Gas - WTF?

[fredjacksonsan]

Again with the price increases. First it was the "oh, the British hostage situation has destabilized the region" panic. Now what? It's up another 10% since then.

Fucking gas companies.

[BNaylor]

Originally Posted by fredjacksonsan

Fucking gas companies.

Man, it is I got premium unleaded today at $3.01/gal for Chevron. Regular is at $2.80/gal. What is the excuse this time?

[sickcallawayc12]

Eh, whatever, gas is gas. I don't even bother checking gas prices anymore cuz I realized long ago that vehicles do nothing but eat my wallet like Homer eats pork chops so I just sit back and take it up the arse. Gas prices would have to skyrocket to make me trade my Blazer in for a bike anyway.

[00accord44]

Paid $2.88 for 87 yesterday... thus why I'm getting a bike this summer

[03cavPA]

Well, we always get the song and dance about supply and demand. If that's the case, where are the shortages in supply to go along with the increased prices?

Has anyone been unable to buy any gas anywhere lately? Is there a genuine shortage anywhere?

I am merely asking, since I'm sure there must be someone reading this stuff who might have some information about the gasoline market.

[00accord44]

The supply is rather constant so it actually has far less effect on the equation than demand. The demand in emerging markets like India and China is rapidly increasing and suppliers go where the money is. As a result, there is less oil for the rest of the world. So the overall supply hasn't changed much but the supply reserved for our level of demand is decreased by the extra barrels sold in the East.

[drunken monkey]

it's not even entirely about demand.
much of what we see in changes in oil prices is based on speculative situations.
some diplomat gets assassinated, people worry about what it might mean five years down the line - prices go up.

Pm of country X has tea with oil producing country Y; people are less worried about the future - prices go down.

[Damien]

It's getting closer to summer...saw it coming. Selling the Jeep soon for a 4cyl. I drive too much.

[sickcallawayc12]

Originally Posted by 03cavPA

Well, we always get the song and dance about supply and demand. If that's the case, where are the shortages in supply to go along with the increased prices?

Has anyone been unable to buy any gas anywhere lately? Is there a genuine shortage anywhere?

I am merely asking, since I'm sure there must be someone reading this stuff who might have some information about the gasoline market.

Let's see if i can remember my economic studies correctly:
Gasoline is an inelastic product, meaning customers don't react too much, if at all, to increased prices. elastic is when people react very much to increased prices. Inelastic products tend to be products that are "absolutely necessary." in this case, the majority of the people in the world are very very very dependent on gasoline so most get it regardless of increase/decrease in price. And i highly doubt we have a major shortage of oil, i'm sure our government has millions and millions of emergency barrels stored somewhere in case we piss someone off in the world and OPEC cuts us off. I also believe that there is millions of gallons of more crude oil that hasn't been found yet (and i'm sure our government knows where) so I wouldn't expect a shortage anytime soon.

[00accord44]

your memories of the Elastic Demand Curves unit are correct. Gasoline is indeed inelastic

[BNaylor]

Well, I heard bad new on the evening news. Gas prices are not expected to drop anytime soon and will most likely go up and in anticipation of the summer. Contributing fators was uncertainty in the Middle east, upcoming summer and weird weather in parts of the country.

[mike@af]

Dont forget that the prices go up in the summer because the gas is more expensive to make in the summer to due pollution restrictions and more refining and additives. In the winter, prices drop because the gasoline is cheaper to produce.

[taranaki]

Sad when Americans complain about gas prices. Go buy some in Europe.

[00accord44]

Yes, its musch more expensive there, but their economy is set up to where that works for the people. If gas suddenly shot up to european prices, our country would go absolutely ape shit.

[BNaylor]

Originally Posted by taranaki

Sad when Americans complain about gas prices. Go buy some in Europe.

Hey we complain about anything and everything so what else is new. Nothing wrong with venting.

As to gas in Europe it is heavily taxed and the quality is supposedly much better. Regular unleaded is 95 octane or better. U.S. is around 86-87 octane.

I did and I paid those high prices in the past when I lived in Germany for 6 years.

BTW - What are you paying?