it was months ago. Well, not really, since up till two months ago_when barrel was less than $70_gas prices were higher than they are now? Isn't that odd?
2007-10-28 08:36:31 · 8 answers · asked by mybusiness2 1 in Cars & Transportation ➔ Maintenance & Repairs
$92 is the spot price for top premium crude. Crude oil is bought on the futures market (months, possibly a year before it is delivered) and the oil companies pay a lot less than the spot price. In addition, the crude that is processed into gas is not the premium crude anyway. Back when the oil companies said that crude was in the 70's most of the oil they used cost them in high 40's to the low 50's via the futures market for the grade of oil that was processed into gas.
Are we being ripped off...... you betcha!
2007-10-28 11:01:19 · answer #1 · answered by G T 6 · 0⤊ 0⤋
When the prices were higher last time it was due to the combination of high prices and shortages of refining capacity. This time the refining capacity and gasoline stocks are fine, but there is bound to be upward pressure on prices due to the high crude prices.
Good point though, we are paying less than when crude was $75/bbl, there must be some politics involved here, the oil companies are not likely to give up any profit especially when they have an excuse.
2007-10-28 08:52:29 · answer #2 · answered by cimra 7 · 0⤊ 0⤋
Well its like this.
Oil companies buy gas at that price about 3-4 months ago. They keep them in those huge tanks. They refine it and sell it.
Gas prices will rise but only when companies need to start buying more expensive gas.
2007-10-28 08:45:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Big Brother jacked up the barrel cost in order to justifiably screw the consumer during the winter months
2007-10-28 08:47:10 · answer #4 · answered by u_r_brain_daed 4 · 1⤊ 0⤋
on the grounds which you probably did no longer pay the real value while crude became headed up. while a barrel of oil went for variety of $50 on the international industry, a gallon of gasoline went for variety of $2.50. the cost of crude tripled to a excessive of $a hundred and fifty/barrel. yet a gallon of gasoline did no longer get to the corresponding ratio of $7.50/ gallon. you may no longer degree off the excessive. The costs do no longer constantly precisely song.
2016-10-14 06:47:58 · answer #5 · answered by derverger 4 · 0⤊ 0⤋
Lag time.
1. to fail to maintain a desired pace or to keep up; fall or stay behind: After five minutes of hard running, some of them began to lag.
2. to move or develop slowly, as toward a goal or objective, or in relation to an associated factor (often fol. by behind): to lag behind in production.
3. to delay or fail in reaching full development: The factory lags regularly in making its quota.
4. to hang back; linger; delay: The old friends lagged because they wanted to talk some more.
2007-10-28 08:42:02 · answer #6 · answered by Mr. KnowItAll 7 · 0⤊ 1⤋
Yes, that is odd . I was asking that question myself.
Maybe they have enough for a profit already.
2007-10-28 08:41:33 · answer #7 · answered by Adam C 1 · 0⤊ 0⤋
just wait until close to Thanksgiving weekend when they expect everyone to drive and you will see the $3.00 or more per gallon arise, just hold on,it will be here never fear.
2007-10-28 12:47:35 · answer #8 · answered by mister ss 7 · 0⤊ 0⤋