Oil is down, how come gas prices at the pump haven't come down as much?
- Thread starter Nike
- Start date
fsa-sucker
New member
- Aug 12, 2007
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- 0
Nike Wrote:
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> Is it those greedy oil companies again?
Yes. I am so sick of capitalism these days. The stories of greed(Dick Fuld, AIG, etc) and loot(oil companies) are making my stomach churn.
Socialism is not looking too bad any more.
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> Is it those greedy oil companies again?
Yes. I am so sick of capitalism these days. The stories of greed(Dick Fuld, AIG, etc) and loot(oil companies) are making my stomach churn.
Socialism is not looking too bad any more.
Except that pseudo-socialist Europe is in a deeper recession and more precarious situation than the U.S. Explain that one? And the idea that government is any less corrupt and wasteful than private business is laughable at best.
I, too, would like to understand the reasons behind the discrepency in prices at the pump and prices for crude. I suspect it has to do with FIFO/LIFO inventory methods, going concern assumptions, and simple profit taking.
Edited 1 time(s). Last edit at Sunday, October 19, 2008 at 02:49AM by kkent.
I, too, would like to understand the reasons behind the discrepency in prices at the pump and prices for crude. I suspect it has to do with FIFO/LIFO inventory methods, going concern assumptions, and simple profit taking.
Edited 1 time(s). Last edit at Sunday, October 19, 2008 at 02:49AM by kkent.
Crushin Natties
New member
- Oct 1, 2008
- 0
- 0
fsa-sucker Wrote:
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> Nike Wrote:
> --------------------------------------------------
> -----
> > Is it those greedy oil companies again?
>
> Yes. I am so sick of capitalism these days. The
> stories of greed(Dick Fuld, AIG, etc) and loot(oil
> companies) are making my stomach churn.
>
> Socialism is not looking too bad any more.
Last I checked, a large portion of crude suppliers are nationalized operations run by socalist regimes. And as was already said, how are the socialist welfare states operating in any less corrupt or greed driven manner than us? The key difference between capitalism and socialism is that capitalism acknowledges greed by incorporating it into the model while socialism just sweeps it under the rug. When greed in capitalist societies turns out of control it is typically addressed whereas it is so entwined with the socialist structure they refuse to acknowledge it. Not to mention that Fuld wasn't necessarily greedy, in fact he took a huge hit to the wallet. Agressive, reckless and uncompromising...yes. The wrong man for the job under those circumstances...yes. More greedy than the average individual...maybe, maybe not...remains to be seen.
Edited 1 time(s). Last edit at Sunday, October 19, 2008 at 03:28AM by Crushin Natties.
-------------------------------------------------------
> Nike Wrote:
> --------------------------------------------------
> -----
> > Is it those greedy oil companies again?
>
> Yes. I am so sick of capitalism these days. The
> stories of greed(Dick Fuld, AIG, etc) and loot(oil
> companies) are making my stomach churn.
>
> Socialism is not looking too bad any more.
Last I checked, a large portion of crude suppliers are nationalized operations run by socalist regimes. And as was already said, how are the socialist welfare states operating in any less corrupt or greed driven manner than us? The key difference between capitalism and socialism is that capitalism acknowledges greed by incorporating it into the model while socialism just sweeps it under the rug. When greed in capitalist societies turns out of control it is typically addressed whereas it is so entwined with the socialist structure they refuse to acknowledge it. Not to mention that Fuld wasn't necessarily greedy, in fact he took a huge hit to the wallet. Agressive, reckless and uncompromising...yes. The wrong man for the job under those circumstances...yes. More greedy than the average individual...maybe, maybe not...remains to be seen.
Edited 1 time(s). Last edit at Sunday, October 19, 2008 at 03:28AM by Crushin Natties.
joevc03, I think the OP is getting to the fact that gas prices at the pump immediately sky-rocketed with crude oil price rises, but as crude oil drastically fell, prices at the pump did not see the same percentage drop, and the drop that has occurred has been at a much slower pace than when crude oil prices rose.
http://www.joewhite.com/2008/09/10/gasoline-price-levels-vs-crude-oil-price-levels/
Gas prices have come down significantly. It's an optical illusion that they haven't, because they really didn't spike as much as oil did.
There is far more going on than just input for oil. There's seasonal mixes, crack spreads, refining capacity for byproducts, supply chain adjustments (where it comes from, what type of oil gets there, how the byproducts are distributed). That's not even counting the timing differences for futures contract prices, all of which can throw off the temporal matching of price increases/declines.
Think of how many companies locked in prices when they thought oil was going to go up higher than 147, or how many different ones locked in prices at a low price. Then think of when those contracts expire and how those contractual costs will be passed on to consumers.
To simply correlate 1:1 price movements is only considering a very small part of a massive equation.
Gas prices have come down significantly. It's an optical illusion that they haven't, because they really didn't spike as much as oil did.
There is far more going on than just input for oil. There's seasonal mixes, crack spreads, refining capacity for byproducts, supply chain adjustments (where it comes from, what type of oil gets there, how the byproducts are distributed). That's not even counting the timing differences for futures contract prices, all of which can throw off the temporal matching of price increases/declines.
Think of how many companies locked in prices when they thought oil was going to go up higher than 147, or how many different ones locked in prices at a low price. Then think of when those contracts expire and how those contractual costs will be passed on to consumers.
To simply correlate 1:1 price movements is only considering a very small part of a massive equation.