Oil Prices Fall on Mild Weather Concerns

AP ^ | Monday January 8, 12:08 pm ET

[PastorJimCM]

Here is Maine it (the average price of gas) is now $2.37 down 2 cents $2.39 today. A couple months back when the barrel was about $57 the price was about $2.07? It does make one wonder why it hasn't come down more. (I understand the reserves and oil in the 'line' and replacement.) This one still begs for an answer.

[RightWhale]

Bulk gasoline is $1.47 a gallon. Add taxes and obscene profit and there is your local gasoline pump price.

[3dognight]

HWY 8 in Shafer, MN. There's a whole corridor of gas stations that compete and keep the price low. I suppose it depends on how big your tank is.

[FoxInSocks]

Found an interesting Gasoline vs. Oil Price Chart from an article written in October 2005.

"Over the last 10 years even though oil prices fell lower and lower gas prices remained the same. Why? Is it some collusion by the oil companies?

"No actually it is much less sinister than that. It is actually just supply and demand. Over the last almost 30 years (since 1976) there have been no new refineries built in the US due to tight regulations, environmental restrictions combined with low prices making the oil business less profitable.

"So supply has gotten tighter and tighter with it culminating recently with only one or two percent excess capacity at the refineries."

And then there's the accompanying chart:

[FoxInSocks]

(As I was saying before the power went out)

Of course that article doesn't explain why price increases occur overnight, yet price drops take place over a much longer period of time.

Gas prices at the pump have yet to follow suit . . . but analysts say if the futures plunge holds, a drop in wholesale costs should allow retailers to lower prices.

[never4get]

...perhaps it takes a greater effort to understand when you are being hosed. Of course, your not.

[mc6809e]

...perhaps it takes a greater effort to understand when you are being hosed. Of course, your not.

I don't know why I waste my time with people that don't even know the difference between "your" and "you're".

[never4get]

...If you are as good at figuring out when you are being hosed as you are on determining proper english that statement you made might mean something....Go ahead, big oil loves guys like you. Ostrich, head, sand...wow, everything is much better now.