Home Forums Hunting & Shooting Hunter's Campfire Gas prices?

It's simple supply and demand.

Not the balance thing economic people talk about, simpler.

I got it, and charge until demand drops. That's the price. Until I start pushing again.

If anything, ANYTHING, can be construed to have hurt delivery of supply, prices go up.

If supply gets high, prices don't freefall, they get "sticky". Pump prices will not reflect crude price changes.
Refineries "revamp", drilling stops, until the glut is fixed.

My personal experience is at the distribution to station level.
Around 2000, the rack to pump mark up was 5-10 cents.
Then gas went up 300% and the mark up went to 40+ cents.
With sticky prices, I have seen 85 cents.
Of course that was the locals screwing us.

Way up the line, ExxonMobil or Shell would never screw anyone.

Exxon? Haliburton? Tesoro?

It will hurt me a little, but not to the point where it will change the way I do business.

Exxon? Haliburton? Tesoro?
Interesting.

So those selling a product control the exact commodity markets they sell to?

Riddle me this, then Batman...

Why didn't they keep prices up there in the profit zone when oil prices tumbled a couple years ago, and lots of them went bankrupt?

Hmmm?

If they are the ones controlling the market, then they should always be running well into the black, right?

Oh, yeah... How much oil does Halliburton sell? In barrels or gallons, or ounces? Any way you wanna answer that is fine.

Enron.


Sometimes, the gamers get burnt.

But, as earlier posted, the government gets a big or bigger cut per gallon than anyone.
For nothing more than enforcing the tax rules.

My experience is that I've been a wholesale fuels supplier for over 20 years now, and our markets arent' anything like you're describing. I own big trucks (8000 gals) that pick up fuel at the rack (terminal or refinery), and deliver it to the end user, many of them retail dealers. I'm sure we could agree that this is a high volume, low margin business. I charge freight + 1-5cts/gallon, depending on the market ( I "get all I can get"). The retail guys then mark it up enough to cover their POS (credit card processing) fees which normally run 2% or so, plus a margin of usually 5-8cts/gallon, 10cts/gallon on a good day. No way in hades a retailer could ever get 40 cts, ever.

I'm also not sure how you can say that pump prices do not reflect crude prices.......why else do they fluctuate?

Opec doesn't want the US to ramp up production so they will increase production to keep their market share. I believe the only way the globalist will see their $100 barrel oil again is a major destabilization of the middle east by going to war with Iran.

Under baby Bush (I think) the deep state investigated and found everything to be perfectly in order and it's only through the altruistic nature of big oil that we weren't being screwed. 😂

It's really super duper awesome to know that big oil has our backs. 😉

Gas prices are where they are because we pay no matter the price!

You misunderstand free market economics. Prices are set by what the market will bear, not by the cost of supplies. A King Ranch edition F350 probably costs $10K more to make than a bare bones F150 but sells for three times the price. It's because someone will pay it, not the cost of production.

They'll go down a little after next week.......holiday will be over.

Yeah, only till school is out, then up again---
Supply and demand--- they demand more profits, we supply!!

Except fuel is a commodity, a traded commodity, and an F150 isn't.

As of May 18, crude oil inventories are 80M bbls lower than at the same time last year.


http://fuelbuyer.dtn.com/energy/com...dtnetupdate&vendorReference=07015C52

Which still responds to market forces and manipulation. I've been living near the Gulf Coast long enough to watch gas prices surge every time there's a mention of a hurricane. Price gouging is common amongst oil companies, distributors, and retailers. Denying it and professing the altruism of oil producers doesn't make it any less so.

Diesel here 70 cents higher than regular.

Just because they can.

But still well within the range of the last five years. No reason for prices to pop 25% based on current inventory levels. I think industry just knows this Administration won't come after them for price fixing.

Same business as you, plus the retail and heating fuel business.

Pump, not reflecting crude, was a reference to sticky prices.

We are rural. There is a c-store company that owns 300+ stores that has a big footprint.
Others are small time, no competition. When crude drops, our pump prices don't drop.
The big guy has no competition, and buries anyone who tries to under sell him.

Diesel here is $3.10 , gas is $3.00. In the long run oil will go up, we are going to use more with an expanding economy. Now, 30 yrs ago OPEC had 10 million barrels a day of pumping ability. Now they can only pump 1 million extra barrels a day. They are almost at peak capacity. Saudis biggest and oldest well is pumping 45% water. They need to find some new areas to drill but they have not done that in 4 yrs cause crude is so cheap . It takes 5 yrs to get out the first drop. We are going to have a shortage if the world demand keeps going up even if OPEC pumps full blast. If they pump full blast it will only add 1% to the world supply cause the world needs 100 million barrels a day as of now. Insane huh?