If the cost of barrel, for oil , has gone down significantly then how come the prices haven't?

Everyday on the news it says it's going down from 130 to 125 to now 122 i believe but





If the cost of barrel, for oil , has gone down significantly then how come the prices haven't?If the cost of barrel, for oil , has gone down significantly then how come the prices haven't?
Gas prices have some delay actually. It takes quite a while to turn a barrel of oil into gasoline and get it to the pumps. Gas stations typically buy contracts ahead of time so they are paying prices from a month ago. It takes a few months for gas prices to follow oil prices. I have actually seen prices coming down locally here in NJ. Not that much, but they have stopped going up.If the cost of barrel, for oil , has gone down significantly then how come the prices haven't?
Did you study inertia in high school? Heavy objects moving at high seed do not stop instantly! Now it took a little over a year to raise up to such a peak (speed),---- It will not slow down rapidly!





Yes money is behind it! But do you expect the speculators and oil comapanires to take multi-million dollar losses on what they already bought at inflated prices,-- (I don't think so)!It takes time for the accumulated product to be used up !





What you may not know is that individual speculators have bought and stored hundreds of billions of barrels of oil! And in case you haven't thought about it ';Speculators Is You'; (called investors)!!





As of last month all the storage facilities were full of oil, and they were turning away tankers at Galveston. At this place at least they have not yet replaced expensive oil with ';cheap'; oil!





Due to EPA and other Federal laws,- only a refinery or two has been built since in the 60s! Yet our consumption has increased around 250-% in that time....... You can not reason with mathmatics - it is fixed, and always comes out the same if it is correctly used!





As for me, I am working on methods and equipment that will double my mileage, (thereby reducing my gas bill by 50%) this will help me no matter what the price at the pump!





Consider yorself lucky that you can buy gas at any price! While we are complaining , - the refinereies are breaking their bones to even get enough volume out to keep the supply above the demand (which also goes up ';$'; when demand gets too great) compared to what is available!





Check what the ';powers that be'; in congress, they are trying to increase taxes on gasoline, and prevent us from drilling for our own, or making more refineries! Hmmmm, wonder what that could lead to? Perhaps it will ';save the planet'; so that all the animals can live freely after we have all died out! ---- This is not a simple problem!





By the way as I remember it $70 crude was around $2.21 for gas at the pump!
the refineries take the oil and process the crude oil they bought at market price and it takes about 48 cents to deliver it to the consumer. it take a while for the oil to be delivered to the refinery and processed to get to the consumer. the oil companies use every hiccup in oil production to quickly raise prices and the are slow to decrease them. this is were they are making record profits from us. the gas station make cents a gallon if they are lucky.
There's two pipelines: 1) oil and 2) money.





The gas you're buying is still being affected by the high prices that were paid for the oil that made it. Prices are already beginning to come down; they will come down farther.





But not all the way to what prices were when oil was selling at $122/bbl before, no. That won't happen.
Very simply put, the answer is greed.


They (you know exactly _who_) know that we will pay


and pay


and pay


for that dinojuice that keeps us mobile


The ';shortage'; of 1973 was only a market test in which they found out that we _will_ pay.


Now they are using that information.
Some people charge what they paid for the last shipment of gas to their station. If the price goes down on the news they still have their underground tanks filled with the high priced gas. It doesn't make sense to sell it for less if they paid the old price.
It's gone down 10 cents here, which is a pretty significant drop considering the prices would go up 4-5 cents a week, and only drop 1 or 2.
Its gone down 60 cents a gallon in the last 10 days. It can be had for 3.42 gal at some stations. Every little bit helps. This is in Topeka Ks..................UJN