how is it before per barrel prices affect per gallon prices?

lemming · 05-23-2008, 05:48 PM

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?

Rob · 05-23-2008, 06:14 PM

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.

lupinsea · 05-23-2008, 06:16 PM

Not sure but I thought there was an X-month delay or something. That if the price-per-barel went up today, you'd feel it in 3-5 months.

This may have gone out the window, though.

lemming · 05-23-2008, 08:16 PM

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.

ff · 05-23-2008, 08:27 PM

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.

lupinsea · 05-23-2008, 08:41 PM

I think the correlation between per-barrel price and pump price has been getting tighter.

kognito · 05-24-2008, 11:53 AM

I thought it was closer to 3-4 weeks

lemming · 05-24-2008, 12:27 PM

Quote:

Originally Posted by kognito

I thought it was closer to 3-4 weeks

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?

Sharp11 · 05-24-2008, 01:08 PM

Quote:

Originally Posted by lemming

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.

It's like the old Robert Klein joke about supply and demand - "they've got the supply, so they can demand whatever the fuck they want".

Ed

operknockity · 05-24-2008, 02:11 PM

Quote:

Originally Posted by Sharp11

It's like the old Robert Klein joke about supply and demand - "they've got the supply, so they can demand whatever the fuck they want".

Ed

Excellent! That is one of my favorite Robert Klein bits.

05-23-2008, 05:48 PM	#1
lemming Western Anomaly Join Date: Oct 2003 Carmudgeonly Ride: White Orca Posts: 16,594	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? __________________

05-23-2008, 06:16 PM	#3
lupinsea Jeeped Join Date: Sep 2005 Carmudgeonly Ride: Modified Jeep Tj and '07 Miata Location: Seattle Posts: 10,214	Not sure but I thought there was an X-month delay or something. That if the price-per-barel went up today, you'd feel it in 3-5 months. This may have gone out the window, though. __________________ . My website "Jeep is the only true American sports car" - Enzo Ferrari Or something to that effect.

05-23-2008, 08:16 PM	#4
lemming Western Anomaly Join Date: Oct 2003 Carmudgeonly Ride: White Orca Posts: 16,594	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. __________________

05-23-2008, 08:41 PM	#6
lupinsea Jeeped Join Date: Sep 2005 Carmudgeonly Ride: Modified Jeep Tj and '07 Miata Location: Seattle Posts: 10,214	I think the correlation between per-barrel price and pump price has been getting tighter. __________________ . My website "Jeep is the only true American sports car" - Enzo Ferrari Or something to that effect.

05-24-2008, 11:53 AM	#7
kognito older fart than ZBB Join Date: Oct 2003 Location: On the road again Posts: 8,897	I thought it was closer to 3-4 weeks __________________ 2017 GMC Sierra 1500 SLE 2020 Fusion Titanium

05-23-2008, 06:14 PM	#2
Rob The user formerly known as rwg Join Date: Oct 2003 Carmudgeonly Ride: Z4 Location: Vegas baby! Posts: 8,261	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.

05-23-2008, 08:27 PM	#5
ff . Join Date: Mar 2004 Posts: 13,514	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.