Oil continues to drop into the ~108 range as the dollar keeps gain strength.
Where is RoB, does he have a new name, or just quit posting all together? And what is up with these forums, seems like we lost 90% of everything since the change :\
Oil continues to drop into the ~108 range as the dollar keeps gain strength.
Where is RoB, does he have a new name, or just quit posting all together? And what is up with these forums, seems like we lost 90% of everything since the change :\
Funny how when the price per barrel goes up we immediately see the prices go up at the pump. Even though those barrels purchased at those prices haven't even been processed into fuel yet.
And we are still paying about 95 cents per gallon more than last year.
Shell stations here are still chargeng about $3.89 a gallon. Course that was the labor day weekend that we just went through. Just before the weeked it jumped a good .20 cents per gallon. Funny how no one has even pumped gas for the weekend and the prices just go right on up. Doesn't matter if people even drive for the holiday or not. We could literally not use a drop of gas for a holiday weekend and we still automatically see the prices jump just before the holiday.
Funny how when the price per barrel goes up we immediately see the prices go up at the pump. Even though those barrels purchased at those prices haven't even been processed into fuel yet.
How is that funny? An expected increase in production cost has to be balanced out in advanced to maintain production at same level. Gas prices drop too when oil prices goes down for the exact same reason. Instead of thinking what they paid to produce the gas you purchased you need to think of what they have to pay to replace the gas sold to you.
That's exactly how the oil conglomerates see it, and of course, that's why they're knocking down $41 BILLION dollar profits in a 3 month period of time.
When they buy oil at higher prices, they adjust the price of gas as that's refined. They know exactly where each tanker of gas goes, down to which store and the street address. The prices at the pump increase as the merchant adjusts to cover what he had to pay on that gas. That's all fine and dandy. The problem comes in when they increase prices on gas they've ALREADY bought/refined cheaper to cover FUTURE costs. That's double dipping into my pocket. They're going to get the extra money they have to pay back when they deliver. It's price gouging, and it should be included in such laws instead of classified as a special category and exempt.
Astares
that's why they're knocking down $41 BILLION dollar profits in a 3 month period of time.
Wrong. Raising/Lowering price to match the current situation doesnt really change anything in the long run at all. Sometimes you lose on it, sometimes you gain from it. What you gain when price go up you lose when price goes down. Even big oil companies need stability. The gas they sell today needs to finance the gas they produce "tomorrow". Not the gas they produced 3 months ago.
The problem comes in when they increase prices on gas they've ALREADY bought/refined cheaper to cover FUTURE costs.
Why is that a problem? How would they otherwise be able to handle cover the costs? If anything the stability keeps the prices down. So i dont see why youre complaining in first place.
I dont see you complaining about "instant" price drops either. But as i said. Even oilcompanies have budgets to even out. If theres an expected increase in costs then one has to start working on that asap by charging more for the product. How much they spent to produce it is totally irrelevant. Either way you as the consumer will pay for the increased cost. Dont see why lagging prices are to be preferred over the opposite.
I cannot remember it being so cheap $3.89 is not so bad. The average price of a gallon benzine in the Netherlands is $8.30.Originally Posted by Swirvin' Birds
Hmmm - a gallon of bactine will cast you like $125 US
sorry I typed benzine but I should have typed petrol. The stuff that makes your car go. The price I wrote is for regular 95, super 98 is a bit more expensive.
Yea but the TRUE price of gas in the US is well over $8 a gallon. We just don't pay it at the pump but instead out of our tax dollars.
Thats a pure falsehood. Prices do not go down as quickly as they go up. And when the prices do come down it is always still more than starting prices before they went up.How is that funny? An expected increase in production cost has to be balanced out in advanced to maintain production at same level. Gas prices drop too when oil prices goes down for the exact same reason. Instead of thinking what they paid to produce the gas you purchased you need to think of what they have to pay to replace the gas sold to you.
You keep using this 'They have to replace the gas they just sold to you' line. So what you are saying is they have do double-dip in the profits? They are already making a profit off the gas I just purchased and you say they need to make MORE profit off me to replace the gas?
B.S. The profit they make on gas sold today is ALREADY a profit to them.
Could you explain that?
I think people in the US are always whining over the petrol prizes but refuse to drive anything other then huge trucks that do 1 mile to the gallon. 35mile to the gallon is possible for a small car and 20mile to the gallon for a family car.
I just think it is sad that retarded cars like the BMW X5, Porsche Cayennne, Audi Q8 etc have become popular here as well. I think it would be a lot better if oil prices doubled. So people would become more conscious of there consumption.
Thats a pure falsehood. Prices do not go down as quickly as they go up. And when the prices do come down it is always still more than starting prices before they went up.
Well, you cant neglect the long term prognosis either. My main point is still just as valid.
So what you are saying is they have do double-dip in the profits?
No, but they need a steady cash flow to be able to operate. When their costs increase they need to increase the price. Selling away their stock at a low price before changing the costs will basically just hurt the consumers in the end since more instability requires higher margins overall to compensate.
They are already making a profit off the gas I just purchased and you say they need to make MORE profit off me to replace the gas?
Yes, obviously they do. What the gas costs when produced is of little relevance compared to its worth when its sold. If you had bought 100 gallons when prices was at 70% of what they are today would you have sold them at that price or todays price?
B.S. The profit they make on gas sold today is ALREADY a profit to them.
As an isolated event yes, but since they ahve to keep producing gas for you they need to cover the increased production costs today aswell which means they have to increase the price today for the production that takes place tomorrow. As i said earlier youd probably end up paying more money overall if it wasnt like this anyway.
Uhh dude, all business needs steady cash flow. But you do not see other industries pulling the same crap.No, but they need a steady cash flow to be able to operate. When their costs increase they need to increase the price.
It is not increased production costs. It is speculation on the oil market that drives the prices up. And they do with the profits they made and the profits they WILL make. Over 4 billion in profits...As an isolated event yes, but since they ahve to keep producing gas for you they need to cover the increased production costs today aswell which means they have to increase the price today for the production that takes place tomorrow.
Capitalism in action baby.
Uhh dude, all business needs steady cash flow. But you do not see other industries pulling the same crap.
ORLY? Id say its just about the same everywhere from food to metals.
It is speculation on the oil market that drives the prices up.
Which increases the cost/unit of produced gas. On the supplier side its a simple matter of maximizing profits through supply/demands juiced up by cartels.
How many times have those other industries been under investigation for price gouging? Your in the minority if you don't think there is price manipulation going on.ORLY? Id say its just about the same everywhere from food to metals.
Yep. Price gouging. Thanks for making my point. :)On the supplier side its a simple matter of maximizing profits through supply/demands juiced up by cartels.
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