Anyone find it at all suspicious that oil companies cut gas in half just weeks before the election?

[Bandit]

One of those things that make one go Hmmmmm.

[pnutbutr]

1. oil prices

Oil prices have been dropping like a stone because of the world economic situation.

It has absolutely nothing to do with the election.

[ProfessorGAC]

12. Do The Math

If it were ONLY about oil prices, and had even near what they clear to do with supply & demand, gas prices should have fallen by 3/7ths. (42+%)

That would mean that the peak prices around Chicago (ex-Cook county) should have fallen from $4.30 to a little over $2.50. That's still around 60 cents lower than it is.

So, i wouldn't be so sure that it's strictly oil prices.
The Professor

[pnutbutr]

15. distribution

Distributing oil doesn't happen instantly. Gas prices are still dropping slowly behind the drop in oil prices. Some places around the country are at about $2.50 a gallon right now. You go with your genius professorness, professor. :eyes:

[ProfessorGAC]

20. Wrong

Sorry, but you're just wrong. The prices have fallen continuously since before the crisis began. They dropped precipitously in the last 12 days, but they were already falling.

The distribution rate is, and has been for about 30 years, ship time plus 10 days, or about 25 days. And, the upward shifts in the price of oil have created increases in the wholesale price of unleaded in under 3 days, for the last 10 years.

The distribution rates aren't as slow as you suggest, and the fluctuations in gas prices do not lag to the degree that are corrleated to distribution.

And slick: I know more about business principles and economics than you would even want to know. So, you can keep your snarkiness to yourself.
GAC

[pnutbutr]

22. oh

Gas stations raise prices quickly with the increase in oil prices because they can and it helps them increase profit for a short time until the higher priced supply actually makes it into the tanks. When prices drop, the gas stations will maintain prices as long as possible until the reduced price supply makes it's way into the tanks which as you said is about 25 days. Gas prices have been dropping pretty steady and according to you, the lower priced oil will not reach the stations for another few weeks so we will see continued price drops as the lower and lower priced supply finds it's destination.

Seems like a fairly obvious and common business principle.

[ProfessorGAC]

23. You Continue To Be Wrong

But, i'm sure you're used to being wrong. Likely happens a LOT!
GAC

[pnutbutr]

24. how

was what I said incorrect?

[ProfessorGAC]

26. Read Your Last Post

Short term, temporary profit taking is EXACTLY what i said about oil prices, in the first place. You dismissed it out of hand. You then provide it as an example of a standard business principle. But, if you're right, then you're agreeing with me, when you started out disagreeing with me. So, now you're saying it's NOT just because oil prices have fallen?

That's what i said in my first post to you. And, you got snarky, so defended myself. Now, you're asking me what YOU meant! Sheesh!

GAC

[pnutbutr]

27. you said

originally that it was not just oil prices. My claim that is was just oil prices causing the decrease in the price of gasoline. You then proceeded to speculate on gas prices rising quickly with the increase in oil prices and drop slowly with the decrease in a manner that suggested you didn't understand why that happens. I provided an answer to that since from your post I didn't think you understood why, you said I was wrong, I asked how I was wrong and you are now telling me that we agree?

I asked how I was wrong, not what I meant. :eyes: Some reading comprehension problems over there?

[Tesha]

2. It's not "suspicious" at all; it's blatantly obvious that they do it and why they do it (NT)

[madokie]

16. And how they do it

[OmmmSweetOmmm]

3. The oil prices were driven up by speculators and now that many of them have lost so much money

they don't have the money to play in the market. At least that is why IMHO the prices are dropping.

[shadowknows69]

4. Angry voters usually hurt the incumbent party

My mother was remarking on it the other day and I said "Of course they're (prices)going down, it's an election year" it's literally the only thing people are happy about these days and how sad is that when we're still paying 3.30 a gallon. We are so easily conditioned as a mob it's pathetic. It's a wonder the fascists didn't take over sooner.

[Kookaburra]

5. Not going to do them any good this time.

People are fed up with "business as usual" and crave a real change this time.

[MiniMe]

6. Expected to try to help the "Drill Drill Drill" people

[Bandit]

10. Seems like it would do the opposite

Their excuse is Demand is way down so prices are way down....

[rurallib]

7. Just like 2006. DIdn't work then either.

[SidDithers]

8. Yeah, you're right...

those oil companies sacrificed 40% (?) their market capitalization, just so gas prices could come down, and McCain could be elected.

:wtf:

Sid

[iamahaingttta]

9. It would have been more suspicious if this DIDN'T happen.

Actually, I think it has more to do with the economy crashing and demand down...

[DemoTex]

11. As I pumped $2.65/gal gas yesterday it hit me ..

I paid $2.65/gal yesterday in Greenville, SC (Costco). On the day after IKE hit Texas I paid $4.75/gal at Pumpers in Greenville.

In my opinion, the oil companies used hurricane Ike as a cover to spike prices. They knew that gas prices would have to be lowered just before the elections. I fully expect to see even lower prices between now and 11/4. But on 11/5, watch for a rapid rise in gas prices.

Problem is, everybody is cynical about gas price manipulation now. That's why the ploy won't work.

[baldguy]

13. They did the same thing in 2004.

Some people fell for it.

[Turbineguy]

14. It also has to do with the "crack spread"

When Oil was $150 per barrel and gasoline $4.50 per gallon the spead was lower than now. Companies had to pay high for fuel but there was a limit on what they could charge for gasoline due to demand destruction.

Profits per barrel are higher at these prices.

[crickets]

17. Standard operating procedure in the weeks before an election.

On Nov. 5, gas prices will start heading right back up.

[Ezlivin]

18. They were looting while there was still money to be found

They looked ahead, saw the rocky economic conditions and decided to take their "cut" while they still had a chance.

[dysfunctional press]

19. in half?

around here, they're down about a buck from their highest at the citgo station i go to- which is less than 25%.

but yes- they are ensuring lower prices for the selection.

[Marrah_G]

21. The value of the dollar has risen

[deaniac21]

25. Prediction....it will go up just before Memorial Day.