price per barrel Vs. Price per gallon

[MiloMorai]

Part is the price already paid for the oil that has been refined. The gas price lags a bit, because of processing time

The cost didn't lag when the cost of a barrel went up.

[RotBaron]

Well, you got those tax thingies too.

^ this guy is onto something there...

[JOACH1M]

Depends on state, road taxes, and also the addition of ethanol for gassers or the sulfur content with additives if your a diesel user.

[RotBaron]

The cost didn't lag when the cost of a barrel went up.

I think you mean the price per gallon at the pump didn't lag, if it meant you were making more $ you prolly wouldn't let there be any lag either.


Gas/oil makes money, hospitals make money, large caps make money...invest in them and then you'll be invited to the party when their price/profits go up.  

As Gary K says every day, why do ppl invest in co's that have no earnings...??? Buy winners.

[Traveler]

They dont store all that oil in barrells

actually they do, at least that's how they account for it.  Interestingly they use 50 gallon barrels but only put 44 gallons per barrel.  I spent 8 years working for Mobil Oil Aviation and learned a lot about the oil business.

[Traveler]

See Rule #5

[Traveler]

Well, you got those tax thingies too.

true but the tax thingies have always been there.  The problem being that when they were established they were defined as a percentage of the total price.   That percentage has now become a larger portion of that price.  But even if you scale back or remove taxes we are still being charged about a 1.00 to much. 

[DmonSlyr]

The answer is.... They don't have to!

It is a necessity. (Falicy) Everyone needs it!

Let's look at supply and demand.

The demand has grown a lot higher since the prices have been going down. The demand is also much higher since the 90s considering there are more people driving today than before. Typically when demand goes up, so do the prices. But they are competing with a group that is making it so cheap that OPEC must compensate to compete which means every other gas company must do the same. Inflation and taxes are one factor, the US having its own gas is a factor. You could make the mathematical arguement that $2.20 today is equal to $1 in the 90s. Don't know the math but it's probably somewhere close. OPEC is nervous right now because they don't know what's going to happen.

But, they still want to make the highest profit they can while meeting their quota, therefore, they do not really need to lower prices nore do they want to unless the other group continues to out compete them with lower prices in the market. Essentially we commend that other group for doing this, but at the same time they are Evil and even more corrupt and we all want them to die. Soo who knows how long these prices will last.

What will America do? If we build that pipeline, it will be game over for mannny oil companies who supply to the US. So OPEC has been worried about that as well.

[Chris79]

The gas you buy today, was refined from oil purchased upwards of several months ago. That makes the current price of a gallon of gas a function of oil say when it was at 70$ a barrel. The oil being pumped today may not reach the market as gasoline for a short while.

[Traveler]

The gas you buy today, was refined from oil purchased upwards of several months ago. That makes the current price of a gallon of gas a function of oil say when it was at 70$ a barrel. The oil being pumped today may not reach the market as gasoline for a short while.

That's not quite true, the oil company must pay taxes on inventory held in storage at the end of year.  All the expensive oil has been sold, according to their own booking, only the $49 a barrel is in storage, which they will pay taxes on as of December 31. 

[Zimme83]

The answer is.... They don't have to!

It is a necessity. (Falicy) Everyone needs it!

Let's look at supply and demand.

The demand has grown a lot higher since the prices have been going down. The demand is also much higher since the 90s considering there are more people driving today than before. Typically when demand goes up, so do the prices. But they are competing with a group that is making it so cheap that OPEC must compensate to compete which means every other gas company must do the same. Inflation and taxes are one factor, the US having its own gas is a factor. You could make the mathematical arguement that $2.20 today is equal to $1 in the 90s. Don't know the math but it's probably somewhere close. OPEC is nervous right now because they don't know what's going to happen.

But, they still want to make the highest profit they can while meeting their quota, therefore, they do not really need to lower prices nore do they want to unless the other group continues to out compete them with lower prices in the market. Essentially we commend that other group for doing this, but at the same time they are Evil and even more corrupt and we all want them to die. Soo who knows how long these prices will last.

What will America do? If we build that pipeline, it will be game over for mannny oil companies who supply to the US. So OPEC has been worried about that as well.

I think this is pretty much how close we can get to the answer without getting into politics. It isn't a normal situation and therefore the market doesn't respond normaly. Just enjoy this short time of low prices, the risk is that the situation will backfire in one way or another.

[Traveler]

The answer is.... They don't have to!

It is a necessity. (Falicy) Everyone needs it!

Let's look at supply and demand.

The demand has grown a lot higher since the prices have been going down. The demand is also much higher since the 90s considering there are more people driving today than before. Typically when demand goes up, so do the prices. But they are competing with a group that is making it so cheap that OPEC must compensate to compete which means every other gas company must do the same. Inflation and taxes are one factor, the US having its own gas is a factor. You could make the mathematical arguement that $2.20 today is equal to $1 in the 90s. Don't know the math but it's probably somewhere close. OPEC is nervous right now because they don't know what's going to happen.

But, they still want to make the highest profit they can while meeting their quota, therefore, they do not really need to lower prices nore do they want to unless the other group continues to out compete them with lower prices in the market. Essentially we commend that other group for doing this, but at the same time they are Evil and even more corrupt and we all want them to die. Soo who knows how long these prices will last.

What will America do? If we build that pipeline, it will be game over for mannny oil companies who supply to the US. So OPEC has been worried about that as well.

the answer is, They do if you stop buying their product and the demand is not up, it's down, it's down world wide, Not just in the US.

[guncrasher]

See Rule #12

[DmonSlyr]

See Rule #12

[SPKmes]

since I posted I have come back home...on the way the same service stations have all upped their prices by 10c.... as I say...over here there is no rhyme or reason to the fuel prices... over the next couple of days they will change again... they will lower the price a couple of days prior to Christmas eve and then up it again on Christmas eve to catch out those who are waiting to fill up before traveling.... totally greed driven.