Quote:
Originally posted by m21sniper
Heating oil and gas come from the same crude. A reduction in the demand for heating oil reduces the demand on crude, so it should LOWER costs, not raise them.
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But the crude is purchased and the refining process starts ahead of time. And you only get so much gasoline out of a barrel.
(The major refiners do not share their long term forecast information with me - but they have been taking about an "El Nino" winter for some time now.)
Anyway - they have a certain amount of refined products on hand. Warm weather - supplies of home heating oil are not being sold and the price goes down. More driving through the autumn and prices goes up. Overall - the price of gasoline and home heating oil are linked to the price of crude - but not at the hip.
Again - whoever thinks they are getting ripped off - buy some oil company stock or start splitting wood or buy a Prius. The thread is - "election over...let's watch gas prices" - I need more than Area 51 style speculation to be convinced of any large scale manipulation.
