Gas Price Talk Radio


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...*The study estimated that for pump prices to reach $3 a gallon, the price of crude oil would have to be about $95 a barrel, but crude prices have been holding around $65 a barrel, and Katrina has not caused a surge in crude oil prices*" ...

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I didnt' read the article but from what you quoted, um, did they take into account the entire supply line and availabilty? Gas stations don't go directly to the well and fill their tanks with oil, oil goes through many steps between the well and your tank, each step adding to the cost. If you only take into account the price of a barrel of oil then yes, it would have to be $95 a barrel, but only if you could purchase all the barrels you wanted at that price and there were no other middlemen involved. If gas is only $65 a barrel but you can't buy as much of it refined into gasoline as you want, then demand outstrips supply and prices rise accordingly.

I'm not trying to be an apologist BTW, I've stated this before: It's in my nature to play Devil's Advocate. ;)

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I'm a Devil's Advocate, too, Jdoors!!! I call it "being objective", but on the inside, yeah, I'm a Devil's Advocate! :thumbsup:

Well, I don't know if its accurate or not, but the article says that the refining, distribution and taxes adds 85-90 cents per gallon to the cost between oil and "car gas". I assume that was the costs involved between the oil pumped and the gas we pump into the car. It sounds like that price difference was taken into consideration with that question of gouging (but as bad as I am at Math, I'm not able to prove that!!! ;) )

Screi, with the "fox guarding the henhouse", you might be right!!! *sigh.....* gulp, but $5 gallon???? :(

LOL, Bozodog....!! Now if we could make our cars run on our husband's farts, we would have something!! (no offense, guys, but most of you proudly claim your farts! You know you do....)

Liz

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Well, jeesch! Not only gasoline, but now natural gas? Up 71% for the heating season? What has natural gas have to do with oil wells and refineries? And 71%? We are getting raped folks, and the b4st4rds are putting sand in the vasaline.

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Well, jeesch! Not only gasoline, but now natural gas? Up 71% for the heating season? What has natural gas have to do with oil wells and refineries? And 71%? We are getting raped folks, and the b4st4rds are putting sand in the vasaline.

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I heard that, too.... can you imagine??? Even with a well insulated house and an effecent furnace, we Northerners are going to be in trouble, especially if we get a winter like last years....And it used to be that Electric Heat was considered expensive...HA!

$2.84 for almost a week so far....

Liz

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