Why is it that they announce the barrel prices going up and

[toey]

immediately the gas prices go up as well? Its not like those barrels we're buying are the ones coming out of the nozzle we're pumping from.

[lostinacause]

1. Expectation -nt

[shoelace414]

2. I can give you a hint

Exxon made 9 billion dollars in profit in three months.

[meganmonkey]

7. Okay, I think I figured it out...(off-topic)

Is your sig line picture from the show 'You Can't do that on Television' that was on Nickelodeon in the '80s?

Please tell me it is or I may go nuts. :crazy:

Thanks!

mm

[shoelace414]

9. that is Christine (Moose) McGlade

:)

[meganmonkey]

11. Wow!

That was one of those things I never would have thought about again until I saw your picture. Not sure if I love you or hate you for it :D

[SidDithers]

10. Hehe, I got a chuckle from it the other day too....

That was also the Canadian kids show where we first met Alanis Morrisette.

http://www.ycdtotv.de/wlpg/yalani01.htm

Sid

[ceile]

12. Green Slime!!! n/t

[Pacifist Patriot]

3. Because they can.

[Not Me]

4. When does supply and demand/price elasticity kick in?????????

At some point, cost has to have an effect on consumption.
Gas in my area has almost doubled in price in the last 2 years.

[ChairmanAgnostic]

8. A year ago, I was seeing hummers every ten cars in this neck of the woods

now, I barely see any. (Perhaps, my pointing and laughing at the drivers is paying off)

So, I suspect that people are changing habits, driving less, and planning more.

[endarkenment]

13. good question.

Think of it this way: what is your bottom line price for a glass of water when you are dying of thirst?

The problem is that water and oil are vital fluids: we cannot live without them, so while higher prices will eventually result in increased conservation and alternative source utilization, the price is going to have to go quite a bit higher before the effects are really noticable. Even then it is a vital fluid: you need a certain amount just to exist.

[MissMarple]

5. These nice folks are in business to make money. Lots and lots of money.

That's why they bought the governmnent, for heavens sake. :eyes:

[toey]

6. I suppose I already knew the answer to my own question, but

damn it pisses me off.

[Spinzonner]

14. At least in part because

they are pricing based upon the expectation and risk of replacement cost.

And the rising of crude prices gives them a cover (story) for why they HAVE to raise prices.

And, of course, because they can.

[Bluzmann57]

15. Another question is how much are the gas station owners making?

The answer is, not much. The profit margin for the owners and/or managers of gas stations is very low. So Exxon and co. don't even take care of their agents, so to speak.