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To: al baby
I have been storing gasoline in my garage in sparkletts bottles since January

One of the reasons gasoline prices are so volatile is the fact that it is very dangerous to store. Gasoline is usually down the freeway, into the dealer's underground storage tanks within a short span of time after refining. A normal gasoline retailer, depending on location, will pump anywhere from 5000 to 10000 gallons a day and will usually have a capacity for no more than three to four days inventory.

A refinery has some holding tanks but will generally have a "just in time" inventory policy also. Consequently crude oil is refined into gasoline as it needed....and that is why the price fluctuates constantly. Crude oil is more safely managed than refined gasoline so the product you fill up your tank with probably is only a couple of days old.

The petroleum business therefore is at the mercy of a constantly changing market dependent on not only supply and demand factors, but also political gyrations, international saber rattling and the futures market. (Have you ever seen the price of coffee in the grocery store the day after weather problems in coffee growing regions of the world are announced? Futures traders driving the price!) If any thing happens to disrupt this refining process such as unscheduled maintenance, fires, supply problems, tanker or pipeline situations.....up goes the futures market and the price to the consumer. Depending on how much a wholesaler owns in current contracts at a specified price will determine their profitability in times like this.

It is much safer for the industry to store gasoline at the individual dealer locations with four or five ten thousand gallon holding tanks then to try to make it ahead of time (like widgets in a warehouse) and risk setting an entire city on fire.

Glass bottles are not safe....nor are they authorized for doing what you claim you are doing. I personally do not believe you are doing this.....but if anyone else is thinking of doing it....don't!

As an after thought....one thing the futures market does do is guarantee us product....sometimes at a exorbitant price....but product nonetheless.

68 posted on 04/24/2006 3:05:02 PM PDT by Diego1618
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To: Diego1618

I was joking


71 posted on 04/24/2006 3:11:41 PM PDT by al baby (Father of the Beeber)
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