Gas Prices?

Y’all under $3 a gallon now? I saw a post on Facebook. We’re at $3.20 or so. How you like that cracking now?

Paid 3.17 last night here in WI

Pd 2.89 in Rosemount mn

$2.98 in Alexandria
DT

2.67 in Cedar Rapids Iowa

We are in the “winter blend”. The prices always go down. Wait till spring, we’ll see $4.00 to make up for it.

I only hope that fracking will bring the price back to a tolerable level.

It’s all about the elections, fracking has little to do with it.

You got that right

$2.98 in Eagan. I just don’t get it – if prices always drop before election time, that means there’s an element of control here. Why not just leave prices lower then, since it’s obviously able to be sold below $3 per gallon. It’s just a bunch of baloney!

Lobbyist need to pay for the elected officials. You can cover a lot of smell on the incumbents with a little perfume (gas prices) With wall street blowing up and the public finally figuring out that the only places hiring are government jobs there is a bunch of stench that needs covering this election cycle.
Maybe Jesse was right about term limits?

The funny thing is: I heard this morning that the cost of a barrel of oil is at a four year low and demand is way behind predictions. Yet gas prices by me this morning went up from 3.19 yesterday to 3.25 this morning. Price fixing for record profits yet again. It certainly isn’t the law of supply and demand at work.
Have you ever noticed how as soon as the prices dip, there is suddenly an emergency refinery shut down, a refinery fire, and the lame “we are switching over to the summer/ winter blend” excuse for suddenly higher prices?

Gas will go up. The only thing holding it down is the production of the Canadian oil sands and North Dakota. While it takes $70 to produce a barrel of oil and it being sold at $90 a barrel its a matter of time OPEC stops production trying to drive up the prices creating more demand and less supply.. It cost way less to produce oil outside the the shale drilling and the oil sands. Compairing the cost of producing oil: Canada up to $70 to $75 Saudi oil $1 a barrel. As onne can see Saudi oil can aford to cut back while CANADA with its $70 cost ton produce oil to the market $86.6 can not sustain. Canada does not have the infrastucture to deliver plus shale drilling may have an influx of oil on a new well but it is quickly depleated forcing a new well or vein to be created verry costly.

While the North AMERICAN OIL PRODUCERS say they can keep up with supply I believe their playing with fire and we will pay for big time down the road, no pun intended.

Ironic while the Candian oil became the #1 oil producer the cost of producing it keeps the cost on us high while producing extremly high profits for those countries belonging on the AXIS OF EVIL list..

mplspug wrote:

Y’all under $3 a gallon now? I saw a post on Facebook. We’re at $3.20 or so. How you like that cracking now?

Do not like it at all.

It’s $2.99 here in the Winona area. I was just talking to someone who said they talked to a guy about the gas prices going down and he started complaining about his Chevron stock falling… Can’t please everyone I guess.

Dave

Economic elite domination at it’s finest.

Joel VandeKrol wrote:

Economic elite domination at it’s finest.

you are correct. It’s the “haves” vs the “have nots & never wills”. The gap gets larger every year.

Gas and oil prices, and in fact all commodity prices, are not set by supply and demand. That’s a huge myth.

The price of gas and oil today are set by speculation about what might happen in the FUTURE. Supply and demand are pieces of the puzzle, but they aren’t two halves of a whole picture. They are two tiny pieces amongst hundreds. If prices were really set based only on supply and demand, prices would move very slowly because both demand and supply relatively static.

Speculation is what drives the price. Every hour of every day there is are constantly changing theories of what might happen in the future. This speculation about what might happen in the future is what drives today’s prices. Logic has nothing to do with it.

Grouse

Isn’t speculation just a different explanation of demand?

How fast futures show at the pump in the form of pricing, speculative and demand could be considered one in the same on an alternate level of understanding.
When OPEC has their summit watch the speculation occur and see how fast the price of futures hits the pump.

Today’s commodity prices are driven by speculation about what the demand and supply might be at some place, and at some future point in time.

The point is that supply and demand are current measures. Prices are set by someone’s view of what the future might look like, not by the current supply or current demand.

Just think of it in terms of what happens when there’s a weather event like a hurricane in the Gulf. Pump gas prices climb and oil prices climb. Why? There’s no current supply/demand issue, the gas in the tanks at the service station were pumped out of the ground months ago. Prices moved because traders were speculating on what this news might mean to the future supply/demand. Are they right? Generally not, but logic has nothing to do with commodity trading.

Grouse

Gasoline and crude futures are trading down another 3+% today, and have been trading lower almost every day. The per gallon price for gasoline futures on a Nov. 14 deliver are currently at $2.20 per gallon. If there is a refinery shutdown or a mysterious refinery fire, the gasoline future price would jump 30 cents in a day. Even though delivery of that gasoline would be a month out, the price at the pump would jump 30 cents in the next few days. Takes a long time to see the price of gas futures show up at the pump when dropping, but only a couple days to see it at the pump when it rises.

John Schultz wrote:

Gasoline and crude futures are trading down another 3+% today, and have been trading lower almost every day. The per gallon price for gasoline futures on a Nov. 14 deliver are currently at $2.20 per gallon. If there is a refinery shutdown or a mysterious refinery fire, the gasoline future price would jump 30 cents in a day. Even though delivery of that gasoline would be a month out, the price at the pump would jump 30 cents in the next few days. Takes a long time to see the price of gas futures show up at the pump when dropping, but only a couple days to see it at the pump when it rises.

Unless of course we are talking about Super America Stations. They would hop the price 60 cents and then watch to see if anyone followed suit. If not in three or four days they would drop a dime.

First ones up, last ones down.

gordonk wrote:

It’s a function of what the energy companies want. There are only 6 companies in the world that control about 93% of all the crude from the ground into your gas tank.

Did you know that there is 1 US company in the top 10?
It would be great if that changed!

They’re really getting you used to lower gas prices so they can smack you with a $.25 – $.30 state/federal gas tax increase – and you won’t think anything of it because you’ll be used to 3.20 something a gallon and think it’s okay. …Then it will slowly trickle back to where it was ($3.75 to $4.25+ a gallon again).

Man, this thread got boring in a hurry.

So I read up a little on the news about gas prices and see what is happening.

I think it is funny how conspiracy theories always get thrown out there with this topic despite it being a traded commodity. The price of gas has never gone up when you factor in inflation. In fact at under $3, it is almost alarmingly low.

At best you can argue collusion, but that is only for part of the supply and now there appears to be division within Opec. I suspect that has been brought on by pressure from new oil sources.

Oakdale Fleet Farm $2.89 or $2.85 with .4 cent off coupon tonight. Anyting under $3 is a real treat!

-J.

mplspug wrote:

I think it is funny how conspiracy theories always get thrown out there with this topic despite it being a traded commodity. The price of gas has never gone up when you factor in inflation. In fact at under $3, it is almost alarmingly low.

Absolutely right. I read in a car magazine article a few years ago that if gas had only kept pace with inflation since 1960, it should now cost about $7 per gallon. Event taken as a percent of average income, gas was far more expensive (relative to wages) in the 1960s than it is now.

But don’t get me wrong, cheaper is better weather you adjust it for inflation or not.

Grouse

Agreed, cheaper is better!

What are you at now with your winter blend? I think we’re at $2.80 or so.