Election is over....let's watch gas prices.

[m21sniper]

Originally posted by gaijindabe
EPA rules, winter formulations, very mild weather in the east through the autumn, Thanksgiving being the most traveled holiday of the year. Lots going on here.

So if you think Big Oil is ripping you off - go buy some stock.

Mild weather should HELP costs, not raise them. Likewise, a lot of the additive requirements have been temporarily eased, have they not?

[m21sniper]

Originally posted by john70t
Hmmm, mabye the dem's could just keep on borrowing another $9 trillion from China for the next 6 years. It worked before.

You really think they won't?

LOL...

[gaijindabe]

Originally posted by m21sniper
Mild weather should HELP costs, not raise them. Likewise, a lot of the additive requirements have been temporarily eased, have they not?

It might help home heating oil - but not the price of gasoline if people are traveling more. About the additive requirements - maybe MTBE, but I don't know about the rest. It is a huge and complicated business - to think a few guys sit around boardrooms and set prices - I don't think that happens.

The New York Times (in the business section - not the OP-ED page) - had a piece a few weeks ago on the billions it takes to explore for gas & oil in the Gulf of Mexico and build rigs to extract it. They can have fantastic profits or huge losses. If you want to take part in this gamble - buy some stock. If you want to complain about the price of gas - buy a Hyundai..

[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.

[artplumber]

OPEC worries fail to boost oil prices

http://news.yahoo.com/s/ap/20061204/ap_on_bi_ge/oil_prices

[sammyg2]

http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

[gaijindabe]

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.

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.

[Chocaholic]

Only a simple discussion based on, er...uh, emperical evidence. What a concept.

Silly me.

[dafischer]

Originally posted by sammyg2
http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

Okay, so that's gas prices.

Now, let's have a look at heating oil...

http://tonto.eia.doe.gov/dnav/pet/pet_pri_wfr_a_EPD2F_PRS_cpgal_w.htm

The price of gas historically goes up during the summer driving season, and slowly backs down as vacation travel tapers off. But I guess that this year it's changed to the autumn driving season, so prices are going up now.

We've had a warmer than average fall, and heating oil supplies are way up. The price has not changed significantly to reflect the over supply.

Heating oil comes off the cracking tower very low in the process, costing less to produce than regular gasoline. So why, if heating oil costs less to produce, and we currently have above average supplies, why does a gallon of heating oil cost significantly more than a gallon of regular gas?

Besides the fact that most people will suck up the rape and pay to keep themselves warm because they don't have an alternative. Yup, the oil company is your friend...move along past Area 51, people...nothing to see here.