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05-23-2008, 05:48 PM | #1 |
Western Anomaly
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how is it before per barrel prices affect per gallon prices?
it's not instantaneous --or is it?
Sharpie posted on the 5th of May that premium was going for $4.15 --now it's about $4.70 or so. but per barrel prices have crept up a lot (oil speculators) --but does that same speculative pricing immediately affect per gallon pricing or is there a lag?
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05-23-2008, 06:14 PM | #2 |
The user formerly known as rwg
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The per gallon price depends on a lot more then just the crude price. I don't remember exactly how it relates or how long it takes for the increase to appear, but I think a lot of it has to do with production throughput and refinery maintenance.
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05-23-2008, 08:16 PM | #3 |
Western Anomaly
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okay. so i wasn't imagining things when i thought i heard that.
but with prices per gallon climbing, i 'feel' like it reacts a little too quickly to the speculative per barrel price.
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05-23-2008, 08:27 PM | #4 |
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It wouldn't surprise me if the fuel companies have a guy that just sits there adjusting prices as news, good or bad, rolls in on their computer monitor (now that'd be a tough job). All it takes is an quick message to their gas stations, and within minutes the price adjusts. Shoot, a computer program could handle that automatically with the right set of parameters and logic.
Honestly, I have no clue at all how it works. But the skeptical side of me thinks that there is probably very little lag from the time the price of oil adjusts, and the point where we feel it at the pump. I can't think of any reason why they wouldn't do it that way. |
05-23-2008, 08:41 PM | #5 |
Jeeped
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I think the correlation between per-barrel price and pump price has been getting tighter.
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05-24-2008, 11:53 AM | #6 |
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I thought it was closer to 3-4 weeks
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05-24-2008, 12:27 PM | #7 |
Western Anomaly
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i'm trying to understand the process simply because i thought there was a lag.
if so: while pundits say $12 a gallon isn't far off, i wondered how far off $6-7 a gallon could be given the spike in 'per barrel' prices. also: are the $4 a gallon gasoline prices based on ~$100 per barrel oil prices therefore?
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05-24-2008, 08:41 PM | #8 | |
Chief title editor
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Quote:
I'm sure you can find other sources that will describe it a bit differently and/or have different percentages, but the basic concepts should hold throughout. Because the price at the pump tends to go up so much faster than it would seem that it "should" is the reason that the oil company execs are dragged before congress for public floggings at every price spike.
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05-24-2008, 01:08 PM | #9 | |
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Quote:
Ed |
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05-24-2008, 02:11 PM | #10 |
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