gasoline prices

[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?

[TexasWSP]

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.

Yeeeeeeeah. That's actually not what happens at all.

We don't "charge" anything. We import 75% of our fuel. Perhaps investigate how oil and gas prices are generated.

[VandalSquirrel]

Hasn't gas always gone up during the summer due to travel season and what not? Maybe I'm imagining things, but I recall gas going up around Memorial Day, and going back down after Labor Day.

[AGDee]

Originally Posted by VandalSquirrel

Hasn't gas always gone up during the summer due to travel season and what not? Maybe I'm imagining things, but I recall gas going up around Memorial Day, and going back down after Labor Day.

Yes, and they say, in Michigan, it's due to 1) demand going up and 2) requiring a different blend in the summer to meet emissions standards.

[em_adpi]

I just paid $1.64. Bet that's gone soon.

[epchick]

I really hope Sam's is cheaper, but I just saw the Chevron down the street is at $1.89

[RU OX Alum]

^^ I hope so.

The economy is so linked together that the slightest change seems in one area to affect all other parts.

Hopefully, people will be more responsible from now on.

[nate2512]

you know we'll be in the same boat when gas eases back up in 3.00 range, people are going to be bitching like hell cause gas is so high, it's a double edge sword, pick your side, id rather pay the little bit extra for gas because it's beneficial in the long run, and maybe this recession will be good for america and make people pay attention to the world around them.

[xi_pinkrose]

Thought this might be of some interest to some. It was to me...


Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
By VIVIENNE WALT / PARIS Vivienne Walt / Paris – Fri May 29, 7:05 am ET

Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don't always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.

http://news.yahoo.com/s/time/2009052...08599190144600

[Kappamd]

It was 3.19 here for a while. Dipped back down to about 3.05 in the last week. Thank god I drive a Civic.

[nittanygirl]

$3.15 here. Definitely glad I drive a Corolla that's really good on gas. Yesterday I used a lot more than usual to get to school which really sucked because now I'm down to just under half a tank again and need to go spend another $20 because I don't like it to get under a quarter of a tank in the cold weather and snow.

[AGDee]

It's around $3.09 for cash, $3.15 for credit. I think they were afraid to up the prices during the big oil spill so they're doing it now.

[honeychile]

When I drove out to Chicago for Christmas week, I was shocked to see that EVERY gas station in Ohio had their regular gas at $2.99 or lower; the minute you crossed a state border (Indiana, West VIrginia, Illinois, or Pennsylvania), the least expensive was $3.09. How does Ohio do it?

[Kappamd]

^^^They don't. I haven't seen gas under 3 in a few weeks.