That "Winter Blend" theory (VANITY)

U.S. Energy Information Administration (EIA) ^ | October 19, 2012 | EOL

[Eagle of Liberty]

So, not satisfied by listening to the reasons being given on the radio and television about the recent drop in gas prices, i.e. that we always pay less during the winter blend switch over, I decided to do a little study of the cost of a barrel of gas compared to the price at the pump. I used the EIA information from this link:

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_NUS_DPG&f=W

and compared it to this link:

http://futures.tradingcharts.com/chart/CO/M

You will notice that the price per gallon follows pretty well to the price per barrel UP TO the past few months.

I then took the price per gallon from September to December from 2004 to 2012 to see how well the theory holds up that we ALWAYS pay less around this time. You can see from this chart that theory just does not hold up:

If you agree with my assessment, please spread this chart from the MIDDLE OUT! :D

[MrIndi]

bfl

[DManA]

Excellent point. And every spring the summer blends kick in and prices go up. And every spring Big Media runs stories pointing fingers at greedy oil companies screwing the little guy.

And it’s not just that the summer blends are inherently more expensive. Different regions have different specifications. So if there’s a shortage in one region you can’t easily move stock across from another region. Government mandated inefficiency.

California requires their own unique blend so when in state refineries have a problem gas prices go through the roof because no one can come in and fill the gap.

Insanity. And we are all poorer for it.

[kidd]

I see a large drop in price just before the 2008 and 2012 elections.

All other years, the prices were quite steady.

[Pecos]

And the reason we have all of these blends is because of the EPA, the curse of America.

[DManA]

One more way the regulatory state sucks $1.5 trillion out of the economy (and our pockets) every year.

[Wuli]

The second chart shows that the “winter blend” theory DOES hold up - in the year of a presidential election (2008 and 2012); at least as far as is shown by the data for the years in the data sample.

[ro_dreaming]

I see the same thing.

[Yosemitest]

Read Chart Presentation: Oil, Gold, Bonds, and Dollar .
I've heard that gas prices go up in the fall because oil refineries have to reduce production of gasoline to increase production of heating oil for the northeast.
But as far as history, look at this.

Obama is INTENTIONALLY LYING!

Read what some people said that caused the drop in Oil Prices in Oct 2008 and again on Dec 23, 2008.
No one wanted to SAY that oil prices dropped because the
House passes bill allowing offshore drilling, Sep 17, 2008,
but that had a lot to do with it.


Brent barrel petroleum spot prices since May 1987.
Due to exchange rate fluctuations, the real price line is only relevant to the United States and countries with a currency tied to the U.S. dollar at a constant rate throughout the period.





Compare that information to the chart below.
To really understand fuel prices,you have to take a look at which party had control of the House and the Senate.
The Democrats took control of both the House and the Senate in 2006.









The National Debt, In One Chart

So I say AGAIN
Obama is INTENTIONALLY LYING !

[Wagonboy]

Also factor in the extraordinary additional cost-effect of our weak, flaccid dlollar. It’s purchasing power, or lack there of, puts the U.S. consumer at an immediate disadvantage as soon as that imported barrel of oil leaves the ground from any corner of the globe.
Then there are the myriad taxes, fees and regulatory expenses incurred at every step of the way from drilling to shipping to refining to storing to sticking the nozzle into your car or injecting the plastic into a mold. And these costs are sucked up from every city, county, state and federal organization that’s able to get a bloody beak into the carcas of the American consumer. -Wb

[Eva]

That’s not exactly true. Most of the gasoline for nine western states is produce in WA, since such a large percentage of that gas goes to CA, WA passed a law requiring the same CA formulation, so everyone gets the CA formulation, whether they want it or not.

[zeugma]

I see a large drop in price just before the 2008 and 2012 elections.

Prices almost always drop right before national elections. I noticed the trend a long time ago. I'm not sure how long it holds up, but I'd be willing to bet at least 20+ years.

[zeugma]

I see a large drop in price just before the 2008 and 2012 elections.

Prices almost always drop right before national elections. I noticed the trend a long time ago. I'm not sure how long it holds up, but I'd be willing to bet at least 20+ years.

[Eagle of Liberty]

Prices almost always drop right before national elections. I noticed the trend a long time ago. I'm not sure how long it holds up, but I'd be willing to bet at least 20+ years.

Didn't happen in 2004.

[Eagle of Liberty]

The second chart shows that the “winter blend” theory DOES hold up - in the year of a presidential election (2008 and 2012)

But the prices did not drop in 2004. I just don't see how they can state that due to "winter blend", the prices ALWAYS drop during the months of September, October and November. My chart shows that it does not have the consistency they claim.