Posted on 09/08/2005 2:54:36 AM PDT by Crackingham
The pain of $3 at the pump could end soon for many Americans, but the respite in gasoline prices may be modest -- and only temporary, energy experts said Wednesday.
In any event, gasoline prices rarely fall as quickly as they go up, so consumers should get used to higher prices at the pump.
The disruptions to gasoline supplies and U.S. refining capacity that helped drive gasoline prices to record highs are being fixed. But the wider-than-normal gap between wholesale and average retail prices was driven in large part by those supply disruptions, according to the Geoff Sundstrom, a spokesman for AAA.
"With each passing day, based on what we're hearing about the industry being restarted, this current environment will ease," said Sundstrom.
He said that there is normally about a 60-cent difference between wholesale prices and retail prices, with the difference going to distribution, marketing and profits for station owners. But the gap has risen to nearly $1 in the last week after Katrina, he said.
And it could be a while before prices fall back to around $2.60 a gallon, where they stood on Aug. 26, before the storm hit.
"We may be a couple of weeks away from seeing meaningful relief," he said.
In commodities markets, gasoline futures fell Wednesday along with crude oil prices ahead of the weekly U.S. fuel inventory due Thursday morning.
Crude oil futures rose less than gasoline futures after Katrina, and have fallen much more quickly, retreating to pre-Katrina levels on Monday.
"Basically what is happening is the industry is trying to stop a run on wholesale gasoline by gas stations," said Sundstrom. "The gas station owners don't want to under price the market and possibly run out of gasoline."
(Excerpt) Read more at money.cnn.com ...
I find it interesting that some stations here have dropped the price to $2.75 – “We don’t make any money on the gasoline, it is a draw to get people to shop in our convenience store”. How many are making that extra $.75 a gallon?
There's supposedly a huge reserve in Montana that rivals what Saudi Arabia has.
We hear endlessly about how we are running out of fuel, but again and again we see that scientists are still collecting information on available reserves.
Refineries are a problem. Would that the political climate permitted them to be profitable, then we would see more of them. Those that we have are in suboptimal repair.
For years the refiners have been yelling about restrictions preventing them from building new refineries but now that the energy bill was passed and restrictions removed the refiners went silent. All they had to do to release some pressure on the market, placed by speculators, is announce future refineries but in reality they never intended to build new ones, it was just an excuse to them.
NO! It was going down all day yesterday. I suppose CNN, Chris Isidore didn't notice.
http://money.cnn.com/2001/08/31/companies/column_sportsbiz/isidore_columnist.jpg
Gas prices in Canada have come down near $1 per litre -- nearly 40 cent drop now that LABOUR DAY WEEKEND is over. Prices will be back down to 'normal' by the end of the month. Around here (Toronto) the general wisdom is that they raised prices so high so fast that everybody noticed it ... like the frog in the boiling water, you have to do these things slowly enough so the frog does not hop out.
Gas prices in central Texas never quite topped 3$. 2.99 was about as high as I saw. Prices usually go up for holiday weekends and then drop back. Filled up fri. 2.75 per gal.
There's a glut of crude now because of the release of emergency stockpiles (announced by the Germans of all people), but with no way to refine it, it won't help much with gasoline inventories.
It's went down a whopping PENNY in the last week in Toledo-from $2.99 to $2.98. You notice, you'll never see it DROP 50 cents.
There's a glut of crude now because of the release of emergency stockpiles (announced by the Germans of all people), but with no way to refine it, it won't help much with gasoline inventories.
Look closer at the facts. Most of the countries sending aid to the US are sendign both Oil and Gas. 2nd, the Refineries are all ready about 80% back on line.
Yep, and they're going to keep right on dropping. We have cut our use and so have a lot of other people I know. Supplies go up, prices go down.
Um NO. We took a LOT of wells out of production HERE in the USA when oil was so cheap in the 1990s. Those are now coming back on line. For example in Western ND and in Canada. We have LOTS of untapped supply because it has not been economically worth while to tap it as long as we could get $30 a gallon oil for Saudi, Mexico and Venezuela
we shall see. I'm riding my bike to work.
Or more efficient cars.
What? I think you are talking about coal.
You are right on target. It is unbelievable how much drilling has been started here in the Texas Panhandle! Shut-ins...even old dry holes are being tried again! (no cracks about the terminology from those who don't know about the oil and gas industry!)
Minerals are being leased right and left. As far as the $3 gallon gas, all I want to know is when will a new car again cost $5,000 and a new home cost $20,000? Meanwhile, complainers continue to pay $50-up a month for 500 channels on their TV (probably 3 or more TV's in the house!), everyone has to have his/her own cell phone, designer coffee costs ?? (...I've never bought the stuff), and fast food/restaurants are doing a booming business.
But we probably bought in smaller quantities at that price. Meaning that the market worked predictably.
A personal decision based on one's needs, wants, and economic ability. There are plenty of 40 mpg vehicles out there, but they don't appeal to all drivers. Perhaps more will sell with gas at $3.
$3 per gallon gas might be enough to make a new refinery profitable in today's political/econazi environment, and if it is, more refining capacity will be built.
Here in Bradenton, FL, I filled up for 2.65 at Sam's CLub yesterday. They are normally ~ .06 cents below street prices, but street prices remain around $2.99.
Nope. Oil reserves. Brand new finding -- it was reported within the last couple of days.
Yes, but don't worry, the price of everything else will also go up so you won't notice it.
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