Storm fears subside, oil ends day below $113

Storm fears subside, oil ends day below $113

www.msnbc.msn.com

NEW YORK - Crude prices settled below $113 a barrel for the first time in over three months Monday as Tropical Storm Fay steered clear of oil-producing infrastructure in the Gulf of Mexico.

Light, sweet crude for September delivery fell 90 cents to settle at $112.87 on the New York Mercantile Exchange, after earlier rising as high as $115.35. It was the first time crude ended below $113 since May 1. The contract fell $1.24 on Friday to settle at $113.77 a barrel, about $35, or 24 percent, lower.

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Mod Edit - Headline: Please use the original story headline from your source.

[edit on 8/18/2008 by JacKatMtn]

My thought are just the same as yours.

With the oil prices dropping fast and steadily for weeks now, why the hell are the gas prices still so high??

Kinda convenient that the new threat is a tropical storm that will undoubtedly slow the refineries and so on and so on.

Anyone got a diecent answer to this???

www.msnbc.msn.com
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To keep it within ATS T's & C's, the Big Oil people are just a bunch of jerks. They dont care, they aren't middle class Americans who have a hard time getting to work to buy the gas to get to work.

Screw 'em.

One possible explanation would be because the gas stations bought the gas in their tanks when the price was $130. I could be wrong but the station owners, as independent businesses really operate at a pretty narrow margin on their gasoline sales. That's the way it is around here anyway. Wouldn't make sense for them to short sell their current supply.

Originally posted by wolf241e


My thought are just the same as yours.

With the oil prices dropping fast and steadily for weeks now, why the hell are the gas prices still so high??

Kinda convenient that the new threat is a tropical storm that will undoubtedly slow the refineries and so on and so on.

Anyone got a diecent answer to this???

www.msnbc.msn.com
(visit the link for the full news article)

$4 a gallon? Uhm it's like ~$3.15 here

reply to post by yellowcard


Yeah.. THERE. Two minutes down my street and I'm filling up at $4.22 a gallon. K, bro?

Originally posted by DeadFlagBlues
reply to post by yellowcard

 

Yeah.. THERE. Two minutes down my street and I'm filling up at $4.22 a gallon. K, bro?

It's around $3.40 where I live. Perhaps the fuel stations are gouging in your area.

reply to post by Phage


I don't know about that. I think it would be relative, if anything. As we've seen gas prices at an exponential increase and even more than 20 cents in a week. If they can go up that abruptly, one would assume they could go down just as easily. I'm not quite sure why they go up on a whim, but can't do the opposite. I know in Salt Lake City, things are getting pretty drastic, as even the Governor is using his plastic smile to "monitor" high gas prices in Salt Lake City.

reply to post by LiquidMirage

Same here. I filled up today and it was just $3.40 a gallon here too. I actually started putting in premium gas thinking it was the cheapest. Half way though filling up I realized that the $3.60 gasoline was actually the premium unleaded. The prices have dropped nearly .20 this week.

reply to post by LiquidMirage


A few months back, Senator Orrin Hatch held a contribution banquet and it was all over the news. Among some other ridiculous things, he said "The reason we have high gas prices, is because we have an incredible economy! I don't think that's necessarily a bad thing.." Or something to that extent. I was shook. I haven't been so instantly infuriated in a long time.

OP, Plain and Simple Truth -- GREED!

I realize that station owners can short sell their current stock, but I have seen stations out of gas since it started to slip on price. Prices have started to drop ever so very slowly here, but the storm had people stock piling in case there was another crisis.
However, now that it is not the real threat, I fully expect to see prices dip even further. I for one do not plan to be happy with $3.50 a gallon, $3 a gallon, or even $2.50 a gallon. My comfort level is at or below $2 a gallon. Those greedy SoBs have been lining their pockets on the backs of the working class since Katrina. Of course, that is the nature of things, but it still Irks me to know that they have consistently broken profit records and still got the tax breaks that would make Trump giggle like a little girl.

Originally posted by Phage

One possible explanation would be because the gas stations bought the gas in their tanks when the price was $130. I could be wrong but the station owners, as independent businesses really operate at a pretty narrow margin on their gasoline sales. That's the way it is around here anyway. Wouldn't make sense for them to short sell their current supply.

Hey there Phage,

You bring up an excellent point. I never thought of that.

I do know that my local station makes 6 cents a gallon. That's not a lot of $$$ as you know, that's why most gas station are now convenience stores as well. It bring in more dollars.

Shhh....


Good news for America, is bad news for the Dem Party line...


Shh....


As to why the gas still is expensive... For me, where i live, i was paying about $5 a gallon, when Oil was near 150...
Now, im paying about $4 a gal, with oil at 110...

I pay 20% less then i was a month ago...

Is there more then a 20% drop in gas... YES, thats why the Price is still droping...

Of course, if your a cheapskate, you could drive into the Ghetto, and Get some Ghetto Gas... Like 1.50$ a gallon...

Originally posted by Phage

One possible explanation would be because the gas stations bought the gas in their tanks when the price was $130. I could be wrong but the station owners, as independent businesses really operate at a pretty narrow margin on their gasoline sales. That's the way it is around here anyway. Wouldn't make sense for them to short sell their current supply.

While this is a good possible explanation of why the prices don't go down with the barrel of oil prices, it doesn't cover the other side when prices rise. I personally believe it falls under price gouging when you can see them raising the price of gas multiple times during your one fill up visit.

Prices ought to reflect what it cost for the vendor plus a little for profit. That profit margin being the competition between stores for our money.

Isn't that how it's supposed to work?

I suppose they just raise the prices like that for when the next tanker truck pulls up and gives them the bill...

Ah well...