OT: How Much Is Gas Going To Jump This Week.........................
- Thread starter ExtremeDog
- Start date
it should come down compared to the high nineties of a few weeks ago. Of course, the price never seems to go down anywhere near as fast as they shoot it up for any potential scare.
I work in the industry and they circumvent the supply/demand effect by saying that the current gas pool was made from higher priced oil, therefore the price should remain higher even if the prices of oil come down. But as soon as any threats come, the price of gas jumps up even though supply far outweighs demand, but they get away with it because of the fears of a cutoff supply if the storms knock out a bunch of rigs in the Gulf. They can make up multiple reasons for raising and lowering prices, but they learned after the 2008 spike in prices, that the American public will pay between $3-4 per gallon without bitching too much, hence the reason the companies and government have fought to keep it in that range. And don't let that $83/BBL for oil fool you. There aren't many refineries paying for this high priced oil. Most refineries I have knowledge about, routinely pay between $35 and $60/BBL. There are costs for processing this cheaper oil (capital equipment, chemical treatment, etc), but they outweigh the expensive oil, resulting in greater magrins. With one single refinery processing a quarter million barrels of oil a day, you can see where the money racks up.
So don't let them fool you with all their tactics.
So don't let them fool you with all their tactics.
The market is already use to fighting in the middle east and Alantic Hurricanes are like Pacific, unless it get's into the Gulf it means nothing to Oil. Those pussies on the east and west coast don't drill enough to have a effect. They could but they chose to have high gas prices and not drill.
There has been no oil exported out of Libya since this started in the spring. The rebels taking over Tripoli with little resistance means this thing is closer to be over, which means Libyan oil production may resume sooner than people had expected. Before this civil war started, Libya was exporting about 1.5 million barrels per day on to the world market.
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No telling what kind of damage has been done there... I expect oil and gas prices to rise, what's new...