Monday, September 15, 2008

Why Are Gas Prices Up? Merc Prices Don't Reflect

Who understands this? Okay we had the threat of Ike destroying or disrupting oil refineries in Houston. Over the past weekend there were reports in the metro Atlanta area of retail prices above five dollars a gallon! One targetted retailer from local news stations was Ingalls. My recent trip to Murphy Oil In Ellijay shows the madness.

Gas over $ 4 gallon

Days before Ike, pricing was shown at $ 3.55. If one follows the financial markets like I do, there was no considerable movement in gasoline futures except for a small rise Thursday and a slight decline Friday the day before Ike came ashore. I sit here at 9:35 AM and gas futures are down .19 to $2.58.

Who's Making A Buck Here?

The way I see it that price should be around $ 3.30 I told the guy at Murphys.

"That will never happen," was his reply. I didn't go any further except to say; "I'll see you later this week."

So What Did Happen in Houston?

Do oil companies keep inventory? Duh. Or do they pump through the pipeline from a refinery when somebody starts filling up at a local gas station? Sure they (some) may be down but the sky is not falling according to NY Merc prices.

I don't know it all, but don't free markets dictate what we pay for? I can see that $ 4.04 price if gas futures were about a dollar higher, but they aren't! Maybe I'm the same idiot (somebody said that to me four months ago) that still predicts gasoline selling for $ 2.25 early next summer.

My gripe for the day:) But I'm not as mad as the guy below...LOL

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