Community Forums

hondo122 · 07-09-2011, 07:54 PM

We're in Maine near Arcadia National Park, day before yesterday gas was$3.47 diesel was $3.94. Today gas is $3.77 and diesel is $4.09. Yesterday oil dropped $3.50 a barrel. I'm confused oil is going down and finished product is going up? What's it like where you are?

Wayne M · 07-09-2011, 08:14 PM

We have been traveling for some time. Our highest price was in Connecticut at $4.17 a gallon for diesel. Just a few miles up the road across the state line into Mass. it was $3.99. Through Michigan it has been anywhere from $3.76 to $3.99 and appears to be based on "Brand." The more popular named stations that you see across the U.S., like Shell, Exxon, etc., have the higher prices. I'll be filling up in Wisconsin tomorrow - we'll see.

ga traveler · 07-09-2011, 08:21 PM

I am not taking up for the a$$holes, but there is a lag between the purchase of the oil and when it is refined and sold.

Billieg · 07-09-2011, 09:34 PM

The lowest gas price here in Fl. is in Melbourne at $3.35. The highest price (and I'm not making this up) is in Orlando at $5.79!

Suncoast Energys $5.79 5928 Butler National Dr & S Semoran Blvd
6 hours ago

SyrenSkywolf · 07-09-2011, 11:41 PM

The "price of oil" that we see is not what it is currently being purchased for. Oil is traded in a "futures" market. The current price is what it will be sold for in 3 months. They buy it now, but take delivery in the future. Between now and then, they can sell it to someone else for more money, earning a profit. The gas prices now are mainly reflected on what someone paid when they took delivery of the oil, then refined it.

One of the issues with the prices in the past few years were speculators. People who would buy up the oil, then sell it for a profit, without ever having any intention of taking delivery of the oil. This jacks up the prices, as it works just like the stock market does. The more people buy, the more the price goes up. The more people sell, the more the price drops. More people would buy oil, the price would go up, leaving companies looking for something a tad cheaper, so they would buy off of the speculators for less than the current trading price.

Was happy to see a bunch of them lose their butts when oil prices shot downwards from $150+ a barrel a couple years ago.

mrschwarz · 07-10-2011, 07:07 AM

Quote:

Originally Posted by ga traveler

I am not taking up for the a$$holes, but there is a lag between the purchase of the oil and when it is refined and sold.

In my experience, this only happens when the price is falling. When it is rising, there appears to be a direct connection between the news report and the gas pump.