Gas prices...WTF?

[mrgorth]

I'm just wondering how the companies are continuing to justify current prices so long after Katrina. Is our refining capacity still down very far? I know $/BBL is up but is it up much from the days of when gas prices were below $2/gallon? Thanks.

[Historic NY]

1. They hope people didn't notice the steady climb..........

since the elections were over. Funny isn't it and people don't seem to notice. A barrel of oil is now even less than when oil was before the last round of increases.

[Purveyor]

2. I wish someone could explain to me why heating oil is at the same

price as gasoline, when it takes less refining effort to produce and .60 of road taxes is not built into the price.

[Warpy]

3. A couple of things are affecting them

First, refineries are starting to reformulate their gas for summer driving. It's not just generic octane mixtures these days. Here in NM the law requires a precise mixture of ethanol and gasoline, and other states have similar pollution control laws with different formulations. They're not lying about that one. Winter gas is getting a little on the scarce side, prices are being bid up by wholesalers.

Then there's the price of oil. Saudi Arabia opened the oil tap wide late last fall in the hope of driving down prices enough to give Iran a hit in the pocketbook and make them a little more reasonable. It worked for a time. However, Stupid has taken the opportunity to wave his dick around again, and now prices are starting to creep up despite a huge supply. Oil folks are getting nervous. They know the US is run by madmen.

Don't expect them to go down permanently. In fact, don't expect much stability in prices until Stupid is out of office, preferably in prison.

[GliderGuider]

5. One small correction

KSA said they were going to open the taps and flood out the Iranians. They did no such thing. Their production is down 1 million barrels per day since they made that idle threat. From a post of mine on the thread about Kashagan:

The OPEC targeted cuts for November, December and January totaled 1,200,000 bpd. KSA agreed to cut 380,000 bpd of that total. But out of the goodness of their hearts they are "voluntarily" cutting 1,000,000 bpd as of February, leaving the rest of OPEC to absorb the remaining 200,000 bpd (in effect covering for the rest of them cheating on the agreement).

I'm convinced KSA's oil production is now in decline, and anything they say from now on about raising production or their reasons for cutting production should be examined with a very jaundiced eye.

[Warpy]

6. Right, I knew the tap wasn't opened as wide as originally promised

and that it didn't have the desired effect except to get Stupid another term in office he doesn't deserve.

I agree they may be facing an involuntary decline in production.

[Double T]

4. BIG OIL doesn't have to justify ANYTHING to ANYONE...........

THEY are a monopoly and a cartel; special thanks for the HIGH GASOLINE PRICES and the PERPETUAL SCREWING courtesy of 'OUR' corporatist congress and (IN)justice department.

[Javaman]

7. Boiling the frog. nt

[One_Life_To_Give]

8. Gas Consumption WTF

If gas consumption is going to remain fairly constant for any price below $3.00 a gallon. Then why would anyone in their right mind charge less than that for gas? It's simple economics, the price is that high because people are paying it.

[NickB79]

9. As Phantom Power would say

I'm thinking of two words that rhythm with "bleak soil".

[kestrel91316]

10. Get used to it, 'cause it isn't going to improve.