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  #1  
Old 10-06-2008, 08:04 AM
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Oil falls $57.00 since hitting its peak of 147.00/bbl

What I'm not understanding is the very minimal effect on fuel prices.

Oil has fallen nearly 60% (147--->89)

Fuel has fallen (in the states) from est. $4.00/gallon to $3.63/gallon, percentage: 9% roughly.

If fuel prices fell from $4.00 by even 40% the price would be: $2.40

Think about this as well, Unleaded gallon trading on the market was: $2.23USD/gallon
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Old 10-06-2008, 08:08 AM
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Gee, I wonder what the 3rd quarter oil company profits will be?

I heard there were 52 oil platforms destroyed by Ike. The gas shortages in the southeast have been severe. There was no gas in Charlotte last weekend!
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Old 10-06-2008, 08:18 AM
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Gas is still over $4 here
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Old 10-06-2008, 09:30 AM
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Quote:
Originally Posted by Wagner
Oil has fallen nearly 60% (147--->89)
No it hasn't - that is a 40% reduction (39.46%)

Quote:
Originally Posted by Wagner
Fuel has fallen (in the states) from est. $4.00/gallon to $3.63/gallon, percentage: 9% roughly.

If fuel prices fell from $4.00 by even 40% the price would be: $2.40

Think about this as well, Unleaded gallon trading on the market was: $2.23USD/gallon
You are forgetting that the petrol retailer needs to pay staff, overheads and make a profit, plus there is the cost of refining, transportation of the oil to the retailer, and any taxes - so retail prices are always going to be significantly higher than the trading price. Fuel prices always lag the market prices - fuel in the forecourt now was probably purchased 2 weeks ago and so it should be compared against the oil price at that time. However it is true that prices go up faster than they come down.
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Last edited by StumpyPete; 10-06-2008 at 09:36 AM.
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Old 10-06-2008, 09:42 AM
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Quote:
Originally Posted by StumpyPete
No it hasn't - that is a 40% reduction (39.46%)



You are forgetting that the petrol retailer needs to pay staff, overheads and make a profit, plus there is the cost of refining, transportation of the oil to the retailer, and any taxes - so retail prices are always going to be significantly higher than the trading price. Fuel prices always lag the market prices - fuel in the forecourt now was probably purchased 2 weeks ago and so it should be compared against the oil price at that time. However it is true that prices go up faster than they come down.
Doh, good catch.
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Old 10-06-2008, 09:48 AM
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Quote:
Originally Posted by Wagner
Doh, good catch.
My bill is in the post.
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Old 10-06-2008, 11:04 AM
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Heard on radio that analysts say that gas will drop to below $3/gal.
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Old 10-06-2008, 11:09 AM
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Wag, I love your bio line that states REAL oil prices vs. current pricing. It really annoys me that with current PPB we are still nearly 4.00 a gallon for Premium.
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Old 10-06-2008, 11:11 AM
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Quote:
Originally Posted by blondboinsd
Wag, I love your bio line that states REAL oil prices vs. current pricing. It really annoys me that with current PPB we are still nearly 4.00 a gallon for Premium.
We're getting ripped, but as George Carlin said "no one pays attention, no one seems to mind'
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Old 10-06-2008, 03:23 PM
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Freaking gas is $4+ here because some IDIOT f'ed up our supply
Gas in NEW ENGLAND is UNDER 3.
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