Turn them in!!!

[Sheldon]

As soon as it was announced that the Texas refineries were going to close for the storm the price of fuel in Michigan jumped in excess of 64 cents a gallon. This lead to a panic buying spree across the state. Meanwhile I've read in Texas, Arizona, Nevada, Florida, and many other states the price actually dropped!!!
Go here to file a complaint against the gasoline companies! I put on mine they all did and this started a panic buying spree, charged them with price fixing and collusion!

[tattedupboy]

No thank you. I'm one of the last remaining people who believes that supply and demand are what determine prices, and that potential supply interruptions, such as Hurricane Ike, because they have the potential to disrupt output, are one cause of price increases. Add panic buying to the equation, and to me, it is easy to see why prices went up. As for the places where prices went down, those are mere anomalies.

[Sheldon]

Originally Posted by tattedupboy

No thank you. I'm one of the last remaining people who believes that supply and demand are what determine prices, and that potential supply interruptions, such as Hurricane Ike, because they have the potential to disrupt output, are one cause of price increases. Add panic buying to the equation, and to me, it is easy to see why prices went up. As for the places where prices went down, those are mere anomalies.

Maybe but this time the cost of the supply went up before the demand started, read my post the cost increase started the panic buying and that is wrong.

[tattedupboy]

Originally Posted by Sheldon

Maybe but this time the cost of the supply went up before the demand started, read my post the cost increase started the panic buying and that is wrong.

That is easy to explain. There generally is a lag between when oil prices change and when gasoline prices change because the gasoline that is being sold at any given moment was purchased at a different price than the oil that is being drilled at that moment. The time between when oil is drilled and when it gets to market is what contributes to teh price differential you speak of.

[Sheldon]

Originally Posted by tattedupboy

That is easy to explain. There generally is a lag between when oil prices change and when gasoline prices change because the gasoline that is being sold at any given moment was purchased at a different price than the oil that is being drilled at that moment. The time between when oil is drilled and when it gets to market is what contributes to teh price differential you speak of.

So then how do you explain the fact that the price of Crude has been dropping and it hit a new low the same day!!! Time lag is almost 0 the price of crude goes up and is on the afternoon news, price of gas goes up in that evening... you do not have a valid argument. By your own logic then since the price of crude is around $100.00 a barrel, then the price of gas should be around $3.00 or less as it was when the prices started the meteoric rise. Demand is down in the USA, price of Crude is down in the world market, but still the price increases.

[johnsteele]

Originally Posted by Sheldon

Maybe but this time the cost of the supply went up before the demand started, read my post the cost increase started the panic buying and that is wrong.

Easy. The price you pay for gasoline today reflects the price the distributor/dealer will have to pay to replace the gasoline. It does not reflect the price they paid for what they sold but rather the price they will pay for the replacement. So in a probable shortage situation the future price will be higher thus the current price rises to reflect that. Supply and Demand --- capitalism at work.

[johnsteele]

Originally Posted by Sheldon

So then how do you explain the fact that the price of Crude has been dropping and it hit a new low the same day!!! Time lag is almost 0 the price of crude goes up and is on the afternoon news, price of gas goes up in that evening... you do not have a valid argument. By your own logic then since the price of crude is around $100.00 a barrel, then the price of gas should be around $3.00 or less as it was when the prices started the meteoric rise. Demand is down in the USA, price of Crude is down in the world market, but still the price increases.

Falling crude prices reflect falling future demand. As a result of falling future demand less gasoline goes into the distribution pipeline --- distributors do not want to be caught with huge stocks of gasoline for which they have paid but cannot sell. So local stocks are allowed to go down to refelct the probable future demand. Then add the immediate possibilty that near term future supply will be suddenly reduced by refinery closings, drilling slowdowns/shutdowns and the price to replace current stocks means that near term supply will be reduced and replacement prices will go up, thus driving the retail price up. Supply and Demand.

[Sheldon]

Originally Posted by johnsteele

Falling crude prices reflect falling future demand. As a result of falling future demand less gasoline goes into the distribution pipeline --- distributors do not want to be caught with huge stocks of gasoline for which they have paid but cannot sell. So local stocks are allowed to go down to refelct the probable future demand. Then add the immediate possibilty that near term future supply will be suddenly reduced by refinery closings, drilling slowdowns/shutdowns and the price to replace current stocks means that near term supply will be reduced and replacement prices will go up, thus driving the retail price up. Supply and Demand.

Yeah the problem with the theory is the price only goes up, by your own admission since the price of crude in the world market has been dropping for a couple of months now then the old supplies are gone, hence the price should be lowering, also the supplies of the gasoline again should be dropping, not so it is at the same price per gallon as it was when crude hit the $140.00 per barrel price. Again no valid argument has been presented for the Price increase.

[HK4U]

Originally Posted by Sheldon

As soon as it was announced that the Texas refineries were going to close for the storm the price of fuel in Michigan jumped in excess of 64 cents a gallon. This lead to a panic buying spree across the state. Meanwhile I've read in Texas, Arizona, Nevada, Florida, and many other states the price actually dropped!!!
Go here to file a complaint against the gasoline companies! I put on mine they all did and this started a panic buying spree, charged them with price fixing and collusion!

Not sure where in Texas that was supposed to be but I live in Fort worth and it sky rocketed here. Also a lot of the stations have run out of gas. If it went down anywhere I am sure it was an isolated case.

[Sheldon]

Originally Posted by HK4U

Not sure where in Texas that was supposed to be but I live in Fort worth and it sky rocketed here. Also a lot of the stations have run out of gas. If it went down anywhere I am sure it was an isolated case.

Well you can go check here on a competing forum page 4 I believe...

Yesterday a QT station in Plano, TX had gas for $3.49. Today while going to lunch it was $3.59, and $3.69 on the way back from lunch. What next?