Oil Companies Doing Their Job

[cardcounter0]

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.

[lu_hawk]

That's not how it works in real life. But a good effort on the conspiracy theory.

[nicky g]

Yeah, but when they catch Bin Laden 20 minutes before polls open, that should help oil prices fall. [img]/images/graemlins/shocked.gif[/img]

[cardcounter0]

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.

[playerfl]

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.

[lu_hawk]

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.

[nicky g]

"all you have left is a conspiracy theory. "

You say that like it's a bad thing.

[cardcounter0]

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?

[cardcounter0]

"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.

[playerfl]

my gas taxes are lower because I live in florida and they eliminate the state tax in august which makes a big difference.

the price of oil fluctuates wildly and the long term average price is more important than what it sold for 3 months ago.

you are oversimplifying and the real world doesn't work according to your theory of how it should work, which is the tell tale sign of a marxist.