Refining 101

[DealMonkey]

Originally posted by: 1EZduzit

Originally posted by: DealMonkey

Originally posted by: 1EZduzit
So the increased demand doesn't start until April, yet the price jumped in the middle of March? the price rise comes before the demand?

I think that is what I said, the specualtors got greedy and jumped the gun this year in fear that they may miss out on some of the annual price gouging.

Normally, yes April. But Congress moved Daylight Savings back this year so that it starts about 3 weeks earlier. Which is where? Yes, early March.

LOL, I think we're going around in circles.

Just because daylight savings started earlier this year is no reason (IMHO) for the gas prices to jump. The days are still only 12 hours and most people work at least 8 and then have communting time on top of that. I remain unconvinced that the earlier start of daylight savings made any significant difference in demand, let alone enough to justify a 12% increase.

Why do you think demand for gas increases in the summer months? More daylight to drive, warmer weather to go places, etc., etc. Moving up Daylight Savings time simply bumped that normal effect forward about 3 weeks.

 

[1EZduzit]

Originally posted by: DealMonkey

Originally posted by: 1EZduzit

Originally posted by: DealMonkey

Originally posted by: 1EZduzit
So the increased demand doesn't start until April, yet the price jumped in the middle of March? the price rise comes before the demand?

I think that is what I said, the specualtors got greedy and jumped the gun this year in fear that they may miss out on some of the annual price gouging.

Normally, yes April. But Congress moved Daylight Savings back this year so that it starts about 3 weeks earlier. Which is where? Yes, early March.

LOL, I think we're going around in circles.

Just because daylight savings started earlier this year is no reason (IMHO) for the gas prices to jump. The days are still only 12 hours and most people work at least 8 and then have communting time on top of that. I remain unconvinced that the earlier start of daylight savings made any significant difference in demand, let alone enough to justify a 12% increase.

Why do you think demand for gas increases in the summer months? More daylight to drive, warmer weather to go places, etc., etc. Moving up Daylight Savings time simply bumped that normal effect forward about 3 weeks.

Actually in three weeks the days will be what, another hour longer? Plus the hour you gain from the time switch? Then in 3 weeks it's also warmer and people might have enough time AND the desire to drive someplace and do something so I remain unconvinced that demand had anything to do with the March price jump.

 

[DealMonkey]

Well, I don't know what else to say. I'm just trying to play a little devil's advocate here and point out potential reasons for the jump.

 

[CycloWizard]

Originally posted by: 3chordcharlie
If the decisions you talk about are real, they are coordinated, and if that includes companioes in the western world, this coordination is highly illegal.

Of course it's always possible that you have found conspiracy theorists inside the industry.

Yes, that's always a possibility, but an intriguing possibility nonetheless. Does the US government have the stones to do anything to the oil companies if it were true? I doubt it. Even if they did, something like this would be virtually impossible to prove, though it would make for yet another 'trial of the century.'

 

[CycloWizard]

Originally posted by: DealMonkey
Depending on their level of cooperation, the oil companies could be colluding, which would clearly be illegal.

No, something on the scale I am talking about is definitely collaboration. You could argue that they are colluding if they weren't actively working together, but my theory requires that they are.

 

[el33tpenguin]

Good info. Thanks.

 

[DealMonkey]

Originally posted by: CycloWizard

Originally posted by: DealMonkey
Depending on their level of cooperation, the oil companies could be colluding, which would clearly be illegal.

No, something on the scale I am talking about is definitely collaboration. You could argue that they are colluding if they weren't actively working together, but my theory requires that they are.

I guess what I'm getting at is that if the big oil companies are cooperating on any level to fix prices, it's collusion and quite illegal. The record companies got slapped down a few years back for similar actions when they tried to fix prices at music stores, setting minimum prices, etc. Now, if they're collaborating on various things, for example a joint pipeline or something, that's a different story.