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Should we listen to the Wall Street pundits and T.V. talking heads?
Additional Details
Thanks for the good information.
Yes, psychology plays a big part.
The ... |
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Fred M | Why are gas prices going up or staying steady when oil has dropped? |
I'm baffled here. When the price per barrel was $35 two or three weeks ago, gas prices were as low as $1.49. Oil has been under $40 for a week and were still paying close to $2.00 which is what we paid when oil was $50 per barrel. WTF? |
 |
 
rnc620
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Gas is bought in bulk. When you pay for your gas the price is not based on how much it is per barrel right this minute it is based on how much it was when the gas was purchased. It takes a long time for the savings to get to you. The real problem is that once the prices go back up the gas stations often "price gauge" by raising their prices immediately even though the gas they are giving you should reflect the lower price per barrel.. we kind of get screwed either way. |
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Rabbit
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Well, last year or two there was an unusual spike in oil futures trading, but recently several parties (including Morgan Stanley a banking/brokerage) are stocking up on oil because there is so much supply and demand is somewhat down. That and hints that the oil companies are making less gasoline (but then again, they had been running flat out for a while and oil is also used for other things ranging from specialty chemicals and plastics to highway asphalt).
Check out the articles below. Either it is going up, or some companies will be going bust holding more oil than refiners want to buy. |
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The Dread Pirate Roberts
 |
Here is what I think. Crude was about $35.00 yesterday and gas here in my town has gone from $1.39 to $1.89 in two weeks. Notice that all the talk of drilling and ANWAR has gone away and also notice that OPEC is cutting production. So our supply is in jeopardy again and we can not supply our own energy.
We are continuing to be ruled by oil nations that do not like us so, I think that pump prices are going up anticipating lower oil supplies from the Middle East. |
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sarah.annmc
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Cos people are so damn greedy!
They're worried about not getting enough profit, so they keep their prices up while the price of oil drops, and pocket the profit. |
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Dang
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Cheaper and valuable resources are used for storage and slowly processed then push to the consumer for higher profit when the initial resources bought at the higher pricing will still have to be foot by consumers. If not it is a loss. You can say it is human nature, business strategy or greed and the it will always go on. And pricing will never go down if it is so highly consumable. There is only one possibility that price goes down for a period of time, government rebates or tax deduction. It is not permanent. Due to inflation, price will never go back to the pricing 10 years ago. |
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Ryas S
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This one is easy.
Gas prices, are not really directly correlated with the market cost. Gas Companies are Corporations. This means that by law, they must make as much profit for their shareholders as possible. So they watch the market and use it as an excuse to raise prices to gouge the consumer to rack up as much profit as they can.
Since most gas companies immediately charge similar prices upon a market raise in gas price, they know that they do not have real competition and therefore feel free to actually charge the highest amount that they believe they can get away with.
All in the name of Free Trade. :) |
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Barney
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Enjoy these low prices while you can. As others have stated, OPEC cut backs and the decline of interest or rather the silence of those on the left of the aisle in regards to new drilling (ANWAR); is again limiting supply. This despite the fact that there is very limited storage facilities for crude oil. You can feel pretty confident that we may be looking at $3 a gal. by June. |
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Tia W
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Because government officials and politicians get gas cards so therefore they could careless about the rest of us... |
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john c
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the stuff in gaza..if that wasn't happening..gas would be close to .99c or less probably |
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