Why is gas going up now?
- Thread starter Chris142
- Start date
- Status
Many people said this is "normal" and happens at the start of every summer. If the start of summer is May > June, facts say this isn't true.
From May to June, prices dropped just as often as they went up. It's certainly not "normal" unless your history is only based on the past few years.
From May to June, prices dropped just as often as they went up. It's certainly not "normal" unless your history is only based on the past few years.
- Joined
- Jun 8, 2022
- Messages
- 5,700
US production continues to rise. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W
Part of the issue is the West Coast is not connected to the US oil production infrastructure. Those darn mountains
Part of the issue is the West Coast is not connected to the US oil production infrastructure. Those darn mountains
gathermewool
Site Donor 2023
The supply demand curve can explain a lot. In fact, it can explain just about everything, but not at face value. Oftentimes we put too much emphasis on the demand side, assuming it is customer driven demand. That's possible, but not necessarily correct.
The supply is the amount of product that manufacturers are willing to make available to sellers, and the amount that sellers are willing to make available to the consumer at a particular price during a specified time frame.
Suppliers are careful not to supply too much product so the market does not become saturated. As prices go down, so do profits.
The equilibrium price represents the point where the supply of a product is equal to the demand for that product. A surplus occurs when the price is set too high, negatively affecting demand. Customers will look for viable alternatives. This is where big oil is holding all the marbles; the world economy runs on oil. There are no substitutes for oil.
Then there is demand manipulation; manufacturers will deliberately hold back the product to create demand so prices can be raised.
If you could make more money working 30 hours per week vs 50, what would you do?
The supply is the amount of product that manufacturers are willing to make available to sellers, and the amount that sellers are willing to make available to the consumer at a particular price during a specified time frame.
Suppliers are careful not to supply too much product so the market does not become saturated. As prices go down, so do profits.
The equilibrium price represents the point where the supply of a product is equal to the demand for that product. A surplus occurs when the price is set too high, negatively affecting demand. Customers will look for viable alternatives. This is where big oil is holding all the marbles; the world economy runs on oil. There are no substitutes for oil.
Then there is demand manipulation; manufacturers will deliberately hold back the product to create demand so prices can be raised.
If you could make more money working 30 hours per week vs 50, what would you do?
Gasoline is the prototypical example for supply-side changes affecting price - at least it is in my economics textbook. A 10% increase in price causes a 2.6% decrease in demand in the short run and a 5.8% decrease in demand in the long run. Still inelastic, even in the long run, but clearly enough people have enough choices to affect demand.
Not my opinion, these are just straight facts, we can argue if it's a meaningful decrease in demand, but that's a different discussion.
im curious how much effect the us fleet of school buses going offline for the summer effects the consumption/supply
The military uses huge amounts of fuel.
Yep. And so do we the consumers. Everything we use is delivered using oil.
Part of my reasoning in buying a hybrid was as insurance against future gas prices increases.
This reasoning went out the window for the first three years that I owned it, since fuel prices were low when I bought it and would trend lower before crashing in Covid Spring. In the spring of 2020, I saw pump prices as low as .999, prices not seen in more than twenty years.
By 2022, though, I was very happy to be driving something that would yield an easy 50+ mpg in the warmer months and even now fuel is dear enough that the operating economy is a real economic benefit.
We live with the transportation choices we make. I'm not a fan of having a truck as a daily driver and I have no desire to feed one for the sort of miles we do, between commuting, weekend errands and shopping as well as weekend trips.
This reasoning went out the window for the first three years that I owned it, since fuel prices were low when I bought it and would trend lower before crashing in Covid Spring. In the spring of 2020, I saw pump prices as low as .999, prices not seen in more than twenty years.
By 2022, though, I was very happy to be driving something that would yield an easy 50+ mpg in the warmer months and even now fuel is dear enough that the operating economy is a real economic benefit.
We live with the transportation choices we make. I'm not a fan of having a truck as a daily driver and I have no desire to feed one for the sort of miles we do, between commuting, weekend errands and shopping as well as weekend trips.
Yes, it consumes 100 million bbls per year. However, the USA as a whole consumes over 7 billion bbls per year, or over 19 million bbls per day.
Prices dropped a dime this week in Bullhead City, Arizona.
I dont know but West Texas Crude was 68 bucks a barrel and in Northern Illinois it went up 70 cents over night to 4.29
Same here in Indiana, jumped 50 cents for no apparent reason. Per the EIA’s latest data demand ending on 6/9/23 was 9.236 million barrels of gasoline a day, but in that same period we produced 10.136 million barrels of finished gasoline a day. Stocks of finished gasoline inched up from 218.8 million barrels to 220.9 million barrels. Futures prices are around 2.60/gallon….
Well this doesn't help anything.
Saudi Aramco, the kingdom's state-owned oil behemoth, took 100% control of the sprawling Port Arthur refinery in Texas on Monday, completing a deal that was first announced last year.
Port Arthur is considered the crown jewel of the US refinery system. The Gulf Coast facility can process 600,000 barrels of oil per day, making it the largest refinery in North America.
Aramco previously owned 50% of Port Arthur through a joint venture co-owned with Royal Dutch Shell (RDSA) called Motiva Enterprises.
But the two oil giants had a rocky relationship and reached a deal in March 2016 to separate their assets. Shell put out a statement on Monday confirming the "completion" of that break-up.
In addition to Port Arthur, Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida.
America's largest oil refinery is now fully owned by Saudi Arabia.
Saudi Aramco, the kingdom's state-owned oil behemoth, took 100% control of the sprawling Port Arthur refinery in Texas on Monday, completing a deal that was first announced last year.
Port Arthur is considered the crown jewel of the US refinery system. The Gulf Coast facility can process 600,000 barrels of oil per day, making it the largest refinery in North America.
Aramco previously owned 50% of Port Arthur through a joint venture co-owned with Royal Dutch Shell (RDSA) called Motiva Enterprises.
But the two oil giants had a rocky relationship and reached a deal in March 2016 to separate their assets. Shell put out a statement on Monday confirming the "completion" of that break-up.
In addition to Port Arthur, Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida.
The car is virtually dead in North America. SUVs and trucks are king.
For the average person that can afford a new vehicle, gas is still very cheap.
For the average person that can afford a new vehicle, gas is still very cheap.
- Status
