Price of Gas

**cyclones500** · 07-19-2010, 01:14 PM

Originally Posted by CardinalAndGold

Why hasn't the price of gas gone up this summer? It seems like every year it goes up at least 15% by this time. Not that I am complaining, but am just curious. Any experts out there know if it will go up by the end of the summer?

Gas prices tend to spike around holidays, esp. high-travel ones (Memorial Day, Labor Day). Occasionally there'll be a big rise at other times. People freak out about it, and the price stays noticeably high for a while, then gradually dips back down at or near the original level.

Like anyone else, I hate those periods when it's seemingly outrageous, but I take some of it with a grain of salt.

**LZclone** · 07-19-2010, 01:14 PM

We are running $2.75 here in Central Illinois, so it is probably over $3 in the Communist State of Chicago.

But here is an oddity I dislike as a former Iowan...

87 octane usually as no ethanol, while 89 has 10-15% based on suppliers.

In Illinois (the 2nd largest corn producing state, behind Iowa) the ethanol blend runs you 10 cents more, where is Iowa it will run you 10 cents less?!?!?

**Cyclonestate78** · 07-19-2010, 01:21 PM

Originally Posted by DaddyMac

Personal take (guess)....

There's a major environmental disaster happening in the Gulf of Mexico. Millions, probably even billions, in lost revenues, incomes, etc. Gas companies aren't going to follow that up with more reports and inquiries into record profit quarters.

I agree with this also. A little Oliver Stone"ish" but in this day and age these types of things have become more and more common.

**Clark** · 07-19-2010, 02:02 PM

Originally Posted by DaddyMac

Personal take (guess)....

There's a major environmental disaster happening in the Gulf of Mexico. Millions, probably even billions, in lost revenues, incomes, etc. Gas companies aren't going to follow that up with more reports and inquiries into record profit quarters.

I think it's a combination of this and the economy. It really looks bad for them when they're pulling in record profits in a down economy. It looks even worse after such a major disaster.

**Jables22** · 07-19-2010, 02:22 PM

Originally Posted by LZclone

We are running $2.75 here in Central Illinois, so it is probably over $3 in the Communist State of Chicago.

But here is an oddity I dislike as a former Iowan...

87 octane usually as no ethanol, while 89 has 10-15% based on suppliers.

In Illinois (the 2nd largest corn producing state, behind Iowa) the ethanol blend runs you 10 cents more, where is Iowa it will run you 10 cents less?!?!?

Illinois must not have ethanol subsidies like IA does. I think MN "buys" the price of 10% ethanol down as well.

**VeloClone** · 07-19-2010, 02:26 PM

Originally Posted by Jables22

Illinois must not have ethanol subsidies like IA does. I think MN "buys" the price of 10% ethanol down as well.

Uh, actually in Minnesota you have nothing to compare it to. It is state law that ALL GASOLINE must have a minimum of 10% ethanol in it. There has been talk in the legislature of moving that number to 15%.

It is much easier in MN to find stations with E-85, though.

**SCNCY** · 07-19-2010, 02:27 PM

I think some of the reason gas is cheaper than in the past is because the American Dollar in foreign markets is worth more this summer than in the past. Here is a chart of the foreign exchange rate for 1 Euro. This won't entirely explain the price of gas, but it usually is a factor.

EUR/USD Currency Conversion Chart - Yahoo! Finance

**mkadl** · 07-19-2010, 06:08 PM

Originally Posted by twojman

Deflation is around the corner and poor economy. With no jobs nobody drives.

We better pray deflation doesn't swing its ugly head into this economic mess.

**LZclone** · 07-19-2010, 06:22 PM

Originally Posted by mkadl

We better pray deflation doesn't swing its ugly head into this economic mess.

I don't know how it possibly could with all of the Harvard grads running (ruinning) the country.

**Arkansas** · 07-19-2010, 08:03 PM

Originally Posted by BryceC

It's about 2.50 in Des Moines Arkansas.

Thanks BryceC - pretty much the same down here as well. Not all that long ago it was about 10 cents cheaper here.

**justcynn** · 07-19-2010, 08:10 PM

Originally Posted by dmclone

Not an expert but demand is down because of the poor economy. People around the world are driving less.

Not an expert either, but I agree all signs in the business I am in point to the price of oil is directly related to World Economic Demand and World Ecomics are directly related to US Consumer Demand. $3-$4 gas should mean we are back in a growth mode though and I will take that anyday over what we are experiencing now.