Gas Prices Through The Roof
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MisterCMK;193037 wrote:
The price will go up and up and up until demand drops like a rock and then the price will come down. 70s all over again anyone?Except the 70's price hikes weren't exponentiated by China and Russia suddenly becoming industrialized modern nations with gigantic demand for oil. It used to be the US and the US only who took in large quantities of oil, now those other 2 fuggers are wanting the same supply we get.
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I heard from somewhere that if the gas prices keep going up...newer cars price's will drop...This is getting ridiculous, I am very sure it's safe to say that prices will be along the lines of 5-6$ a gallon this time next year...assuming that this increase continues of course.
*1989 Nissan 300ZX Z31 *
> DelSlow;262050 wrote:
> I like the new JN210 -
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When i was driving in germany in march 2005, i was paying $7/gal and loving every minute of it. Of course, there I was able to go 130mph legally for minutes at a time
I don't see why there's all this angst towards "big oil". They don't set retail gas prices -- the government has a much larger say in retail gas prices than any "big oil" company does. No major player in the drilling, pumping, refining, or transporting business has enough of a lock on the US market, much less the world market, to set prices at a level the market doesn't support.
Also, when markets are having their prices artificially inflated due to monopoly maintenance, there are other telltale signs that aren't present in the retail fuel market.
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Thrash you of all people should know though that when demand for a product is as inelastic as gas/oil they have much more freedom in screwing the consumers over without seeing a hit in sales. Record profits are pretty convincing support to the thought that the price hikes are almost purely for profit.
My Government teacher was a former lobbiest for major oil companies (among other jobs that allowed him access to tons of information) and was telling me that the prices are WAY to high for current market conditions to be the factor.
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Working in the industry and seeing the prices that most people don't see I can tell you this: Stop-N-Go jumped up to $3.09 yesterday while we stayed at 2.89 (and holy shit did Tesoro chew our asses for that one), we sold a little over 3,000 gallons of regular between 10 am yesterday and noon today. Our price on gas was 2.86 which means we made .03 per gallon (a whole $90 made off of 3K gallons of gas). Unfortunately that $90 won't go into my boss' pocket due to credit card companies. Due to the card companies RAPING the industry we have to make $.12/gallon just to break even...what does all this mean, we actually lost $270 by staying .20 lower than everyone else yesterday. We could have made a whopping $330 if we would have jumped with them.
Now today we got a new gas load (after almost running out of regular this afternoon), this load was $2.99/gallon and we jumped to 3.06 (still not making money).
I guess what I am getting at is this: blame whoever you want for gas prices, but I know damn well the (independent/small) station owners aren't getting rich. I've seen my boss drop $60,000 on gas in one week to see a return of $60,180 (a $180 return on a $60,000 investment isn't much to brag about). So please don't be the person that bitches me out about gas prices when you come in to pay because guess what...my car is on E and I've got to fucking pay for it too.
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DaveH;193048 wrote:
Supply and demand does have a little to do with it, but it's mostly the commodity speculators jerking our chains.DING DING DING DING DING!!!! WE HAVE A WINNER!!!!! Take sweet crude of the commodity market and watch the prices fall as much as $20 to $30 per barrel.
Also, the weak US dollar has a lot to do with it as well. Our dollar doesn't buy what it used to (Canadian dollar is $1.07 compared to our $1.00) and therefore we aren't able to buy the oil as cheaply as before. The flip side of that is that we are now able to export more goods (wheat, etc...) on account of this.
(wait, did Dave and I just agree on something?)
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Biodiesel perhaps??
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Actually while it's often said that fuel is an inelsatic market.. 2 summers ago when GWB was on saying "everyone use less gas please" and it got up to 3.30 or 3.50/gal for premium (or whatever it was).... retail fuel consumption dropped like 10% that week or something.
10% drop in demand is HUGE.. and is bigger than the percentage of price fluctuation we're seeing.
Also, like I said... there's no company that owns enough of anything to corner the market and have their way with prices.
I agree that retail gas is more expensive than the true market price... after all, each gallon is taxed over 60 cents
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