Posted on 08/18/2011 1:26:29 PM PDT by Fedupwithit
OK, with oil now trading at just a bit over $81.00 a barrel after today, when is the bottom going to fall out of these gas prices? In New Hampshire today, I just paid $3.65/gallon today.
According to NYMEX.com, the price of RBOB is $2.78/gallon. It seems to me that gas should be somewhere around $3.35/gallon, unless I am missing something.
Anyone have any insight on this?
broke under $80 last week and shot back up to mid 80’s. it was 87 yesterday. today was about margin calls to the hedgies. sell what you can when market is dropping.
yesterday the crude inventories were down while gasoline inventories were down.
check out what Bloomberg’s headline was yesterday Oil Climbs in New York as U.S. Fuel Supply Drop Signals Increased Demand http://www.bloomberg.com/news/2011-08-17/oil-erases-gain-in-new-york-as-economic-concern-counters-stockpile-decline.html
what a difference a day makes. shows how much hype is in oil and gasoline
crude inventories were UP while gasoline supplies were down
Hussein wants to guarantee the economy comes to a GRINDING halt.
The futures price of oil only indirectly affects the price of gasoline. For a better gauge follow the futures price of wholesale unleaded gasoline which is currently $2.78. Keep in mind that this price doesn’t include taxes.
“Also keep in mind that gas stations dont necessarily buy gas every day,”
Except it seems like when crude goes up, gas station prices go up before the day’s done.
They are jumping from Oil as speculation to Gold. Gold will skyrocket as a result. They feel that Oil isnt as much a hedge against inflation anymore.
Then comes grain..that will be another one to watch.
RBOB is not the same as gasoline that one buys at the pump.
It’s reformulated gasoline blendstock for oxygenate blending. That is, it generally must be blended with 10% ethanol and additives before it becomes a retail product. It must also be taxed at the Federal and state level, transported from the contract delivery point (New York Harbor) to a wholesale terminal, and transported from the wholesale terminal to the retailer.
All of these steps either involve direct costs or margins for the blender, wholesaler, or retailer.
I believe that is true but I know that prices here sometimes go up twice a day when prices are surging.
In a period of rising prices you must raise retail prices in anticipation of higher wholesale prices or you will rapidly find yourself unable to purchase sufficient stock to stay in business.
During a period of falling wholesale prices, you must recover at least the wholesale price you paid plus a small margin or you will rapidly find yourself out of business. (Buy high & sell low doesn't work for long.)
It is not exactly intuitive but it is the truth.
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
November 6, 2012
That’s kind of the problem with the way they have to pay in advance. When the owner sees a surging price in the markets they kind of have to get in front of the cost. Most owners are not deep-pocketed businessmen (its a pretty low margin business which is why you see so many of the owners putting in so many hours in their store) and its hard to build up a lot of cash reserves to handle big price swings. Particularly given how competitive the business is. After all, most of us will cross the street to save a penny per gallon if there are two stations on the same intersection.
Yup.
Some Sheik in the mideast gets a hangnail and the price is up 25 cents a gallon here before the sun goes down...
“Rockets and feathers”. The price of gas goes up like a rocket and comes down like floating feathers.
They’re entitled to try to make a buck just like the rest of us. We don’t like it, but that’s free enterprise.
Just another reason Republican candidates should start talking about lifting his drilling moratorium and drilling in Alaska.
At least then they can claim credit for causing prices to come down.
So that will be the battle: What led to falling gas prices? Obama's Windmills or Perry's Drilling?
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