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What's wrong with this ratio?

Discussion in 'Motorcycle Talk' started by KevinD, Jul 3, 2009.

  1. KevinD

    KevinD Modulator Staff Member

    Crude oil was selling for ~$150/bbl last summer, and gasoline was running ~$4.00/gal.

    This summer, with crude oil trading for ~$70/bbl, we're paying ~$3.00/gal for gas.

    However, 4:150::3:70 is NOT a true statement!

    I haven't found a reasonable explanation...

    KevinD
     
  2. didn't OPEC reduce production due to a lower demand?

    Besides, my theory is price gauging. During the winter months, the price of heating oil for houses goes up. During the summer months, the demand for heating oil goes down. So the oil companies still want to turn their ridiculous profit, and they jack up the price of gasoline/diesel. Due to the decreased production in response to the lower demand of automotive fuels, the prices seem to go up.

    I'm no financial specialist, but that's my theory......
     

  3. greed.


    that is your answer.
     
  4. Oly ZX

    Oly ZX Daytime Adventure Seeker


    +1. There is no other reason other than the above. GREED, GREED,GREED.
     
  5. Yup. When the bottom fell out of the financial market, a lot of the small and mid-cap speculators lost their ass in oil futures. OPEC would rather set a price floor at $70 per bbl than the glorious $35 per bbl it had fallen to.

    If oil was priced where it truly belongs, it'd be down in the $30 range or so I'd guess. We're actually still getting raped even at $70, but it's still better than what last summer looked like. Ugh.
     


  6. don't try to make sense of it,

    the myth of supply and demand is something OPEC and the Democrats made up to distract us.


    the fact of the matter is,
    we will pay whatever they charge
    and there's nothing we can do about it:banghead:
     
  7. Gas prices for the week of July04

    2009 - $3.09
    1999 - $1.31
    1989 - $1.12
    1979 - $0.86
    1969 - $0.35

    Anyone else see anything wrong with this picture?
     
  8. Taxes. A vary healthy chunk of what you se at the pump is tax. Take that out of the equation and the numbers make sense.
     
  9. tophyr

    tophyr Forum Cripple

    Hardly. In Washington, 54.4 cents of those three and a half bucks you've paid goes to the gubmint.

    http://www.washingtongasprices.com/Tax_Info.aspx

    Be happy you guys aren't in the UK, where gas goes for the equivalent of US$6-7/gal.
     
  10. Dr. E

    Dr. E Theoretical Propagandist

    5,632
    23
    868
    The root of all evil...money. With money comes power, with power comes corruption, with corruption comes more greed and the process starts all over again.

    Years ago there was a statement that old men and oil companies run the world. It is as true today as it was when stated.
     
  11. didn't $0.77 just get added to the already outragious taxes on a gallon of gas?
     
  12. BHO's rapid inflation program might have something to do with it.
     
  13. this is my stimulus package it takes 1 piece of paper not 1300


    gas $1.00 - $1.50 range
     
  14. tophyr

    tophyr Forum Cripple

    A quick google turned up something about the cap and trade legislation, but I couldn't find anything specific about it. Either way here, unlike other places, the bulk of the $$ isn't from taxes, that's for sure. Look to Exxon, Shell, Texaco - whichever the big ones are that operate their own refineries - etc for the big winners :ninja:

    I don't know why people bitch, just encourages more to ride bikes :mfclap:
     
  15. that's because there isn't one. the oil companies are fucking us out of our money because they can get away with it. if oil fails, the first world collapses. because our society depends on it, they can charge whatever the fuck they want and we have to pay it.
     
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