on the way up last year? I can't exactly remember the price from last year, but when crude oil was rising and hit $90, the gas wasn't $3.69(89 octane ratings) near my house. i guess my question is..... if a gallon of gas was $3 when crude oil hits $90(on the way up), shouldn't it also be $3 when crude falls down to $90? I know there's a lag period....but this clearly isn't just a lag. anyone have an answer?
When I went on vacation on 9/4 gas was around $3.30 here (central VA). I come back yest and its $3.90ish with oil down. The only thing I can figure is its due to the hurricane. I heard that one of the pipelines thta supplies Va has no power yet. I think if oil stays around $90, gas will drop quite a bit. PS It was $4.25-$4.55 in Hawaii.
There is almost a timezone's swath of states that are getting raped. http://www.phoenixgasprices.com/Price_By_County.aspx?state=AZ&c=usa For once I'm glad to be living in PHX
wholesale contract is at 2.47 right now national average at the pump is normally about 65 cents on top of that should be 3.12 at the pump there's gouging about 75 cents on top of that right now
Takes a bit of time to see those prices at the pump change and its always off and hard to figure out too. I remember after hurricane Katrina, oil prices were 60 bucks per barrel and gas prices were 2.89 per gallon 2 weeks after katrina hit (I remember this because i had just got back from vacation in mexico and was only paying about 2.25 per gallon or so there) So using that figure, you can see that if oil hit 120 per barrel, gas prices should've been around 5.78 but they didnt hit that. (and even higher at 147 per barrel oil) Im assuming that they are refining the 140ish per barrel oil now, but taking into account future prices of 90 dollar per barrel oil and trying not to completely shock the public with 7 dollar gas so they charge 50 cents more per gallon for the gas now so it sort of eases the pain of that 140 dollar oil back in july. Dont worry, oil will keep going down and so will gas prices. We will be back at 50 dollar oil again (Although i think alot of people dont believe me on this) but its true and after a sustained period of that, we will have 2 dollar gas prices again. Gotta feel sorry for those people then that bought those cars from GM (i think it was them) where they promised them 2.99 gas for 3 years. By winter we will be back in the 2.99 range at least.
Remember too that you're looking at futures for October/November delivery; there's a time lag to market.
There is a pretty large discrepancy in the Dallas market as well. Attached is a one year gas chart with the price of crude overlay. We should be at $2.80 yet we are at 3.70.