Original Gas Thread: Americans enjoying $4 gallon despite oil oversupply highest in 8 yrs

[Mardeth]

The thing with gasoline is that the usage doesnt fluctuate as much as the price. With normal products that arent as in important the price and usage follow each other very closely. So if gasolines prices rises 5% the usage may fall 2.5% or even less. With "normal" products same price increase may lessen the usage by even more than 5%.

 

[charrison]

Originally posted by: Engineer

Originally posted by: GoPackGo
People should start staying home.

Quit taking sunday afternoon drives.

That's part of the problem. Demand has fallen NONE! I went to Myrtle Beach last year and there was a steady stream of "cruisers" until 2:00 am. Imagine the millions of gallons per day wasted on stuff like this (it happens at thousands of malls and other teen hot spots around the country).

People are simply adding to their credit to keep the gasoline flowing regardless of what it's doing to the world's supply, their own personal finances, and the country's economy.

Demand did fall off last year when gas hit 3/gallon. HOwever it does appear there is less complaining at this point/

 

[dmcowen674]

Here is one of the REAL reasons for the increase in Gas prices.

You are paying to make the rich richer.

4-17-2006 Right now making ethanol is almost like having a money machine

TOLEDO, Ohio - Only a handful of investors knew about The Andersons Inc. and its grain storage and rail car businesses a few months ago. Even in its hometown, the company is better known for stores that feature a wide range of microbrews, fresh breads and garden supplies. But the company's recent entry into the burgeoning ethanol industry has sent its stock soaring.

"Right now making ethanol is almost like having a money machine," said Spencer Kelly, an ethanol analyst for the Oil Price Information Service in Rockville, Md. "Ethanol looks strong as long as gasoline prices stay strong and corn prices are low."

Chairman Richard Anderson and former chairman Thomas Anderson, two of the founder's sons, remain among the company's biggest shareholders along with other family members.

Richard Anderson's shares were worth $6.5 million two years ago and are now worth $28.5 million

Shares of Decatur, Ill.-based Archer Daniels Midland Co., the nation's biggest ethanol maker, have been trading at 52-week highs in recent weeks, closed at $36.24 on the New York Stock Exchange Monday.

And shares of Pacific Ethanol, which plans to open its first plants this year, nearly doubled in January, the same month that President Bush touted ethanol in his State of the Union speech. Shares closed up 15.7 percent on Monday on the Nasdaq Stock Market at $33.88.

Analysts say a drop in oil prices also could cut into the profits of ethanol makers because ethanol's cost is directly tied to gas prices at the pump.
===============================================
There is your reasons folks.

Of course NOTHING to do with SUPPLY & DEMAND once again.

 

[conjur]

$2.95/gal today...$0.22 jump.


NBC Nightly News last night said $4/gal is a real possibility. Can't wait to see that brand-spankin'-new Hummer dealership that just opened all boarded up! :roll:

 

[Darkhawk28]

$2.70/gal here. But where I live gas is always below the national mean price.

 

[dmcowen674]

Originally posted by: conjur
$2.95/gal today...$0.22 jump.

NBC Nightly News last night said $4/gal is a real possibility.

NBC must be nuts, when I said we will hit $4 everyone said I was nuts and it won't happen

 

[conjur]

I remember thinking you were a bit out there when you said $2/gal would be a new low-end barrier while the oil companies got us used to paying $3/gal (and when you said oil would hit $70/bbl back when it was just pushing $40).

Well, bust my buttons if you weren't right.

 

[Eos]

$2.79 for regular today. Another $.10 jump.
$2.89 mid
$2.99 premium

 

[dahunan]

Originally posted by: dmcowen674

Originally posted by: quasarsky
I can't wait till a gallon of gas costs twice as much as a gallon of milk :disgust:

You don't have long to wait, Wally World has Milk for $2.50 and most stations have gas at $3 and higher.

and the US govt subsidizes both industries with your taxes

 

[Slew Foot]

2.80 here in Sacramento, I wouldn't be surprised to see 3.50 or so, 4 might be a bit much for this year, barring an Iran invasion or something.

Ive made about 100K in the last year or so investing in oil and gold, so Ill be OK when the US economy takes a dump in a couple years. My plan is to buy up all the forclosed houses in a couple years and then rent them back out or something.

 

[Engineer]

$2.95 in Lexington, KY for regular. $3.15 for Premium (some stations out of premium).

Pretty depressing really!

 

[conjur]

It's hit $3.01 in at least one part of the city now (an area where gas is usually cheaper)

Most are at least at $2.95.


http://www.louisvillegasprices.com/


Oil is at $71/bbl and wholesale gas is $2.20/gal.

 

[BarneyFife]

Premium officially topped 3.05 and higher today. At least my energy stocks are rocking

 

[EatSpam]

Originally posted by: dmcowen674

Originally posted by: conjur
$2.95/gal today...$0.22 jump.

NBC Nightly News last night said $4/gal is a real possibility.

NBC must be nuts, when I said we will hit $4 everyone said I was nuts and it won't happen

Of course they're nuts. Oil will be back down to $30/barrel Any Day Now!

 

[dmcowen674]

Originally posted by: Engineer
$2.95 in Lexington, KY for regular. $3.15 for Premium (some stations out of premium).

What's their reasoning for being out of Premium Octane gas?

No refineries reporting major problems or shortages and Oil is at 8 year highs.

 

[GoPackGo]

Originally posted by: dmcowen674

Originally posted by: Engineer
$2.95 in Lexington, KY for regular. $3.15 for Premium (some stations out of premium).

What's their reasoning for being out of Premium Octane gas?

No refineries reporting major problems or shortages and Oil is at 8 year highs.

Regular unleaded just went to $2.82 here...what a crock of $***

Gas will be $4.00 by Memorial Day, Oil companies will make even more record profits so the CEO can get a $137 million or more.

 

[Engineer]

Originally posted by: dmcowen674

Originally posted by: Engineer
$2.95 in Lexington, KY for regular. $3.15 for Premium (some stations out of premium).

What's their reasoning for being out of Premium Octane gas?

No refineries reporting major problems or shortages and Oil is at 8 year highs.

From what I've seen, they are using the "Premium" capacity for "regular" unleaded during the switchover. IIRC, it doesn't take much conversion from regular to premium (and it's only about 1/2 of one cent per gallon - and they charge $0.20 higher for the stuff)

 

[dmcowen674]

4-18-2006 Boycott Exxon/Mobil Campaign

WE NEED YOUR SUPPORT. JOIN THE FIGHT......LET'S TAKE A STAND AGAINST BIG OIL!

Exxon/ Mobil is the largest oil company in the world and controls over 50% of the market.

Exxon Mobil just had a 10 billion dollar profit last quarter and paid it's ex CEO 400 million dollars when he retired.

 

[dmcowen674]

4-19-2006 New York Senator Schumer calls for gasoline price-fix probe

Americans are spending hundreds of millions more at the pump; industry says it isn't withholding any supply.

New York Senator Charles Schumer, speaking in front of a Hess station in Manhattan, called Tuesday for a federal investigation to see if oil companies and refiners are deliberately withholding gasoline production

"The bottom line is they are producing at 85 percent capacity when they should be producing over 90 percent," said Schumer. "Are they scaling back production? Only by subpoenaing the companies and looking in their books will we get that answer."

A spokesman for The Federal Trade Commission, which is the agency that would look into Schumer's request

Results of another investigation, centered around price fixing in the wake of Hurricane Katrina, are expected next month.

For their part, representatives for the oil industry flatly denied Schumer's suggestions.

John Felmy, the Institute's chief economist, said Schumer's call was "nothing more than political rhetoric with no basis in fact."

Felmy suggested Schumer stop the political grandstanding and call for things that will actually bring down gas prices, which he said include more domestic oil production, greater conservation efforts and provisions to make it easier to build more refineries.
======================================================
Did someone forget to tell Felmy that Oil Inventories are at 8 year highs???

 

[jlbenedict]

Originally posted by: dmcowen674
4-18-2006 Boycott Exxon/Mobil Campaign

WE NEED YOUR SUPPORT. JOIN THE FIGHT......LET'S TAKE A STAND AGAINST BIG OIL!

Exxon/ Mobil is the largest oil company in the world and controls over 50% of the market.

Exxon Mobil just had a 10 billion dollar profit last quarter and paid it's ex CEO 400 million dollars when he retired.

Never really thought about this.. may have to do my part.. even though it might only be worth .02
I've already dropped Netflix.. so why not this!

 

[BriGy86]

Originally posted by: jlbenedict

Originally posted by: dmcowen674
4-18-2006 Boycott Exxon/Mobil Campaign

WE NEED YOUR SUPPORT. JOIN THE FIGHT......LET'S TAKE A STAND AGAINST BIG OIL!

Exxon/ Mobil is the largest oil company in the world and controls over 50% of the market.

Exxon Mobil just had a 10 billion dollar profit last quarter and paid it's ex CEO 400 million dollars when he retired.

Never really thought about this.. may have to do my part.. even though it might only be worth .02
I've already dropped Netflix.. so why not this!

i checked this on snopes and it came up as false

http://www.snopes.com/politics/gasoline/gasout.asp

but i don't really buy from them all that much anyway, and even the mom and pop place near me "go for it gas" i heard gets filled with mibil gas, and its the cheapest in the city

P.S. should this thread be stickied?

 

[conjur]

Gas inventories drop for seventh straight week
http://www.marketwatch.com/News/Story/S...7D&dist=newsfinder&symbol=&siteid=mktw

 

[catnap1972]

Originally posted by: BriGy86

Originally posted by: jlbenedict

Originally posted by: dmcowen674
4-18-2006 Boycott Exxon/Mobil Campaign

WE NEED YOUR SUPPORT. JOIN THE FIGHT......LET'S TAKE A STAND AGAINST BIG OIL!

Exxon/ Mobil is the largest oil company in the world and controls over 50% of the market.

Exxon Mobil just had a 10 billion dollar profit last quarter and paid it's ex CEO 400 million dollars when he retired.

Never really thought about this.. may have to do my part.. even though it might only be worth .02
I've already dropped Netflix.. so why not this!

i checked this on snopes and it came up as false

http://www.snopes.com/politics/gasoline/gasout.asp

More of less this time around it's on principle rather than thinking it'll actually drop prices (and like you, I really can't participate as I rarely buy gas from either Exxon or Mobil anyway).

($2.85 here, BTW)

 

[jlbenedict]

Remember the ethanol shortage that has also been circulating??

--------------------------------------------------------------------------------------------------------

"Bodman said with U.S. refineries running at 86 percent capacity following the battering they received from hurricanes Katrina and Rita last year, high crude oil prices and an annual U.S. shift to summer gasoline, the switch by refineries to ethanol as a fuel additive from MTBE could result in shortages in some areas this summer.

Most U.S. refiners will stop using methyl tertiary butyl ether, or MTBE, before the peak summer driving season kicks off.

MTBE has been found to pollute water supplies and many refiners are gearing up to shift to ethanol as an additive to produce cleaner-burning fuel.

Most U.S. ethanol is produced in the Midwest from locally grown corn, and Bodman said shortages were most likely in areas furthest from supplies.

"We expect there will be sufficient ethanol," Bodman reiterated. "But it is reasonable to expect that some areas could experience fits and starts, but that shouldn't last too long."

 

[conjur]

Brooklyn: Regular hits $4.14...Premium hits $4.50
http://www.nydailynews.com/front/story/410113p-346997c.html