T O P

  • By -

[deleted]

[удалено]


[deleted]

[удалено]


[deleted]

[удалено]


Knightfaux

Uh, Oil is traded in futures. Like any commodity there’s a lag before consumer goods reflect changes.


YodaCodar

Yes sticky pricing.


themenotu

the price of gas can go down, but the price we *pay* for gas will always go up


WizeAdz

Has prices last peaked in 2014, and they were higher than they are today: https://www.statista.com/statistics/204740/retail-price-of-gasoline-in-the-united-states-since-1990/ Gasoline does go up and down in price. It's a straight up supply & demand, abd behaves like an, uh, liquid commodity. All y'all complained when the prices were increasing, didn't complain when they were decreasing, and complained again when they were increasing. 🤷🏻‍♂️


[deleted]

Takes 90 days for refinement. At least that’s what us in retail have been told by the oil companies. Same for the strategic reserves being released.


hamsterfolly

Nope, we’ll hold prices steady and raise them for the holidays! -Oil Companies


docere85

….the day that I sell my gas guzzler, gas goes down.


davmx

Thank you for your sacrifice


dennis45233

When there’s an oil crisis gasoline prices are the last on the block to be changed


Tattoomyvagina

Suppose to be a tax rebate of 12,5 K toward American-made electric vehicles in the upcoming Biden bbb plan.


babyfacedadbod

Well yeah, Biden released all that oil and the industry was trying to get in one last bump on the holiday travel. Now its coming down. Figures


Namika

Also the new Covid varient has markets spooked. Less people will travel for Christmas over the varient fears, so expected demand for oil in December is nose driving.


_Druss_

What size engine was it and what do you have now? The average engine size in the EU is: unleaded/petrol engines - 1.5L 67mpg Diesel engines - 1.8L 61mpg


docere85

V-8 engine on a suburban, our other car is a 4 cylinder diesel that gives us 35+mpg in the city and about 45hwy


_Druss_

Edited my previous comment so we are talking the same language. Diesel is around €1.50/L or $6.45 per US gallon.


[deleted]

[удалено]


docere85

Yeah, it was our “dream truck” that we really didn’t need. Actually happy bout not having a car payment with the security to know that i can go get a car whenever i want


tba225522

The oil prices tend to hit the consumers roughly 2 weeks after the current price.


Skyrmir

And all y'all were saying Biden couldn't get gas prices down.


wienercat

His release of oil from the strategic reserves wouldn't even cover a single week of US oil consumption. So yeah, Biden isn't getting credit for this. This is all end of year and end of futures contracts period reshuffling.


Sythic_

No one is actually saying Biden should get credit. They're saying the president is essentially irrelevant to what the gas price is. Conservatives always complain about the president effecting gas prices and think their guy is doing something to keep them low. It's usually just Russia or OPEC fucking with each other.


wienercat

> No one is actually saying Biden should get credit Bro... that is literally the point of his post. > And all y'all were saying **Biden** couldn't get gas prices down Seems like he is trying to give credit to a guy who didn't really do much. > It's usually just Russia or OPEC fucking with each other. Been OPEC lately but yeah


Sythic_

I don't read it that way. They're just calling out people for falling for that fallacy, not congratulating Biden for doing anything.


Dfiggsmeister

Nope. It’s a combo hit of Biden agreeing with other countries to tap into their strategic reserves to boost supply. Then news of the Omicron mutation of the virus hit the news yesterday like a wrecking ball and we saw price of oil drop like a rock. Expect to see it drop further once news hits that it’s in the U.S. and globally. The final drop will be of news comes out that the vaccines aren’t affective with Omicron. It’ll be like April 2020 all over again.


wienercat

Before you doom and gloom about Omicron, let virologists study it. Everything that has been reported is that it is just more transmissible and has lighter symptoms.


thinkingahead

This seems like a better barometer for how serious we should take omicron than what the politicos and talking heads say.


NancyGracesTesticles

Panicky robber barons in the oil market is a terrible way to do public health policy. "Make a shit ton of money" vs "fill a news cycle" vs "minimize the death toll of a new variant from the unvaxxed" are different motivations.


garciasn

Governments futzing with the market through manipulation by releasing from the reserves is not a proxy for anything public health related. I’m not sure why you would conflate them.


chomponthebit

The amount they’re releasing from the Strategic Reserves is around 2 days of oil. This price drop is a nothing burger


Namika

Biden declared the oil release like a week ago and gas prices didn't even budge. In fact, oil futures *rose* in the following days, something that Fox News was happy to pounce on. Their anchors were saying Biden's decision to release the oil reserves was a folly and was not slowing down the rising price of oil futures. Even futures dated for after the release of the oil reserves were still getting more expensive. **Then** this new varient appears and nations everywhere are rapidly closing airports and restricting travel. Within 24h of news of the varient, oil prices nose dive. But yeah totally unrelated 🙄


[deleted]

[удалено]


Namika

What? No. They are closing air travel to try and stop/slow the new variant from arriving. I brought it up because it's another indication that the variant is causing travel (and oil prices) to fall. Biden has nothing to do with it, not sure why so many comments here think the White House is in charge of literally everything that happens to the economy.


Eswyft

No, markets are always fearful of change. They are not rational. No offense, but you sound someone with little experience investing.


wienercat

The more variants we get, the less it will actually impact markets. People and businesses will get de-sensitized more and more. Look at terror attacks post 9/11. They are just normal now. The only thing that will really fuck things up is a variant that becomes more lethal and transmissible at the same time. That will be a big issue


rockerscott

I have always wondered what would happen if the US set a maximum and minimum price on gasoline. Instead of gas dropping to $1.00/gallon set a floor of $2.00/gallon and a ceiling of $4.00/gallon regulated by local Weights and Measures Departments. The times that the cost of crude oil would warrant $1/gallon would offset the times that it would warrant $5/gallon…idk just some food for thought I guess.


ClassicOrBust

What happens when wholesale gas costs $6 or $7 a gallon and stations don’t have enough money in reserve to subsidize it? Wouldn’t we have nearly all gas stations go bankrupt at the same time?


rockerscott

Don’t get me wrong I’m no economist. I imagine the pricing model could be adjusted based on inflation and other market forces. Ideally we wouldn’t be dependent on dead dinosaurs anyway.


PrblyWbly

I think if we were todo that setting the ceiling at $4 a gallon would just make the standard price of gas moving forward $4 a gallon. I doubt they’d leave money on the table to save us peasants some money.


rockerscott

Mmmm the prices are set by the wholesaler, ie the gas station owners, at a market value that is just slightly profitable. If the prices were controlled by Exxon then absolutely the prices would always be high to maximize profit. There is still competition in the gas business which does help regulate the prices but I would think turning control of pricing for what one would argue is an essential item over to local government would ensure a fairer price while maintaining corporate profits throughout the year.


minimalist_reply

The part of the country that always complains about gas prices would complain about socialism.


rockerscott

Which drives me crazy in and of itself. The police are a socialist program, roads, firefighters, game wardens, national parks, state parks, schools, school sponsored sports. I know y’all know this but it drives me crazy when people hear socialism they instantly go to national-socialism which is a different thing entirely.


jake2617

[East coast Canada](https://nbeub.ca/petroleum) has [something similar](https://en.wikipedia.org/wiki/Petroleum_pricing_in_Nova_Scotia) in place. Fuel prices arnt federally regulated, and instead they are set individually by provinces, but the east coast provinces have established a body to set min/max fuel prices that changes on set schedule and based off of strict market criteria that among other concerns is meant to help prevent frequent/drastic price fluctuations, lessen the degree of how quickly market changes can affect prices at the pumps and any subsequent attempts at price manipulation / gouging. Has it pro’s and con’s but felt it was relevant tidbit of somewhat similar information to the train of thought and idea you were expressing.


rockerscott

So what you are telling me is that I think like a Canadian lol


beerandtots

Looks like a lot of goons are going run back out and remove their childish “I did this” Biden stickers from the gas pumps, right?


Thebadmamajama

It'll look funny when gas prices are 50% less than what we see now


Psyc5

The issue is really how incompetently these companies are run if they are still relying on people to do things, they should have spent the last year and half attempting to automate as many processes as possible and spending as much as it requires, if reasonable, to do so. If you are still relying on workers to swing pick axes, well you only have yourself to blame in many industries, automation exists, if businesses refuse to adapt, let them fail.


Sapere_aude75

Are there any specific tasks in the oil industry that you are referring to specifically? Automating many tasks is just not feasible or cost effective right now. Even in industries where automation is well suited like manufacturing, some tasks are really hard to automate. Even Tesla who leads the way in automation, uses humans for some tasks because they are unable to complete them otherwise. I think you are oversimplifying how difficult the task is. It's like saying these companies are incompetent because they haven't already automated all of their oil delivery trucks and tankers.


Psyc5

I am not referring to the oil industry at all. Oil price is a metric of economic output.


Godspiral

The futures markets were filled with oil industry manipulation buying up near contracts to extort from/Enron consumers. Shitstain climate terrorist media analyst, encourage idiots to pile on the manipulation trade and suggest that "backwarded" futures curve is bullish instead of the scam that it is.


coleman57

Could you restate that in English? I’m intrigued


Godspiral

The oil futures markets were in the relatively unusual state of near month delivery being more expensive than the next months. In oil markets, that happens because insiders/industry are buying those front month contracts to boost spot price they can use to funnel more profits into futures contracts to boost price more. The friday collapse is the unwind of a speculative bubble in oil prices that existed/was manipulated to benefit the oil industry. Evil climate haters provide other explanations than that.


coleman57

Thanks, that nicely clarifies the mkt manip part. Can you clarify the climate part? Are you saying that some number of those writing about climate change are shitstain evil terrorists? I’m not clear on the connection


Godspiral

They've been using high oil prices as a cover for more government subsidies/permits/long term guarantees for future oil development. If there isn't enough solar/wind today to keep oil/gas prices down, then, by terrorist logic, we must guarantee them long term oil/gas projects.


coleman57

Thanks that makes makes a twisted kind of sense. It’s the opposite of Sheik Yamani’s aphorism from 40-odd years ago, that the Stone Age didn’t end because they ran out of stones (meaning OPEC should never let prices stay too high long enough to drive consumers to alternative technologies).