Are We Getting Screwed? Gas Prices Spike Again Over "Possible" Interruption

should make that a bumper sticker for Full size SUV's

"Tell me why the gasoline that's already in tanks in the ground at the service station, purchased at the going rate when it was pumped in there, suddenly rises by almost 13 cents per litre because the oil companies might have a disruption."

Because those prices reflect aggregate supply, not just what is is the tank, and that supply is a point. THERE IS NO SUPPLY CURVE. Why? Because supply is an inter-temporal function for corporations that operate under a fixed stock constraint which must inter-temporally allocate their production in order to maximize value. Any change to anticipated future results in systemic sub-optimality now- causing the price to rise.

It is for these reasons that one shouldn't mention "speculation" to a natural resource economist. I saw one bit the head off of a girl for just that, essentially calling the argument a "cop-out for the stupid"

Listen- you don't have to take my word for it, look it up.

I suggest you start with two words- Harold Hotelling.

Emotonal twits.

So be it.

This response may in fact be enlightening to those that are the "Emotional twits" you speak of, but then don't fill an answer with jargon. Bring it down to the level that can be truly educational and people will thank you for your point. Otherwise you just sound like someone hiding behind that jargon. People who truly understand what there talking about have no problem with simplifying any concept.

cdoke is speaking in tongues again.

My brother works directly for Canada's wealthiest billionaire and is himself a CFA and has financial certifications up the whazoo. He often goes to meetings with his boss across Canada for the purpose with meeting with exploration companies and other oil & gas companies. He and his boss, as well as the heads of these oil & gas companies have no idea why this is happening the way it is, really. The best explanation for this is that is being manipulated by something "higher up". This is strictly in the hands of the oil GIANTS.

This is all from spectulation. Oil is the cheapest it's been in months, but the price around me is about 3.95. This is due to fears from refineries that Gustav and Ike are going to interrupt their production. They need to cover their bases before anything major happens.

It's complete and total B.S., but this happens every time a major hurricane hits. This, hopefully, will blow over within the month.

Are we getting screwed over for gas?

Heck yes!

Big Oil have been making records profits for the last few years. And if it seem as though they might not make records profits, they just raise the price of oil. McCain will continue to let them do this, while Obama is seeking some sort of reform for the oil companies.

yeah so he says

you really fall for those election speeches and campain ads?

I'm not going to get into whether it's right or wrong but there are a number of refineries that have had to shut down in preparation for the storm. Baytown and Texas City are major refining sites that are just southeast of Houston. The thing I can't say is that it justifies 15 cents on the gallon...

This has been happening for years. It only garners attention now because of the current higher prices for gas, making every fluctuation seem even larger.

Of course we're being screwed over. The graphic says it all.

Can we stop talking about gas prices please. this news is getting old. Like Fox said in the last article "Just Get Over it!"

This is exactly what is wrong... the way you think is actually the way so many people are thinking.

I agree with "t sottelo". What's the point in complaining about gas prices especially when you take in consideration that we are getting screwed by a lot more than just gas companies. People are so stupid. They practically bitch only about the things they are told by the media to bitch. Pathetic fools!

Where i live (The bay area) , gas prices jumbed 20 cents in just one day.

That's per Gallon...the rise mentioned in the article is 13 cents per litre which works out to 60 cents per gallon!!!!

I live in Canada. I am one of those fortunate souls. :(

Well, refining is one thing but oil is low:
OIL (OCT) 100.90 0.03
MARKET MONITOR 02:48 PM

I could get myself banned from this site for my thoughts on the matter.

So I digress...

-00J

Be a man and take the risk. Let's hear your thoughts...

As a highly trained Agent, I need to behave.

As such, I digress...

-00J

Of course we are. It is the speculators and the people they work for that are driving the major variations (meaning upward) in the petroleum prices. It has a little to do with supply just not much.

I needed to add one more thing. This is of course just a speculation. not lol

.50 - .75 cent inc in the tri st area. no doubt.

Everyone thinks a 20-30 cent increase is bad. Try actually living in a hurricane disaster zone during the aftermath. I was living in S. Florida when Francis and Jeanne made landfall. Idiot gas stations were charging customers $4+/gal.(almost $5/gal.) for fuel. Although, you'd be hardpressed to find any information on this occurance.

At one point, we had to ration gas at 10 gal. per car because people were taking more than they really needed. Fistfights would breakout when some jacka** not only filled his tank with gas, but also filled his 10 - 5gal. jugs too, or truckbed tank, emptying the pump.

I'll gladly take a price increase where I live, rather than experience the ensuing chaos that awaits the areas that get devastated.

Try driving around Europe and Asia. Gas in the US is VERY CHEAP compared to what the rest of the world pays.

Europe and Asia(depending on where you're talking about)also have a mass transit network. Why would we pay the European or Asian equivalent per gallon when the majority of the U.S. has no alternative transportation system?

and what is health insurance over there?? and how about property taxes . Doses that get factored into a gal./fuel??

1995e34: Keeping it real.

What we are paying for is a interuption in production . The refines are not making money in the huuricane . and we are picking up the slack . We are stuck and oil crooks are NOT going to lose any money . Also wasn't it amazing when Katrina hit there was not one hint of a shortage ,just higher prices

To all those who think the oil companies are big bad meanies for charging you too much for something you want to buy, I pose this question:

What have you done to reduce your desire for (dependence on, use of) gasoline or diesel fuel?

If you cannot think of anything significant, then shut it. They sell you what you want for as much as you're willing to pay. When you stop paying it or reducing your consumption, I promise you the price will com edown and they will make less profit.

If you owned a business, and people were willing to pay $1 more for each item you sell, would you NOT mark it up that $1? I sure would...why sell for less than what people are willing to pay? Capitalism ROCKS!

Thats the truth, peaple bitch that gas is too mutch but the dont do anything to reduce the demand. most just renewed the lease on a huge ass SUV and the drive there cars like there racing in LeMans. if we all did something about about it gas would not be so mutch, for god's sake SENT A MESSEAGE TO BIG OIL, DRIVE EASYER AND IF YOU CAN BY A SMALL CAR, do what you can to save gas beacuse if we ALL did Big Oil would not be posting record profits while the economy is shit

then agian there are some who cant afford to do anything but be lighter on the pedal.

The uncontolible factor in MPG is the driver, and most are lead foots blaming bush for all there problems

Oh, and here's the annual Fall newsflash:

The price of heating oil is going to go up.

Because "big oil" wants to make more money? No, it's because winter is coming, and people choose to live where it is cold, so they'll choose to heat their house, and therefore they'll choose to pay for something they want.

I love those "colder than expected" headlines in the newspapers. That usually sets the panic related to making higher natural gas and petrol prices. Goooootta love it.

Great looks like big o' Oil Corporations just found a great reason to srew us in the rear (hense the picture)

on no hurricane! looks like we'll have to raise our prices to protect our profits. what would we do if we weren't posting record profits while most familys dont have enought gas TO GO TO WORK.

Its called price gouging. Lawyers will eventually start sueing and we will still see no benefit....

We r getting screwed. We can bitch about what ever we want to. I didn't need the media to tell me to bitch about gas prices. I have eyes and a wallet.