question about your local gas prices

[Dave Ribeiro]

Michael,

One of the Best explanation's of what's happening in America today !!!!

* Why don't we listen to the people, all the Polls say we are headed in the WRONG direction & have been for the last 6 years !!!

[art leong]

Originally Posted by Michael Beard

Question the premise. Look beyond gas.

While increased supply and lower prices would be great for everyone, the idea that gas can magically be $2/gal again is a dream. The profit margin on gasoline is about 8 cents per gallon. They could lower prices $.08/gal, basically giving their product away, and any market fluctuation would make them go from making billions to losing billions in a heartbeat. When you're selling billions of units of any product, you're *going* to make a lot of money.

The real culprit of high prices: The Federal Reserve. It stuns me how many people don't know that the Fed is NOT a government-run agency. The Fed has been pumping a STAGGERING amount of unbacked currency into the system starting out with $3 Trillion in "stimulus" and then hiding an additional $1 Trillion per year right out in the open under the name "Quantitative Easing". Maybe the public would pay more attention if they called it counterfeiting. We are essentially buying our own debt. The devaluation of our currency through the massive increase in the money supply causes prices to rise. It's called inflation. Anyone that actually shops knows that the CPI measurement of inflation is as bogus as what they call "unemployment".

The only reason we haven't gone completely over the cliff is that the funny money on the books has been bottlenecked in the banks. Banks get money from the Fed at near-zero interest, and sit on it for a 3% return. They have no incentive to lend. If the Federal Reserve turns off the spigot, the markets will crash. If banks let the money supply spike out into the public, hyperinflation destroys the economy. If the Fed doesn't stop manipulating our currency, other countries may stop lending to us, credit rating gets downgraded further, interest rates rise, and destroys the economy. Probably the only thing keeping everything going right now is that other countries are doing it too.

Quite frankly, I don't see a way out. The math doesn't work, and no one's really interested in actually fixing the problem. It needed to be set on the path to be fixed a dozen years ago.

Mike this is one I fully agree with you on. But I haven't heard or been able to figure out how to fix it without cratering the economy.
We literally have a "tiger" by the tail.

[CycloneFE]

My family still has about 5 wells pumping on our property and we receive a very small percentage for the oil. I was informed that for the whole month of October last year the wells were shut off, when asked for an explanation, none has been given to date.

Jack, back to your original post, the swings here in central IL seem to be about .30 but it has hit .50 once in a while.

[John Kissel]

As far as crude being marketed as a commodity, I have never understood, and my heating oil dealer told me a few years ago, their org. was trying to get it so that only those in the oil business could buy and sell crude. Home heating was $3.41 last week, Shell 93 was $3.75, and Hess 93 was $3.57 this week. Then add in Lucas fuel treatment so we don't have problems.The other stuff won't start a brush fire so I don't mess with it. Care to guess why my days of riding up and down the highway to race are over??? John Kissel

[dartman]

5.17 for a gallon of gas here.

[Ed Wright]

Originally Posted by John Kissel

As far as crude being marketed as a commodity, I have never understood, and my heating oil dealer told me a few years ago, their org. was trying to get it so that only those in the oil business could buy and sell crude. Home heating was $3.41 last week, Shell 93 was $3.75, and Hess 93 was $3.57 this week. Then add in Lucas fuel treatment so we don't have problems.The other stuff won't start a brush fire so I don't mess with it. Care to guess why my days of riding up and down the highway to race are over??? John Kissel

That is most of it right there. Traders.

[Jim Wahl]

Today here in Central Florida regular is $3.37. Diesel has stayed at $3.89 to $3.99 for the last several months. On the major highways it's sometimes $.10 or more a gallon than in town. Gasoline does seem to go up by $.05 - $.10 overnight often. No more $.01 - $.02 anymore. Up then down, up then down. No reason to be seen.

Remember when the difference between the three octane grades of gas was $.10? Now it's $.20 or more between grades. Jim

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[Ed Wright]

Regular has been $2.86 to $2.99 for some time. Diesel varies from $3.55 to $3.75. Always goes up a dime overnight, back down a penny or two at a time. Never comes down nearly as fast as it goes up.

[FINESPLINE]

Originally Posted by Ed Wright

That is most of it right there. Traders.

That is the problem. Oil as a commodity being traded by people on paper. There should be a law that for you to trade oil you would have to be able to delivery of the product.

[Ed Wright]

Originally Posted by FINESPLINE

That is the problem. Oil as a commodity being traded by people on paper. There should be a law that for you to trade oil you would have to be able to delivery of the product.

I absolutely agree. They do not provide a needed service. I did have have a clown try to convince me they did. Nothing he said held water. Should be illegal.