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Thread: Gasoline Prices Have To Drop If Oil Prices Stay This Low

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    Default Gasoline Prices Have To Drop If Oil Prices Stay This Low

    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.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Walt View Post
    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.
    You can't compare extraction,refinement and shipping cost now to when Bush was President. Think before you post.

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    Good grief, Walter.


    A gas station in Mendocino, Northern California, is now charging nearly $10 a gallon. According to GasBuddy, it's the most expensive gas in the US

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    Walter, please think before you post this nonsense.

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    Quote Originally Posted by Earl View Post
    Walter, please think before you post this nonsense.
    If you disagree, there is an easy way for you to make money.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    its not that they will necessarily go up but more that they will not ne going/staying down.

    obviously the prices rises and fall daily reflecting projected demand and that situation is ongoing.
    "Those who vote decide nothing. Those who count the vote decide everything." Joseph Stalin
    The USA has lost WWIV to China with no other weapons but China Virus and some cash to buy democrats.

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    Quote Originally Posted by Sawyerloggingon View Post
    You can't compare extraction,refinement and shipping cost now to when Bush was President. Think before you post.
    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.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Celticguy View Post
    its not that they will necessarily go up but more that they will not ne going/staying down.
    To keep them from going and staying down, oil prices would need to go higher, and stay higher. There is no reason to believe that will happen right now.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Walt View Post
    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.
    Wally best you stay away from anything to do with basic economics. Your previous advice telling us everything was fine has proven to be a tad incorrect.

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    Quote Originally Posted by Earl View Post
    A gas station in Mendocino, Northern California, is now charging nearly $10 a gallon. According to GasBuddy, it's the most expensive gas in the US
    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.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Walt View Post
    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.
    Price of oil is set by speculators and has nothing to do with extraction or any other associated cost. It's entirely based on supply and demand and what commodity speculators think oil will sell for at any given date. Once the oil is purchased for X amount of dollars cost of initial extraction along with transportation and refinement has to be figured in before final cost of gasoline at the pump is arrived at.

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    Quote Originally Posted by Lionfish View Post
    Your previous advice telling us everything was fine has proven to be a tad incorrect.
    I have literally never said everything is fine in my life, and if you knew me you would realize that.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Walt View Post
    To keep them from going and staying down, oil prices would need to go higher, and stay higher. There is no reason to believe that will happen right now.
    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.
    "Those who vote decide nothing. Those who count the vote decide everything." Joseph Stalin
    The USA has lost WWIV to China with no other weapons but China Virus and some cash to buy democrats.

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    Quote Originally Posted by Sawyerloggingon View Post
    Price of oil is set by speculators and has nothing to do with extraction or any other associated cost.
    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.

    Quote Originally Posted by Sawyerloggingon View Post
    Once the oil is purchased for X amount of dollars cost of initial extraction along with transportation and refinement has to be figured in before final cost of gasoline at the pump is arrived at.
    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.
    Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
    Paul Begala, "Politics is show business for ugly people."
    Stephen Colbert, "Reality has a well known liberal bias."

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    Quote Originally Posted by Walt View Post
    I have literally never said everything is fine in my life, and if you knew me you would realize that.
    Sorry, you live in such a dark place. Typical of alt-lefties though.

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