Why are gas prices so high even with the drop in oil prices?

[independentusa]

U.S. drivers brace for the highest gas prices in 9 years as oil approaches $100 a barrel

U.S. drivers are looking at the highest prices for gasoline at the pump since at least 2013, with prices for oil eyeing $100 a barrel --- a level it hasn’t...

www.marketwatch.com

In 2014 according to this article, gas prices were at about 100 dollars a barrel and gas prices ranged in the high 3 dollar range. Usually about $3.90 a gallon. Right now oil prices are around or just below 100 dollars a barrel and yet gas prices are bout $4.60 a gallon or about 18 % higher than in 2014. Why the difference? Is it price gauging?

 

[beefheart]

In the last two weeks, gas at my Costco has gone from $5.29 to $4.69.

Its going down, not nearly as fast as it went up. Its just greedy gas companies....

Buy a hybrid or an electric and stick it to the guys that are sticking it to everyone.

 

[PirateMk1]

U.S. drivers brace for the highest gas prices in 9 years as oil approaches $100 a barrel

U.S. drivers are looking at the highest prices for gasoline at the pump since at least 2013, with prices for oil eyeing $100 a barrel --- a level it hasn’t...

www.marketwatch.com

In 2014 according to this article, gas prices were at about 100 dollars a barrel and gas prices ranged in the high 3 dollar range. Usually about $3.90 a gallon. Right now oil prices are around or just below 100 dollars a barrel and yet gas prices are bout $4.60 a gallon or about 18 % higher than in 2014. Why the difference? Is it price gauging?

Refineries are strung tight right now, they are at beyond full capacity.

 

[Ug make hammer]

Is it price gauging?

The word is "gouging".

To the question, I don't really know. But there could be some inertia in shipments and refinery operations. Petrol demand isn't very flexible (compared to vegetables or luxury goods) however it is a bit: when prices do fall, consumption will go up.

 

[Sand Castle]

U.S. drivers brace for the highest gas prices in 9 years as oil approaches $100 a barrel

U.S. drivers are looking at the highest prices for gasoline at the pump since at least 2013, with prices for oil eyeing $100 a barrel --- a level it hasn’t...

www.marketwatch.com

In 2014 according to this article, gas prices were at about 100 dollars a barrel and gas prices ranged in the high 3 dollar range. Usually about $3.90 a gallon. Right now oil prices are around or just below 100 dollars a barrel and yet gas prices are bout $4.60 a gallon or about 18 % higher than in 2014. Why the difference? Is it price gauging?

The "Right" wants us to believe; because Biden was a meanie to the oil companies.

 

[Slartibartfast]

Gas tends to shoot up in price overnight and then take a while to come back down. It's been that way at least as long as I have been driving.

 

[NatMorton]

The "Right" wants us to believe; because Biden was a meanie to the oil companies.

No, the right wants you to believe Biden, in combination with the Democrats on The Hill and Fed, made post-pandemic inflation far worse than it needed to be by printing far too much money. And they're correct.

 

[NatMorton]

As for "gouging," people need to stop being children about this. In good times and in bad, businesses are free to charge whatever they want for their goods and services. You are free to pay their price or seek alternatives.

Provided a market remains open and fair, excessive profit margins don't last long, and if you doubt this, I refer you to Jeff Bezos's bank account as exhibit A. In his own words, "your margin is my opportunity."

 

[Torus34]

Capitalism 101.

Corporations have two responsibilities. These are:

1. Obey the laws of the countries in which they operate.
2. Produce a profit for their owners [shareholders].

The rest follows as naturally as sweepers follow a parade of horses. [Ed.: Or as politicians follow the wishes of large contributors to their 'campaign' funds.]

Regards, stay safe 'n well.

 

[Razoo]

U.S. drivers brace for the highest gas prices in 9 years as oil approaches $100 a barrel

U.S. drivers are looking at the highest prices for gasoline at the pump since at least 2013, with prices for oil eyeing $100 a barrel --- a level it hasn’t...

www.marketwatch.com

In 2014 according to this article, gas prices were at about 100 dollars a barrel and gas prices ranged in the high 3 dollar range. Usually about $3.90 a gallon. Right now oil prices are around or just below 100 dollars a barrel and yet gas prices are bout $4.60 a gallon or about 18 % higher than in 2014. Why the difference? Is it price gauging?

Oil executives are sooooooooooo greedy......

 

[Bok Tuklo]

Why does a dog lick its balls?

Because it can.

 

[Sand Castle]

No, the right wants you to believe Biden, in combination with the Democrats on The Hill and Fed, made post-pandemic inflation far worse than it needed to be by printing far too much money. And they're correct.

 

[Atreus21]

Oil executives are greedy. Except recently where they allowed oil prices to fall. They took pity on us and ramped down the greed.

Of all the recent leftist talking points, this is one of the stupidest.

 

[Sand Castle]

Oil executives are greedy. Except recently where they allowed oil prices to fall. They took pity on us and ramped down the greed.

Of all the recent leftist talking points, this is one of the stupidest.

 

[Sand Castle]

In the last two weeks, gas at my Costco has gone from $5.29 to $4.69.

Its going down, not nearly as fast as it went up. Its just greedy gas companies....

Buy a hybrid or an electric and stick it to the guys that are sticking it to everyone.

 

[independentusa]

Refineries are strung tight right now, they are at beyond full capacity.

Are they, any proof of that. During covid and with the storms the oil companies shut down many of their refineries and laid off staff. Do we really know if they are all up and running again. I am not saying you are wrong, but do you have a link that says that the refineries are all at capacity?

 

[PirateMk1]

Are they, any proof of that. During covid and with the storms the oil companies shut down many of their refineries and laid off staff. Do we really know if they are all up and running again. I am not saying you are wrong, but do you have a link that says that the refineries are all at capacity?

They are at full utilization right now and any shutdown for maintenance or otherwise is quite disruptive.

US Utilization of Refinery Capacity

In depth view into US Utilization of Refinery Capacity including historical data from 1990 to 2023, charts and stats.

ycharts.com

 

[Credence]

GAS PRICES SEE DOUBLE DIGIT DROP, COULD EXTEND STREAK TO FOURTH WEEK

For the third straight week, the nation’s average gas price has declined, falling 10.4 cents from a week ago to $4.78 per gallon today according to GasBuddy data compiled from more than 11 million individual price reports covering over 150,000 gas stations across the country. The national average is down 7.1 cents from a month ago and $1.66 per gallon higher than a year ago. The national average price of diesel has fallen 6.3 cents in the last week and stands at $5.72 per gallon.

“As expected, and for the third straight week, average gasoline prices have fallen to their lowest level in over a month. The price of wholesale gasoline has plummeted, providing price relief as millions of Americans hit the road for the holiday weekend,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While we may see prices decline into this week, the drop could fade soon if oil prices reverse, especially with strong demand over the holiday. For the time being, Americans are spending nearly $100 million per day less on gasoline than when prices peaked a few weeks ago, and that’s well-needed relief at a time when gas prices remain near records.”

Gas Prices See Double Digit Drop, Could Extend Streak to Fourth Week

For the third straight week, the nation’s average gas price has declined, falling 10.4 cents from a week ago to $4.78 per gallon today according to

www.gasbuddy.com

 

[Credence]

Exxon profit set to soar again; White House wants more oil

HOUSTON, July 5 (Reuters) - Wall Street analysts sharply increased their Exxon Mobil Corp (XOM.N) second-quarter profit estimates on Tuesday, after the largest U.S. oil producer projected it could almost double its first-quarter earnings.

Exxon's preview, released on Friday, signaled strong results ahead by oil companies and refiners and brought renewed criticism from the White House and fresh calls for a windfall profit tax by U.S. lawmakers under pressure from voters feeling pain at the pump.

"This would be one of the strongest quarters in Exxon's history," said Credit Suisse analyst Manav Gupta in a note. The disclosures indicated an operating profit of about $16.8 billion, a historic quarterly peak. Official results are due July 29.

U.S. President Joe Biden and lawmakers pointed to the soaring profits as evidence the oil industry is putting profits ahead of customers, contributing to inflation. Exxon, Biden said last month, was making "more money than God".

Exxon profit set to soar again; White House wants more oil

Wall Street analysts sharply increased their Exxon Mobil Corp second-quarter profit estimates on Tuesday, after the largest U.S. oil producer projected it could almost double its first-quarter earnings.

www.reuters.com

 

[Ug make hammer]

Oil executives are greedy. Except recently where they allowed oil prices to fall. They took pity on us and ramped down the greed.

Of all the recent leftist talking points, this is one of the stupidest.

You're over-simplifying in an attempt to strawman "leftists." There is no "oil industry": it's clearly divided into oil drillers and oil refiners. Retailers admittedly have a lot of overlap with refiners, but the separation of drillers from both of them is clearly demonstrated by how the US oil varieties (WTI) tracks world varieties so closely. Oil drillers compete with each other, even across national borders of the supposedly "energy independent" US.

You need even further nuance to understand why petrol prices stay high even after crude oil prices drop. But if refiners are buying oil futures instead of spot market, I don't see why the consumer should have to pay for that mistake.

 

[poweRob]

 

[itstony]

It's because the oil companies are not lowering their margins. If they were making 30% on gas selling for $1.00 they made $ .30 per and maintaining that margin percentage on gas selling for $4.00 means they're making $1.20 per gallon. It's pure greed on their part because they're passing the higher costs onto the buyers and keeping their margin percentages the same.

 

[KLATTU]

In the last two weeks, gas at my Costco has gone from $5.29 to $4.69.

Its going down, not nearly as fast as it went up. Its just greedy gas companies....

Buy a hybrid or an electric and stick it to the guys that are sticking it to everyone.

if they are so greedy- why would they drop their prices?
Liberal : ( finger in nose) "Duhh, never thought of that"

 

[KLATTU]

Domocrats: Want high gas prices.
Republicans : Don't

 

[CaughtInThe]

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