Gas tank full today?

[Dion]

Originally Posted by Madman

That's exactly what it is. When prices go up and people complain, there is some news story quoting some Economist or Strategist that the rise is fuel prices is directly related to the price of oil rising that very same day.

But...when oil prices drop and gar prices stay high, the same dick face Economist is back on the news stating that low oil prices take time to reflect back to the consumer - yeah, no shi!t!

Quick to raise those prices based on fear and slow to drop afterwards. Clearly ignoring the fact that the gas in the tanks below was based on the original price posted at the pumps before the ridiclous increase.

[BlackArcher101]

Couldn't they be raising prices to force a decrease in demand since they expect lower levels of production currently and into the next week? That would make sense.

[Jing]

Hey guys, not sure if this has been posted, but the esso on 5th ave and crowchild still has regular gas for $1.254. I talked to the lady and she says she has yet to receive instructions to raise the prices, so you guys better hurry!

[Jing]

Originally Posted by Dion

I slipped out to fill my gas tank at my local High River station only to find they upped the price. Normaly they are day late in raising prices, sadly they weren't today.

Calgary CTV is reporting that Hurricane Ike is responsible. Add to the fact the rigs in the Gulf Coast are shut down for the moment.

Tis the season to be gouging

I have also heard that the price spike is due to the more expensive barrels (from before) of oil are now hitting refineries.

[ricosuave]

www.calgarygasprices.com

[Slava]

Its a pure scam. I am shocked that with the election in full swing that the NDP or Liberals don't trot out something to rectify the obvious scamming that takes place in this market.

This happened a few years ago with Hurrican Rita as well...there was a fear that there could be major damage. Alas no damage was done, but that didn't stop the prices for rocketing up to $2.00/litre in Ontario. Its frankly amazing that sometimes we have to wait for the old supply to catch up (when the price ought to be dropping), but this never seems to matter when the prices are due to rise. Clearly the gas in the pump today was bought and paid for before this week...so to increase the price now is a pure cash grab, end of story.

[STeeLy]

For those of us outside Calgary... here's another site:
http://www.mcteague.ca/WebPages/gas_price_today.htm

[Flames in 07]

Originally Posted by BlackArcher101

Hasn't it been running for nearly 2 or 3 weeks now?

edit: Shutodwn Aug 3 - 27th. http://www.canada.com/theprovince/ne...5-ccd47d069875

I'm going to reply to a few notes here:

PCAN in Edmonton is at low rates, AND they have a planned turnaround (Refinery shuts down for maintaince) in October.

Also Crude being down near 100 now will help gas prices in a few weeks, but it takes a few weeks for those 100 barrels to be run through the refinery and sent to the market.

A stronger USD will reduce WTI as importers need less USD to be compensated for their product, that's the same as any other good, if the commodity is denominated in USD, and USD become more valuable, foreigners will need USD to be compensated for their good.

In retail gasoline the only complain consumers have that has any basis in reality is that companies seem to drag their feet when crude prices go down, but seem to be on top of price adjustments as crude is going up.

[Flames in 07]

Originally Posted by Slava

Its a pure scam. I am shocked that with the election in full swing that the NDP or Liberals don't trot out something to rectify the obvious scamming that takes place in this market.

This happened a few years ago with Hurrican Rita as well...there was a fear that there could be major damage. Alas no damage was done, but that didn't stop the prices for rocketing up to $2.00/litre in Ontario. Its frankly amazing that sometimes we have to wait for the old supply to catch up (when the price ought to be dropping), but this never seems to matter when the prices are due to rise. Clearly the gas in the pump today was bought and paid for before this week...so to increase the price now is a pure cash grab, end of story.

I'd love to hear you elaborate on this further.

If prices go up right now it can be as a function of anticipated supply in the future. Many refineries will now be down for a while, they don't turn on like a light switch when they are shut down, and relevant to Calgary PCAN will be going down in October. If supply in the future of any commodity or good is anticipated, price goes up.

Politicians really rarely address this anymore because they know many have tried to paint a picture of a scam to be proven wrong (with small exceptions of say an individual retail location taking advantage of an isolated icident.

[jayswin]

Originally Posted by Flames in 07

I'm going to reply to a few notes here:

PCAN in Edmonton is at low rates, AND they have a planned turnaround (Refinery shuts down for maintaince) in October.

Also Crude being down near 100 now will help gas prices in a few weeks, but it takes a few weeks for those 100 barrels to be run through the refinery and sent to the market.

A stronger USD will reduce WTI as importers need less USD to be compensated for their product, that's the same as any other good, if the commodity is denominated in USD, and USD become more valuable, foreigners will need USD to be compensated for their good.

In retail gasoline the only complain consumers have that has any basis in reality is that companies seem to drag their feet when crude prices go down, but seem to be on top of price adjustments as crude is going up.

..and that's exactly what most people are complaining about.

[Flames in 07]

Originally Posted by flameswin

..and that's exactly what most people are complaining about.

I disagree, people don't complain about Bob's Enterprises Ltd working prices, they complain about big oil companies supposedly ripping everyone off.

[Cowboy89]

Originally Posted by Slava

Its a pure scam. I am shocked that with the election in full swing that the NDP or Liberals don't trot out something to rectify the obvious scamming that takes place in this market.

This happened a few years ago with Hurrican Rita as well...there was a fear that there could be major damage. Alas no damage was done, but that didn't stop the prices for rocketing up to $2.00/litre in Ontario. Its frankly amazing that sometimes we have to wait for the old supply to catch up (when the price ought to be dropping), but this never seems to matter when the prices are due to rise. Clearly the gas in the pump today was bought and paid for before this week...so to increase the price now is a pure cash grab, end of story.

Yeah and the stock you bought last week cost you x so why are you allowed to sell it at y this week? Come on you should know better. When hurricanes create a higher chance of a supply shortage all of a sudden the commodity of gasoline is worth more due to the increased chance of a shortage occuring in the future. Future expectations are are built into the price at the pump in much the same way as they are built into the price of an equity. Should the retailer ignore its higher value and sell it to you for the same price as last week? This is exactly the same thing as when an equity increases in value due to new information.

[OilersBaby]

I just talked to my mother in law and she said in Kentucky the gas prices went upto over $5.00......I guess it's like that from Texas north up through the midwest. She advised me to go fill up my tank but here in San Jose, CA, it's still only $3.79 per gallon.

Seems like its gone up overnight in Calgary too.

What's going on? I dont get how the weather situation in Texas affects the price of gas in Calgary.

[Fire]

Originally Posted by OilersBaby

What's going on? I dont get how the weather situation in Texas affects the price of gas in Calgary.

There are many refineries shut down in that area, which means less gas supply. Demand > Supply = Price Increases

[Azure]

Originally Posted by fotze

Oil price down under $100 today.

No surprise. Rumors are the market is over-supplied with oil, so they have to lower oil prices to make up for the difference.

[Azure]

Originally Posted by Slava

Its a pure scam.

Well, how many refineries got shutdown because of the Hurricane? Of production has been cut back because of it, I wouldn't call it a scam.

Oil prices keep falling because there is excess oil on the market, and they're trying to get rid of it.

We should be glad though....with a normal supply of oil, the oil price would be through the roof right now.

[Azure]

Originally Posted by Fire

There are many refineries shut down in that area, which means less gas supply. Demand > Supply = Price Increases

Exactly.

[Dion]

Originally Posted by Azure

Well, how many refineries got shutdown because of the Hurricane? Of production has been cut back because of it, I wouldn't call it a scam.

I think it's a scam when the increased prices are based on fears that rigs and refineries could damaged and down for quite awhile. If the fears don't pan out prices start to drop soon afterwards.

Why not wait until we see what damage there is before hiking prices.

Oil prices keep falling because there is excess oil on the market, and they're trying to get rid of it.

Institutional investors caused the rapid rise and subsequent steep fall in oil prices in 2008, according to an independent report released by U.S. lawmakers yesterday.

Lawmakers unveiled his report on Capitol Hill to bolster their efforts to rein in what they believe is excessive speculation in oil markets. The Commodity Futures Trading Commission is to report to the U.S. Congress within days on the role speculators played in the oil market.

http://www.thestar.com/Business/article/497056

[Azure]

Originally Posted by Dion

I think it's a scam when the increased prices are based on fears that rigs and refineries could damaged and down for quite awhile. If the fears don't pan out prices start to drop soon afterwards.

Why not wait until we see what damage there is before hiking prices.

Because by then its already too late.

They're is a shortage of gas right now, which results in the increase in price.

Simple supply and demand economics.

Institutional investors caused the rapid rise and subsequent steep fall in oil prices in 2008, according to an independent report released by U.S. lawmakers yesterday.

That was before it began dropping. OPEC had to increase production during the summer, and right now there is extra oil on the market. That is the only reason prices aren't rising in step with the gas prices.

Shortage of gas, excess of oil. Results in a lower oil price, higher gas price.

[Dion]

Originally Posted by Azure

Because by then its already too late.

They're is a shortage of gas right now, which results in the increase in price.

Then set your prices based on the present shortage as opposed to what you think the shortage will look like after the storm

Simple supply and demand economics.

The amount of damage determines the amount of the increase. If the refineries are down for a long period time the shortage will become greater creating more demand and higher prices. Contrast that to them being up and running in say a week and thus being able to supply that shortage sooner.

That was before it began dropping. OPEC had to increase production during the summer, and right now there is extra oil on the market. That is the only reason prices aren't rising in step with the gas prices.

Shortage of gas, excess of oil. Results in a lower oil price, higher gas price.

Are you saying that speculators no longer have a say in the price of oil?