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Old 11-14-2018, 10:08 AM
 
4,114 posts, read 1,679,641 times
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Quote:
Originally Posted by maineguy8888 View Post
For one basic reason: when the price of crude rises (even a little), it almost instantly affects the price that consumers pay. But when crude prices drop, it takes MUCH longer for them to drop, even a little. This makes no sense, other than some perverted form of capitalism.
They have every right to be greedy and/or engage in collusion. And I have every right to wish them ill for it.



The prices on the station near me dropped 20 cents in a day.



Tell you what. Don't buy gas.

 
Old 11-14-2018, 10:09 AM
 
65,420 posts, read 66,872,597 times
Reputation: 43781
Quote:
Originally Posted by maineguy8888 View Post
You hit the nail on the head. This is the problem. So they instantly raise their prices, when their own cost goes up. But they never do the inverse.

So I wish them all much, much pain.
This is poor logic . Prcices fall when the competition falls. Other wise prices would never change and you know they certainly are higher or lower every month.

I think you need an education on how things work before going off on a rage
 
Old 11-14-2018, 10:15 AM
 
Location: NJ
22,901 posts, read 28,810,675 times
Reputation: 14816
im cool with people in the oil industry.
 
Old 11-14-2018, 10:33 AM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,463 posts, read 15,411,915 times
Reputation: 11225
UCK, free market and all..............but I will join-in with the loathing.

So wish my vehicle was E85-compatible.
 
Old 11-14-2018, 10:35 AM
 
Location: NJ
22,901 posts, read 28,810,675 times
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Quote:
Originally Posted by tickyul View Post
UCK, free market and all..............but I will join-in with the loathing.

So wish my vehicle was E85-compatible.
E85 is substantially cheaper? i thought ethanol gives significantly worse gas mileage.
 
Old 11-14-2018, 10:42 AM
 
979 posts, read 938,692 times
Reputation: 1199
From what I understand, the price spikes up and price decline lags based off of supply and demand, the virtue of the many different industries down the chain before the consumer buys the product, and the basis that oil is bought on futures contracts. It sucks feeling like we are paying more than we should, but that's who the structure is built. The alternative would be to have an extremely volatile energy sector in both up, mid, and downstream. We'd probably see a number of companies file bankruptcy during every significant turn in oil. Perhaps it doesn't have to be this way, but there's nothing illegal going on (as far as I can tell).
 
Old 11-14-2018, 10:57 AM
 
Location: Paranoid State
12,878 posts, read 9,613,979 times
Reputation: 15285
Ah yes, the awful profiteering Oil & Gas Industry.

Like, say, Exxon Mobil.

Over the past 5 years, the S&P 500 is up 50%, while Exxon Mobil is down 18%.

Yeah, they are evil profit maximizing denizens of the dark.

 
Old 11-14-2018, 11:04 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,584 posts, read 51,146,511 times
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Quote:
Originally Posted by CaptainNJ View Post
E85 is substantially cheaper? i thought ethanol gives significantly worse gas mileage.
Here E85 is more expensive, by 50 cents, if you can even find it. My truck is flex-fuel but I have never used E85, with the nearest source over 20 miles away, higher cost and less efficient, I probably won't.

People that have a problem with gas prices should use Gas Buddy. Around here you can pay as little as $3.15 (Costco, and we have two within 6 miles either direction) or as much as $3.65 at the local Shell or Chevron. With my 36 gallon tank, that makes a big difference ($15-$20/fillup).
 
Old 11-14-2018, 11:07 AM
 
3,353 posts, read 2,389,795 times
Reputation: 5811
Quote:
Originally Posted by maineguy8888 View Post
You hit the nail on the head. This is the problem. So they instantly raise their prices, when their own cost goes up. But they never do the inverse.

So I wish them all much, much pain.
What do you mean the prices never go down? Ridiculous.
 
Old 11-14-2018, 11:07 AM
 
Location: Caribou, Me.
5,028 posts, read 3,586,994 times
Reputation: 3554
Quote:
Originally Posted by Grlzrl View Post
There are TWO components of pricing...supply and demand. People get concerned about dropping oil prices when it's demand driven and it often signals an upcoming recession. HOWEVER, in this case it's supply driven. US is producing way more than they have in the past so it's causing an oversupply, hence, the dropping price of oil. It always takes longer to show up at the pump when the price drops. I am sure there is some economic reason for it. I don't know what it is. Maybe they are burning off inventory bought at higher prices?
Yes, I am sure that they are "burning off" inventories that cost them more when they bought it. That makes sense.

But reverse it: if prices that the oil businesses pay for their product start to RISE, why doesn't that same dynamic remain in effect?? Why do prices to consumers INSTANTLY start to be jacked up??
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