gasoline prices

[nate2512]

Originally Posted by ree-Xi

The oil manufacturers purposely decreased production so that there was more demand. The higher the demand, the more they charge.

Because they is no room to store all the gas they are making, when the demand for gas was really high they were selling it as fast as they could produce it. Also, it doesn't really make a difference, they may be making more money per gallon, but they aren't producing as many gallons, so they really aren't making all that much more money, but if they can't sell the gas then they are having to pay to store, therefore losing money. No one likes losing money.

I know someone who is pretty high up with a huge international oil company and he said when oil hits below $35 a barrel, then they are no longer working for profit and will starting shutting operations down.

[ree-Xi]

Originally Posted by nate2512

Because they is no room to store all the gas they are making, when the demand for gas was really high they were selling it as fast as they could produce it. Also, it doesn't really make a difference, they may be making more money per gallon, but they aren't producing as many gallons, so they really aren't making all that much more money, but if they can't sell the gas then they are having to pay to store, therefore losing money. No one likes losing money.

I know someone who is pretty high up with a huge international oil company and he said when oil hits below $35 a barrel, then they are no longer working for profit and will starting shutting operations down.

Big difference between $70 a barrel and $35 a barrel. None of those oil companies are hurting for profits. In recent years, many have reported record earnings, far surpassing expected profits.

And we have heard from almost every industry having to raise their prices to cover increased gas costs (airlines, food & agriculture, retail, manufacturing etc.). It trickles down, and people need to decide whether to pay for gas to get them to work, and necessities of life.

[nate2512]

Originally Posted by ree-Xi

Big difference between $70 a barrel and $35 a barrel. None of those oil companies are hurting for profits. In recent years, many have reported record earnings, far surpassing expected profits.

And we have heard from almost every industry having to raise their prices to cover increased gas costs (airlines, food & agriculture, retail, manufacturing etc.). It trickles down, and people need to decide whether to pay for gas to get them to work, and necessities of life.

did you not take economics?

[epchick]

anyone else's gas prices going up? Its ridiculous how much they've gone up within the past 2-3 weeks. Gas prices were around $1.70-$1.80 and now they are $2.50.

[ThetaDancer]

Same here

[nate2512]

sad as it may be, i might actually be glad gas is going back up, our universities have been cutting major budgets cause we aren't getting any oil royalties, i have a feeling this is going to reflect the end of the recession in the southern gulf states if these trends keep up.