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I never knew it broke the $300 a gal mark in Cali. No wonder i would never live in that state nate. Three hundred+ smackers per gal
is a lot.
$4 A GAL IS COMING SOON. And expect $8 a gal within 7 years .
We heard that 7 years ago. 17 years ago. 27 years ago....and so forth.
To let you in on a little secret that the various projection based fear mongers ignore is the expansion of technology.
ie) In 1970ish a book predicted mass starvation above 1 billion people....assuming of course no production improvments.
With regards to gas, the whole world is slowly turning to renewable energy and more and more ways to reach previously "unreachable" deposits keeps occurring.
It’s early April, and huge portions of this country were freezing just days ago. What summer?
Why didn’t gas hit $3.50 last year if that’s true?
this year the economy is going well enough that people are going to start driving a lot more, and that means more demand for gasoline and diesel. and again summer driving season is getting upon us, yes large part of the country is in the deep freeze right now, but large parts of the country is also quite warm as well. that means that barrel of crude oil is being split into gasoline as well as heating oil, which means that the demand for BOTH is going up, and sorry but you cant make more heating oil AND more gasoline from one 42 gallon barrel of crude oil. there is only so much of each that can come out of one barrel.
Quote:
Originally Posted by Tall Traveler
If you truly don't believe prices are subject to supply and demand, it's like denying that the world is round. Yes, other factors such as the dollar valuation, unrest, etc. are factors but the driver will always always always always always always be....Supply and Demand
and the price of a barrel of crude oil is also factored in, as well as how much of each product that can be distilled from a barrel of crude oil. if you have to still produce heating oil, as well as produce more gasoline, then prices are going to go up as the amounts of each goes down in total.
this year the economy is going well enough that people are going to start driving a lot more, and that means more demand for gasoline and diesel. and again summer driving season is getting upon us, yes large part of the country is in the deep freeze right now, but large parts of the country is also quite warm as well. that means that barrel of crude oil is being split into gasoline as well as heating oil, which means that the demand for BOTH is going up, and sorry but you cant make more heating oil AND more gasoline from one 42 gallon barrel of crude oil. there is only so much of each that can come out of one barrel.
and the price of a barrel of crude oil is also factored in, as well as how much of each product that can be distilled from a barrel of crude oil. if you have to still produce heating oil, as well as produce more gasoline, then prices are going to go up as the amounts of each goes down in total.
FYI- The OP knows full well what is going on. They're merely mocking a bunch of the right wing rhetoric....which ironically is no different than the left wing rhetoric that started when gas prices shot up under Bush. It's just the normal partisan back and forth.
Production slowed. I assume saudis flooded the market for last few years but now that Syria is settling, production slowed
Syria has no effect on production or use. None. The Middle East has been unstable since 2003.
Quote:
Originally Posted by rbohm
this year the economy is going well enough that people are going to start driving a lot more, and that means more demand for gasoline and diesel. and again summer driving season is getting upon us, yes large part of the country is in the deep freeze right now, but large parts of the country is also quite warm as well. that means that barrel of crude oil is being split into gasoline as well as heating oil, which means that the demand for BOTH is going up, and sorry but you cant make more heating oil AND more gasoline from one 42 gallon barrel of crude oil. there is only so much of each that can come out of one barrel.
and the price of a barrel of crude oil is also factored in, as well as how much of each product that can be distilled from a barrel of crude oil. if you have to still produce heating oil, as well as produce more gasoline, then prices are going to go up as the amounts of each goes down in total.
There was a very cold winter last year too, and it went into April. Gas didn’t spike.
Demand for gas is no higher now than it was last year. Summer driving season? We just hit Spring two minutes ago. The summer driving season doesn’t even kick off until late next month. Why didn’t gas spike last year in the summer driving season?
Sorry, but your supply and demand argument ain’t holding up. Supplies are abundant. I can’t find a single credible link showing supply as being tight.
Quote:
Originally Posted by Milton Miteybad
You're right about one thing...the gasoline markets are well-supplied at the moment.
With finished product cracked from crude oil selling for 20% more than it did a year ago.
I guess you forgot about that crucial bit of data, huh?
Throw in seasonal maintenance turnaround and the start of the summer driving season, and voila! Higher gasoline prices. Happens all the time. No big deal. Nothing is happening now that doesn't happen pretty much every year about this time.
And you can whine, cry and stamp your feet about how the big, bad oil companies are working you over, or how supply and demand has kicked your butt once again. None of these silly dodges will change the central reality, which is that you, the buyer, set the price of any commodity. Well, you and 3 to 4 billion of your fellow motorists around the world.
Maybe you and your fellow gasoline buyers could get together and stage a gasoline boycott. I hear that kind of thing is all the rage these days.
I didn’t forget anything. I asked a question. I wouldn’t ask if I’d known. I don’t know.
What I do know is that the typical economic principle of supply and demand doesn’t seem to regulate gas prices one bit.
And please, will you guys chill with the “summer driving season” nonsense? No one is traveling anywhere in April. Heavy driving season begins after Memorial Day. Kids don’t get out of school for another few months. Gas started spiking 2 months ago.
And no, the buyer isn’t setting the price of gas in the United States. That would mean supply and demand...gas doesn’t operate on that principle for the millionth time. Gas prices seem to be determined far more by Wall Street speculators holding oil futures than anything dealing with normal economic laws.
Syria has no effect on production or use. None. The Middle East has been unstable since 2003.
There was a very cold winter last year too, and it went into April. Gas didn’t spike.
Demand for gas is no higher now than it was last year. Summer driving season? We just hit Spring two minutes ago. The summer driving season doesn’t even kick off until late next month. Why didn’t gas spike last year in the summer driving season?
Sorry, but your supply and demand argument ain’t holding up. Supplies are abundant. I can’t find a single credible link showing supply as being tight.
I didn’t forget anything. I asked a question. I wouldn’t ask if I’d known. I don’t know.
What I do know is that the typical economic principle of supply and demand doesn’t seem to regulate gas prices one bit.
And please, will you guys chill with the “summer driving season” nonsense? No one is traveling anywhere in April. Heavy driving season begins after Memorial Day. Kids don’t get out of school for another few months. Gas started spiking 2 months ago.
And no, the buyer isn’t setting the price of gas in the United States. That would mean supply and demand...gas doesn’t operate on that principle for the millionth time. Gas prices seem to be determined far more by Wall Street speculators holding oil futures than anything dealing with normal economic laws.
A couple things. While "no one is traveling anywhere in April" the refineries typically transition to the mandated summer blends of gas around the middle of March to the first of April, and those formulations add generally $0.20 or so to a gallon of gas. That's been true for a decade or two if not longer.
Your winter may have been mild this year but in the east, especially the NE, it wasn't and that's where heating oil is a major source of heat. That plays a part since fuel oil is still being produced instead of gas.
The price of crude futures, for whatever reason, started going up a couple months ago. That means higher gas prices down the road, which is now.
If you want to blame anyone you can blame the speculators on the commodities markets. One can only hope they bet wrong and lose money.
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If you truly don't believe prices are subject to supply and demand, it's like denying that the world is round. Yes, other factors such as the dollar valuation, unrest, etc. are factors but the driver will always always always always always always be....Supply and Demand
