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View Full Version : I do not understand?


MikeKle
09-12-2008, 08:56 PM
I have seen oil prices are down near $100. a barrel now and dropping every day but pump prices keep going up?What the hell? Back when we were paying around $4./gallon, a barrel of oil was at recoed highs,somewhere around $140. or more,Currently our local gas stations are at $3.99,Who the hell is gouging us?Then I heard if IKE does major damage to the rigs in the gulf pump prices could reach $12/gallon!!!!!!I do not think it will get that high simply because people would not stand for that and it would destroy the economy overnight! I think there would be record violence against gas stations and owners and anyone remotely involved in gas or oil.We are getting much needed rain here in KY though!The grass may grow again but will we be able to spend $60. to fill up a walkbehind??!!!! I think I may look at the propane conversion for my truck, Ive heard some good things about it.

topsites
09-12-2008, 08:59 PM
I think it might have something to do with getting 'hosed.'

Woody82986
09-12-2008, 10:30 PM
Supply and demand. Ike has refineries shut down in the gulf. Damn near all of them. Supplies are going toget shorter and shorter until Ike passes and dies off and they can get the refineries running again. So, in theory, next week the refineries get kicking again, supply goes up with oil still declining and the price comes down almost as quickly as it went up. haha Although I am betting it simply trickles down like it normally does.

S.I.
09-12-2008, 10:33 PM
Someone likes getting fat pockets.

billslawn89
09-12-2008, 10:39 PM
i was out and about tonight and mostly ALL gas stations i drove by are packed with vechiles getting gas, and i mean packed with lines waiting...:dizzy: prices are 3.69 to 3.79 tonight.. i will get up early tomorrow and run the the gas station and fill up also, along with the gas cans! this is nuts! :cry:

TREEGUARD
09-12-2008, 10:55 PM
The price of oil per barrell is cheaper now then it was in february & it's .60 cents higher now W.T.F is going on. this is bull

puppypaws
09-12-2008, 10:55 PM
Supply and demand. Ike has refineries shut down in the gulf. Damn near all of them. Supplies are going toget shorter and shorter until Ike passes and dies off and they can get the refineries running again. So, in theory, next week the refineries get kicking again, supply goes up with oil still declining and the price comes down almost as quickly as it went up. haha Although I am betting it simply trickles down like it normally does.

Yep, it is supply and demand, this is why OPEC is cutting production, so they can demand more money from us. This just showed up on the news that would be cutting production because prices are falling too fast.

TomberLawn
09-12-2008, 11:24 PM
Ike is causing the problem right now. Texas is about to get hit pretty hard, so production has pretty much stopped. I was amazed to see regular gas almost as high as diesel today, then thought about the hurricane. As I was mowing at my church, the gas station across the street was packed the whole time. I bought diesel today and heard one of the gas station employees say they were almost out of gas. A gas station is Charlotte turned down a load of fuel because it was simply too high. I think the news reporter said it was almost $5 a gallon. But like Woody said, it should come down after the hurricane passes. If OPEC cuts production, it will go up some, but the oil guys would be stupid to cut it too far. Simple economics says that when a price goes up, people buy less. We've already seen this one time this year. I really wish this cartel would dissolve so there would be some competition on the market. As it is now, they name their own price and we either have to accept that or walk. I really want to experiment with this hydrogen generator stuff and see what kind of mileage I can get. It's time to stick it to OPEC.

Kennedy Landscaping
09-12-2008, 11:36 PM
I haven't really seen much of an increase here in Kansas yet...(knock on wood) But it has been raining non-stop since Wednesday, we got out of school at 11am this morning because it was starting to flood just down the road from the school.

Richard Martin
09-13-2008, 05:02 AM
It has nothing to do with supply and demand. It's greed. Read this...

http://www.lawnsite.com/showpost.php?p=2511218&postcount=16

puppypaws
09-13-2008, 07:06 AM
It has nothing to do with supply and demand. It's greed. Read this...

http://www.lawnsite.com/showpost.php?p=2511218&postcount=16

This is the name of the game "GREED" ......The oil rigs being shut down in the Gulf for a few days should not cause supply to be effected nearly as much as they want us to believe. They were reporting on world news that these rigs had been strengthened structurally and should not be effected by Ike, only time will tell for sure.

These companies are taking advantage of the American public, they are fully aware of how to manipulate the situation, this is not their first rodeo. There is absolutely no supply and demand problem at this time, it is a scare factor to raise prices. There has not been enough time to drop supply to the point of prices being raised the amount they have in one day.

These price increases are coming from the idea of them not being able to pump for a few days, just let a handful of rigs become damaged and watch their manipulation. The prices may not increase a great deal more, but it will give them the opportunity to hold the higher prices much longer while not drawing as much attention to their greed.

TomberLawn
09-13-2008, 08:04 AM
It is still supply and demand. When people heard that they might not be able to buy gas next week, everybody went out and bought gas yesterday. This created huge demand. Fuel companies realized they might not have anything to sell for a few days, so they raised the price on what they had to try to make it last longer. I guess there is an element of greed, because some companies may be price gouging, but overall, when demand increases, price does too. Then demand falls back because of the increase in price, so the price comes back down.

Woody82986
09-13-2008, 10:13 AM
This is the name of the game "GREED" ......The oil rigs being shut down in the Gulf for a few days should not cause supply to be effected nearly as much as they want us to believe. They were reporting on world news that these rigs had been strengthened structurally and should not be effected by Ike, only time will tell for sure.

These companies are taking advantage of the American public, they are fully aware of how to manipulate the situation, this is not their first rodeo. There is absolutely no supply and demand problem at this time, it is a scare factor to raise prices. There has not been enough time to drop supply to the point of prices being raised the amount they have in one day.

These price increases are coming from the idea of them not being able to pump for a few days, just let a handful of rigs become damaged and watch their manipulation. The prices may not increase a great deal more, but it will give them the opportunity to hold the higher prices much longer while not drawing as much attention to their greed.

It IS a supply problem in general. Some people are gouging but the basic cause of this is a supply problem. Tankers can't get into the gulf, the rigs are shut down and it takes time to ge tthem back up and running. 19% of US refining capacity is shut down right now. I'm not saying some people aren't gouging at the pump, but I am saying that the normal price increase is due to supply. Any thoughts otherwise are simply unfounded.

Richard Martin
09-13-2008, 12:51 PM
It's not a supply problem. The Pantry created the shortage (that only seems to be affecting the states they operate in) by rationing. There was no need for it. Everybody around here crushed the gas stations yesterday and guess what? The stations still have gas today. A station or two may have run out temporarily but they're all back up today and there's no lines. There was no shortage at any time. The only difference between today and 2 days ago is the gas is now almost 50 cents a gallon higher. It's GREED.

Woody82986
09-13-2008, 12:56 PM
There IS a supply problem. Step back and look at the bigger picture. Just because stations have gas right now doesn't mean there can't be a supply problem. 19% of our refining capacity is down and it will be like that for at least a week. Tankers couldn't get into the gulf for about a week. When you shut down 19% of our refining capacity, it takes away at least 19% of our SUPPLY. Does any of this make sense to you? We can have a decreased supply yet still have gas in the tanks at stations. Having a shorter supply doesn't mean every gas station in america runs dry. It means we have shorter supply than normal. Get it?

puppypaws
09-13-2008, 03:56 PM
There IS a supply problem. Step back and look at the bigger picture. Just because stations have gas right now doesn't mean there can't be a supply problem. 19 of our refining capacity is down and it will be like that for at least a week. Tankers couldn't get into the gulf for about a week. When you shut down 19 of our refining capacity, it takes away at least 19 of our SUPPLY. Does any of this make sense to you? We can have a decreased supply yet still have gas in the tanks at stations. Having a shorter supply doesn't mean every gas station in america runs dry. It means we have shorter supply than normal. Get it?

There will definitely be a supply problem but this was not the case with initial price spikes, this is call speculation. Gas prices raised $1.00 per gallon is not warranted by any definition other than gouging. There is no doubt production will be cut for a period of time and this will effect supply along with price.

Ethics leaves the theater in these situations and greed takes it's seat. You only have a certain amount of gas left to sell at your business and can't be certain when your next shipment may come. It works very well to sell 10 gallons per customer using the scare of an unknown factor at a tremendous profit margin. The more people coming inside your business to pay for this high priced gas the better chance there is to sell them other convenience store items at an inflated price. Not an ethical way of doing business but probably very profitable.

Yes, I will contend Ike will cause prices to rise due to supply and demand but the initial spike came from speculation and greed. You will have to agree the people that jacked these prices so high so fast had the same supply they would have had at the exact time period had they been selling it a dollar a gallon cheaper.

This is kind of ironic, as I was typing this Fox News said there was definitely price gouging taking place based on speculation which has now turned into fact.

PROCUT1
09-13-2008, 04:48 PM
Its this high because we;re willing to pay it.

Give one good reason for oil companies to lower their prices...

It has nothing to do with supply.

If you doubled your prices and your customers all stayed with you....would you lower them to be nice?

mississippiturf
09-13-2008, 05:00 PM
There are no Pantry stores, to my knowledge. in Mississippi yet there were several gas station including Shell, Conoco, and a few others that were limiting purchases to 40 bucks yesterday. Some of them ran out except for premium. One local chain went from $3.53/gallon on Tuesday to $5.17 yesterday while the one station across the street from them was $3.87. Go figure!

puppypaws
09-13-2008, 08:39 PM
There are no Pantry stores, to my knowledge. in Mississippi yet there were several gas station including Shell, Conoco, and a few others that were limiting purchases to 40 bucks yesterday. Some of them ran out except for premium. One local chain went from $3.53/gallon on Tuesday to $5.17 yesterday while the one station across the street from them was $3.87. Go figure!

It is really simple, $3.87 ethical treatment of people other than yourself.....$5.17 unethical treatment of people with only self and greed in mind. $3.87 is taking his normal profit on his supply.....$5.17 is taking his normal profit plus what he can gouge for. I would be willing to bet even if $5.17 had a tanker load come in on Friday the cost was not increased nearly the amount he raised his price, you can bet his profit margin increased. You can also bet $3.87 will have no choice but to raise his prices significantly when his new supply comes in, this is cost increase due to supply and demand with lower supply.

lawnwizards
09-13-2008, 09:05 PM
Its this high because we;re willing to pay it.

Give one good reason for oil companies to lower their prices...

It has nothing to do with supply.

If you doubled your prices and your customers all stayed with you....would you lower them to be nice?

do we really have a choice? its hard to pull a trailer with a bicycle. its GREED as richard said. pure GREED.

freshprince94
09-13-2008, 09:14 PM
Because of Ike, the gas companies are "anticipating" that there will be major production delays. Whether this is true or not, this is just an excuse for them to hose us.

On a side note, I wish everyone in the TX area good luck with Ike. It's supposed to be pretty ugly.

slawn
09-13-2008, 09:22 PM
I know a guy who owns a gas station, I talked to him this morning. Yesterday his gas was $3.67 and he ran out. He's not going to get anymore until price goes down. He said if he got got another load now he would cost him $5.25 and then he would add .10 to that. He would rather not have gas then to sale it at $5.35.