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cabaiguan juan
Fucking Pandas
Is there a hotline that we can call to report gouging?
AVB
Jesus of Cool, I'm bad, I'm nationwide
I remember that but never bought any at that price except for a gas war between three stations once. Regular price was 29.9 and they drove each other down to 19.9 for a day and then it was back to normal.
I seem to remember $0.24/gal.
Doc.
jfields
Where did all my money go?
$3.37 yesterday morning..........$3.75 this morning. Guess I better fill up before it gets any higher.
Strayvector
Like what you smoke, smoke what you like
Filled up the car for $3.35 a gallon last night. I remember in college I sometimes had problems putting in $5.00 into my Chevy Nova at $.88 a gallon. At these prices, I would have been walking.
Marco-Polo
Go Irish Go!
The reason that you weren't paying $5 a gallon, not $4, is because of inventory accounting issues, as well as the use of options and futures contracts to set the price of oil delivered to their door in advance. The same thing keeps the price declining more slowly, since the refineries bought a contract on oil for September delivery around $130, and can't make up the whole difference between the contract price and the spot price ($100).
Likewise, the contracts for future deliveries of oil are declining, but are still significantly higher than today's spot price. The lesson from this is: those in the best position to know expect that this is a temporary drop in spot price. (That the spot price is lower than the futures price is also a good argument that no one has their finger on the scale - if producers were buying oil speculatively, for allocation to static inventory rather than refining capacity, then the demand would surge up as soon as we approached $100, far enough below the 12-month outlook price of $120 or so to make stockpiling attractive. It hasn't, and so the oil markets are, if not totally aboveboard, at least no more corrupt than any other market.)
{tpc}
Professional Poker Tournament Loser
No more corrupt? Well, I don't think I can accept that. Then again I don't have an accounting degree so I guess I don't know much about it.
What I know is a read an article back when gas was approaching $3 a gal. Something to the affect of, oil companys (maybe gas stations I have no idea) thought that a hurricane might hit, so they jacked prices up based on what they THOUGHT might happen. It didn't and prices went down. But still, what kind of bs is that?
We have a number to call here in michigan is we suspect gouging. Of course their solution is to reprimand the station, and make them lower prices down to like $2 a gallon for 4 or 5 hours or something. Have time to wait in that line? Great for all those people who have nothing better to do than wait. heh.
But now that I think about it, I think your opening paragraph is flawed. When oil companys bought at $130 my gas cost $4.00. Now it costs $4.50. What inventory are they making up for? And why is it timed with a natural disaster?
I guess what I'm saying is that if you bought gas at $130 a barrel prices, you should sell it at $130/barrel prices until its gone. Then adjust. Ah hell, I don't knwo what I'm talkign about anymore. Been a piss poor night.
What I know is a read an article back when gas was approaching $3 a gal. Something to the affect of, oil companys (maybe gas stations I have no idea) thought that a hurricane might hit, so they jacked prices up based on what they THOUGHT might happen. It didn't and prices went down. But still, what kind of bs is that?
We have a number to call here in michigan is we suspect gouging. Of course their solution is to reprimand the station, and make them lower prices down to like $2 a gallon for 4 or 5 hours or something. Have time to wait in that line? Great for all those people who have nothing better to do than wait. heh.
But now that I think about it, I think your opening paragraph is flawed. When oil companys bought at $130 my gas cost $4.00. Now it costs $4.50. What inventory are they making up for? And why is it timed with a natural disaster?
I guess what I'm saying is that if you bought gas at $130 a barrel prices, you should sell it at $130/barrel prices until its gone. Then adjust. Ah hell, I don't knwo what I'm talkign about anymore. Been a piss poor night.
Marco-Polo
Go Irish Go!
Neither do I - just a MBA. And, you know, MBA stands for "Mediocre, But Arrogant".
The crude oil markets can't account for post-refining shenanigans.
Bubbles are to be expected when a market gets isolated, and what's a better way of isolating a market than using a natural disaster as an excuse? I'm not even sure if there are futures markets in gasoline - which I probably should know. I do know that gasoline tends to be refined in the regional market that it's consumed (ie, gasoline on the pacific coast generally gets produced in the pacific coast, etc). So if you have gasoline somewhere else, there's no distribution network to move it from one region to another, except at the fringes. (That, if I recall correctly, is why Kansas generally has cheap gas)What I was trying to say that the current "spot" price of crude only has a small effect on the price of gasoline, so you can't expect a drop in the price of oil to instantly turn into a drop in the price of gasoline, and elaborating on why this is so (futures contracts, hedges, etc). Screwing the customer, on the other hand - that's something I don't have a lot of knowledge on. Perhaps I should. After all, the MBA's in marketing
.
StatHaldol
Well-Known Member
We have no gasoline here in Farmerville, Louisiana. (Northeast corner of Louisiana). The lines at the pump started here with news Friday afternoon that Ike may disrupt refinery operations along the Texas coast...
Hoping we get some deliveries Monday afternoon...
Hoping we get some deliveries Monday afternoon...