Anyone know why gas prices are shooting up?

[lindysalsagal]

Curious.

[Sherman A1]

1. Summer blends

and price gouging.

[TheBlackAdder]

9. Summer blends burn 8% less energy, emissions reduce by 8%, zero sum. This is socialist corn funding.

.


Mileage decreases, which requires more gas to be purchased. So gas prices go up and people have to buy more.

Whether it's an ethanol blending or MTBE, neither provide any real benefit. MTBE has health effects on pump operators.


It places these costs onto the backs of drivers.




Ca-Ching!

.

[roamer65]

13. I agree. It's stupid.

Just run on pure petroleum gasoline and strengthen CAFE standards well beyond President Obama’s changes.

There is no reason a car should not get at least 50 mpg. Focus on getting them all off the road in 10 years in favor of electric vehicles.

[NutmegYankee]

38. Summer blend gets better fuel mileage.

It’s not ethanol, it’s the Reid Vapor Pressure (RVP), a measure of volatility that changes. I need more volatile gas in winter to get a cold engine started. I need less volatile gas in summer to avoid vapor lock and gas evaporating into the air.

[TheBlackAdder]

46. Volatility is achieved though the octane rating. Energy reduction is via MTBE or other additives.

.

Volatility and energy per gallon are two different things, and if you car isn't rated for a certain higher octane, it's just wasting money.

It are those additives that supposedly burn cleaner, while sickening people and affecting ground waters.

The $0.25 a gallon surcharge for the MTBE reduces mileage, requiring more gasoline to cover the same distance. This has been discussed ad nauseam by Representatives of the Petroleum Institute on my local radio for years. It equates to a net wash, but is legislated to be put into the gasoline by some industry lobbying groups who control the MTBE production.

.

[NutmegYankee]

47. No, octane rating is a measure of how much compression the fuel can take before detonation.

Higher compression engines require higher octane fuels. Using regular gas in a high performance engine can cause knock from pre-detonation. Volatility is a measure of how much the fuel vaporizes. More volatility in winter helps engines start better in the cold. Ethanol is added (as was MTBE, and tetraethyl lead before that in the past) to increase the octane number and add oxygen to make the burn even cleaner. Yes, gas mileage is reduced by the lower energy content of ethanol, but it is added for emissions and to allow lower quality fuel to meet the octane ratings of modern engines.

[TheBlackAdder]

49. If gasoline is more volitile, it's octane rating is lower. The slower and more controlled the higher

.

And, after hijacking this point with volatility, which is why people buy certain octane levels, because high-performance cars cannot run on 89 octane as it is more volatile and has less of a controlled of a burn. I had cars which needed 94 octane, and friends had cars that needed 100LL aviation fuel to run properly, on the track of course (wink wink--no state gas tax). A car with low compression that uses 89 octane will not take advantage of 94 octane, it's a waste of money to put that higher fuel into the car, and changing the fuels causes the ECM to recalculate--but those cars will not achieve any real benefits. You can paste semantics about volatility versus knocking and pinging, but it's the same issue.

But, getting back to my original topic...


Ethanol has less energy per gallon, which when blended with gasoline, lowers its overall energy per gallon.

Since it lowers the gasoline, the energy is less, requiring more gasoline to deliver the same energy output.

Fuel Type Unit of Measure BTUs/Unit Gallon Equivalent
Gasoline (regular) gallon 114,100 1.00 gallon
Diesel #2 gallon 129,500 0.88 gallons
Biodiesel (B100) gallon 118,300 0.96 gallons
Biodiesel (B20) gallon 127,250 0.90 gallons
Compressed Natural Gas (CNG) cubic foot 900 126.67 cu. ft.
Liquid Natural Gas (LNG) gallon 75,000 1.52 gallons
Propane (LPG) gallon 84,300 1.35 gallons
Ethanol (E100) gallon 76,100 1.50 gallons <<< you need 1.5 gallons to equal 1 gallon of gas.
Ethanol (E85) gallon 81,800 1.39 gallons <<< you need 1.39 gallons to equal 1 gallon of gas
Methanol (M100) gallon 56,800 2.01 gallons
Methanol (M85) gallon 65,400 1.74 gallons
Electricity kilowatt hour (Kwh) 3,400 33.56 Kwhs


https://www.thoughtco.com/fuel-energy-comparisons-85636

.

[912gdm]

50. Hmm.. I have a question regarding something you said

"A car with low compression that uses 89 octane will not take advantage of 94 octane, it's a waste of money to put that higher fuel into the car, and changing the fuels causes the ECM to recalculate--but those cars will not achieve any real benefits."

So on the pump with the three octanes where it will says something like 'the mid level and higher level have this and that much better conditioners to clean your engine blah bah..'

So that's just advertising bs?

[TheBlackAdder]

54. You probably don't know that Shell is probably formulating your Amoco, Exxon or Texaco gasoline.

.

And, if you buy gas in a franchised or privately owned gas station, there's a 50/50 chance you're getting the same crappy gas that's being sold at any Brand-X gas station. But, since you don't seem to know the basics, I'm not going into the details of describing that. Something about a contract selling a certain amount of gas per month and then after that they are free agents to buy from whomever. That is why you'll see an Exxon truck pull up in the day and then a week later an unmarked truck pull up at 11PM.

However, I will write this: The main thing that separates gasoline brands and their levels are the additives. So, when you buy Exxon gasoline, where you are hundreds of miles from the nearest port or refinery that holds Exxon tanks, they outsource the blending of that gas to the local refinery--whoever owns it, and quid pro quo. Oh, most of those additives are completely unproven, and are solely marketing gimmicks to sell suckers to buy their brand of gasoline.

.

[912gdm]

58. welp, thanks for your response

considering im a sucker who doesn't understand 'the' basics.


have a great night, friend.

[NutmegYankee]

60. Volatility can change without octane changing.

Try starting winter equipment on summer gas and you’ll notice the difference. On the topic of lower energy content, we are in violent agreement, though I don’t think it’s some conspiracy to use more gasoline.

[LovingA2andMI]

59. This....

Especially, Pre-Summer Price Gouging.

[Merlot]

2. Because we're gas-dependant and being held hostage to the oil industry?

[NewJeffCT]

3. The Saudis need extra profits

to pay off the family of Jamal Khashoggi

[PeeJ52]

4. Because when gas prices go up it artificially raises the stock market and makes tRump look good..

only thing I can think of... They seem to be tied together... Not directly, but one doesn't do well without the other...

[bearsfootball516]

5. Gas prices always go up in spring.

Has happened almost every year for decades.

[PeeJ52]

6. Price of the barrel of oil doesn't...

That is artificial and driven by the powers that run the stock market to their whims and wishes...

https://www.reuters.com/article/us-global-oil/oil-hits-2019-high-on-signs-of-tighter-supply-brent-eyes-70-a-barrel-idUSKCN1RE01V

[Kaleva]

11. Which really doesn't have anything to do with the cost of switching to summer blends.

[PeeJ52]

12. Can't we have both? I understand about summer blends. Can you understand about cost of oil rising?

I don't see the issue here.

[Kaleva]

14. OP was asking about the increase of the price of gas.

Several people here gave her the answer as to why. You wanted to talk about the price of crude oil.

[PeeJ52]

17. Gasoline is a product of oil? If the price of the raw material rises?...

The price of the product also rises, unless the producer wants to eat the extra cost, of course.

[Kaleva]

24. But the increase in gas prices in spring is usually the result of the swtich to summer blend

The cost of the raw material can stay the same but switch leads to a temporary increase in gas prices.

[PeeJ52]

25. And maybe the combination of the two is causing it to REALLY shoot up?

[A HERETIC I AM]

19. The article you linked doesn't say any of that.

Price of the barrel of oil doesn't...(rise in the spring). That is artificial and driven by the powers that run the stock market to their whims and wishes...

1st, crude oil isn't traded on "the stock market". Oil is a commodity like Gold and refined unleaded gasoline and Corn and Coal and Platinum and Pork Bellies. It's traded on any number of commodities exchanges. NOT on a stock market. The various oil companies around the world that are publicly traded have their shares of stock traded on the stock exchanges around the world, but the commodity they deal with is not.

2nd, the article you linked states one of the primary reasons for the rise in the PPB of crude;

Further supply losses from Iran and Venezuela could widen an OPEC-led production cut that took effect in January, designed to prevent a price-sapping rise in inventories.

In other words, the various producers that are members of OPEC INTENTIONALLY reduced production starting back in January in order to raise prices. That's hardly artificial. That's deliberate.

You seem to be laboring under a couple misapprehensions in your other post above as well;

In answer to the OP's question - "Why are gas prices going up?" you said;

Because when gas prices go up it artificially raises the stock market and makes tRump look good..
only thing I can think of... They seem to be tied together... Not directly, but one doesn't do well without the other...

None of which has any basis in fact in the least. Higher fuel and energy prices adversely affect profits for companies that use energy (and that's almost all of them), and whether the price of a given share at a given moment is rising or falling reflects what traders anticipate future profitability will be, higher costs mean lower profits. If costs are going up, profits will be down and share prices typically fall, not the other way around.

So no, higher fuel prices does not mean the stock market will rise across the board.

This happened before except in reverse, when the American oil production boomed a few years ago, the Saudis FLOODED the market with product in order to drive DOWN the price of a barrel and it had the effect of essentially shutting down the Dakota Oilfield play.

The methods they are using in North and South Dakota as well as other fields are expensive and only profitable when Crude is around this level. So what will happen is another boom in the Dakotas and Texas and in a few months, all that product will flow "downstream" as they say, and the price will stabilize.

As far as prices spiking in the spring because of a formulation switchover, that has happened in the past numerous times, but it's not always the case. Refineries have to shut down for a period in order to produce either winter or summer blends, but gasoline is gasoline, and it doesn't matter if it was refined in Elizabeth, NJ, Baytown, Texas, Long Beach, Ca. or Rotterdam. It's all the same.

So sometimes the shutdowns had a price spike effect and sometimes they don't. It's all about where the traders can find the fuel.

[Wellstone ruled]

21. You just tipped off the Populace as to the real truth.

The bet on 60 dollar plus Oil was made last November. In fact,there are 80 dollar contracts still hanging in the Options Market.

BTW,Saudi's need high 60 dollar Oil to break even. And Putin needs 70 dollar Oil in order to maintain his power. Why do you think he send a Expeditionary Force to Venezuela,largest know Oil Reserves on the Planet,and that Crude is solely US East Coast Refinery end users. Approximately 80 million end users.

[Hortensis]

33. I read or heard they were aiming at $70 and actually

need up in the 80s, memorable because we want to do some road touring this summer while we still can.

[Wellstone ruled]

34. Bloomberg has stated the Saudi's

needs some where the 74 dollar number to balance their budget. Understand they are selling US Bonds and Equities in the Billions monthly in order to pay for their Military Interventions as well as Debt service for all the junk Properties they hold in both Canada and the US.

[Hortensis]

37. Aramco apparently issued its first prospectus

that may more shed light on Sawd's financial strengths and weaknesses, but I don't have enough of a grasp of these things to know what to think of its claims.

[Wellstone ruled]

39. I for one,would never go within

thousand miles of that IPO. The Saudi Royal's are loaded with debt and this IPO is a tool they need to stay solvent.

The under reported story of the Saudi Oil is,their Reserves are near depletion and they have been doing what is called Sea Water Injection into existing wells in order to keep a semblance of production. BTW,they built a special separating Facility.

So many unknowns about Saudi Production.

[Hortensis]

40. I feel very sorry for the people there if OPEC nations

really are quickly running out of oil, as we've believed. Like a perfect storm of giant forces gathering over their region that will spread catastrophe far and wide. Already many formerly livable and viable agriculture environments are no longer, fresh water disappearing...

[Wellstone ruled]

42. Something I ran accross

two years or so back. The Saudi's had a master plan for what was called Food Independence for their Kingdom. Billions was spent on developing Wheat and other Grain Farming operations in the Deserts. Massive Water wells were drilled for the Irrigation of this operation. Yes they did succeed in going their own wheat,but,the lose of Ground Water Reserves proved devastating. The Irrigation pumping caused fresh water to be replaced by Salt Water causing the Irrigated crops to die. And thus the shut down of several projects. And their need to Import necessary dietary needs. Amazing how inter connected our world is. Some good some ugly.

[Hortensis]

43. Massive tragedy in the making. And we'll all feel it,

though not a fraction as bad as that whole region. That sounds like a big, positive effort, but I've read that the development of agriculture in areas not suited to it has been a big contributor to galloping desertification.

[Wellstone ruled]

44. Yes it has

according to Environmental Groups. China is at this time is experiencing similiar issues. Creating that massive Dam project which is now adding to all kinds of weather pattern changes that are increasing more desertification of their Agricultural Land.

[roamer65]

7. Due to inflation over the past 50 years, its price increases seem high.

But everything now is about 10 times higher than 50 years ago, so an increase from $2.50 to $2.70 is like a 25 cent to 27 cent increase in the mid-1960’s.

Our problem is wages haven’t increased by the same 10 times amount.

[louis-t]

8. Cuz trumpie told them A-rabs to lower their prices

and they're so a-skeered a him, that they....did..it and...what? Oh, never mind.

[TreasonousBastard]

10. The refinery changeover to summer blends, crude oil prices going up...

supply and demand issues as gas uses rises in the spring...

Gasoline pricing is complicated-- you have to get crude of the ground, then you have to get it to a refinery, then you have to get it to distribution terminal and eventually to the gas pump. During all of this, the ownership of whatever stage it's in can change a dozen or more times during its journey, and anything, like a port or pipeline closing, an ocean route changed, a strike somewhere or a revolution somewhere else, can cause a spike until the market deals with the problem.

[SoCalNative]

15. Sometimes gas taxes have also increased

raising the price per gallon.

[DeminPennswoods]

29. That just happened in Ohio

fwiw.

[SoCalNative]

31. And happens again in CA in July

EOM

[DeminPennswoods]

48. In PA, we bit the gas tax bullet a couple

years ago.

[eppur_se_muova]

16. It's Obama's fault.

It always was, every time, but for some reason 45 didn't get the keys to the little lever that controls gas prices.

[jcgoldie]

18. Thanks Obama!

[dumbcat]

20. Supply and Demand

nt

[aikoaiko]

22. I read that OPEC tightened supply which led to a some increases to create more profits.

Trump is all-a-twitter about it now.

[LanternWaste]

23. A couple of reason, each building on the others.

A global oil supply has risen for several months, driven by an increase in crude produced from shale fields in the United States and Canada. This has been offset in the past several weeks by two things. The first is the effort by OPEC and Russia to constrain their production in an attempt to raise prices, and therefore their profits on oil. The other is sanctions set by the U.S. government against Venezuela and Iran for political reasons.

Many refineries go offline in the spring for repairs and the retooling necessary to produce more gas for the summer. Refineries also can be shuttered due to infrastructure issues. Because of technical problems, two of the largest refineries are offline in California, which has contributed to a rapid rise in oil prices there.

[lindysalsagal]

45. Thank you! I knew someone would know!

[PeeJ52]

26. Because it's spring...

[The Velveteen Ocelot]

27. They always do in the spring; have done for as long as I can remember.

[beachbum bob]

28. switchover in refining process blends, world oil prices, not rocket science

[DeminPennswoods]

30. Usually happens in the spring

Mostly attributed to refineries shutting down for maintenance and switch over to summer blends. Here in parts of western PA we had to have a unique blend that caused prices to spike, but our air is now clean enough that there's no special blend starting this year.

[pnwest]

32. Spring Break.

[onenote]

35. I'm pleased that so many of these posts actually offer fact-based explanations.

In the past I've been amused (sort of) by the contortions of some posters in addressing increases and decreases in the price of gas at the pump. For example, when prices increased during Obama's time in office, some here swore up and down it was part of a plot to hurt Obama politically. And when they've increased during Trump's term we see (as is the case with a couple of posts in this thread) some DUers convinced that it is being done to help Trump.

[calguy]

36. Oil has been rising since January

In January oil hit a low of just above $43 a barrel. Today oil is selling for $62.50 last time I checked. That's all you need to know.

[Hekate]

41. Because they can

[dlk]

51. Because They Can...

[nini]

52. There was a refinery here in So Cal a couple weeks ago

Any time that happens we see an increase too. Though this time of year there is usually an increase with spring breaks and summer around the corner.

[onecaliberal]

53. 38 cent per gallon jump in 14 days here.

[democratisphere]

55. The worldwide energy cartel has manipulated it so.

[at140]

56. I have a good solution for higher gasoline prices..

drive LESS! During rush hour, observe how many cars have one lonely driver and no passengers.
People need to seek out car pooling more. When I had a 1 hour drive to work each way, I car pooled even though it added a few more minutes to pick up the passenger.

[boomer_wv]

57. Venezuela

Venezuela was our fifth largest supplier and right now we are basically getting nothing from them. OPEC and Russia aren't interested in upping production to make up for it and the US was already refining at max capacity, so we don't have room to increase ourselves.

Essentially the cheap prices we had were because there was global economic slowing and we were still going as hard as we could. Would have been better to reduce our own production, have a little higher price, and be able to up production to respond to a supply issue elsewhere.

[Raine]

61. Prices always go up at this time of year in anticipation of Summer. nt

[magicarpet]

62. Venezuela is a major petrol provider,.. but lots of,..

...political turmoil there right now.

Iranian oil is being boycotted and new sanctions put in place because King Orange hates the Obama nuke deal.

OPEC is tightening oil supplies to drive up the cost of a barrel of oil to help their profits.

The summer driving price increase will soon be upon us,.. an excuse to pad profits,.. making prices creep up.

[allgood33]

63. I am more curious about why the MEDIA has not made a bigger deal about it like when Obama

was in office. They are virtually silent about it. It would be a bigger issue if the media would talk about it.

[ck4829]

64. Kick