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#1
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Oil Companies Doing Their Job
Oil Companies Doing Their Job.
On June 4th the average gas price for regular reached $2.07 per gallon. Crude oil prices were $34 a barrel. Currently, crude oil prices are $46 a barrel. The average gas price for regular is $1.88 a gallon. Using the June 4th ratio, gas prices should currently be $2.80 per gallon. Enjoy it until November. |
#2
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Re: Oil Companies Doing Their Job
That's not how it works in real life. But a good effort on the conspiracy theory.
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#3
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Re: Oil Companies Doing Their Job
Not how what works? You mean the price of gasoline isn't related to the price of crude oil? Oh, yeah -- it also has something to do with supply and demand also. Aren't the summer months like August when every one takes vacation and stuff right before school? Isn't this the time of high demand?
Of course, the oil companies control the supply side. I predict after the November elections, and it surprisingly gets cold for winter, there will be a severe shortage of heating oil. |
#4
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Re: Oil Companies Doing Their Job
You're missing the point, of course gas prices are related to oil prices. But you can't use some ratio of where crude was trading and what gas was selling for and then say well oil is now at X so gas should be at Y. There are many other factors and there are also time lags. So no, it does not work that way and all you have left is a conspiracy theory.
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#5
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Re: Oil Companies Doing Their Job
"all you have left is a conspiracy theory. "
You say that like it's a bad thing. |
#6
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Re: Oil Companies Doing Their Job
"There are many other factors..."
Yes. Exactly. Care to speculate what the pump price of gasoline will be AFTER the election? You know, in November, when the demand for gas is lower? I bet I can make an accurate prediction. |
#7
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Lets use some logic
First you should read about how capitalism and more specifically price-taker markets actually work.
Gasoline futures actually do trade on the NYMEX along with crude oil futures. It is funny because the futures prices are falling into November and fall faster after November. And if you compare crude oil prices to retail gasoline prices you will see a correlation, if oil doubles over a period of two years or something like that then retail gasoline will probably be up a similar amount. But over shorter periods of time the correlation begins to lessen. You can look it up. We have two logical options here: A) Everybody in the gasoline food chain(drillers, refiners, distributors, retail stations) are engaged in a massive conspiracy to keep the price of gas low to help Bush in the election. They are doing this at great personal cost to themselves BTW, because according to your theory they could sell gas for much more if they chose to. OR B) You are wrong. |
#8
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Re: Oil Companies Doing Their Job
Yeah, but when they catch Bin Laden 20 minutes before polls open, that should help oil prices fall. [img]/images/graemlins/shocked.gif[/img]
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#9
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Re: Oil Companies Doing Their Job
you are forgetting two very important things.
-taxes are a significant part of gas prices -price of spot oil today is not what the oil companies paid for what they are selling today. The gas being sold today was bought months ago when prices where cheaper. |
#10
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Re: Oil Companies Doing Their Job
Hmmm... Interesting theories.
"-taxes are a significant part of gas prices" So what gas taxes have gone down since June? "-price of spot oil today is not what the oil companies paid for what they are selling today. The gas being sold today was bought months ago when prices where cheaper." So why was gas over $2 in June, since the crude price months before then was less? And why is the price lower now since the price of crude has continued to go up? |
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