Gasoline Prices Have To Drop If Oil Prices Stay This Low

[Celticguy]

that would do it. the cure for inflated prices is a recession
It's like chemo-therapy..gotta poison the patient for it to recover

yes.

artificially juicing the economy with ten years of needless QE left a huge bar tab that had to be paid eventually.
welcome to eventually boys and girls...

 

[Earl]

Walter likes to tiptoe around the elephant in the room.

Biden said that he would destroy the carbon based energy sector and he is succeeding.

Americans are suffering with out of control gas prices and groceries.

Walter’s theories don’t put food on the table.

 

[Grokmaster]

You would think that oil prices were at record highs, but they are not. Oil prices were at $120, not even close to the record of $147.02 that Bush took us to. Now oil prices have dropped to below $110. The reality is these are not oil prices high enough to sustain these gasoline prices. We can expect gasoline prices to drop by a dollar or so.

I could be wrong, and if you are sure I am wrong, heavily invest in gasoline futures. It seems to be common alt right "wisdom" that gasoline prices will only go up, which could make lucky investors a lot of money if it does go up.

$64 dollars per barrel , before the Demthug shutdowns, idiot.

Anything over $100 is HIGH...VERY HIGH.

 

[Into the Night]

You would think that oil prices were at record highs, but they are not. Oil prices were at $120, not even close to the record of $147.02 that Bush took us to. Now oil prices have dropped to below $110. The reality is these are not oil prices high enough to sustain these gasoline prices. We can expect gasoline prices to drop by a dollar or so.

I could be wrong, and if you are sure I am wrong, heavily invest in gasoline futures. It seems to be common alt right "wisdom" that gasoline prices will only go up, which could make lucky investors a lot of money if it does go up.

HAHAHAHAHAHAHAHAHAHAHAHAHA! Are you REALLY going to blame Bush for what DEMOCRATS did in Congress??????!?

 

[Into the Night]

Extraction costs would be baked into the prices of oil. You buy a barrel of oil, they cannot come back and tell you to give them more money for the extraction costs.

Refining costs are lower now than in 2008, but shipping costs have gone up slightly. The biggest input into gasoline prices is still oil prices, and that is a lot lower than you would think.

Refining costs are higher. Shipping costs are higher. You are ignoring taxes again. Every time a well is drilled, oil is extracted, shipped, stored, refined, stored again, shipped, stored, distributed, stored, then finally distributed to end users, it is taxed.

Oil prices are slightly lower at the moment, due to Biden draining strategic reserves. That can only go on so long.

 

[Into the Night]

If there is a gas station across the street selling gasoline at $6 a gallon, then the prices of gasoline in Mendocino is $6. If your gas station owner rises prices to $20 a gallon, then the price in Mendocino is still $6. A gas station owner can put whatever price they want on gasoline, but they can only sell it at the market price.

Paradox. Irrational. You cannot say a gas station is charging $6 and $20 at the same time.

 

[Into the Night]

I have literally never said everything is fine in my life, and if you knew me you would realize that.

HAHAHAHAHAHAHAHAHAHAHA! Do you REALLY think making this baldfaced lie is going to make any difference????!?

 

[Into the Night]

China is showing signs of coming out of Covid shutdowns and that will generate demand. so there is reason to think that this oil situation is ongoing.

Uh....no.

China is locking up it's citizens by welding their doors shut, due to Covid lockdowns.
The Chinese government is creating an army. An army of people rebellious to the government. Revolution is sure to follow. The peaceful days of China are done.

 

[Into the Night]

Extraction costs are the cost of extracting oil. If it is above the market cost of oil, then producers will stop producing, or at least try to stop producing. Over time, it will drive producers out of business.



Extraction costs play a part in oil costs, which in turn play a part in gasoline costs, but it does not do anything like what you claim. If a refinery buys oil at $100 a barrel, the oil producers cannot come back at them saying extraction costs were higher, or lower. The price of the oil was $100, and extraction costs do not matter.

Best guess, the highest extraction costs are about $50, and the lowest are about $5, so they are making a lot of money off $110 oil.

Extraction costs do matter, dude. Spot price is a bid. If a refinery accepts that bid, extraction occurs. They do not just 'buy a barrel of oil at $100 (or any other random number) like it was a supermarket. Oil producers are also refiners. They do not extract and then store oil at the extraction site. They do not buy a barrel of oil they already own.

Your 'best guesses' are random numbers of type randU. Random numbers are not data. Using them as data is a fallacy, known as the Argument from randU fallacy. A fallacy so common among Democrats and religious types such as the Church of Global Warming, the Church of the Ozone Hole, the Church of Green, and the Church of Covid.

Any business must make money, dumbass. Any business must make profit, dumbass. If it doesn't, it will be OUT OF BUSINESS!

DEMOCRATS are even now advancing a bill to institute price controls. Like any price controls, the result is always the same: shortages. You idiots can NEVER figure this out!

 

[Lionfish]

Uh....no.

China is locking up it's citizens by welding their doors shut, due to Covid lockdowns.
The Chinese government is creating an army. An army of people rebellious to the government. Revolution is sure to follow. The peaceful days of China are done.

I agree with that.

 

[Into the Night]

The price of a free traded commodity is basically the last price it was sold on the open market. So a gas station owner can put up a sign saying his gasoline costs $100 a gallon, and that does nothing to the actual price of gasoline. Consumers would have to decide to buy the gasoline at $100 a gallon for it to matter.

Attempted proof through contrivance. Do you REALLY think contriving random numbers is a proof of any kind?????!?

 

[Into the Night]

Prices have been steadily increasing.

Because futures has been increasing. Walt doesn't understand futures is not spot price. Current July contracts are around $110/barrel, down slightly due to Biden draining strategic reserves. That, of course, can only go on so long.

Watch Democrats be all over it when end gas prices drop by a nickle temporarily. These idiots have NO CLUE that fascism doesn't work. Soon the government will be out of options and can no longer apply any controls to the price of oil.

 

[Into the Night]

The futures markets agree with me, that gasoline prices are going down. If everyone else is wrong, as you claim, you can make quite a bit of money. Quick, invest in gasoline futures.

HAHAHAHAHAHAHAHAHAHAHAHAHA! Do you REALLY think that government manipulation of prices can go on indefinitely?????!?

 

[Truth Detector]

Walter likes to tiptoe around the elephant in the room.

Biden said that he would destroy the carbon based energy sector and he is succeeding.

Americans are suffering with out of control gas prices and groceries.

Walter’s theories don’t put food on the table.

 

[Into the Night]

time will tell. certainly as the recession takes hold demand will fall and prices can then moderate.

We are already in an economic depression. We have been since Democrats shut down the economy due to fear mongering over Covid.
The depression continues with shortages, high inflation, and Democrats trying to manipulate markets (fascism).

 

[Into the Night]

I would not want to be living in Europe right now. Thier green energy drive has made them dependent on foreign oil, particularly easier to obtain Russia oil. I expect the lights will be going out all across Europe except for France which opted to keep their nuclear plants.

Their chargers for their electric cars mandated by some of their governments will go out as well!

 

[Into the Night]

last few weeks they have been relatively stable.

In most places, this is true. In some places, such as in the SDTC and in many places in Europe, increased taxes have caused further increases.

 

[Into the Night]

I lived in Europe for three years,

Gas prices were always much higher than in the US.

Thanks to taxes. They are incredibly high in Europe for any fuel.

 

[Truth Detector]

Their chargers for their electric cars mandated by some of their governments will go out as well!

Good point. Not only will the lights go out, they can't go out.

 

[Hawkeye10]

No, the problem is refinery capacity, we had just enough before the pandemic, and we lost capacity during the pandemic, so now we dont have enough. There is zero chance anyone will build refinery capacity. Super high gas prices are here for as far as the eye can see.

The Revolution likes that, though of course they sometimes lie about this.