gas prices jumped today

[grampi]

Originally Posted By: slowdime
Don't forget that the economic growth occurring in developing nations incurs additional demand on fossil fuels. The writing is on the wall as far as oil prices in the coming decades. The time will come when oil and by extent gasoline is prohibitively expensive for the consumer.


Let's just hope that we have enough affordable alternatives available by that time so we don't have to go back to living in the stone age...

 

[OtisBlkR1]

it went from $2.67 on Thursday to $2.44 on Friday, then jumped back up to $2.69 on Saturday.. Here in the heartland,

 

[GiveMeAVowel]

Originally Posted By: Al

Ultimately the consumer does set the price..that's about all I can say.

 

[grampi]

Originally Posted By: Al
Originally Posted By: grampi


Not who, what. Supply and demand would set the price...

Well all of this sounds good but... The present system has evolved into what we have since the late 1800's and even before. You have to remember that we have a world market and the U.S. does not control it. Something must fix the price and that really is supply and demand.

Everyone blames speculators but that is way over-hyped. Speculators actually stabilize the markets more than they de-stabilize them.

Again I say how would you remove oil from the world market? If you even understood the basics of markets include commodities...you would never make this statement. Honestly I can't even begin to tell you how to remove oil and energy from the markets bc again and again and again..its a world market.

Ultimately the consumer does set the price..that's about all I can say. So if you are fine with believing you know the answer as to why gasoline is to expensive bc its too expensive to take little Jonny to soccer practice..to be it. I'm good with that.

BTW here is a list of world commodity and stock markets..all working to set prices on everything from rabbit turds to cmputer chips.
http://en.wikipedia.org/wiki/List_of_commodities_exchanges

Also if you want to stabilize gasoline prices for yourself you can buy A U.S. gasoline ETF (Exchange Traded Fund) at any Financial institution..just like any stock or mutual fund. So if you think in the future you are gonna' get screwed by future price increases..just buy some UGA (http://finance.yahoo.com/q?s=uga&ql=1) at todays price.





Demand is pretty inelastic, which means supply determines price, and who controls supply? Sorry, but consumers don't control prices, the oil industry does by controlling supply...

 

[Al]

Originally Posted By: grampi


Demand is pretty inelastic, which means supply determines price, and who controls supply? Sorry, but consumers don't control prices, the oil industry does by controlling supply...

"Pretty inelelastic" is relative. Very small decreases or increases in demand can make huge differences in price when the supply production can not move very quickly..except in the downward directiion.

And picture an isolated small free market system..where there are 10 people and only enough food for 9...Obviously price very high. Now picture supply for 10 people and whatch the price drop. Price could be 100% difference with only a 10% change in demand.

But again I ask who will control the price of gasoline or crude oil or diesel fuel, etc? And how?...considering the huindreds of commodity exchanges exist throughout the world? I don't believe I caught your answer.

 

[javacontour]

Each plays a role. True, consumers don't control supply. Suppliers don't control demand.

When the economy slowed in 2007-2008, demand plummeted.

That's the beauty of the market, no one controls it all. Sure, some may control supply. But at some point, consumers will adjust their behavior if the price is too high.

On the other hand, if demand drops, producers will adjust their behavior. They will take refineries off line because they are not making money at the current intersection of supply, demand and price.

Originally Posted By: grampi
Originally Posted By: Al
Originally Posted By: grampi


Not who, what. Supply and demand would set the price...

Well all of this sounds good but... The present system has evolved into what we have since the late 1800's and even before. You have to remember that we have a world market and the U.S. does not control it. Something must fix the price and that really is supply and demand.

Everyone blames speculators but that is way over-hyped. Speculators actually stabilize the markets more than they de-stabilize them.

Again I say how would you remove oil from the world market? If you even understood the basics of markets include commodities...you would never make this statement. Honestly I can't even begin to tell you how to remove oil and energy from the markets bc again and again and again..its a world market.

Ultimately the consumer does set the price..that's about all I can say. So if you are fine with believing you know the answer as to why gasoline is to expensive bc its too expensive to take little Jonny to soccer practice..to be it. I'm good with that.

BTW here is a list of world commodity and stock markets..all working to set prices on everything from rabbit turds to cmputer chips.
http://en.wikipedia.org/wiki/List_of_commodities_exchanges

Also if you want to stabilize gasoline prices for yourself you can buy A U.S. gasoline ETF (Exchange Traded Fund) at any Financial institution..just like any stock or mutual fund. So if you think in the future you are gonna' get screwed by future price increases..just buy some UGA (http://finance.yahoo.com/q?s=uga&ql=1) at todays price.





Demand is pretty inelastic, which means supply determines price, and who controls supply? Sorry, but consumers don't control prices, the oil industry does by controlling supply...

 

[slowdime]

Originally Posted By: grampi
Originally Posted By: slowdime
Don't forget that the economic growth occurring in developing nations incurs additional demand on fossil fuels. The writing is on the wall as far as oil prices in the coming decades. The time will come when oil and by extent gasoline is prohibitively expensive for the consumer.


Let's just hope that we have enough affordable alternatives available by that time so we don't have to go back to living in the stone age...


It'll have to happen eventually. Biofuels and electric cars solve nothing since they all suffer from the problem of the long tailpipe. They're merely a greenwashed bandaid.
Staying ahead of the curve with regards to energy demands would be a wise course of action.

 

[Al]

Originally Posted By: javacontour
Each plays a role. True, consumers don't control supply. Suppliers don't control demand.

When the economy slowed in 2007-2008, demand plummeted.

That's the beauty of the market, no one controls it all. Sure, some may control supply. But at some point, consumers will adjust their behavior if the price is too high.

On the other hand, if demand drops, producers will adjust their behavior. They will take refineries off line because they are not making money at the current intersection of supply, demand and price.

Simply and well said.

 

[grampi]

Originally Posted By: Al
Originally Posted By: grampi


Demand is pretty inelastic, which means supply determines price, and who controls supply? Sorry, but consumers don't control prices, the oil industry does by controlling supply...

"Pretty inelelastic" is relative. Very small decreases or increases in demand can make huge differences in price when the supply production can not move very quickly..except in the downward directiion.

And picture an isolated small free market system..where there are 10 people and only enough food for 9...Obviously price very high. Now picture supply for 10 people and whatch the price drop. Price could be 100% difference with only a 10% change in demand.

But again I ask who will control the price of gasoline or crude oil or diesel fuel, etc? And how?...considering the huindreds of commodity exchanges exist throughout the world? I don't believe I caught your answer.


I don't understand why you think the price needs to be controlled...in a true free market, price is determined solely by supply and demand, but the oil industry doesn't exist in a free market, it operates in an oligarchy, which means the industry itself greatly effects prices...yes, supply and demand account for some of the pricing as well, but not to the same extent that prices are determined for other commodities...and obviously, since oil is a world commodity, the world would have to agree to remove it from the commodities market, and before you say that's impossible, the world agreed to put it on the commodities market several decades ago as it wasn't always a part of it...

 

[Al]

Originally Posted By: grampi

I don't understand why you think the price needs to be controlled...in a true free market, price is determined solely by supply and demand, but the oil industry doesn't exist in a free market, it operates in an oligarchy, which means the industry itself greatly effects prices...yes, supply and demand account for some of the pricing as well, but not to the same extent that prices are determined for other commodities...and obviously, since oil is a world commodity, the world would have to agree to remove it from the commodities market, and before you say that's impossible, the world agreed to put it on the commodities market several decades ago as it wasn't always a part of it...

Nothing is impossible..but you are dreaming a dream that won't and shouldn't happen. The situatiion has been explained above by more than one person. You don't buy it. End of discussion....for me.

 

[grampi]

Originally Posted By: Al
Originally Posted By: grampi

I don't understand why you think the price needs to be controlled...in a true free market, price is determined solely by supply and demand, but the oil industry doesn't exist in a free market, it operates in an oligarchy, which means the industry itself greatly effects prices...yes, supply and demand account for some of the pricing as well, but not to the same extent that prices are determined for other commodities...and obviously, since oil is a world commodity, the world would have to agree to remove it from the commodities market, and before you say that's impossible, the world agreed to put it on the commodities market several decades ago as it wasn't always a part of it...

Nothing is impossible..but you are dreaming a dream that won't and shouldn't happen. The situatiion has been explained above by more than one person. You don't buy it. End of discussion....for me.


I never said it would happen, I was just stating what needs to happen to stabilize, and lower gas prices, but you're right, it'll never happen because it would cost the industry money and they won't stand for that...

 

[CourierDriver]

Wow, now it is time to go buy a 23,000 dollar car to get good mileage,,wow............................

 

[CT8]

Originally Posted By: CourierDriver
Wow, now it is time to go buy a 23,000 dollar car to get good mileage,,wow............................
People will buy gas guzzelers then the price of gas will rise to $5.00 per gallon . Then they will trade them in for a 70% loss,,, then pay the $3,000.00 dealer markup over sticker price for an economy car.

 

[grampi]

Originally Posted By: CT8
Originally Posted By: CourierDriver
Wow, now it is time to go buy a 23,000 dollar car to get good mileage,,wow............................
People will buy gas guzzelers then the price of gas will rise to $5.00 per gallon . Then they will trade them in for a 70% loss,,, then pay the $3,000.00 dealer markup over sticker price for an economy car.


I never understood why people rush out and buy gas hogs when gas prices drop...are people really so stupid that they don't realize prices will go back up?

 

[javacontour]

I don't understand why people complain about the price of gas when it's likely a very small cost in the total cost of ownership.

 

[IndyIan]

Originally Posted By: javacontour
I don't understand why people complain about the price of gas when it's likely a very small cost in the total cost of ownership.

For us, its the biggest chunk, and if we keep the car long enough it becomes the majority of the cost as even the averaged annual depreciation gets low. I don't mind too much about the absolute price of gas, but the large changes in price get annoying.
The price of gas has effected which vehicles we buy too, as we could easily spend 2/3 more on gas with vehicles that don't offer more utility for us.