Miraculously starting on Thursday late, gas started a downturn with the price of raw crude STILL at close to $50.00 a barrel. When the
NYSE opened this morning (Monday) the per barrel price was $49.67. Odd, crude goes up and gas goes DOWN??? I think I'm a lot sharper than I get credit for. I talk out of my mouth with facts not out of other orifices with smoke. Since I DON'T know about the gas 'GAME' why are we paying less? I guess I exposed some logic they wish was still in the dark!!!!!!!!! I filled up at the Exxon in Fruitland on Sunday and the pump price was $2.49.9. down from $2.64.9 on Tuesday of the same week!!!!!
NYSE opened this morning (Monday) the per barrel price was $49.67. Odd, crude goes up and gas goes DOWN??? I think I'm a lot sharper than I get credit for. I talk out of my mouth with facts not out of other orifices with smoke. Since I DON'T know about the gas 'GAME' why are we paying less? I guess I exposed some logic they wish was still in the dark!!!!!!!!! I filled up at the Exxon in Fruitland on Sunday and the pump price was $2.49.9. down from $2.64.9 on Tuesday of the same week!!!!!
Bob Aswell....Not Fooled
Gas and oil are two different markets. It is not uncommon for them to move in two different directions. Supply ( new oil coming in and inventory on hand) and demand from refineries for oil determines where the price of oil will go. Likewise, supply of gas (by the refineries,and gas inventory on hand), and demand by vehicles using gas, will determine gasoline prices. Traders in the commodities will speculate on which way prices are going to go, and can run up the price, or sell it down with the futures deliveries that they purchase. This causes temporary fluctuations in the price, but supply and demand always wins. For the traders, sometimes they're the bug, and sometimes they're the windshield.
ReplyDeleteIf refineries shut down, or reduce their output due to maintenance or emergency shutdowns from natural disasters or accidents, then a backlog of incoming oil and swelling inventories could very well drive down the price of oil (oversupply by lack of refinery demand for oil) while driving up the price of gas (under supplied by less refinery output): hence oil prices going down and gas prices going up. Capacity utilization of the refineries have a big role in how short term prices will be determined, as they help determine demand for oil, and supply for gas.
This is not rocket science, it is business science.
The refineries have been restarted after the hurricanes and are ramping up production, while demand for gas has dropped due to the summer seasonal driving drop off that happens every year at this time. Gas supply is going up, while demand for gas is dropping. So gas prices are going down, naturally.
ReplyDeleteThe fact that the refineries are ramping up production is creating a splurge in demand for oil, and that causes some upward fluctuation in the price of oil, naturally.
The fact that oil sometimes goes up, and gas goes down is easily explained. It also can go the other way. Oil can go down, if the refineries cut back on their demand for it, and gas can go up because the refineries cut back on the supply of gas.
But alas, we will have to save the discussion of "Ceteras Paribus" for another day.
Simple supply and demand economics is taking place.
I don't, for the life of me, see what you are ranting about. I just filled up at Sam's on Wednesday 09/20 for $2.34/Gal. Dropping like a rock. Thirteen cent drop since Friday. I don't care what the price of oil is. With 450 millions barrels currently stored in inventory in this country, there's no chance for any significant increase in the price of oil in the near, and not so near future.
ReplyDeleteYour paying less, because there's more of it.
ReplyDeletesupply and demand. crude stayed the same or went down because refineries were offline due to hurricanes, and as such gas went up due to refineries not being able to produce more. Low supply of gas, the price went up. Now that refineries are coming back online, the price went down. More gas available.
ReplyDeleteAt least that's my take on it.
Does your bottle of whiskey go up or down because the price of corn changed last week? It's the same principle: the supply chain is not necessarily affected immediately by the price of raw materials. It takes time to get to you and can change prices along the way based on more variables than you can comprehend.
ReplyDeleteSo, before you espouse economic observations, learn a little about the subject first.
Came here to state exactly what's already been stated above. Two different markets. Oil isn't refined solely into gasoline. So maybe you should start cramming some knowledge into one of your organs there champ.
ReplyDeleteIt is called supply and demand, and nothing else, moron!!!!
ReplyDeleteThe reason why gas does not go down right away when the price per barrel goes down, is becasue until you use up all of the crude or gas that was last sold at the higher price it will not go down in price... Maybe, just maybe we worked our way through that supply and they can start to charge less since the price caught up with the lowering of the crude!!!!!
Then the second option is, there is no answer but the people who rig the system and control everything like wall street and the bankers... IT goes up or down based on what they do or say...
Also, I don't know if you remember or not, my guess is based on this article you don't as usual, Texas was hit with a hurricane, that slowed the supply of gas down, since what???? THEY HAD TO SHUT DOWN REFINERIES!!!! I am not all that smart, but that goes back to supply and demand doesn't it???? Less supply, higher price...
Free market, fool. Go back to economics 101. yea, I commented before with a snide remark. Don't you have better things to do?
ReplyDeleteTens of thousands of cars on the local roads tells me that people are just fine with gas prices.
ReplyDeleteLove the load of oats having gone through a horse expression. This poster needs to be a regular. Interesting points of view always.
ReplyDeleteYou must not have much to do yourself 8:41, do you own a gas station or what?
ReplyDeleteIt should be dropping. It was $2.05 before the first hurricane hit Houston. Refineries shut down for a week. It will take more than 2 months or more for it to return to that level because the gas companies need to regain that revenue lost.
ReplyDeleteSorry sir, but your 'investigation' proves NOTHING...Most of the comments here are the way it is...common sense and critical thinking...thanks for the comments as, for the most part, they are spot on.
ReplyDelete8:41 here...but I am successfully self employed for 40 years. That may explain my take on the free market, and why I have the time to do what I wish.
ReplyDeleteSeptember 21, 2017 at 8:07 AM:
ReplyDeleteFor those who haven't had an economics 101 course, I mentioned how "Certeras Paribus" is a discussion for another day. The term qualifies any discussion of cause and effect in Supply/Demand economics, and predictions based on mathematical models. For those that WANT TO look it up, they can. It is a common knowledge term for those of us with Business Bachelor of Science degrees.
I was bored late last night, hence that is why I decided to share some of my business education with the poster and others that might think the poster actually has an educated opinion about the subject, i.e., cause and effects on the price of gas at the pump. His own comments exposed his ignorance on the subject. The fact that the writer THINKS he is a lot sharper than he gets credit for, is telling. Why doesn't he get credit for his "sharpness?" Maybe, just maybe, he is not as sharp as HE thinks he is.
ReplyDeleteGasoline is a necessity where cell phones are not.
ReplyDeleteGasoline is a necessity where alcohol is not.
Gasoline is a necessity where tobacco is not.
Depends on one's priorities if paying $2.59 a gallon (purchasing 10 gallons for $25.90) and paying $2.49 a week later (10 gallons again, this time $24.90) if that $1.00 difference is a deal breaker major.
Big oil has us by the short hairs. We pay them now or pay them later - either way, they stay RICH RICH RICH!
As the commenter that is sharing business knowledge on this website, please notice that I don't resort to any name calling for those less educated on the subject. Those that do, probably don't have the tools or education to credibly have a discussion on the subject, or any subject. That is a critical observation and not a personal attack on ones that think name calling elevates their opinions. My aim is solely to educate, and I have the credentials to do so. Name calling is not necessary, and is non-productive. Nobody is a "fool" or a "moron" for expressing their opinions here. Calling someone a fool, or moron, diminishes any opinion you might have.
ReplyDeleteAfter speed reading some comments, here is my humble take on it. If we want or need to use fuel we will have to pay what they charge. If the operator selling fuel at the pump wants to sell at a lose it may do so or if he wants to charge more than across the street and run business away he may do so. I am not going to run all over town spending a dollar to save ten cents.
ReplyDelete"Thursday late, gas started a downturn with the price of raw crude STILL at close to $50.00 a barrel. When the
ReplyDeleteNYSE opened this morning (Monday) the per barrel price was $49.67. Odd, crude goes up and gas goes DOWN???"
Not to be picky, but oil at close to $50.00 a barrel, then going to $49.67, is a downward movement, NOT UP! What is it that he thinks he knows? Odd, he can't tell up, from down. LOL.
11;38...in America you may start your own oil company...AGAIN, free market.
ReplyDeleteAfter reading Bob Aswell's post, I believe he WAS fooled. He's obviously no Penn and Teller gas price Guru, but his writing is entertaining and colorful, even if it is not knowledgeable.
ReplyDelete