Libya No Talk?

tet1953

tet1953

Well-Known Member
What ticks me off is that gas goes down a helluva lot slower than it goes up. Something happens in the world to cause a spike in crude, and prices at the pump are up the next day. A month later when the markets have recovered from the event and crude prices fall, pump prices do not. It takes competition to force prices back down and that takes time.
I don't think it's collusion that causes this, but maybe I am naive about that. It's just the way it works, but it still ticks me off.
 
RyanTheRhino

RyanTheRhino

Well-Known Member
beardo said:
So whwn Gas was 99 cents a gallon a few years ago that was because processing it was easier then? Or when crude oil prices rose over 100$ a barrel and gas proces went up to ariund 5$ a gallon that was due to a rise in processing costs? The processing is the same as it was fifty years ago, it doesn't cost a larger precentage of the total cost of production. It costs them the same to process a 80$ barrel of oil as a 120$ barrel. Lower oil costs will also actually reduce costs of processing oil into gas because the energy being used to process it is actually cheaper
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Inflation...

and

1 barrel of oil only makes 1/4 barrel of gasoline so they are not a one-one ratio
 
N

NoDrama

Well-Known Member
RyanTheRhino said:
You have to process oil to make gasoline. just because the raw material is cheaper it doesn't make the processing part any cheaper.
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Good point, there are only eleven oil refineries in the USA , and they work at 100% capacity all year round and sometimes just cannot make enough to meet all the demand, therefore gasoline prices aren't as volatile as the underlying commodity, which by itself is used for very very few things.
 
tip top toker

tip top toker

Well-Known Member
Just found out that one of the first big cases my dad took on was with regard to BP and Libyan oil. He should have some interesting insight into things :)
 
tet1953

tet1953

Well-Known Member
Yay! Ever since this started I have been waiting to see them take down that statue of a fist around a US jet. Just saw the video. Rebels destroyed most of it, covered the rest with graffiti.
 
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