Gas prices [ADMIN WARNING: NO POLITICS]

[AZ_Ryan]

yes and no. The oil market is not driven by fact and logic, it’s a speculative market. Everyone who has ever had oil heat knows this all too well.

Absolutely ANYTHING that even remotely POTENTIALLY affects the availability of oil, drives the per barrel price up & sometimes ridiculously so. Despite the distance from oil to gasoline, fuel prices IMMEDIATELY spike.

Now, you would think that once the pressure on the market was relieved, gasoline prices would also fall concurrent with oil, but you‘d be wrong. Gasoline stays high sometimes weeks after oil comes down even when demand has fallen.

I have a LOT of neighbors and friends in the oil industry close by and there’s always an excuse. So they pay a beer surcharge to make up for the fuel cost I get to pay for their industry getting away with what is essentially a shell game.

I dont disagree, but none of that refutes my statement. There is clear cause and effect here. Starting a conflict triggered these predictable circumstances.

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[MAT1955]

@DevilDog ....., my buddy had a 396 Nova SS - a legally murderous car. He had switchable headers on it and a lot of other work. It was named Claim Jumper and he used to go out hunting for 'vettes. One night he raced a guy for pink slips (ownershop where I come from) and won. The guy had to buy his car back. My friend sold it back to him for half its value. A LOT of money back then. He could lift the front end high enough for a child to walk under it. Too bad today's kids with their rice rockets will never experience the kind of fun we had.

 

[Desert Dog]

We are almost back to the previous administration prices, when there was no War. We are getting Ripped off by the Headlines off War. It takes Weeks or Months for Spot oil to make Refined Products.

 

[MachNroll]

I do. I also remember going through a whole tank of gas in a night while cruising and looking for girls.

Holy cow!!! Your post brought back memories of cruising down the main street on a summer evening, '80's music on the cassette deck, Sony 6x9 rear deck speakers fighting for their lives during the guitar riffs.... Those were the days. Wouldn't have missed it for anything.

Fast forward to today; I'm in my comfortable sweatpants by 6pm, 2 fingers of scotch in my glass by 7pm, heating pad on my lower back by 8pm, all the while trying to figure out how much money it will take to drive my RV on a road trip at the current price of 3 gold bars per gallon!

 

[MachNroll]

@DevilDog ....., my buddy had a 396 Nova SS - a legally murderous car. He had switchable headers on it and a lot of other work. It was named Claim Jumper and he used to go out hunting for 'vettes. One night he raced a guy for pink slips (ownershop where I come from) and won. The guy had to buy his car back. My friend sold it back to him for half its value. A LOT of money back then. He could lift the front end high enough for a child to walk under it. Too bad today's kids with their rice rockets will never experience the kind of fun we had.

I just replied to another post about cruising back in the day. A little bit about what you posted was a thing for me too minus the pink slips. My buddy had a '68 Camaro with a big lopey cam. You could watch a quarter bounce around on the air filter at idle. Anyway, we'd go out looking for cars to race then spend the majority of the evening getting pulled over by the PD for no front plate and rear traction bars hanging below the wheel rim. Yep, traction bars. Kids today probably think that traction bars is a place to drink equipped with rubber mats, so people don't slip...

 

[Zig]

Im not really sure how you can have a conversation about gas prices right now, and not talk politics since the rise is prices over the last two weeks is a direct result of the decision to start a war in Iran.

Did you mean to say, respond to the aggression that was started back in ‘79?

 

[smurfslayer]

I dont disagree, but none of that refutes my statement. There is clear cause and effect here. Starting a conflict triggered these predictable circumstances.

I'm saying, at least as it applies to the US, the price increases are not as logical as we have a steady access to fuel - heating, diesel and refined gasoline. Other countries with stratospheric fuel prices I'm not speaking to. For this side of the pond, the rationale for the increase in fuel prices is far less. Even with the imported fuel we use, we needn't - well, except for California, Alaska and Hawaii for varying reasons.

I liken the Oil market to the shoppers on the US East coast when there is an impending snow accumulation, say 6 inches or more. The panic buying of milk, bread and toilet paper is similarly predictable to the member of the house of Saud sneezing and the oil market going nuts.

 

[Gregs24]

I'm saying, at least as it applies to the US, the price increases are not as logical as we have a steady access to fuel - heating, diesel and refined gasoline. Other countries with stratospheric fuel prices I'm not speaking to. For this side of the pond, the rationale for the increase in fuel prices is far less. Even with the imported fuel we use, we needn't - well, except for California, Alaska and Hawaii for varying reasons.

I liken the Oil market to the shoppers on the US East coast when there is an impending snow accumulation, say 6 inches or more. The panic buying of milk, bread and toilet paper is similarly predictable to the member of the house of Saud sneezing and the oil market going nuts.

It is a global commodity with a global price so everybody will see the same end result. It is (like all commodities including gold, silver etc a confidence market. Oil prices are rising because of uncertainty about future supplies especially to parts of the world supplied via the Straits of Hormuz are what is driving the price up - no surprise at all really.

 

[smurfslayer]

It is a global commodity with a global price so everybody will see the same end result. It is (like all commodities including gold, silver etc a confidence market. Oil prices are rising because of uncertainty about future supplies especially to parts of the world supplied via the Straits of Hormuz are what is driving the price up - no surprise at all really.

I understand how it's traded, as I said before I am literally surrounded by the oil industry. I'm saying it does not have to have the impact on the US that it does. We are not short, nor do we have a supply issue; some micro geographical issues - again, CA, HI, AK, also territories, but CONUS has supply and the means to distribute it. The Hormuz straight definitely impacts a lot of countries and certainly a portion of the US but again, it does not have to impact all of the US as it currently is.

 

[Gregs24]

I understand how it's traded, as I said before I am literally surrounded by the oil industry. I'm saying it does not have to have the impact on the US that it does. We are not short, nor do we have a supply issue; some micro geographical issues - again, CA, HI, AK, also territories, but CONUS has supply and the means to distribute it. The Hormuz straight definitely impacts a lot of countries and certainly a portion of the US but again, it does not have to impact all of the US as it currently is.

But with a unified price of course it affects everybody the same way. Lack of oil through Hormuz means more has to come from elsewhere which means increased demand from fewer sources and hence higher prices. It has always been this way and always will.

 

[Zig]

But with a unified price of course it affects everybody the same way. Lack of oil through Hormuz means more has to come from elsewhere which means increased demand from fewer sources and hence higher prices. It has always been this way and always will.

In other words us makes the money and not iran?

 

[smurfslayer]

But with a unified price of course it affects everybody the same way. Lack of oil through Hormuz means more has to come from elsewhere which means increased demand from fewer sources and hence higher prices. It has always been this way and always will.

Ok.

Everyone else, particularly in the US you should look closely at what is available in the US market and how much is being refined. You may need to look closely at what is refined from domestic sources as we do still import oil for some locations.

 

[AZ_Ryan]

I'm saying, at least as it applies to the US, the price increases are not as logical as we have a steady access to fuel - heating, diesel and refined gasoline. Other countries with stratospheric fuel prices I'm not speaking to. For this side of the pond, the rationale for the increase in fuel prices is far less. Even with the imported fuel we use, we needn't - well, except for California, Alaska and Hawaii for varying reasons.

I liken the Oil market to the shoppers on the US East coast when there is an impending snow accumulation, say 6 inches or more. The panic buying of milk, bread and toilet paper is similarly predictable to the member of the house of Saud sneezing and the oil market going nuts.

Its a global market. Even if we dont get oil directly from the middle east, the cost of oil still rises world wide.

 

[AZ_Ryan]

I understand how it's traded, as I said before I am literally surrounded by the oil industry. I'm saying it does not have to have the impact on the US that it does. We are not short, nor do we have a supply issue; some micro geographical issues - again, CA, HI, AK, also territories, but CONUS has supply and the means to distribute it. The Hormuz straight definitely impacts a lot of countries and certainly a portion of the US but again, it does not have to impact all of the US as it currently is.

I really dont think you do understand.

 

[Gregs24]

Ok.

Everyone else, particularly in the US you should look closely at what is available in the US market and how much is being refined. You may need to look closely at what is refined from domestic sources as we do still import oil for some locations.

There has been talk of increasing production to replace the losses through Hormuz but nothing has come of it. It suits the oil companies to keep the price high anyway.

The US will be looking to sell some of the domestic market oil to others to fill the gap until Hormuz is re-opened. Demand will be supplied for most people but at extra cost, uncertainty increases that cost.

When / if the fighting stops uncertainty will reduce and prices will fall back. I personally am not sure the US controls that situation however. The irony of asking the Chinese to supply navy boats to help secure the Straits of Hormuz has not gone unnoticed, especially when countries were chastised a few days ago and told they were not needed. Even more ironic that the Russians are now benefitting from the higher oil prices having supplied Iran with intelligence to strike US bases.

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