Anybody know why gas prices are going up again even though oil prices are still down? (buy, sell)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am just curious if anyone who knows how all of this works could explain why gas prices are going up again? As we all know oil prices have gone down about 15% from the recent highs- and in my area, anyway, gas prices had only dropped about 15-20 cents. However now in the last 3-4 days they are going back up, in fact a pretty big jump of about 6 cents in one night over the weekend at most stations in the area. Since oil has stayed down around $100 or just under, why is gas jumping up so much?
Location: Cleveland bound with MPLS in the rear-view
5,509 posts, read 11,819,643 times
Reputation: 2501
All I know is that when barrel prices of oil are higher, gas stations tend to LOSE money because they have so much competition and they price gas below profit points sometimes. So what you may be seeing is a market correction by gas stations now that oil prices have stabilized/dropped.
Gas isn't only based on the price of crude. Gas prices are also based on the Futures Market, dollar and a a bunch of other things. If someone from OPEC is caught snizzing it goes up. The biggest farce is the Futures Market. People/Companies can buy gas today at the rate it's at, at that given time. Then sell it back if the price goes back up to make money on the difference. It's called paper trading. And should be eliminated now. I think is was for companies to purchase large quantities in advance if the price was cheaper to save money later down the road in case the price went up when they needed the product. I'm no expert but I stick by my opinion that the Futures Market is a farce and easily manipulated by the big boys.
They can also sell it short like you can with a stock or currency.
I am just curious if anyone who knows how all of this works could explain why gas prices are going up again? As we all know oil prices have gone down about 15% from the recent highs- and in my area, anyway, gas prices had only dropped about 15-20 cents. However now in the last 3-4 days they are going back up, in fact a pretty big jump of about 6 cents in one night over the weekend at most stations in the area. Since oil has stayed down around $100 or just under, why is gas jumping up so much?
If gas prices are going up, it must be a local trend/issue. Nationally, gas prices have been trending downward for several weeks now.
Not HERE in my area- that is what my whole point is. I know the national average is down- and they did drop slightly here a couple weeks ago- but prices have not only flattened out here, they went back up at many stations and have stayed at that higher level (around $3.90- $3.99 at most stations, down from highs of $4.11 at most stations at the high point a couple months ago).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
