Gasoline Prices Have To Drop If Oil Prices Stay This Low

W

Walt

Back To Reality
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.
 
Walt said:
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.
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You can't compare extraction,refinement and shipping cost now to when Bush was President. Think before you post.
 
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
 
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.
 
Sawyerloggingon said:
You can't compare extraction,refinement and shipping cost now to when Bush was President. Think before you post.
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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.
 
Celticguy said:
its not that they will necessarily go up but more that they will not ne going/staying down.
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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.
 
Walt said:
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.
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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.
 
Earl said:
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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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.
 
Walt said:
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.
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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.
 
Walt said:
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.
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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.
 
Sawyerloggingon said:
Price of oil is set by speculators and has nothing to do with extraction or any other associated cost.
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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.

Sawyerloggingon said:
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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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.
 
Walt said:
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.
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Try to make sense, Walter.

Gas prices increase or decrease. When they increase in one part of the country, they will increase or decrease in the rest of America.

You appear to be obfuscating...compare gas prices when Trump was president and now with this clown in the White House.
 
Earl said:
Try to make sense, Walter.
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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.
 
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Salty has jumped the gun again!

Oil markets are heading for an 'insanely difficult' summer, with Russian production plunging under EU sanctions

Despite tough economic sanctions, Russia's oil exports have risen this year as India has snapped up its crude.

Yet analysts say Russian output is about to tumble as the EU moves to ban roughly 90% of imports by the end of the year.

The impending drop is setting oil markets up for an "insanely difficult" summer, according to consultancy Kpler.

https://markets.businessinsider.com...on-plunge-eu-embargo-sanctions-ukraine-2022-6
 
Walt said:
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.
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You are wrong dimwitted wonder dunce. But hey, since when did that stop you from posting like a moron?

A gallon of gas is at an all-time high record halfwit. Trying to defend the incompetent, divisive dipshit in the White House makes you look pathetic and stupid. :palm:
 
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