Why did gas go up over the weekend?

Caught the last of a newscast over the weekend something about an explosion or eruption and the disruption of the oil supply and it affecting the economy. Watched the news for an hour and didn't see it reported. I don't have television so if someone else saw this please let me know what it was about.

I didn't see anything either...
But from what i have heard, oil is in a glut, and demand is way down (resulting from price)
so price should go down...

Now the Iranian oil bourse seems to have been a dud, so it can hardly justify the situation...

IMO the oil kings and oil bosses saw the Iranian thing, and thought "wow, everyone thinks this is going to raise the price, so why not?"

Price gouging from the very top... and we can do nothing about it, but stop driving (yeah right)

GAS where I lived jumped .10 in a matter of hours friday, it has since come down some, but its still 2.75 for premium which my wife uses. Hopefully it will continue to drop.

They just wanted to get a jump on the Easter travel price gouging. Duh. Supplies are at record levels. We're undercutting with ethanol. Now is the time to get those profits locked in.

My advice, as always, is for you to buy as much oil company stock as you can afford. You won't go broke.

I filled up last Wednesday at 84.9

Drove past a few gas stations over the weekend and the price was up to 101.9

Today, it is back down to 91.7

what is the justification?

Originally posted by fattyp
I filled up last Wednesday at 84.9

Drove past a few gas stations over the weekend and the price was up to 101.9

Today, it is back down to 91.7

what is the justification?

Where do YOU live??

Man I havent seen gas that cheap in years

Did I not hear Speaker Hastert calling for an immediate Congressional investigation? Or was that Sen Maj Leader Frist? Hmm?

And did I not hear Geo W say he was releasing 50 million barrels from the US Reserve?

Hmm?

America’s First Designated President. No Thanks, Supreme Court. You did us wrong.

fattyp, that must be the price per liter and not gallon correct???

I don't remember seeing gas that cheap in years if it was per gallon.

Gas prices actually jumped two weekends ago, probably just took a bit longer to get to your neck of the woods. Currently paying in the $2.60's per gallon here in so florida.

reason for the hike, crude being close to $70 per barrel, I think we're somewhere around $67. Now the real reason behind that move, uncertainty with Iranian supplies and the successful testing of their new underwater missile are the leading contributers to the higher crude prices.

Don't worry! Exxon just surpassed Walmart as the most profitable corporation in world history and also posted the greatest gross sales in history. So, it is not about supply or demand. It is about greed and fear; greed by the corporate folks and fear on the part of the ignorant investors making knee-jerk responses to perceived problems. Lest we forget, the oil companies have already announced there will be further price increases due to the anticipated rise in consumption associated with Summer vacations. And then to top it all off, if we were to all seriously limit our travels there would be a glut and the oil companies would still raise prices to compensate for the lost sales revenue they had anticipated from the increased travel. They will get their money. If you have invested in oil companies you are part of the problem. You cannot have it both ways.

It has something to do with it being nicer out cuz more people travel...and something about its harder to get it to the supplyers or something....im not sure...

I'm actually in ON. Canada.

gas prices are up because crude prices are up. remember gas prices are set on the commodities board in ny. i don't know where the base price comes from in canada. but i suspect that it's a refelction of the price in ny

gas prices are up because crude prices are up. remember gas prices are set on the commodities board in ny. i don't know where the base price comes from in canada. but i suspect that it's a refelction of the price in ny

Finally a voice of reason in this thread. Oil prices are not set in the boardrooms of Exxon. It's on the trading floor of the NYMEX.

Gas prices are up partly because of instability in Nigeria which pipelines have been attacked by militants a few times within the last couple of months but mainly because over the last two weeks we drew over 9 million barrels of gasoline from stocks. The record high stockpile we have had the last few weeks is quickly falling back to average range while demand is up nearly 1% .

Another concern is the switch to a methonal additive. Methonal cannot be transported through pipelines because it is corrosive it has to be transported via tanker trucks which is why nearly 60 Valero gas stations in the Dallas area ran out of Gasoline Sunday and all weren't refilled until Tuesday night.

www.mysanantonio.com...

Not only that the EIA is predicting transition problems to the new Ethonal additive saying that Ethonal supplies are going to be tight and we will have to depend on Ethonal imports because the Ethonal industry is not ready for the sudden demand.

[edit on 5-4-2006 by Thatoneguy]

Originally posted by Thatoneguy
Not only that the EIA is predicting transition problems to the new Ethonal additive saying that Ethonal supplies are going to be tight and we will have to depend on Ethonal imports because the Ethonal industry is not ready for the sudden demand.

True.

I read a few articles last month predicting the increase gasoline price increase (above and beyond that of the typical summer stock reviews) in April and it cited the same information in the prediction as the EIA is stating this week. I will try to locate the articles, there is also concerns going into summer with the production capacity with Louisiana still operating near 30% (+,-) under previous refining production capacity.

Largely because of the two factors cited above (degree of refinery maintenance and the transition to ethanol RFG), April might likely be a critical month in gasoline market developments for this upcoming driving season. While gasoline prices “came in like a lion” at the beginning of April, how they end the month may be a better indicator of the summer driving season ahead.
EIA, This Week in Petroleum

And here is another factor with impact

Oil Jumps on Gasoline Supply Concerns



mg

Har har, i love the interview i saw on CNN with the ceo or whoever of exxon.

Interviewer: "why did you raise gas prices during this timespan when the actual price of oil went DOWN??"
exxon ceo: "uhh, rmm, uhhh well...rmm, all i have to say is that we have shareholders, and they expect certain things from the comopany"

Those goddamn bastads. Then after the small hype from bush about alternative energy, two or three days later exxon released a report to the public stating "that's impossible, don't believe the hype, we will continue to depend on oil for a long time" It seems they did this just to talk people out of buying fuel effecient hybrid/E85 cars etc. I can't stand big oil execs. Next time one of their tankers leaks a ton of oil, i'm going to find the addresses of some of their execs, take my savings, buy as much oil as i can get, and dump that # on their front lawns etc.

Originally posted by Thatoneguy

Finally a voice of reason in this thread. Oil prices are not set in the boardrooms of Exxon. It's on the trading floor of the NYMEX.

as soon as i'm ready to risk some money i'm going to start trading these commodities

in gasoline futures 1 penny is worth $420, 10 Cents is worth $4200, and $1 is worth $42000

more than oil companies are making money and i hope to also. the only question is when to sell short and buy long for maximum profit

Originally posted by Striker8441
GAS where I lived jumped .10 in a matter of hours friday, it has since come down some, but its still 2.75 for premium which my wife uses. Hopefully it will continue to drop.

Like someone else said, I haven't seen gas that cheap in a long time. Gas prices here START higher than that at most stations. We're hovering around $2.89-2.95 for premium.

as soon as i'm ready to risk some money i'm going to start trading these commodities

in gasoline futures 1 penny is worth $420, 10 Cents is worth $4200, and $1 is worth $42000

more than oil companies are making money and i hope to also. the only question is when to sell short and buy long for maximum profit

I would be cautious. You already know the risks, and I would not be a bit surprised to see oil under $60 especially after summer. If you would like a less risky approach try the DBC commodity fund. It's an ETF that tracks a pool of commodities with oil and heating oil being making up the biggest of the pool, Gold, corn, and wheat make up the rest. It's just a little over $24 a share currently. Another ETF will be coming soon. USO is the ticker and it'll be based solely on WTI future prices. The price of the share is supposed to keep inline with the price per barrel of WTI Crude. So, if oil is $65 a barrel then USO will be $65 a share rather than having to pay $6500 for a single futures contract.

There's no gasoline ETFs that I'm aware of in the US

But this is an easier way for the average investor to get exposure to the market and heck who knows you may profit enough to pay for your gasoline each week. But it's still risky. I think I saw a headline for the DBC fund when it first came out. "Risky investing just got easier"

Oh yeah, and please dont take anything I say as advice

[edit on 7-4-2006 by Thatoneguy]

Originally posted by Zaphod58

Originally posted by Striker8441
GAS where I lived jumped .10 in a matter of hours friday, it has since come down some, but its still 2.75 for premium which my wife uses. Hopefully it will continue to drop.

Like someone else said, I haven't seen gas that cheap in a long time. Gas prices here START higher than that at most stations. We're hovering around $2.89-2.95 for premium.

shhh don't tell anyone, but if you went to the refinery closest to you and visited the truck loading rack you would see something very interesting.

there are small pipes labled with each brand on them. ie; shell, bp, exxon-mobil, chevron, 76.... etc.

all gas, be it regular or premium, has a set standard for rvp, octane, end point....etc the only thing the that diferentiates them from one another is the additives.

if you buy look for the lowest price in the grade you want

now i just told you a refinery secret and yes i work at one so shhhhh

Originally posted by LazarusTheLong
I didn't see anything either...
But from what i have heard, oil is in a glut, and demand is way down (resulting from price)
so price should go down...

Now the Iranian oil bourse seems to have been a dud, so it can hardly justify the situation...

IMO the oil kings and oil bosses saw the Iranian thing, and thought "wow, everyone thinks this is going to raise the price, so why not?"

Price gouging from the very top... and we can do nothing about it, but stop driving (yeah right)

The news channel near me said that it's going up because of an additive they added, and another news station said it was because of summer being so close and the whole iranian thing.