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Why can oil prices fall $7 since Christmas, yet my local gas station's prices seem unaffected by this, yet if prices had rose, I could guarantee the pump price would skyrocket immediately afterward?

2007-01-10 08:30:14 · 5 answers · asked by Anonymous in Business & Finance Other - Business & Finance

5 answers

Because the Jackass we have in The White House allows these oil companies to gouge the American people whenever they want. They don't even need a reason.

2007-01-10 08:39:27 · answer #1 · answered by brioma33 3 · 0 0

at the close of the third friday of the month the next months oil is shipped out, so Feb 07 oil (the price of oil to which you are referring to the $7 fall) will be shipped jan 19th. then the price of that oil on that day is the locked in, until then the price of that oil is still changing, so gas stations will lower prices but slowly until they are assured that the gas they will be buying will be cheeper (since oil could jump back up before it's shipped). Look for prices to start falling in the next few days and weeks.

2007-01-10 08:49:13 · answer #2 · answered by Economics Guy 3 · 0 0

According to the oil/gas industry, the barrel prices are based on a current price per barrel on the open market. Gasoline prices are based on prices of oil purchased earlier (some times months earlier) since it takes time for the oil to be refined into gasoline and then sold to the local gas station.

2007-01-10 08:35:22 · answer #3 · answered by jseah114 6 · 0 0

there's a whale of a super form of stuff as properly gasoline that comes from oil. evaluate that the asphalt on the streets you tension on are the backside of the processing column trash that refiners used to would desire to pay individuals to haul away. From a barrel of oil comes rubber for tires, plastic factors for issues commencing from cups and youngster's toys to surgical hoses to the nylon's the ladies positioned on. It makes fabric, pop bottles, and carpets. some is going into paints and lubricants and kerosene for previous shaped lamps or storage heaters. in case you purchase candles, maximum of those waxes got here from oil (a honest volume nevertheless produced with the aid of bees, yet theirs melts too immediately each so often). Even then, to make gasoline you each so often would desire to crack long polymers into the the main suitable option lengths and fuse short ones to get issues like octane interior the the main suitable option parts. Then the politically mandated forumlations for diverse cities or states would desire to be allowed for and someway Chicago's mandates do not tournament la' or Seattle's, that variety of undertaking. It gets complicated.

2016-10-30 13:43:20 · answer #4 · answered by ? 4 · 0 0

Do you go to the pump any less? No? Then the price is just a reaction to inelastic demand. You pay what the markey will bear. Hop on the bus or bike.

2007-01-10 08:41:35 · answer #5 · answered by Eric 3 · 0 0

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