what is pushing oil prices down?

[cramerica1972]

other than the warm winter?and why dont we see the effects at the pump?and will oil drop to $45/barrel?

[deerhunter]

Let me ask you this:

Why would your local gas stations sell the consumer gas for less just because they are getting less expensive gas delivered to their station? They do it because they can. Hell, I would too if I owned a corner store...

[evnp85]

Because gas is an oligopoly, there really should be some sort of law about how gasoline prices should reflect the change in oil prices. True, they "do it because they can", but what if they all decided one day to raise the price of gasoline to $5/gallon? Price gouging is really getting out of hand. I'm still paying around $2.50/gallon in Connecticut.

The decline in the cost of gasoline has not matched the decline in the price of oil one bit. And, with the price of gasoline matching a jump in the price of a barrel of oil as soon as it raised, I wouldn't be suprised if, when oil hits $80/barrel again, we are paying much more than we did the previous time it was that price.

[robvia]

The term they use is called "sticky pricing" and it's been talked about on radio shows.

The price of gas will only come down as competition forces it.

[optimus25]

"Competition", competitive pricing, you've hit the nail in the head. Station owners are not in a rush to lower their prices if their neighbor isn't doing the same.

[englishman26]

If you want low gas prices and supressed capitalism then go live in Venezuela!

Case in point - the price of oranges doubled in california yesterday! Yes - went up 100%! This is because $1 billion of the orange crop just got wiped out by freak cold weather. But that crop would not have been on the shelves for weeks anyway - the shortage of oranges won't truely be felt for weeks. But the price can reflect it now and it'll take years to come down again.

[madcowdisease]

If you want low gas prices and supressed capitalism then go live in Venezuela!

Case in point - the price of oranges doubled in california yesterday! Yes - went up 100%! This is because $1 billion of the orange crop just got wiped out by freak cold weather. But that crop would not have been on the shelves for weeks anyway - the shortage of oranges won't truely be felt for weeks. But the price can reflect it now and it'll take years to come down again.


I was listening to National Public Radio today and they said months, not years. We're looking to S. America for our citrus and fruits now due to the California deep freeze.

[englishman26]

Damn - now we're reliant on foreign orange juice too!

[cramerica1972]

If you want low gas prices and supressed capitalism then go live in Venezuela!

Case in point - the price of oranges doubled in california yesterday! Yes - went up 100%! This is because $1 billion of the orange crop just got wiped out by freak cold weather. But that crop would not have been on the shelves for weeks anyway - the shortage of oranges won't truely be felt for weeks. But the price can reflect it now and it'll take years to come down again.
but english,if they raise the price .10 overnight b/c oil goes up .10,but dont drop price when oil goes down,isnt that price manipulation,albeit legal?oil is down what 20%?

[Luc1Grunt]

Tree hugger conspiracy theory. Oil------->"must lower costs, Americans get angry and look to "green" solutions. Must lower costs, get it from their minds so they can focus on cell phones with music. 60% plus don't vote, but they bitch. We'll squeeze it later.

My take, buy oil stocks on every slide. Now is prime.

Sorry, couldn't resist.....;)

[cryder17]

i finally have a clear and simple explanation for this decline


Saudi Arabia is lowering their oil prices because they see no reason to keep it at $70 a barrel mainly in fact because it only strenghtens iran. SA is the largest oil producer in the world Russia,US, and IRan in order on the list. Saudi Arabia has roughly an $11.5 billion industry while Iran has about $4.5 billion.

Saudia Arabia is becoming more aware of Iran's industry and feels that taking a small hit in lowering their oil prices will create an even larger hit to Iran's economy because they can no longer compete with the higher prices.

[optimus25]

The trend is your friend. I see a lot of institutional traders shorting crude. When the shorting stops and they decide to cover, we'll see some major volatility to the upside. Just an opinion.

[madcowdisease]

The trend is your friend. I see a lot of institutional traders shorting crude. When the shorting stops and they decide to cover, we'll see some major volatility to the upside. Just an opinion.


Hence why you bought that ETN... OIL!!

I may join you when crude hits $45/bl

[madcowdisease]

Damn - now we're reliant on foreign orange juice too!


You mentioned capitalism in a previous post of yours, this thread or another. Did you kow the orange and orange juice industy is subsidized by the federal govt.? Florida's growers have been undercut by the Brazilians for years now. They ask for aid form the Feds. Once again, more corporate welfare just like the airlines.

[cramerica1972]

You mentioned capitalism in a previous post of yours, this thread or another. Did you kow the orange and orange juice industy is subsidized by the federal govt.? Florida's growers have been undercut by the Brazilians for years now. They ask for aid form the Feds. Once again, more corporate welfare just like the airlines.just how low will oil go?