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06-13-2011, 08:13 AM
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Location: Bothell, Washington
2,800 posts, read 5,003,366 times
Reputation: 3971
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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?
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06-13-2011, 08:19 AM
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Location: Cleveland bound with MPLS in the rear-view
5,530 posts, read 10,668,745 times
Reputation: 2425
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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.
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06-13-2011, 05:24 PM
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4,246 posts, read 11,036,775 times
Reputation: 3135
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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.
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06-13-2011, 05:27 PM
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Location: The North
5,575 posts, read 9,855,092 times
Reputation: 4905
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Gas prices are going down in my area. Probably just a reflection of how local stations are competing at the moment.
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06-17-2011, 10:20 AM
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Location: Yucaipa, California
9,866 posts, read 19,689,186 times
Reputation: 6703
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I paid $3.90 a gal yesterday. OPEC is the worse. A barrel of oil is around $97.00. I dont see $3.00 a gal gas for a long time. $3.90 is wayy too high.
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06-17-2011, 10:23 AM
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Location: Chicago
38,704 posts, read 93,268,004 times
Reputation: 29740
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Quote:
Originally Posted by jm31828
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?
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If gas prices are going up, it must be a local trend/issue. Nationally, gas prices have been trending downward for several weeks now. |
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06-17-2011, 10:25 AM
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Location: Bothell, Washington
2,800 posts, read 5,003,366 times
Reputation: 3971
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Quote:
Originally Posted by steel7
I paid $3.90 a gal yesterday. OPEC is the worse. A barrel of oil is around $97.00. I dont see $3.00 a gal gas for a long time. $3.90 is wayy too high.
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Oil is down to to around $93 a barrel right now- I wonder what excuses we'll get now for prices at the pump not dropping? |
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06-17-2011, 10:51 AM
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Location: Chicago
38,704 posts, read 93,268,004 times
Reputation: 29740
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Quote:
Originally Posted by jm31828
Oil is down to to around $93 a barrel right now- I wonder what excuses we'll get now for prices at the pump not dropping?
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Prices at the pump are dropping.  |
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06-17-2011, 10:57 AM
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Location: Victoria TX
42,661 posts, read 78,387,913 times
Reputation: 36331
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Where I live, they have hit a one-year low, about 45c lower than the price a couple of months ago. Down almost to the $3 mark in South Carolina, too.
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06-17-2011, 10:58 AM
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Location: Bothell, Washington
2,800 posts, read 5,003,366 times
Reputation: 3971
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Quote:
Originally Posted by Drover
Prices at the pump are dropping. |
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). |
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