Questions on Oil

[johnsmith]

This has probably been answered but I rarely open up the oil price threads mainly because I prefer to just be an angry motorist when it comes to oil prices and like to reserve my anger to speculators.

So, since oil has come down over the past week and a half to $127 and some change, why haven't gas prices went down to what they were when oil was last at $127 and some change (which I believe was about ten cents lower then it is right now this instant)?


Second, can this be attributed to Bush's move to try and lift drilling bans? I figure yes, because if oil can go up $15 in a day because some ass clown that if I ever meet I'll beat to death just says that he expects oil to be at $150 by July then why wouldn't it come down with the President saying that he is trying to lift bans? Does he deserve some credit here?

I understand that speculators allegedly base their buying/selling on supply vs. demand, so wouldn't that make sense?

[DarrinS]

So, since oil has come down over the past week and a half to $127 and some change, why haven't gas prices went down to what they were when oil was last at $127 and some change (which I believe was about ten cents lower then it is right now this instant)?




Because what's really driving prices is dudes sitting at their PC's, speculating on the future oil price.

[fatsack]

So, since oil has come down over the past week and a half to $127 and some change, why haven't gas prices went down to what they were when oil was last at $127 and some change (which I believe was about ten cents lower then it is right now this instant)?


please stop making sense.

[boutons_]

expect the prices downward to be sticky, while the upward prices will always be "oily" fast.

It they continue downward, the $140+ spike over many weeks will prove to the speculators/manipulators and oil producers that $140 and above is sustainable without pushing the world into recession and drop in demand.

ie, there's more profit to be had, and you just know the profiteers will take all they can for as long as they can.

the drop now is due to the speculators/manipulators expecting a dropoff in the US oil demand in the next few months as the economy continues to crater.

[RandomGuy]

This has probably been answered but I rarely open up the oil price threads mainly because I prefer to just be an angry motorist when it comes to oil prices and like to reserve my anger to speculators.

So, since oil has come down over the past week and a half to $127 and some change, why haven't gas prices went down to what they were when oil was last at $127 and some change (which I believe was about ten cents lower then it is right now this instant)?


Second, can this be attributed to Bush's move to try and lift drilling bans? I figure yes, because if oil can go up $15 in a day because some ass clown that if I ever meet I'll beat to death just says that he expects oil to be at $150 by July then why wouldn't it come down with the President saying that he is trying to lift bans? Does he deserve some credit here?

I understand that speculators allegedly base their buying/selling on supply vs. demand, so wouldn't that make sense?

The retailers and refiners kind of got squeezed a bit in the recent run up and will try to recoup some lost profits as oil falls. They were unable to fully pass along costs of higher oil, although they obviously did pass on a good chunk of that cost.

Boutons is right that gas prices will be somewhat "sticky" on the way down, but will come down.

[Wild Cobra]

I can make a quess that it has something to do with shipping time.