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Posted on 08/14/2015 9:28:43 AM PDT by Citizen Zed
Prices at some gas stations spiked 50¢ overnight.
Earlier this week, analysts proclaimed that $2 gas would be common once again around the U.S. Global oil prices are cratering, nearing $40 per barrel, and shrinking wholesale rates can only result in lower prices at the pump.
Or so one would think.
Despite plunging oil prices, drivers throughout the Midwest have been subjected to dramatic price spikes at gas stations this week. In Cincinnati, for instance, the price for a gallon of regular increased more than 40¢ overnight at some stations. Less than two weeks after analysts predicted average prices in Michigan would drop below $2 by Christmas, average prices have soared to $2.98 according to AAA. The average price per gallon in Illinois has inched up to just under $3 as well.
(Excerpt) Read more at time.com ...
There are two parts to the supply and demand equation.
Refinery issues, I’ve heard.
I’m in Cincinnati and EVERY station is $2.99/gal. It was $2.19 to $2.22 just a week ago.
HAUL THOSE EVIL REFINERS ASSES into Congress for hearings!! Maxine Waters will get to the bottom of this!
p.s. Yes, as the headline states, I’m outraged.
went up here in the UP of MI from 2.57 to 2.99. alot of people are pissed about it too, all because of the BP refinery in Indiana is shut down. The oddity is the petro for this are comes from Superior and Duluth.
Three, really. Supply, demand, and government interference. Supply and demand will work itself out in due time, add govt. interference, and well, you get what we have today.
So what did the government do recently to cause the sudden bump in prices?
Gas is around 2 bucks/gal in places.
http://www.gasbuddy.com/GasPriceMap
We here in the great lakes have a regional problem due to the BP Whiting refinery going down.
EPA regs made many of the smaller refineries in the region close up. So we’re in deep doo-doo when Whiting goes down.
Thank a government employee. Jobs in government have grown throughout the Great Recession and following stagnation. Where does the money come from for these people’s salaries?
See my post at #11.
I drove by again that afternoon and the price had dropped 10 cents. (competition I am guessing)
How many new refineries have been built in the last 20 years?
How many different blends of gasoline are mandated by the EPA? For winter? summer? They even have different requirements based on the size of the metro-area.
How many pipelines have been built to handle the oil? How much has to be hauled by truck/barge/train to compensate?
The oil companies have to raise prices at the pump because the price they’re paying per barrel is too low.
(No, it doesn’t make sense but there it is all the same!)
And why is a quart of oil five bucks???
It went up 80 cents here. Even stations not served by the BP refinery that is shut down went up.
“Even stations not served by the BP refinery that is shut down went up.”
From what I understand the refineries can do each others gasoline and they just add the additive package. The problem as stated is the total supply is lower with one refinery shut down. Simply supply and demand. We see it all the time here in California with their asinine rules.
And which part would affect gas in an opposite direction than oil? Did someone bomb all the refineries?
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