

In the last month, prices have gone up from ~4.15 to $4.66, or about 12.5%

http://www.californiagasprices.com/retail_price_chart.aspx

 

[CPA]

Notice the CPA guy never admits there was ever an actual shortage.

This is why no one should ever take you seriously. You know nothing about economies and markets.

It's speculation that there will be a shortage. That's how futures markets work. It has nothing to do with manipulation. There was worry that with the outages in several pipelines/facilities, along with the regulations that bind the oil companies to certain blends during certain time, would make it very difficult for the industry in that area to meet demand.would not be able to meet demand. The problems still exist with the facilities but the lifting of the regulations allow the oil companies to tap into reserves they couldn't use.

Is that enough for you or do I need to make it simpler?

 

[CPA]

Cap and Trade really kicks in for California on January 1st. That should also raise gasoline prices. That's when compliance is required after a year long "soft start" in 2012.

http://en.wikipedia.org/wiki/Global_Warming_Solutions_Act_of_2006

But it will be the corporations greed that causes prices to go up, not some fairyland method of reducing pollution according to some here.

 

[dmcowen674]

10-10-2012

http://finance.yahoo.com/news/the-states-with-the-cheapest-gas.html

The States with the Cheapest Gas



Since June, gasoline prices have climbed more or less steadily and are now 35 cents per gallon higher than they were a year ago. According to AAA’s daily fuel gauge report, which measures gas prices around the country, gas prices have hit daily record highs at least once in each of the past six weeks. In Michigan and Ohio, prices rose by 50 cents per gallon in the past year. As of October 8, there are seven separate states with gas prices above $4.00 per gallon.


In 10 states the average price of a gallon of gas is $3.60 or less



Gas prices in all 10 states with the cheapest gas price have fallen, including Georgia, where the cost per gallon is down by 24 cents.


These are the 10 states with the cheapest gas.

1. South Carolina

> Regular gas price per gallon: $3.49
> Tax per gallon: 16.8 cents (4th lowest)
> Number of operating refineries: 0

Nowhere is gas cheaper than in South Carolina, where gas is 28 cents per gallon cheaper than the national average, and three cents cheaper than the second-cheapest state, Mississippi. Contributing to low prices are some of the lowest gas taxes in the country; South Carolina charges an excise tax of just 16 cents per gallon and other fees and taxes of only 0.8 cents per gallon. On September 15, 2008, prices hit their historical peak in the state, at $4.12. In June, gas prices fell below $3 per gallon.

2. Mississippi

> Regular gas price per gallon: $3.52
> Tax per gallon: 18.8 cents (7th lowest)
> Number of operating refineries: 3

Last year, Mississippi had a median household income of just $36,919, making it the poorest state in the country by that measure. Although the state’s economy is suffering, there has only been a 25 cents per gallon increase in Mississippi’s gas prices over the past year, compared a rise of 36 cents nationally. The state currently charges just 18.8 cents in state taxes per gallon of gas, less than all but six states. Costs also were kept down by a close proximity to the nation’s largest oil refiners, Louisiana and Texas.


3. Alabama

> Regular gas price per gallon: $3.53
> Tax per gallon: 20.9 cents (14th lowest)
> Number of operating refineries: 3

One year ago, gas cost $3.30 a gallon in the state, compared to an average of $3.42 nationwide. At that time, gas prices in 12 states were cheaper than in Alabama. Since then, the state’s prices have risen by only 24 cents per gallon compared to a national average increase of 36 cents per gallon, making gas in the state far cheaper relative to the rest of the United States. The state helps keep costs low for drivers by limiting gas taxes. The state’s excise tax of 16 cents a gallon is among the lowest in the county.

4. Tennessee

> Regular gas price per gallon: $3.53
> Tax per gallon: 21.4 cents (15th lowest)
> Number of operating refineries: 1

As of the second quarter of this year, no state was cheaper to live in than Tennessee. One major reason for the state’s low relative cost of living was its low transportation costs, despite starting 2012 with four consecutive months of gas price increases. Although the state has just one refinery, the price of gas is 24 cents per gallon below the national average price. In the past month, gas prices in Tennessee have fallen by 12 cents a gallon, one of the largest decreases in the country.

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5. Texas

> Regular gas price per gallon: $3.54
> Tax per gallon: 20 cents (tied for 11th lowest)
> Number of operating refineries: 26

Texas is the nation’s largest oil refiner, processing almost 4.66 million barrels per day — more than a quarter of the nation’s output — in its 26 operating refineries. Like Louisiana, the state further helps keep gas prices low by not charging any state taxes aside from a 20-cent excise tax. Two of the largest public companies in the nation, Exxon Mobil Corp. (NYSE: XOM) and Phillips 66 (NYSE: PSX), are Texas-based oil companies.

6. Louisiana

> Regular gas price per gallon: $3.57
> Tax per gallon: 20 cents (tied for 11th lowest)
> Number of operating refineries: 18

Only Texas refines more oil into gasoline than Louisiana, which has 18 operating refineries processing nearly 3.2 million barrels per calendar day. The abundance of locally processed gas and the total absence of any state gas taxes aside from an excise tax make trips to the pump highly affordable. The state is also home to the Louisiana Offshore Oil Port, which, according to the EIA, is the nation’s only port for offloading deep draft oil tankers.

7. Missouri

> Regular gas price per gallon: $3.58
> Tax per gallon: 17.3 cents (6th lowest)
> Number of operating refineries: 0

Although one year ago Missouri had the cheapest gas in the U.S., in the past year the price of gas has risen by 45 cents per gallon — more than in any other state. Despite the absence of any in-state refineries, Missouri has some of the nation’s lowest gas taxes, allowing gas to be sold at comparatively low prices. Among the state’s metropolitan areas, St. Louis has the cheapest gas at just $3.49 per gallon.

8. Arkansas

> Regular gas price per gallon: $3.58
> Tax per gallon: 21.8 cents (16th lowest)
> Number of operating refineries: 2

Arkansas has access to locally refined gasoline. It has two refineries of its own, and it borders Louisiana and Texas, the two largest oil refiners in the country as measured by barrels per day. Having numerous refineries nearby helps lower the price of gas for Arkansas drivers, who presently pay 18 cents less per gallon than the national average of $3.78 a gallon. Arkansas also charges just 0.3 cents in other taxes per gallon in excise taxes.

9. Georgia

> Regular gas price per gallon: $3.58
> Tax per gallon: 28.6 cents (20th highest)
> Number of operating refineries: 0

Georgia’s excise tax of 7.5 cents per gallon of gas is lower than any state except for Florida’s. But with 21.1 cents per gallon in other fees and taxes, Georgians actually pay more in gas taxes than residents of 30 other states. High taxes likely contributed to the state’s relatively higher transportation costs midyear — the most expensive among those states with the lowest gas prices. The good news for drivers, however, is that the price of gas has fallen by 24 cents per gallon over the past month, more than in any other state.

10. Virginia

> Regular gas price per gallon: $3.60
> Tax per gallon: 20.1 cents (13th lowest)
> Number of operating refineries: 0

In the second quarter of 2012, the relative cost of transportation in Virginia was among the country’s lowest. Low gas prices are likely one reason for this. Virginia is also one of the wealthiest states in the country, with a median household income of $61,882 as of last year. Currently, Virginia charges 20.1 cents per gallon in total taxes and fees — more than 10 cents per gallon below the national average and inline with other states where gas is inexpensive.