Big Oil in Disarray

Posted September 28th, 2007 at 09:28 AM by Mark Shelden
in

How else can you explain that our gas prices have been falling while oil prices have been at record highs. 

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On September 28th, 2007 at 10:53 AM, Warrior said:

The price of gas is determined by supply and demand, not just the cost of inputs.  Oil could be free and gas prices would still be at a level that kept demand from exceeding refining and transportation capacity.  It's simple economic rationing.  Otherwise you get "no gas" signs, long lines, and hoarding that only makes it worse.

In short: Gas prices are down because demand is down.

 

On September 28th, 2007 at 11:31 AM, Anonymous (not verified) said:

Warrior, you aren't paying attention.  Big oil controls the price of gas.  Supply and demand has nothing to do with it.

Oil Man's picture
On September 28th, 2007 at 11:44 AM, Oil Man said:

 

"Big oil controls the price of gas." This statement has no basis in fact.

A factual statement would be "The price of gasoline depends upon supply and demand with government taxes added on."  Gasoline consumption is less this time of year in the USA and European markets as the peak holiday travel season is over for 2007.

Check out this website to see the impact on the price of gasoline attributed to supply and demand with a geneous supply of government taxes added on, especially in European countries.

http://www.wired.com/cars/energy/magazine/15-06/st_atlas

On September 28th, 2007 at 12:05 PM, Anonymous (not verified) said:

Okay everyone, please turn on your sarcasm meters.

On September 28th, 2007 at 02:02 PM, big head ed (not verified) said:

"Okay everyone, please turn on your sarcasm meters."

I would, but mine runs on gas and the gauge is on empty.

On September 28th, 2007 at 05:11 PM, PropertyRights said:

SSSHHHH Mark,

or the Gas Gods will hear you...

On September 28th, 2007 at 08:05 PM, Mark Shelden said:

SSSHHHH Mark,

or the Gas Gods will hear you...

Why do you think I haven't posted about baseball.

On September 28th, 2007 at 10:39 PM, PropertyRights said:

Haha... Cubs win!! Cubs win!! woohoo!!!

On September 28th, 2007 at 10:49 PM, Anonymous (not verified) said:

Check the price of diesel. Up 30 cents/gallon in past two weeks.

On October 1st, 2007 at 06:33 PM, handymom said:

Doesn't lower gas prices now reflect that oil was less expensive when it was purchased before the refining process?  That means we will be looking at higher gas prices when the current oil is refined and sent to the pumps.

Oil Man's picture
On October 2nd, 2007 at 03:50 PM, Oil Man said:

"Doesn't lower gas prices now reflect that oil was less expensive when it was purchased before the refining process?"

In short---No, it is strictly a supply/demand issue.  There is more supply than demand for gasoline.  Same applys to diesel currently as its price is going up as we approach the heating season since heating oil formulation is very close to to that of diesel fuel.