Letter: Why haven't gas prices dropped?

Letter: Why haven't gas prices dropped?

There are 15 comments on the Oroville Mercury-Register story from Oct 10, 2008, titled Letter: Why haven't gas prices dropped?. In it, Oroville Mercury-Register reports that:

Oil is selling at approximately $95 a barrel and the consumers are paying the same price for gasoline when oil was $140 a barrel.

Join the discussion below, or Read more at Oroville Mercury-Register.

“An Erudite Hillbilly”

Since: Mar 08

Lake Oroville, CA

#1 Oct 10, 2008
It was down to $87 a barrel. When gas prices are high before an election, more people vote against the incumbent party. Think perhaps there's some strings being pulled here and there?

Since: Apr 08

Chico

#2 Oct 10, 2008
Tim Pro wrote:
It was down to $87 a barrel. When gas prices are high before an election, more people vote against the incumbent party. Think perhaps there's some strings being pulled here and there?
Tell me, why would the oil companies want Obama in office? If I'm to believe the Republican'ts, the Democrats will tax windfall profits, prevent drilling, and advocate movement away from fossil fuels. So tell me, TimPro, why would the oil companies collude with the Democrats to keep fuel prices high?

By the way, oil is down 40% from it's July high. That means gasoline should be in the $2.50 range.
Well

West Tehama County, CA

#3 Oct 10, 2008
You folks don't actually believe that "invisible hand" nonsense do you? Government never willingly give up power and corporations never willingly give up profit.
Joe Sixpack

United States

#4 Oct 10, 2008
Gasoline was nearly 5 bucks. Now it's 3.34 at safeway. That decline matches the global price decline. It'll go down lots more once the Bush recession takes hold.

Since: Apr 08

Chico

#5 Oct 10, 2008
Joe Sixpack wrote:
Gasoline was nearly 5 bucks. Now it's 3.34 at safeway. That decline matches the global price decline. It'll go down lots more once the Bush recession takes hold.
No, gasoline was not nearly $5, it averaged $4.58 in July before the declines began. Take oil prices at $146 then an $79 today. That marks a 48% drop in price. That means that gasoline prices should have dropped close to 48%, putting them near $2.40. Tell me, have you seen gasoline anywhere for near that price? What about $3.00?

Currently gasoline is $3.50, which means it has only fallen 24%. So, what happened to the other 24%? I'll tell you what: while stocks are dropping like a stone, the oil companies will announce near-record profits once again.

Why we allow this is beyond me and people like you defending them is laughable.
Living Large

AOL

#6 Oct 10, 2008
So we can take it up the butt some more and say thank you may I please have another
Moose

Denver, CO

#7 Oct 10, 2008
Actually the price you pay at the pump has nothing to do with the price per barrel. The price you pay, is based on the projected supply and demand months out. Not saying that this is the best way to do it, but thats how it has been done for years. The price per barrel is determined by investors and commodity trading, so the barrel price really has nothing to do with what the current supply and demand is rather more to do with were people think the demand "will be". where supply and demand comes in, is when gas companies look and decide where the demand is going to be at 3 months from now, as the gas we are currently using was alredy sold months ago. thats the short version.

Since: Apr 08

Chico

#8 Oct 10, 2008
Moose wrote:
Actually the price you pay at the pump has nothing to do with the price per barrel.
Moose,

Please review this chart that shows the relationship between the price of oil and the price of gas. I think this clearly shows that the price of gasoline follows the price of oil.

http://inflationdata.com/inflation/Inflation_...

This is just one of many, many charts that plot the price of gas vs oil and they all show a close relationship.
Betty

Tulare, CA

#10 Oct 10, 2008
It has gone down, by about $1.20 a gallon.
Nelson Rockefeller

Chico, CA

#11 Oct 11, 2008
Moose wrote:
Actually the price you pay at the pump has nothing to do with the price per barrel. The price you pay, is based on the projected supply and demand months out. Not saying that this is the best way to do it, but thats how it has been done for years. The price per barrel is determined by investors and commodity trading, so the barrel price really has nothing to do with what the current supply and demand is rather more to do with were people think the demand "will be". where supply and demand comes in, is when gas companies look and decide where the demand is going to be at 3 months from now, as the gas we are currently using was alredy sold months ago. thats the short version.
It's simply amazing the mumbo jumbo poppycock voodoo doublespeak that is contrived to delude people into thinking other than the obvious on issues like this. Its the same hocum used by the manipulators of the financial markets to deceive people into accepting a lie that is hiding the ugly truth. You can go on believing that all of this stuff (gas prices, the stock market, the bank failures) are just an unfortunate accident if you want to. But the simple fact is that a very small number of very greedy people are people are getting mega rich at the expense of everyday, normal people. Hundreds of thousands of jobs lost, thousands of businesses gone broke, people losing everything... It is an outrage that it is tolerated. It is an outrage that our government allows it to happen. Its an outrage that we just stand by and watch.
matthew

UK

#12 Oct 11, 2008
Moose wrote:
Actually the price you pay at the pump has nothing to do with the price per barrel. The price you pay, is based on the projected supply and demand months out. Not saying that this is the best way to do it, but thats how it has been done for years. The price per barrel is determined by investors and commodity trading, so the barrel price really has nothing to do with what the current supply and demand is rather more to do with were people think the demand "will be". where supply and demand comes in, is when gas companies look and decide where the demand is going to be at 3 months from now, as the gas we are currently using was alredy sold months ago. thats the short version.
then why does it go up staight away at the pump when the barrel prices go up?
Joe Sixpack

United States

#13 Oct 11, 2008
Nelson Rockefeller wrote:
<quoted text>
It's simply amazing the mumbo jumbo poppycock voodoo doublespeak that is contrived to delude people into thinking other than the obvious on issues like this. Its the same hocum used by the manipulators of the financial markets to deceive people into accepting a lie that is hiding the ugly truth. You can go on believing that all of this stuff (gas prices, the stock market, the bank failures) are just an unfortunate accident if you want to. But the simple fact is that a very small number of very greedy people are people are getting mega rich at the expense of everyday, normal people. Hundreds of thousands of jobs lost, thousands of businesses gone broke, people losing everything... It is an outrage that it is tolerated. It is an outrage that our government allows it to happen. Its an outrage that we just stand by and watch.
The "mumbo jumbo" is correct. It's market economics. If you happened to pay attention, Cheney had a secret meeting with oil execs in 2001 to cause oil prices and profits to go up. Lots of people got rich. But you could have too by buying oil stocks at that time. They quadrupled. But then with Cheney's plan winding down in 2006 or 2007 and oil stock prices peaking, you had to sell! So yes, you could have taken part in the party. So stop being a victim. Get informed, educated. Learn about markets. You can exploit markets legally just like the fatcats and make lots of money legally. Gasoline prices will drop to $2 very soon, because the world is sinking into a severe recession. However, will you go out and buy a gas hog then or will you drive an economical car such as a hybrid?
Nelson Rockefeller

Redding, CA

#15 Oct 11, 2008
Joe Sixpack wrote:
<quoted text>
The "mumbo jumbo" is correct. It's market economics. If you happened to pay attention, Cheney had a secret meeting with oil execs in 2001 to cause oil prices and profits to go up. Lots of people got rich. But you could have too by buying oil stocks at that time. They quadrupled. But then with Cheney's plan winding down in 2006 or 2007 and oil stock prices peaking, you had to sell! So yes, you could have taken part in the party. So stop being a victim. Get informed, educated. Learn about markets. You can exploit markets legally just like the fatcats and make lots of money legally. Gasoline prices will drop to $2 very soon, because the world is sinking into a severe recession. However, will you go out and buy a gas hog then or will you drive an economical car such as a hybrid?
How stupid of me. While I was wasting all of my time thinking the damage that was done to ordinary people and businesses of all types by these "fat cats" was a bad thing, I could have been getting really really rich, which obviously is what life is all about. Clearly, there are no bad people, just bad investors.

Incidentally, I know about the markets, what they do is quite clear to me Mr Pack. Look at what is happening everywhere in the world this day. Oh Lordy, if all of these ruined people and destroyed businesses had just followed your advice and invested wisely everyone would be really really rich and it would be heaven here on earth.

I never once portrayed myself in my commentary as a victim, you seem a little quick to accuse. I own a very modest home and I drive a a fuel efficient car as little as possible. I am on a fixed income and I am concerned about the financial crisis, but I consider myself fortunate. But I am not blind, and I see well what has been brought to us by the rich, connected, and powerful.
No Liberal Here

Coral Gables, FL

#16 Aug 5, 2011
Tim Pro wrote:
It was down to $87 a barrel. When gas prices are high before an election, more people vote against the incumbent party. Think perhaps there's some strings being pulled here and there?
There's no election of concern out there now, right! Look for this conspiracy right next to that birth certificate file.
Dode Penrod

Long Beach, CA

#17 Aug 5, 2011
Nelson Rockefeller wrote:
<quoted text>
How stupid of me. While I was wasting all of my time thinking the damage that was done to ordinary people and businesses of all types by these "fat cats" was a bad thing, I could have been getting really really rich, which obviously is what life is all about. Clearly, there are no bad people, just bad investors.
Incidentally, I know about the markets, what they do is quite clear to me Mr Pack. Look at what is happening everywhere in the world this day. Oh Lordy, if all of these ruined people and destroyed businesses had just followed your advice and invested wisely everyone would be really really rich and it would be heaven here on earth.
I never once portrayed myself in my commentary as a victim, you seem a little quick to accuse. I own a very modest home and I drive a a fuel efficient car as little as possible. I am on a fixed income and I am concerned about the financial crisis, but I consider myself fortunate. But I am not blind, and I see well what has been brought to us by the rich, connected, and powerful.
Excellent commentary. The only thing you left out is that it doesn't matter whether the Republicans or the Democrats rule Washington, the rich will have their way.

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