Gas Is Going Up..... Thanks Obama......
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“Really? I mean, REAAALLLYY???”

Since: Nov 08

Grand Rapids, MI

#223 Sep 12, 2011
Gas prices are still ridiculously high. I'm glad that my good old trusty Lexus gets decent gas mileage. I have a 60 mile round trip to work every day. My last job was 180 miles round trip. That cost me $150.00 a week in gas... lol

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#224 Sep 12, 2011
Is it just me or has anyone else noticed that there no longer seems to be any correlation between Gas Prices and Oil Prices. I just checked and last time gas was $3.89 a gallon (what I paid this weekend) oil was at $126.00 a barrel. Oil is currently around $88.00 a barrel so why isn't gas at say 3 bucks a gallon?
snomad

Cadillac, MI

#225 Sep 13, 2011
With analysts predicting $126 - $130 a barrel for 2012, my guess would be the old correlation between retail gas and crude prices is history and we are being primed to accept $4.00 a gallon (next year) as a bargain, $4.25 as average. JMHO

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#226 Sep 13, 2011
snomad wrote:
With analysts predicting $126 -$130 a barrel for 2012, my guess would be the old correlation between retail gas and crude prices is history and we are being primed to accept $4.00 a gallon (next year) as a bargain,$4.25 as average. JMHO
Sadly I think you are right.$4.00+ a gallon gas is going to be the new normal.

“Lost in the middle somewhere..”

Since: Nov 07

Location hidden

#227 Sep 13, 2011
Hurley35 wrote:
Is it just me or has anyone else noticed that there no longer seems to be any correlation between Gas Prices and Oil Prices. I just checked and last time gas was $3.89 a gallon (what I paid this weekend) oil was at $126.00 a barrel. Oil is currently around $88.00 a barrel so why isn't gas at say 3 bucks a gallon?
My husband has been repeatedly saying the same thing. I simply don't understand why oil is so low yet gas remains so high.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#228 Sep 13, 2011
-LMS- wrote:
<quoted text>
My husband has been repeatedly saying the same thing. I simply don't understand why oil is so low yet gas remains so high.
Well, the first two quarters of this year all the oil companies had record profits. I'm sure that's part of it, but I think it's more than just one thing driving the price. Whatever the reason the old formula's don't work anymore. If oil is a such and such a price then gas will be X amount at the pump. You just can't assume that anymore.

“Taz say Hi”

Since: Jan 08

Holland,MI

#229 Sep 13, 2011
I'm not at all surprised to see the one time correlation between oil prices and gasoline prices seems to have disappeared. The "experts" keep coming up with various "reasons" for our high prices only to see the latest excuse also fall by the wayside. I have noticed recently that our prices here in Michigan seem to be running about 20 cents per gallon higher than in the Norfolk, VA area while the excuse makers cite Lee causing the refineries to shut down in the New orleans are as the reason.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#230 Sep 13, 2011
-LMS- wrote:
<quoted text>
My husband has been repeatedly saying the same thing. I simply don't understand why oil is so low yet gas remains so high.
This is completely my own opinion and I have nothing to back it up but I think when gas went over $4.00 a gallon in 2008, people started reducing their consumption. They changed their driving habits and maybe even bought a more fuel efficient car. But 4 bucks a gallon seemed to be the breaking point for most people. The oil companies learned that and this time around consumption has not dropped at all. People are almost numb to $4.00 a gallon gas. So if that's what the market will sustain then that's where the price will be. I've noticed that even when oil was 10 bucks a barrel more expensive earlier this year, there seemed to be a real hesitancy to raise gas above $4.00 a gallon. That seem like a Psychological breaking point for many drivers.

“Dude, Where's my car?”

Since: Jan 08

Location hidden

#231 Sep 13, 2011
Gentle Taz wrote:
I'm not at all surprised to see the one time correlation between oil prices and gasoline prices seems to have disappeared. The "experts" keep coming up with various "reasons" for our high prices only to see the latest excuse also fall by the wayside. I have noticed recently that our prices here in Michigan seem to be running about 20 cents per gallon higher than in the Norfolk, VA area while the excuse makers cite Lee causing the refineries to shut down in the New orleans are as the reason.
I agree. It's kind of like the stock market. The market goes up, there's a "explanation" for it. The market goes down and "experts" have another explanation for it. The only explanation I can see is that it defies reason.
snomad

Cadillac, MI

#232 Sep 13, 2011
I believe it's a combination of things... such as more traders are adding commodities to their list as stocks have been taking a beating at worst, unreliable at best. A lot of hedging happening. I see Exxon is gaining ground again since their high in July, although this is likely due to their "prize" artic deal with Russia. Abundance doesn't appear to be a near future issue at all, just greed. I'm sure Exxon (among others) would rather not fund any new projects with cash resources when they can make up the difference from crude prices at the retail end.

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