Crude oil is getting cheaper — so why isn't gas? (Ans. = B.S.)

Crude oil is getting cheaper — so why isn't gas? (Ans. = B.S.)

news.yahoo.com

At the same time, refiners have seen the same headlines as everyone else about job losses and consumer spending. They've slashed production just to avoid taking losses on gasoline no one will buy. Result: Higher gas prices.

"Why should a refiner produce more gasoline when the stuff we produce is not being used?" Drevna said.

(visit the link for the full news article)

Unbelievable . . .

The corporate America no longer thinks too hard about how to BS the consumer, as the excuse in the story snippet shows. The most influential factor in the prices going up is a relation between supply and demand. It is obvious that the refiners have been slashing the production of gas more than the demand calls for, as the price board at the gas stations show. Unlike the OPEC members who have been always honest to offer the true reason for cutting back the production of oil, Exxon/Mobile energy mafia feel like making up stories to justify the reason behind the refinery pumps turning slower.

Drivers are being ripped off even more now than before," said Stuart Pollok, who was filling up recently at a Chevron station in downtown Los Angeles. He pointed out Exxon Mobil Corp. reeled in billions in profits last year when oil prices neared $150.

Others see the conspiracy reaching higher.

How much higher? Like $3.50 per gallon during the time when the economy is not doing well at all?

The article touches upon another issue that a few are aware of.

The benchmark for crude oil prices is West Texas Intermediate, drilled exactly where you would imagine. That's the price, set at the New York Mercantile Exchange, that you see quoted on business channels and in the morning paper.

Right now, in an unusual market trend, West Texas crude is selling for much less than inferior grades of crude from other places around the world. A severe economic downturn has left U.S. storage facilities brimming with it, sending prices for the premium crude to five-year lows . . .

. . . That foreign oil sells in some cases for $10 more per barrel — and that doesn't even include shipping.

Brent North Sea crude, which feeds some East Coast refineries — and therefore winds up at many gas pumps around America — now costs about $7 more per barrel than the West Texas crude. Deutsche Bank analysts say the trend should continue.

Gee, how about buying the cheaper stuff?

You wouldn't believe the answer that follows in the article: Not enough pipes!

Why is it so that WTI is the benchmark when, as a commodity, hardly represent the consumption trend?

Only the Madoffs of the oil industry can explain that.







news.yahoo.com
(visit the link for the full news article)

[edit on 2/15/2009 by stander]

The oil companies new motto: When any excuse will do!


Even with the market decrease in oil and fuel consumption, I predict that these bastards will still turn a HUGE profit in 2009.

Do oil co. subsidies [paid for by the taxpayers] and record profits make any sense?

www.ucsusa.org...

Ever wonder why gas in Mexico is a dollar cheaper a gal. than in the states?

[edit on 15-2-2009 by whaaa]

This is happening in the UK as well, over here they are using the excuse that the pound is low in value against the dollar and have increased the price of both petrol and diesel over the last month or so

I noticed this quite a while back and I find it surprising that none of the MSM are talking about it. I would expect to hear a story on the nightly news broadcast or a story in print as to why this is so.

Today the 15th of February 2008 the gas prices at my least expensive gas station is 1.99 per gallon and according to Bloomberg Crude futures are 37 a barrel.

Yet, when oil prices hit 50 dollars a barrel approximately 6 months ago - I was paying about 1.60 a gallon at the same gas station. Since then oil has fluxuated between 30-50 dollars a barrel, but prices have steadily climbed a few cents a week.

Traditionally in my state (Washington) the fuel prices are cheaper in the winter because the winter formula is cheaper for the refineries to produce and people drive less. Come spring & summer the prices go up because they switch to a more expensive summer formula and people tend to drive more.

At least that's the explanation given on the news every spring when prices begin to nudge back up.

It doesn't make sense that prices have been nudging up the past few months when oil has been sliding down, there is less demand for fuel, and refineries are producing the cheaper formula.

NOTE: We had a 2 week snow period in mid December until January and prices went up because the trucks couldn't get to some of the gas stations - Yet, prices never fell back off after that.

Normally the 3 weeks leading up to memorial day they usually run prices up 10 cents or more per week. I wouldn't be surprised to see 15-20 cent rise per week this time. It looks like they're trying to nudge prices up so they can hit us with 2.60-3.00 a gallon prices by memorial day weekend this year. That will be May 24 this year.

Energy prices are a racket and will always be. All we can do is try to use less.

It looks like the Aptera is going into production later this year. It will be interesting to see what happens to oil prices when all these electrics and hybrids that get 50-100 mpg hit the market.

Originally posted by whaaa
Ever wonder why gas in Mexico is a dollar cheaper a gal. than in the states?

That's because of the Mexican government subsidies.

Mexico: Will Gas Subsidies End?

Mexico's costly subsidy for gasoline is becoming even more expensive for the government as global oil prices soar, putting pressure on public finances. What will Mexican President Felipe Calderon do? Will he be forced to curb or eliminate the subsidy? If he does, what would be the economic and political repercussions?

First it was used to cover up the decreasing sales of cars. Now it is obvious that the decrease is because of something else and not because of high gas prices. Since they're selling much less of it they want to earn something off those who still must drive excessively.

People can not get credit to buy a car, and those that can are saving their money.