So ... Why ARE gasoline prices going up ... THIS time ?

self ^ | May 21, 2009 | knarf

[knarf]

"Has California already been carved up into 8 states? What are the new states called?"

Islam.

[presently no screen name]

Why don’t you read what I was replying to - the increase didn’t just happen for Memorial Day - it’s been going up the past month. Geez.

[kickonly88]

I stand corrected!

[Dr. Bogus Pachysandra]

“What are the new states called?”

I have no idea! Ask Obama. He’s the one who said there are 57 states.

[b4its2late]

Obama's Fault! along with summer driving. But will the high inventories of oil, you'd think it wouldn't but it has. Also, oil has been going up steadily too, even though we are in a deep recession.

Gas started going up steadily 3 weeks ago and has been 2 cents per day most days, but some days 4 cents per day.

[Obadiah]

Simple. Refineries are intentially slowing producion. US refineries are producing at a little over 81% of capacity. This low production rate is driving up prices. With low gas prices refineries are not profiting as they usually do, therefore they are choking supply to drive up prices. It’s working. Gas is now $2.50 per gallon here.

[King Moonracer]

I wonder how many oil tankers are spending the weekend just drifting or at anchor somewhere... watching videos and eating Cheetohs.

[DeaconRed]

Because if you take the square root of the hypotunse and multiply that by a factor of 1.45 you get the price. . . . . . . for today.

Next question. . . .

[Beagle8U]

I did read what you wrote. In the past month gas has gone up 70 cents a gallon. That is 35%. I don't think that is gradual.

[Dixie Yooper]

I have no idea! Ask Obama. He’s the one who said there are 57 states

The smarmy faced SOB won't return my calls...

[bigtoona]

This is why its going up, just like last time. Speculators controlling the market using the same deregulation and methods that Enron did.

In this 2005 article, you can see that a trader could control $70k of oil contracts with a margin of only $3k. Not sure what the margin is today but this allows hedge funds to control massive amounts of oil that they never take delivery on.
http://www.foxnews.com/printer_friendly_story/0,3566,166038,00.html

This more recent article goes into more detail
http://www.cbsnews.com/stories/2009/01/08/60minutes/main4707770.shtml

[DeaconRed]

"It’s 57 different blends.

It's called HeinzKerry 57.

[2001convSVT]

Good catch, oil is a global commodity, the US is printing money like crazy therefore price inflation is inevitable. Thank the US Treasury for some of the price increase.

[norwaypinesavage]

"Just check your tire pressure and drive 55 MPH."

Doesn't work. My government mandated active tire pressure monitoring systems already check my tire pressure for me.

As far as driving 55 goes - I tried that once. I got a ticket before I even got out of the subdivision.

[NeoCaveman]

Because the dollar is crashing?

[IronJack]

Short answer? Profiteering.

[BP2]

The LIBOR is still way, WAY down.

Partly driven by the US Prime Lending Rate being SO low.

Partly because the underwriters are setting requirements WAY high to loan out the money in the first place.

But a primary reason is there are fewer takers of the money because of future economic growth -- one important part of that is energy (oil) consumption. It's stagnant.

I still think the parallels between our current situation and the Long Depression (not to be confused with the Great Depression) are striking ... and the majority of it is good old fashion Market Manipulation.

[Arrowhead1952]

Hey, at that rate it'll be $9 in a year, and $15 in two!

Hussein's fault!

[calex59]

Because they can.

I was going to say the exact same thing. Because they can, because the dimwits are in charge and everyone knows there will be no drilling of new oil or increases of the domestic supply as long as they are in charge. There will do the exact opposite, every thing that can be done to make energy, including gas, prices go up will be done and new ones thought up. Oil companies are raising prices, and have been since they bottomed out this winter. As soon as Bozo cancelled all drilling and oil and gas leases gas prices started to rise again.

[Centurion2000]

Memorial Day Weekend, and the dollar is literally worth less and less the more they print them.