Just Incase You Needed Evidance That What Gas Prices Are Based On Is Bullshit...

When the price of crude oil goes up almost instantly so does gasoline. The excuse often given is that the gas station owners must increase their price so they can afford the next shipment of oil. If that is indeed true then what is the excuse for gas prices not falling when crude oil takes a large dive as it did last week?

The price of crude oil fell almost 10% in a single day last week. Did this fall have any effect on gas prices we pay at the pump? Almost none. Whatever tiny drop there was gas prices are back up to where they were two weeks ago. And eventhough gas prices have gone up by about 20 cents a gallon in the last month the price of oil has largely remained flat if you don't count the significant decrease seen last week.

This of course shouldn't be a shock to anyone, but it is nice to see the data illustrated in a chart.

It seems to me it might be labeled backwards.

credibility is shot...

Making charts harder than it seems apparently :)

That's a massive increase, with nothing other than speculation as an excuse, in my opinion.

Couple of questions:

- How many oil barons do you think the Bilderbergers allow at the table when they fiendishly manipulate oil and gas prices?
- Why would we be so obsessed with every tick and hiccup in gas prices if we weren't addicted to the stuff?
- How soon can we get clean?

:silly:

Most places in this chart where I see crude oil going up, I see gas prices either going down or rallying sideways.

I think this chart shows the difference between supply/demand for gasoline vs crude oil, since a lot of other products are produced from crude oil, not just gasoline.

I'm just saying...

cut down on production of gasoline due to maintenance or just whatever reason, there is tighter supplies in the US and the price goes up.

And no, there won't be any new refineries built in the US because the oil people know very well we are at peak oil and there is no money in building another refinery when the oil supply is going to be diminishing in coming years.

Exactly. Supply/demand for gasoline vs crude are not always going to follow the same trend. There's a number of different fundamentals between the two.

the data when it doesn't jive with your preconceived notion.

And if more people were smart enough to drive a diesel, it wouldn't be nearly so bad. My wife pays 30 cents less a gallon for D, and gets 40 mpg.

Diesel around az is about 30 cents higher than gasoline.

It's a good 40 cents higher this week here in Colorado.

Because everywhere i've EVER lived, diesel is consistently more expensive than regular gas. Usually by 30 cents or so...

:eyes:

Here's a Japanese blog where the author wonders why the price of diesel is 17% higher than gasoline in the US, but 15% lower than gasoline in Japan:

http://eritokyo.jp/independent/California2008-oil2.html

gas already purchased through futures contracts must bring in a certain price point.

Few here are dumb enough to fall for the excuses that are being thrown around anyways about why gas prices are up. Oh well, maybe the next excuse will be that the "production costs" have gone up drastically because that seems to be the only other factor involved unless we just call it gouging and speculation.

Your graph is way too short to show relationships.

Nothing personal....let's just see the really big picture!

One would think that the price at the pump would lag behind the price of crude, but often it does not.

http://www.petrostrategies.org/Graphs/Crude_Oil_and_Gasoline_Pump_Prices.htm



Not sure what you are using for crude oil but I think we tend to use West Texas Intermediate.

Crude oil came from the DOE website:

http://www.eia.doe.gov/

Thanks!

It's a bit more complicated than this crude oil to gas though. Different crudes have different properties that make refining them more or less difficult. Certain refineries are able to handle heavier crudes while others aren't without upgrades. That is why the loss of light Libyan crude was worse for the market. The Saudis said they would replace the shortfall but gave us heavy crude that no one wanted.

Other variables include the different mixes of gasoline for winter vs summer months and different pollution requirements of different states. California gas is more expensive to produce for example.

And then it depends on where the refiner gets it's crude and how full that facility is. If it is overflowing then the refiner that uses that crude is getting a better deal.

I'm no expert. I just tried to understand the market to figure out what the difference in refiners was all about.

is very odd.

I would love to have more data over a longer period of time. But the only places I could find such data charge quite a bit of money for it, I'll spend a bit more time tomorrow to find it as I find these trends very interesting. I am also no expert, but I found questioning what the experts tell you can be healthy. Thanks for asking these questions.

But the price of gasoline is like 400 cents per gallon.

The last time gasoline cost this much per gallon, the price of crude was 40% higher than it is now.


According to this chart, the price of gas should be between $3.20 and $3.60 a gallon.

Our Industry Minister is grilling Oil Execs, Refiners and Distributors, demanding to know how they set gas prices.

This may end up being a full-fledged Inquiry.

From what I read today it stated that the Senate Democrats plan calls for cutting oil corporation subsidies 21 billion over the next ten years. At present consumption of 150 billion gallons a YEAR that works out to $0.014 per gallon, a freaking penny and a half per gallon. Gas is almost $4 a gallon and everyone is making a big deal over less than one half of %1 of the cost of gas.

I kind of agree with the one Senator today that said the whole thing was just a dog and pony show, it's theatrics and posturing.

one of these types of high profile hearings?

It went up 10 cents a gallon when it was dropping for everywhere else last week, and it just went up another 10 for good measure.

If you're going to make an argument about the relationship between crude prices and gasoline prices, try looking at more than one month's worth of data:



I'm sure there are many months in that period where, looking at just one month, one price swings one way and the other price swings opposite.

:hippie: