Why are gas prices so high again?
I was enjoying a big break from $3 a gallon last month and now it's creeping back to the prices we had in May. Can't we stay at one price?
Answer:
It seems nobody in the U.S. wants to accurately answer this problem, but let me take an educated guess.
Currently there are only 2 crude oil commodity exchanges 'in the world'! A commodity exchange is where oil, or any commodity, is sold or bought in very large quantities.
One is in London the other is in New York.
Now, there are only about 12 to 14 large multi-national oil companies that can process oil into gas, but there are many investors with deep pockets that can and do bid on oil @ the exchanges.
The oil companies don't really care how high crude prices go as they simply add their costs into the finished products. {Gasoline, etc}
I personally think the investors are making a financial killing @ the expense of the public.
Can this be stopped?
Well, if they limit the commodity market participants to 'Only' producers of crude oil and 'Only' refiners/distributers of crude, prices may come down. But don't hold your breath, the top echelon of business people in the U.S. hold a financial stake in big oil.
By the way I read where the average 'Production' cost of oil is about $10 per barrel.
******************************...
[edit] P.S. there is one other equation I forgot to add in. The U.S. dollar is 'Losing' value in almost every country in the world, therefore it takes more dollars to buy oil from the sellers who might be from the mid-east, or anywhere else in the world.
The gas companies are greedy!!
because our greedy hick president decided to invade and destroy Iraq instead of catching the actual terrorist who started it all.
They're this high because they can be. Businesses try out different prices to see how much they can charge before they lose enough customers to cost them profit.
Gas companies are no different that any other business (Apart from polluting and having better lobyists). If you were babysitting or car washing, you'd charge what you thought it was worth and raise your rates if you thought you could.
If you want gas prices to come down, don't buy it. Carpool, take shorter trips, use transit, walk. Prices won't go below what it costs to find, refine and trasport the gas so we'd find out what the real cost was. (Yes, now, think about it. You wouldn't wash a car for less than the price of the soap.)
Ever think about the worlds natural resourses? they are putting it up because it's slowing for people to buy gas to for the natural gases to build up or it has to be related to that some how.
Crude oil has gone up in price due to high demand and a possible strike in Nigeria.
Gas prices go up whenever crude oil prices go up.
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Answer:
It seems nobody in the U.S. wants to accurately answer this problem, but let me take an educated guess.
Currently there are only 2 crude oil commodity exchanges 'in the world'! A commodity exchange is where oil, or any commodity, is sold or bought in very large quantities.
One is in London the other is in New York.
Now, there are only about 12 to 14 large multi-national oil companies that can process oil into gas, but there are many investors with deep pockets that can and do bid on oil @ the exchanges.
The oil companies don't really care how high crude prices go as they simply add their costs into the finished products. {Gasoline, etc}
I personally think the investors are making a financial killing @ the expense of the public.
Can this be stopped?
Well, if they limit the commodity market participants to 'Only' producers of crude oil and 'Only' refiners/distributers of crude, prices may come down. But don't hold your breath, the top echelon of business people in the U.S. hold a financial stake in big oil.
By the way I read where the average 'Production' cost of oil is about $10 per barrel.
******************************...
[edit] P.S. there is one other equation I forgot to add in. The U.S. dollar is 'Losing' value in almost every country in the world, therefore it takes more dollars to buy oil from the sellers who might be from the mid-east, or anywhere else in the world.
The gas companies are greedy!!
because our greedy hick president decided to invade and destroy Iraq instead of catching the actual terrorist who started it all.
They're this high because they can be. Businesses try out different prices to see how much they can charge before they lose enough customers to cost them profit.
Gas companies are no different that any other business (Apart from polluting and having better lobyists). If you were babysitting or car washing, you'd charge what you thought it was worth and raise your rates if you thought you could.
If you want gas prices to come down, don't buy it. Carpool, take shorter trips, use transit, walk. Prices won't go below what it costs to find, refine and trasport the gas so we'd find out what the real cost was. (Yes, now, think about it. You wouldn't wash a car for less than the price of the soap.)
Ever think about the worlds natural resourses? they are putting it up because it's slowing for people to buy gas to for the natural gases to build up or it has to be related to that some how.
Crude oil has gone up in price due to high demand and a possible strike in Nigeria.
Gas prices go up whenever crude oil prices go up.
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