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

Rookie Author
San Antonio

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

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:
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LJGP_MO95
Champion Author Missouri

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Message Posted: Dec 6, 2012 10:36:38 AM

This really isn't a surprise, it only confirms what many of us already thought was happening.
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blupupher
Champion Author Houston

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Message Posted: Dec 6, 2012 8:30:28 AM

no surprise there.
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MAC48
Champion Author Dallas

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Message Posted: Dec 6, 2012 4:45:12 AM

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.
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bston
Champion Author Oklahoma City

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Message Posted: Dec 6, 2012 1:18:29 AM

A discouraging looking chart, for sure!
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crep1291
Champion Author Ottawa

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Message Posted: Dec 5, 2012 1:25:08 PM

"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.
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Dr Gas
Champion Author Twin Cities

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Message Posted: Dec 5, 2012 12:29:58 PM

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!
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WalkingWV
Champion Author West Virginia

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Message Posted: Dec 5, 2012 11:23:30 AM

Wall St speculators make prices artificially high.
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Goatroper
Champion Author Dallas

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Message Posted: Dec 5, 2012 10:13:56 AM

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.
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jeffbone
Champion Author Virginia

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Message Posted: Dec 5, 2012 9:49:55 AM

Gee, almost as if a third hand wants prices to stay high so us proles will "get used to it"...
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vcsuksu21
Champion Author Oklahoma City

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Message Posted: Dec 5, 2012 8:58:47 AM

EPA regulations and taxes cause most of the rest
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peabeax55
All-Star Author Atlanta

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Message Posted: Dec 5, 2012 8:39:13 AM

Why can't they be accused of price fixing and gouging?
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badbonita
Champion Author Syracuse

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Message Posted: Dec 5, 2012 8:18:32 AM

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.
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moneyfornothing
Rookie Author Toronto

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Message Posted: Dec 5, 2012 7:10:30 AM

see Ahking. Oil is too volatile a commodity to base an economy on.
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sawdust1825
Champion Author Illinois

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Message Posted: Dec 5, 2012 6:24:41 AM

I have said gouging was going of for sometime now.
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GasPriceHelp4u
Champion Author Dayton

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Message Posted: Dec 5, 2012 6:04:33 AM

I came to the conclusion that predicting gas prices is indeed a rocket science, if you take greed into account!!!
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Straitliner
Champion Author Illinois

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Message Posted: Dec 5, 2012 5:57:43 AM

After reading each post you all said what i would say.
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werich44
Champion Author California

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Message Posted: Dec 5, 2012 5:56:55 AM

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.
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FPLREP
Champion Author Virginia

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Message Posted: Dec 5, 2012 5:47:10 AM

What I see is more speculation in the gas market, which tends to make the spikes higher and lower.
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hokieburgh
Champion Author Virginia

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Message Posted: Dec 5, 2012 4:41:23 AM

wow....stunning!
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MN1
Champion Author Twin Cities

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Message Posted: Dec 5, 2012 2:31:00 AM

Industry price manipulators and speculators... what a combination.
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granitestater
Champion Author New Hampshire

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Message Posted: Dec 5, 2012 2:09:29 AM

Captain Obvious Strikes Again! Gas goes up when oil goes up? Duh!
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iFueler
Champion Author Durham

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Message Posted: Dec 5, 2012 1:52:39 AM

a chart is needed to know "something very troubling about the price of gas"?

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tnfran
Champion Author Arizona

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Message Posted: Dec 5, 2012 12:49:56 AM

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'.
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Ahking
Champion Author Orange County

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Message Posted: Dec 5, 2012 12:34:42 AM

More reason to switch from gas.
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cheapchickKY
Champion Author Lexington

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Message Posted: Dec 5, 2012 12:25:34 AM

Statistics can be manipulated.
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NHLiveFree
Champion Author New Hampshire

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Message Posted: Dec 5, 2012 12:16:27 AM


Nothing more that the usual industry price manipulation.
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graceman
Champion Author Baltimore

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Message Posted: Dec 5, 2012 12:10:00 AM

It tends to increase a whole lot faster.
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PetroCrap
Sophomore Author Toronto

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Message Posted: Dec 4, 2012 11:55:42 PM

Nothing new here, just plain old gouging and profiteering by oil companies
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