262 replies to this topic

[Venice]

Give me a good reason for gas prices jumping

It seems to me that the month prior the prices fell just as fast? does that mean I was buying wholesale?

[Hippie3]

Give me a good reason for gas prices jumping thirty cents a gallon in the last two weeks, and i'll agree that it isn't gouging.

you'd need to first understand how the global oil market works.
are you familiar with the concept of futures
and discounting risks ?
oil contracts are purchased months in advance
before anyone knows how much it will actually cost
when the time comes to fulfill the contract.
so they build in a 'fudge' factor based on the
potential risks that might alter prices.
right now
most of the upward pressure on oil prices is
a direct result of the world's political crisis
with iran,
the war in iraq
and the leftist movements in venezuela and nigeria.
the market seems to feel, and i agree,
that oil prices are just going to keep rising
for quite a while
and likely will never go back down.
they have therefore to increase their prices
in anticipation of expenses to come.
that's just common sense,
and all oil companies, not just american ones,
are doing it.
i would too, if i owned any.
;)

[pskovinsky]

Hell, if i owned an oil company i'd jack things up nicely!

Actually, i'd do exactly what they are, use any excuse possible to raise the prices, then when the excuse fades (Katrina, for instance), slowly lower them 50% of the raise, and wait for another good reason.

I can't get that bent out of shape though, knowing what Europe and the land Down Under pay per gallon.