OT: Oil goes down but gas goes up?

You really do have nothing more than hamburger for brains, don't you?

Klark Kent is a Kommunist. He thinks he's the Man of Steel (aka Joe Stalin), but he's another of the batch of Leftards like Whiney Joe Besser, and of course their feerless (or is that feckless) leeder JoeNoBedroom.

Charles the Curmudgeon

leeder?

Drinking so early in the day yet AGAIN?

Think about this for a minute, too: Oil refineries are making less money than a year ago. They haven't totally passed on the higher costs of crude oil yet.

Jeff

We're not buying as much fuel as a year ago. So we're buying less.

Jeff

How does where one lives depends on gas prices?

That should mean that there is an increased supply and decreased demand. That doesn't explain why prices are going up.

They still use gasoline for the Coca-Cola 600, though.

Jeff

Traders in commodities can make money no matter which way their investment's price moves. All they need is movement.

- Lack or presence of nearby competition.

- Local taxes & real estate prices

Other reasons, too.

The weak dollar may be part of the problem. I don't see how the subprime crisis is partly responsible, however.

Jeff

THis guy doesn't know anything about cars or motorsports, and I think he only knows what a Toyota is from TV advertising...

Exactly.

That explains why gas prices depend on where one lives, not the other way around, as badgolferman said.

jeff

I live in a small town about 20 miles west of Toledo, Ohio. The gas for sale here comes from either of two refineries in Toledo. The price of gas is always from 5 to 10 cents per gallon cheaper in the town 7 miles west of us than in our town. The gas sold there has to go through our town to get to that town. Why is it cheaper when it comes from the same place and has to be hauled farther?

Why do all the gas stations in a town charge the exact same price?

Why, if the supply of crude exceeds the demand for crude as it has for the last quarter, is the price so high?

Why has the reduction in demand for gasoline not resulted in a reduction in the price?

Jack

Because the price is not pegged to any material reality.

What did I say? All I said was to move to Virginia.

It is determined by the price of crude and the cost of refining and marketing the gas. It won't stay below these costs (if it ever gets below them) for long.

The price of gasoline is also determined by marketing factors. If a gas station is near a major highway or not near another gas station or in an expensive neighborhood, then the price that the refinery sells the gas to the gas station will be higher.

Jeff

Just look upo a few lines; you said: "Where you live can depend on gas prices."

It wasn't me who said that. Up until this post I have had only three responses in this thread. They're not hard to find if you want to prove me wrong.