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Oil feel below $94.00 a barrel,now how long before the price adjusts?
- Thread starter Arabian
- Start date
It will take some time becuase now the fear is that demand is becoming so weak globally due to the US and Europe that China won't be growing as fast because we don't have the money to buy their stuff.
ricco561
New member
No, it's about price gouging.
I don’t see how anybody can say it is not.
Oil goes up a dollar and our gas goes up a nickel.
Oil drops $10 and our gas goes down 2 cents.
How can anybody with a straight face tells us anything different?
I agree there is price gouging, and am not saying there isn't however I thought this discussion was about the price of a barrel oil...
ricco561
New member
I think they really go hand in hand..............but I'll step out and let you boys discuss it.
Grumpy Old Man
Grumpy Old Biker Bastard
The price of oil is down and supply is up. The price of gas is up because the refineries are shut down. It will take 2 weeks or so before they can even start, then a couple more weeks before they can make up for the lack of fuel. So it will get worse before it gets better. Oil & gas prices are related but are two different products. The next price increase will be in manufactured goods, the packaging is going to go up because plastic takes a lot of each barrel of oil. SO there ya go kids.
seaking420
New member
I dont understand what you meant by that....what does plastic have to do with it............im just trying to learn...not questioning your answer
mustang_00
New member
how come gas prices went up??? it was 3.52 a gallon (unleaded) and now it went up to 3.72.. is it cause of the hurricane's???
Isn't it also 'what the market will bear'? If you don't like it, don't buy it.
Yes, yes, I know it's easy to say, but I've taken steps to protect myself (albeit very small protection) from high gas prices by moving where I live. Sure, I live in a smaller location right now; but now I can walk to work (~90min walk) if I want or take the subway (~10m).
Yes, yes, I know it's easy to say, but I've taken steps to protect myself (albeit very small protection) from high gas prices by moving where I live. Sure, I live in a smaller location right now; but now I can walk to work (~90min walk) if I want or take the subway (~10m).
Supply is up and demand is also down. Supply is expected to continue to increase due to massive capital expenditures by the big oil companies. The are not going to cut production infact when the price goes down historically they are known to overproduce to try to increase their ROI. With oil there are also other influences such as hedge funds and the dollar which is what the price of a barrell of oil is pegged to. So if the dollar strenghtens then the price of oil declines for the US.
Gas is more tied to domestic refining like grumpy said, to greed and to bullshit regulations about how the fuel is blended for each state. My girlfriend works for a trucking brokerage co so she is dealing with the price of moving goods accross the country all day long. That is the latest burden on inflation but with the price of oil dropping it has gotten a lot better. Unfortunately Ike spun that around and it will be interesting to see how fast these refineries can gear back up to full production...
Gas is more tied to domestic refining like grumpy said, to greed and to bullshit regulations about how the fuel is blended for each state. My girlfriend works for a trucking brokerage co so she is dealing with the price of moving goods accross the country all day long. That is the latest burden on inflation but with the price of oil dropping it has gotten a lot better. Unfortunately Ike spun that around and it will be interesting to see how fast these refineries can gear back up to full production...
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