Gas prices-Sandy

[jagec]

The oil companies are more than happy to raise the prices for seemingly trivial reasons, but they actually don't tend to raise the prices much when large-scale disasters hit (even though it probably DOES restrict their supplies). They don't want the government, backed by an angry citizenry, to hit them will all sorts of uncomfortable and expensive investigations.

 

[TheTony]

The oil companies are more than happy to raise the prices for seemingly trivial reasons, but they actually don't tend to raise the prices much when large-scale disasters hit (even though it probably DOES restrict their supplies). They don't want the government, backed by an angry citizenry, to hit them will all sorts of uncomfortable and expensive investigations.

Uh, prices for oil are not going up. If there is any price shock, it'll be due to either supply issues (at refineries, which by the way, is NOT expected) or distribution issues, until ships can enter port and trucks reach all areas. Or it'll be due to effects of volatility in the commodities market (which did happen just before the storm).

Neither should present a long term issue. Furthermore, demand will be slashed with so many people not travelling during and after the storm.

 

[pontifex]

so we always hear these gas companies make record profits all the time. whats the need to raise prices?

 

[KaOTiK]

so we always hear these gas companies make record profits all the time. whats the need to raise prices?

Can't keep making record profits if you don't continue to raise the prices, duh!

 

[Baked]

4.23 at shell in LA. Quit your bitching and moaning.

 

[sjwaste]

I was taking a bath up to Friday on Nov 12 USO calls. We'll see.

 

[jagec]

Uh, prices for oil are not going up. If there is any price shock, it'll be due to either supply issues (at refineries, which by the way, is NOT expected) or distribution issues, until ships can enter port and trucks reach all areas. Or it'll be due to effects of volatility in the commodities market (which did happen just before the storm).

Neither should present a long term issue. Furthermore, demand will be slashed with so many people not travelling during and after the storm.

So, no disagreement then.

 

[Krazy4Real]

I have to fill up today. I should have done it yesterday. Damn it!

 

[TheTony]

So, no disagreement then.

Not quite. Prices do sometimes go up after events. Hurricane Issac, for example. The difference is that this event has not caused a significant delay to refining activities.

 

[sjwaste]

Uh, prices for oil are not going up. If there is any price shock, it'll be due to either supply issues (at refineries, which by the way, is NOT expected) or distribution issues, until ships can enter port and trucks reach all areas. Or it'll be due to effects of volatility in the commodities market (which did happen just before the storm).

Neither should present a long term issue. Furthermore, demand will be slashed with so many people not travelling during and after the storm.

You mean that economically, oil prices shouldn't go up. On a rational basis, I'd agree with you. Economically, oil prices should decline as some temporarily offline refining capacity would reduce demand for crude. However, I would not be surprised to see a spike tomorrow due to speculation or overreaction before returning to wherever equilibrium actually is.

I'm holding some Nov 12 36 USO calls. We'll see what happens, it's too late for me to speculate and sell them, so I have to bank that I'm right.

I don't have data to support this, but in the very short term, it's my take that natural disasters of any sort in any industrialized country (but especially the US) tend to send commodities up. Very short term. Then there's a selloff.

 

[TheTony]

You mean that economically, oil prices shouldn't go up. On a rational basis, I'd agree with you. Economically, oil prices should decline as some temporarily offline refining capacity would reduce demand for crude. However, I would not be surprised to see a spike tomorrow due to speculation or overreaction before returning to wherever equilibrium actually is.

Firstly, we're talking about gas prices, not actual oil prices. As such, the real question is the impact of the storm on refineries. The actual impact is expected to be neglible - add to that reduced demand for gas because people are not travelling for days at a time, and the fact that prices were low going into the weekend, and we will not see any sustained increase in prices.

Secondly, you obviously ignored me saying "Or it'll be due to effects of volatility in the commodities market" nevermind that I never said there would not be any kind of increase. Even in this event, any effect should be short lived, and the downward trend it's been on should continue, barring any unforseen circumstances.

Which is more or less what you just stated.

 

[Fritzo]

It was 2.99 a few days ago. Jumped to 3.45 here. I had a Kroger discount card for .30/gal off and filled up for 2.69 It was like living in the 90's again!

 

[jpeyton]

It was 2.99 a few days ago. Jumped to 3.45 here. I had a Kroger discount card for .30/gal off and filled up for 2.69 It was like living in the 90's again!

Were you even alive in the 90s? Gas prices were ~$1/gallon. I remember filling up my empty tank, handing the attendant a twenty and getting change back.

 

[sjwaste]

Firstly, we're talking about gas prices, not actual oil prices. As such, the real question is the impact of the storm on refineries. The actual impact is expected to be neglible - add to that reduced demand for gas because people are not travelling for days at a time, and the fact that prices were low going into the weekend, and we will not see any sustained increase in prices.

Secondly, you obviously ignored me saying "Or it'll be due to effects of volatility in the commodities market" nevermind that I never said there would not be any kind of increase. Even in this event, any effect should be short lived, and the downward trend it's been on should continue, barring any unforseen circumstances.

Which is more or less what you just stated.

Yeah, I re-read both of our posts. I think we were pretty much saying the exact same thing, just with a slightly different set of assumptions. Chiefly, mine was that refining capacity is materially down right now, and yours that it pretty much isn't. I did no research on that at all, so if you did, you're probably right. Otherwise, we're in full agreement.

 

[dmcowen674]

Someone forgot to tell the oil thug thieves in Chicago as gas jumped 70 cents here:

10-31-2012

http://finance.yahoo.com/news/sandy-helps-push-gasoline-prices-195223514.html

Sandy Helps Push Gasoline Prices Lower



Gasoline prices are likely to keep falling, after Super Storm Sandy shut down highways and air travel across the East Coast.


"We're not going to see prices move higher because of this storm. We're going to see prices move lower," said Tom Kloza, oil analyst at OPIS. RBOB gasoline futures were down a half percent, at $2.62 per gallon in afternoon trading Tuesday.

 

[SP33Demon]

Last I checked, generators use gasoline.

 

[Born2bwire]

Someone forgot to tell the oil thug thieves in Chicago as gas jumped 70 cents here:

10-31-2012

http://finance.yahoo.com/news/sandy-helps-push-gasoline-prices-195223514.html

Sandy Helps Push Gasoline Prices Lower



Gasoline prices are likely to keep falling, after Super Storm Sandy shut down highways and air travel across the East Coast.


"We're not going to see prices move higher because of this storm. We're going to see prices move lower," said Tom Kloza, oil analyst at OPIS. RBOB gasoline futures were down a half percent, at $2.62 per gallon in afternoon trading Tuesday.

Dave, only you could possibly contrive to misconstrue an article that states that gas prices are falling to mean that they are rising.

But wait, what's this!

Oh wait, they're falling.

 

[dmcowen674]

Dave, only you could possibly contrive to misconstrue an article that states that gas prices are falling to mean that they are rising.

But wait, what's this!

Oh wait, they're falling.

Web site management should spank you for lying

Many other in the Chicago area confirmed the price jump

Here is one of your coveted gas sites with a chart showing the spike.

http://www.chicagogasprices.com/Retail_Price_Chart.aspx

You are lying in front of all the world to see.

How do you live with yourself being such a liar?

 

[SP33Demon]

Many other in the Chicago area confirmed the price jump

Here is one of your coveted gas sites with a chart showing the spike.

http://www.chicagogasprices.com/Retail_Price_Chart.aspx

Your link shows a 4 cent spike for the past... 3 days. Really dude? You're literally complaining about a barely 1% hike over a 3 day span? I could understand if it was 10, or even 5.

 

[dmcowen674]

Your link shows a 4 cent spike for the past... 3 days. Really dude? You're literally complaining about a barely 1% hike over a 3 day span? I could understand if it was 10, or even 5.

Wow, you should go back to school to learn how to read and comprehend charts.

That's the average for the region.

The stations jumped a hell of lot more than that as evidenced by other posters from the area on here.

Are you really going to support that liar by being a liar yourself and you are probably not even here.

 

[dmcowen674]

I have to fill up today. I should have done it yesterday. Damn it!

Why according to that born character also from Illinois, it didn't jump, in fact he insists it went down.

 

[dmcowen674]

Went up .40 overnight in the Chicago area.

How do you like that born character saying you are lying?

He claims to be from Illinois as well.

He insists it went down.

 

[dmcowen674]

I live near one of the cheapest gas stations in the area. Was $3.29 on Saturday. At $3.59 this morning.

I'm in the SW burbs of Chicago.

How do you like that born character saying you are lying?

He is supposedly here in Illinois too.

 

[Krazy4Real]

Why according to that born character also from Illinois, it didn't jump, in fact he insists it went down.

Yeah, I went to fill up last night. The price was still the same as the day before. *shrug*

 

[Anonemous]

3.89 at Costco socal