Correlation between Price of Oil Vs Price at Pumps

I don't know.
However, I enjoy the trouble it creates.
Saw a huge soccermom giving shit to the cashier at a Chevron cause gas is too expensive. It was so funny.

I told the soccerman "yeah! we should all go on strike!"

and she agreed

currency.... US Canadian dollar spread

oil prices worldwide are quoted in US Dollars

Canadian dollar has lost 15 cents against the US dollar over the past 5 months

http://www.ctv.ca/servlet/ArticleNe...506/OTT_Gas_Prices_080506/20080506?hub=Canada



http://www.mcteague.ca/WebPages/gas_price_today.htm

bcneil said:

Saw a huge soccermom giving shit to the cashier at a Chevron cause gas is too expensive.

Click to expand...

Well at least we've found the root of the problem. Cashier shouldn't have to take that though. He should just hop in his F-50 and get the hell outta there.

Because the oil companies can get away with.

As long as we keep voting in the Conservatives or Liberals who believe in letting business run themselves nothing will change.

Gas prices need to be regulated by government, like our hydro rates are. This is because there is really no competition (it is just an oligopoly, as the major oil companies control the refining, and therefore they can reduce refining, to keep gas in short supply, which is what they do, to keep the price up).

The Federal NDP brought up the idea of regualting gas prices in the last election. Until a party like that gets into power, we will continue to get gouged.

So don't complain.

Black Gold...Texas Tea...

I finally heard on the radio a decent, non-corporate media spun explanation of why gas prices have been behaving the way thay are over the last years.

I have worked in the petroleum industry, I KNOW from the inside, it's bullshit when they speak of a 'shortage of refining capacity', or some hurricane has impacted it...etc.
The media often writes articles telling you we are 'short refining capacity... because no new refineries have been built...yadda yadda". Many of the refineries I worked in during the 90's alone had expanded extensively their capacity within their facility, brand new sub-Units, even then; AND increased their effficiency. This has been going on since the refineries were established in the early part of the 20th century. My experience included California, Texas, Washington, and much, much more.

What I heard on the radio was this. A true economist of note and quality of Word, not a wannabe, talking-head 'expert', said:

The oil prices are reflected somewhat by supply and demand, of course.
But apparently, as he well explained it, the biggest influence now is the strength of the Dollar. You notice when the economy of the US crashed, so did oil prices.
World markets depend on the dollar for exchange. So it's a function of that, as well.

I often wish I had written down the radio show reference, and the people on it.

Purrr VertIcal said:

I finally heard on the radio a decent, non-corporate media spun explanation of why gas prices have been behaving the way thay are over the last years.

I have worked in the petroleum industry, I KNOW from the inside, it's bullshit when thay speak of a 'shortage of refining capacity', or some hurricane has impacted it...etc.
The media often writes articles telling you we are 'short refining capacity... because no new refineries have been built...yadda yadda". Many of the refineries I worked in during the 90's alone had expanded their capacity within their facility, brand new sub-Units, even then. This has been going on since the refineries were established in the early part of the 20th century. My experience included California, Texas, Washington, and more.

What I heard on the radio was this. A true economist of note and quality of Word, not a wannabe, talking-head 'expert', said:

The oil prices are reflected somewhat by supply and demand, of course.
But apparently, as he well explained it, the biggest influence now is the strength of the Dollar. You notice when the economy of the US crashed, so did oil prices.
World markets depend on the dollar for exchange. So it's a function of that, as well.

Click to expand...

I guess you got fooled by their spin too.

Since the begining of the year, oil prices have fallen 20%.
The price at the pump on Jan. 1st was nowhere near the reflected on what we should've been paying. In fact we were paying 15-20 cents more per litre at that time than Southern Ontario.

Our dollar has not dropped 60% since Jan. 1st, which is what it would need to do to reflect the current price we are paying.

I'm, not fooled.

And - the US dollar, bonehead.
The world does not trade in Loons.

I don't assert to know it all. And, unlike many on this board, I will not talk out my ass on stuff I know little about.
In this case, it was refreshing to hear someone on the radio offer a detailed, sensical reasoning for why oil went to $4 a gallon, then took a dive to where it bottomed. You'd have to have heard the show to truly have it make sense.

And, as I said, it is only a significant substantial p i e c e of a very complex equation.

But I know for a fact, from the inside, it is not about 'capacity affecting demand', as we are lied to by the news. So it is good to be able to verify-and-reject the rhetoric-dogma-bullshit as you read it.

The dollar explains much more than the supply and demand Spin.

Recently, the US dollar average has recovered internationally from it's crash low point, and oil is rising. Or at least, feigned confidence in the dollar, with a new president, and a 'stimulus plan'.

As for your 'attack'-ish, on my above post, if you don't have something better to offer for an explanation, or a personal experience 'Like I've Related', ya-otta-shuttter-uppper. You sound like the Peanut Gallery until you can contribute something intelligent more than a, 'you're wrong', without a 'why'.

You got a better explanation, Show your hand.

Purrr VertIcal said:

I'm, not fooled.

And - the US dollar, bonehead.
The world does not trade in Loons.

I don't assert to know it all. And, unlike many on this board, I will not talk out my ass on stuff I know little about.
In this case, it was refreshing to hear someone on the radio offer a detailed, sensical reasoning for why oil went to $4 a gallon, then took a dive to where it bottomed. You'd have to have heard the show to truly have it make sense.

And, as I said, it is only a significant substantial p i e c e of a very complex equation.

But I know for a fact, from the inside, it is not about 'capacity affecting demand', as we are lied to by the news. So it is good to be able to verify-and-reject the rhetoric-dogma-bullshit as you read it.

The dollar explains much more than the supply and demand Spin.

Recently, the US dollar average has recovered internationally from it's crash low point, and oil is rising. Or at least, feigned confidence in the dollar, with a new president, and a 'stimulus plan'.

As for your 'attack'-ish, on my above post, if you don't have something better to offer for an explanation, or a personal experience 'Like I've Related', ya-otta-shuttter-uppper. You sound like the Peanut Gallery until you can contribute something intelligent more than a, 'you're wrong', without a 'why'.

You got a better explanation, Show your hand.

Click to expand...

Personally, for years and years, I've been convinced it is monopolistic behaviours we are seeing. Oligopoly is the word?

OPEC, for one.

And who thought it was a good idea for

Exxon-Mobil to merge?

Chevron-Texaco?

BP-ARCO?

etc.


Why do we allow this?

Now it takes the Big Oil execs 'four' phone calls instead of 'ten' to fix prices, and with less argument complication.

Remember when the US broke up 'Ma Bell' for being a monopoly?

gasoline is traded as a seperatly from crude oil on the wholesale and world markets. Go check how that market moves and you can see how/why the pump price has moved

poonyman said:

Fellow Perbites,

Can someone explain to me that despite the price of oil dropping the prices at the pumps are rising. Anyone working in the industry have any views they may share.

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The first, and most obvious reason for this is that gas prices did NOT go sky high at the same rate as did the international price for a barrel of crude.

Secondly, the actual price of a barrel of oil on the international scene relates disproportionately to a purchase location in Texas.

Regardless of whether much of the oil on the west coast of the USA comes from Alaska, or whether much of the oil burned on the east coast of the USA comes from the North Sea, off the coast of England, the single price that we see in the news every night comes from a location in Texas.

The oil is plentiful in Texas these days, because oil in those other locations is cheaper and nobody is interested in buying and paying shipping/pipeline costs from Texas. Thus you have relatively high supply and relatively low demand, so the official price, taken from there only, is going down to recent lows.

Does it make any sense? I'm not sure.