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Author	Topic: This Chart Implies Something Very Troubling About the Price of Gas	Post a Reply Back to Topics

wejsag Rookie Author San Antonio Posts:21 Points:1,518,295 Joined:Oct 2008	Message Posted: Dec 4, 2012 11:51:04 PM Ignore wejsag Report Abuse Crude oil prices account for about 66 percent of the price of gasoline, according to the U.S. Energy Information Administration. Granted, other factors play a role in deciding the price we pay at the pump, including taxes and the cost of distribution, but it’s clear that the price of crude directly affects the price of gas. As crude oil increases in price, the price of gasoline tends to increase. Likewise, when markets are calm and the price of crude oil decreases, the price of gasoline decreases. With that in mind, take a look at the following chart and try to make sense of what’s going on: Visit The Blaze for full article

wejsag

Rookie Author
San Antonio

Posts:21
Points:1,518,295
Joined:Oct 2008

Message Posted: Dec 4, 2012 11:51:04 PM

Ignore wejsag Report Abuse

Crude oil prices account for about 66 percent of the price of gasoline, according to the U.S. Energy Information Administration.

Granted, other factors play a role in deciding the price we pay at the pump, including taxes and the cost of distribution, but it’s clear that the price of crude directly affects the price of gas. As crude oil increases in price, the price of gasoline tends to increase. Likewise, when markets are calm and the price of crude oil decreases, the price of gasoline decreases.

With that in mind, take a look at the following chart and try to make sense of what’s going on:
Visit The Blaze for full article

REPLIES (newest first)Ignore Short Messages

LJGP_MO95 Champion Author Missouri Posts:1,870 Points:501,805 Joined:Jun 2005	Message Posted: Dec 6, 2012 10:36:38 AM Ignore LJGP_MO95 Report Abuse This really isn't a surprise, it only confirms what many of us already thought was happening.
blupupher Champion Author Houston Posts:3,695 Points:776,495 Joined:Feb 2011	Message Posted: Dec 6, 2012 8:30:28 AM Ignore blupupher Report Abuse no surprise there.
MAC48 Champion Author Dallas Posts:1,581 Points:789,295 Joined:Dec 2006	Message Posted: Dec 6, 2012 4:45:12 AM Ignore MAC48 Report Abuse The real problem that we have today is the presence of “investors” who can buy and sell future contracts but cannot use the commodity represented by the future contract. If all entities that do not produce or use crude oil and products refined from crude oil were not allowed to buy or sell crude oil or products refined from crude oil future contracts, then only the oil companies and large industrial users of crude oil and crude oil products would be in the market determining the future price of crude oil and products refined from crude oil. This change would mean that hedge funds, investment banks and very large private investors would not be able to buy or sell crude oil or refined crude oil products future contracts by “speculating” on being able to make a “trading profit” by timing the rise or fall of the commodity market price at a time specified in the future. This would go a long way in stabilizing the prices for both crude oil and the products made from crude oil.
bston Champion Author Oklahoma City Posts:1,955 Points:669,990 Joined:Mar 2011	Message Posted: Dec 6, 2012 1:18:29 AM Ignore bston Report Abuse A discouraging looking chart, for sure!
crep1291 Champion Author Ottawa Posts:2,637 Points:486,190 Joined:Dec 2010	Message Posted: Dec 5, 2012 1:25:08 PM Ignore crep1291 Report Abuse "Wall St speculators make prices artificially high." Perhaps there's a bit of speculation. Most of it is done by the refineries. They're cashing in profits like never before.
Dr Gas Champion Author Twin Cities Posts:3,286 Points:360,350 Joined:May 2004	Message Posted: Dec 5, 2012 12:29:58 PM Ignore Dr Gas Report Abuse Excellent - I hope for another crash! Gas should fall into the $2 range. Sorry for any that loose their job - great for us that have to pay for gas!
WalkingWV Champion Author West Virginia Posts:3,755 Points:788,930 Joined:May 2008	Message Posted: Dec 5, 2012 11:23:30 AM Ignore WalkingWV Report Abuse Wall St speculators make prices artificially high.
Goatroper Champion Author Dallas Posts:6,690 Points:1,312,410 Joined:Apr 2004	Message Posted: Dec 5, 2012 10:13:56 AM Ignore Goatroper Report Abuse Trying to get us used to higher prices....you know how to boil a frog don't you? Put him into cold water and gradually increase the heat, before he knows it he's cooked.
jeffbone Champion Author Virginia Posts:1,408 Points:415,600 Joined:Mar 2011	Message Posted: Dec 5, 2012 9:49:55 AM Ignore jeffbone Report Abuse Gee, almost as if a third hand wants prices to stay high so us proles will "get used to it"...
vcsuksu21 Champion Author Oklahoma City Posts:2,519 Points:724,430 Joined:Dec 2010	Message Posted: Dec 5, 2012 8:58:47 AM Ignore vcsuksu21 Report Abuse EPA regulations and taxes cause most of the rest
peabeax55 All-Star Author Atlanta Posts:713 Points:186,165 Joined:Mar 2012	Message Posted: Dec 5, 2012 8:39:13 AM Ignore peabeax55 Report Abuse Why can't they be accused of price fixing and gouging?
badbonita Champion Author Syracuse Posts:6,366 Points:1,381,410 Joined:Jul 2008	Message Posted: Dec 5, 2012 8:18:32 AM Ignore badbonita Report Abuse So who do we send the state/federal attorney general's office after when the organization doing the gouging is the state and federal government. Sounds more than troubling.
moneyfornothing Rookie Author Toronto Posts:17 Points:155,840 Joined:Mar 2012	Message Posted: Dec 5, 2012 7:10:30 AM Ignore moneyfornothing Report Abuse see Ahking. Oil is too volatile a commodity to base an economy on.
sawdust1825 All-Star Author Illinois Posts:985 Points:464,355 Joined:Sep 2011	Message Posted: Dec 5, 2012 6:24:41 AM Ignore sawdust1825 Report Abuse I have said gouging was going of for sometime now.
GasPriceHelp4u Champion Author Dayton Posts:2,828 Points:596,500 Joined:Jul 2008	Message Posted: Dec 5, 2012 6:04:33 AM Ignore GasPriceHelp4u Report Abuse I came to the conclusion that predicting gas prices is indeed a rocket science, if you take greed into account!!!
Straitliner Champion Author Illinois Posts:1,645 Points:265,975 Joined:Sep 2012	Message Posted: Dec 5, 2012 5:57:43 AM Ignore Straitliner Report Abuse After reading each post you all said what i would say.
werich44 Champion Author California Posts:1,999 Points:496,505 Joined:Jun 2011	Message Posted: Dec 5, 2012 5:56:55 AM Ignore werich44 Report Abuse Result of allowing the oil industry to run rampant without any type of control. The oil industry owns the politicians in this country and it will only get worse.
FPLREP Champion Author Virginia Posts:8,401 Points:2,475,810 Joined:Oct 2005	Message Posted: Dec 5, 2012 5:47:10 AM Ignore FPLREP Report Abuse What I see is more speculation in the gas market, which tends to make the spikes higher and lower.
hokieburgh Champion Author Virginia Posts:1,226 Points:491,455 Joined:Feb 2007	Message Posted: Dec 5, 2012 4:41:23 AM Ignore hokieburgh Report Abuse wow....stunning!
MN1 Champion Author Twin Cities Posts:3,499 Points:678,890 Joined:Jun 2011	Message Posted: Dec 5, 2012 2:31:00 AM Ignore MN1 Report Abuse Industry price manipulators and speculators... what a combination.
granitestater Champion Author New Hampshire Posts:8,987 Points:1,459,425 Joined:Oct 2008	Message Posted: Dec 5, 2012 2:09:29 AM Ignore granitestater Report Abuse Captain Obvious Strikes Again! Gas goes up when oil goes up? Duh!
iFueler Champion Author Durham Posts:65,033 Points:206,750 Joined:Nov 2012	Message Posted: Dec 5, 2012 1:52:39 AM Ignore iFueler Report Abuse a chart is needed to know "something very troubling about the price of gas"?
tnfran Champion Author Arizona Posts:4,518 Points:869,140 Joined:Dec 2010	Message Posted: Dec 5, 2012 12:49:56 AM Ignore tnfran Report Abuse This is nothing really new......... Big Oil will sock it to the consumer any chance it gets , so long as nobody in DC does anything about it they will continue doing so, and there is nobody in DC that WILL do anything about it,,except maybe flap their jaws with a lot of hot air--- gee maybe if the hot air from DC would be stopped we wouldn't have as much 'global warming as they call it'.
Ahking Champion Author Orange County Posts:3,599 Points:621,360 Joined:May 2011	Message Posted: Dec 5, 2012 12:34:42 AM Ignore Ahking Report Abuse More reason to switch from gas.
cheapchickKY Champion Author Lexington Posts:4,164 Points:824,965 Joined:Jan 2011	Message Posted: Dec 5, 2012 12:25:34 AM Ignore cheapchickKY Report Abuse Statistics can be manipulated.
NHLiveFree Champion Author New Hampshire Posts:11,307 Points:1,651,065 Joined:Jun 2008	Message Posted: Dec 5, 2012 12:16:27 AM Ignore NHLiveFree Report Abuse Nothing more that the usual industry price manipulation.
graceman Champion Author Baltimore Posts:4,968 Points:1,158,725 Joined:Jun 2008	Message Posted: Dec 5, 2012 12:10:00 AM Ignore graceman Report Abuse It tends to increase a whole lot faster.
PetroCrap Sophomore Author Toronto Posts:206 Points:116,320 Joined:Mar 2004	Message Posted: Dec 4, 2012 11:55:42 PM Ignore PetroCrap Report Abuse Nothing new here, just plain old gouging and profiteering by oil companies