Oil Prices (again)

[cycloneworld]

Oil is down more than $6 a barrel today and is down just over $10 a barrel on the week or a little more than 7%.

My question is why do gas prices increase to match the price of oil but we most definitely will not see gas prices drop $0.27 per gallon to reflect the 7% drop in oil cost?

[snowcraig2.0]

Oil is down more than $6 a barrel today and is down just over $10 a barrel on the week or a little more than 7%.

My question is why do gas prices increase to match the price of oil but we most definitely will not see gas prices drop $0.27 per gallon to reflect the 7% drop in oil cost?

that is a good question......

[linkshero]

Oil is down more than $6 a barrel today and is down just over $10 a barrel on the week or a little more than 7%.

My question is why do gas prices increase to match the price of oil but we most definitely will not see gas prices drop $0.27 per gallon to reflect the 7% drop in oil cost?

[Clone9]

I'm convinced that the industry has a plan that when they want to raise gas prices 15 cents a gallon, they shoot the price up by at least a dollar, then drop it back down 85 cents, so we think things have gotten better, when in reality they're just up 15 cents.

This is my conspiracy theory and I'm stickin' with it.

[cycloneworld]

I'm convinced that the industry has a plan that when they want to raise gas prices 15 cents a gallon, they shoot the price up by at least a dollar, then drop it back down 85 cents, so we think things have gotten better, when in reality they're just up 15 cents.

This is my conspiracy theory and I'm stickin' with it.

That might be true but are we really THAT stupid??

[ISUFan22]

I'm convinced that the industry has a plan that when they want to raise gas prices 15 cents a gallon, they shoot the price up by at least a dollar, then drop it back down 85 cents, so we think things have gotten better, when in reality they're just up 15 cents.

This is my conspiracy theory and I'm stickin' with it.

I don't doubt this at all.

That might be true but are we really THAT stupid??

Sadly, yes.

[HILLCYD]

That might be true but are we really THAT stupid??

The short answer is Yes. The long answer is what other choice do we have?

[4429 mcc]

Just they are reacting to the strength of the dollar..so oil trends similar to the euro and pound. The demand is still the same

[superman_101680]

That might be true but are we really THAT stupid??

If you ask me, I think $3.00 gas prices sound cheap right about now. Ask me that in 2005 and I would have screamed $3.00 was too high.

[aeroclone]

If I had to guess, from what I have heard the runup in gas prices hasn't kept pace with oil. You have oil up like 60-70% from a year ago with gas just up 30% or so, just ballparking numbers. With crude oil being the major cost component of gasoline, and gas prices not keeping up with the spike in oil, there may just not be room for stations to dramatically drop prices when oil dips like this.

I don't think the conspiricy is price fixing on gasoline. I think the actually conspiricy is large oil companies trying to strong arm the retail sector. By being slow to respond with gas prices to match oil, the profit margins at the station are squeezed and smaller independent stations can't keep up, thus giong out of business. In the meantime, Shell, BP, Exxon, etc. can take losses at the retail outlets because other aspects of the business are making money hand over fist. This then serves as a hedge for big oil as if crude prices crash down the road and profits there slow up, they will have eliminated smaller competition in the retail gasoline area and can enjoy added profits there as lower oil costs cause American drivers to return to the road.

Thats my conspiracy theory and I'm stickin' to it.

[ISUFan22]

If you ask me, I think $3.00 gas prices sound cheap right about now. Ask me that in 2005 and I would have screamed $3.00 was too high.

Exactly.

If gas gets below $3.50, people will start to get happier. If it ever gets back below $3, they'll celebrate.

[Clone9]

If I had to guess, from what I have heard the runup in gas prices hasn't kept pace with oil. You have oil up like 60-70% from a year ago with gas just up 30% or so, just ballparking numbers. With crude oil being the major cost component of gasoline, and gas prices not keeping up with the spike in oil, there may just not be room for stations to dramatically drop prices when oil dips like this.

I don't think the conspiricy is price fixing on gasoline. I think the actually conspiricy is large oil companies trying to strong arm the retail sector. By being slow to respond with gas prices to match oil, the profit margins at the station are squeezed and smaller independent stations can't keep up, thus giong out of business. In the meantime, Shell, BP, Exxon, etc. can take losses at the retail outlets because other aspects of the business are making money hand over fist. This then serves as a hedge for big oil as if crude prices crash down the road and profits there slow up, they will have eliminated smaller competition in the retail gasoline area and can enjoy added profits there as lower oil costs cause American drivers to return to the road.

Thats my conspiracy theory and I'm stickin' to it.

Quit making arguments that actually make sense. This is supposed to be a conspiracy!

[aeroclone]

Quit making arguments that actually make sense. This is supposed to be a conspiracy!

Just saying... you don't see a lot of ma and pa gas stations aroudn anymore...

[Cybone]

In the (unlikely) even that gas does go below $3.00/Gal. I hope that as a country, we continue to pressure (as best we can) the powers that be to develop alternative, cost effective, and "green" fuel sources.

[snowcraig2.0]

In the (unlikely) even that gas does go below $3.00/Gal. I hope that as a country, we continue to pressure (as best we can) the powers that be to develop alternative, cost effective, and "green" fuel sources.

Right. Suburbans, Hummers, and other big vehicles will start selling like hotcakes again...