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Old 06-13-2011, 08:13 AM
 
Location: Bothell, Washington
2,800 posts, read 5,003,366 times
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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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Old 06-13-2011, 08:19 AM
 
Location: Cleveland bound with MPLS in the rear-view
5,530 posts, read 10,668,745 times
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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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Old 06-13-2011, 05:24 PM
 
4,246 posts, read 11,036,775 times
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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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Old 06-13-2011, 05:27 PM
 
Location: The North
5,575 posts, read 9,855,092 times
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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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Old 06-17-2011, 10:20 AM
 
Location: Yucaipa, California
9,866 posts, read 19,689,186 times
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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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Old 06-17-2011, 10:23 AM
 
Location: Chicago
38,704 posts, read 93,268,004 times
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Quote:
Originally Posted by jm31828 View Post
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.
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Old 06-17-2011, 10:25 AM
 
Location: Bothell, Washington
2,800 posts, read 5,003,366 times
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Quote:
Originally Posted by steel7 View Post
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.
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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Old 06-17-2011, 10:51 AM
 
Location: Chicago
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Quote:
Originally Posted by jm31828 View Post
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?
Prices at the pump are dropping.
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Old 06-17-2011, 10:57 AM
 
Location: Victoria TX
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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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Old 06-17-2011, 10:58 AM
 
Location: Bothell, Washington
2,800 posts, read 5,003,366 times
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Quote:
Originally Posted by Drover View Post
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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