Now watch gasoline prices can you say 4 dollars a gallon

[brewer12345]

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Originally Posted by mathjak107 im starting to thing about taking a stab back into select natural gas fund again...i think thats next to go up again...at least thats what my crystal ball tells me...im already on the oil rebate plan,,now its time to get on the natural gas rebate plan i think

I think an investment in the nat gas fund would probably be a VERY well timed investment.

Has anyone done a plot of price of a barrel of oil vs. average price at the pump? One's impression is that the pump price tracks the oil price on the way up, but lags on the way down. I wonder if that's true.

[justin]

Quote:

Originally Posted by TromboneAl Has anyone done a plot of price of a barrel of oil vs. average price at the pump? One's impression is that the pump price tracks the oil price on the way up, but lags on the way down. I wonder if that's true.

Al,

I haven't done a scientifically scientific study. But for a few months I would watch the daily spot price of regular unleaded gas and try to predict changes in the price of gas. It seemed like sharp increases would cause a spike at the pump in a day or two. Sharp decreases usually took 5-7 days to gradually ease down to where they should be.

Part of it might be the supply chain. From refinery to pipeline to regional storage tanks to distributor(s) to gas stations (at least in this part of the country). Each party is quick to pass on the increase in cost to those below them in the supply chain. When the price drops, it may take each party a little longer to pass on the reduction.

The retail gas station also has the problem of buying in bulk at what may be spot prices. Say on Monday they fill up their 10000 gal underground storage tank with gas that might retail at $2.70. The spot price jumps $0.10, and they can then sell that gas for $2.80 and make more money. If the opposite occurs, and the price drops $0.10, then they would be losing money if they sold the gas at $2.60. They aren't going to lose money (neither are surrounding gas stations), so the price stays relatively high until they sell off the "expensive" gas.

Or maybe I'm just rationalizing the gas stations sticking it to me. Although I think their net margin on a gallon of gas is a few cents usually.

[Nords]

Quote:

Originally Posted by TromboneAl Has anyone done a plot of price of a barrel of oil vs. average price at the pump?* One's impression is that the pump price tracks the oil price on the way up, but lags on the way down.* I wonder if that's true.

I don't know if it's true or not, but Hawaii passed a gas price-cap law based strictly on that paranoia concern.

Whenever the cap is going up next Monday, it's not unusual to see the smaller stations run out of supply over the weekend. It's not very easy to arb that when you only gas up once or twice a month.

Kinda ironic that the socialist Democratic senate/house passed the law and has concluded that it's not such a hot idea, but they don't want to seem to be doing the Republican business-friendly governor's bidding in revising/ditching the law.

[mathjak107]

gasoline rises based on the market and comes down based on the competition and what they do....im in the electrical wholsale business and we go thru this with copper. wire...we have to rise with the market but not wanting to loose money on what we bought we drop as slow as we can watching what our competitors do.....

[mathjak107]

a funny story illustrating why you must change immeadiately with the market and why you can't base your resale price in a rising market on what you paid at the time you bought it.......


i was in a little country store looking at honey in jars....how much for a jar?
the woman behind the counter goes 2.50 a jar,and its a good price because when i go to but it again it will cost me 3.00 a jar. on my next order...

i said great give me all your jars then for 2.50...ill then sell them back to you for 2.75...ill make .25 you will save .25 and we both are happy......she goes wait but im a quarter of a jar poorer than before i made the sale to you...

i said yep....that what happens when you base your resale on a product you have to buy back at a higher price...she was blown away by this.......
i

[Maximillion]

Bush is backing off on ethanol, keep adding to those Green House Gasses, what the hell, when you are at 34% popularity, grab at any straw.

Well, at least gas will be cheaper, for now.

Concern amongst Scientists is that due to the warming of the Arctic, Polar Bears are now drownding and may be an endangered or extinct species within the immediate future.

[brewer12345]

Quote:

Originally Posted by Maximillion drownding

Jay, is Silent Bob there with you?