It must be Supply Side Economics driving gasoline prices

The price of gas at the Cheap-O station in town went up another 3 cents today. Yesterday I read an article that told me oil and gas supplies are so great right now that there is a real shortage storage space for the excess - world wide.

I think I am coming to understand Supply Side Economics. Ronald Reagan was slicker than I thought. Apparently if you have the supply all you are concerned with is demand, when demand goes up you up the price regardless of the adequacy of supply to meet that increased demand; in short product price is no longer set by supply and demand, all that is necessary is product and demand, you can set the price anywhere you want.

Seriously, if there is a world-wide glut of oil why on earth are prices going up, particularly in considering reported flat demand.

and they have us at a disadvantage.

But we have them at a bigger disadvantage...they need customers, or they can't get paid. I'm fully intending to get the last laugh in this.

what the market will bare.
What else could it be? Supply is way up, use(demand) is down along with the economy and Exxon profits are headed north.

live closer to where you work, or work closer to where you live, buy an electric car, stop using, or at least stop wasting gas.
If nobody buys the gas ... the price goes ... down? Yeah.
The price of gas is too low. Americans waste it. Their concern is "duh, why can't I buy a bigger monster vehicle that wastes more gas, duh, why didn't I get the Hummer, duh, not the small one, that is for sissies, I want the monster super Hummer with the extra large, supercharged 900 horsepower engine."
Then they all go on the road at the same time and sit in a traffic jam. And race only to stomp on the brakes at the next stop light.
World wide, the price of gas has been way higher, 2 to 3 times higher forever, for 20 or more years.
dc

You see that WV in my name? This is West Virginia, I live 1,000 feet higher than the place where I used to work before my hectagenarian ass retired, I live 1,000 feet higher than the closest store, and its 4 miles of bad road away - and you think my old ass is going to ride a bike? Do you realize that every turd in the toilet doesn't live in a city and in fact a few of us would NOT live in a city. By the way, I do have a monster vehicle, its the second largest pickup truck ever made in this country and it has the largest engine - I use it sparingly, rarely going through more than a tank of fuel once every two months. Know what the truck is for? Its for everything but pleasure riding - people with trucks in the country don't pleasure ride. It hauls tons of manure every year for the garden, it hauls tens of tons of firewood, it hauls livestock and it hauls feed. "Buy an electric car", yeah, right, and what the fuck am I supposed to do with that toy, listen to it hum?

commodity traders expect a repeat of the last couple years when oil went up during summer. They are buying oil contracts and thus driving up the price of oil. It's supply and demand for the pieces of paper - not supply and demand of the actual product.

at the prices they are hoping to get and then their papers suck.

than it is with oil.

I believe they change the mix in the spring for some of the fuels. Isn't there some grade of gas that is only available from one refinery somewhere in the upper midwest? I don't know where its coming from but I've got it in my mind that Citco is the sole supplier of some exotic gasoline that some cities require and that when they go down it strains the entire distribution system.

and causes short term issues that most of the public has no understanding of. I assume all the different blends are good for the environment (or at least that's the story), but I also know how lobbyists and the corporate interests corrupt the legislation/regulation in their favor.

If the market wasn't constrained by the blend requirements, gasoline would generally be supplied by the lowest bidder. That's not the case now.

Will President Obama do anything about it?

I've been WTFing it for a while now. NPR reported this morning that demand for gas is down.

:shrug:

BOHICA

-Hoot

No shit I actually heard that excuse.... Exxon made for over six straight years in excess of One Hundred Million Dollars a Day NET PROFIT after every single expense had been paid. A friggin' DAY...Now their Profits are falling a little and Gas Prices begin to soar...

I guess after bashing us with $4+ gasoline a while back, they figure we won't blink at$2xx a gallon. I noticed it going up. I have also taken notice of the warm spring weather and my Sportster is getting plenty of use in response to the gas prices. :evilgrin:

the hysterical reason is that it is a big game, blah blah blah..

the actual fact is this: because there is a glut, oil companies are taking a bath. So in an effort to maximize there profit margins, they decrease the amount of oil that is refined. Period.

In the energy and environmental forum, I post a daily link to the oildrums daily round up called Drumbeat. I also post a twice weekly bulletin called "peak oil news" and "peak oil notes" and are linked to the Energybulletin.net I also post a weekly update on all things oil from a Canadian source. So either believe me or continue to feed in to the hysteria.