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Forums - General Discussion - Oil falls under $69 a barrel!!! that's half of what it was

HappySqurriel said:
WiiStation360 said:
Oil prices go up, and it is reflected in the gas price immediately.
Oil price go down, and it is reflected in gas prices weeks to months later.

Oil companies sell gas a the higher of :
- the current cost to produce, based on current oil prices,
- the cost to of the gas when it was produced weeks/months ago.

That is why they make so much money when the oil prices fluctuate so much.

I have never actually seen evidence that oil price increases are traslated into gasoline price increases at a rapid rate; I have seen that oil generally has price increases over long periods of time, people (generally) ignore the price of oil until they start to see gasoline price increases, and then they complain about how quickly higher oil prices traslate into higher gasoline prices even though oil began increasing in price months before gasoline's price increased at the pump.

 

so do you think that the price of gas will fall to $2 by december?

 

 



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Coca-Cola said:
HappySqurriel said:
WiiStation360 said:
Oil prices go up, and it is reflected in the gas price immediately.
Oil price go down, and it is reflected in gas prices weeks to months later.

Oil companies sell gas a the higher of :
- the current cost to produce, based on current oil prices,
- the cost to of the gas when it was produced weeks/months ago.

That is why they make so much money when the oil prices fluctuate so much.

I have never actually seen evidence that oil price increases are traslated into gasoline price increases at a rapid rate; I have seen that oil generally has price increases over long periods of time, people (generally) ignore the price of oil until they start to see gasoline price increases, and then they complain about how quickly higher oil prices traslate into higher gasoline prices even though oil began increasing in price months before gasoline's price increased at the pump.

 

so do you think that the price of gas will fall to $2 by december?

 

 

Crude Oil for November delivery was never at a low enough price to justify $2 per Gallon gasoline so I wouldn't expect gasoline prices to drop to that level until January. Initially, local gas-stations may pocket some of the savings but I suspect by February (if Oil stays at reasonably low levels, and there is no gasoline shortages) you will see $2 gasoline.

 



Chevron's 3Q profit soars!!
http://biz.yahoo.com/ap/081031/earns_chevron.html

Altogether, Chevron, Exxon Mobil and rivals BP PLC, Royal Dutch Shell PLC and ConocoPhillips posted earnings of $44.4 billion for the July-September period, up 58 percent from the same time a year ago.



Glad to see the oil companies are still doing well.



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson