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August 13, 2005
Higher Oil Prices Hit the Gas Pumps
[mood| 
confused]
In between phone calls yesterday, I was keeping an eye on the rising price of a barrel of oil. At the same time, I was getting regular updates from our delivery drivers with increasing fuel prices at local stations. There were stations that raised prices more than five cents a gallon during the day yesterday! How is it that the price of fuel that had already been delivered to them - bought and paid for, could be rising as it sat there in their tanks? I don't get it. This whole oil pricing business smells rotten to me. It is all based on speculation about supply and demand in the future.
It is time we lived in the present, and showed what we think of the games played with oil production and price fixing. Purchase from those who rely primarily on domestic fuel supplies, and drive as little as possible. Ride bicycles or walk more. Consolidate trips and carpool whenever possible. These are things that we should be doing anyway, but this makes for a good wake up call for those of us who sometimes lose sight of these things - good for the environment and good for the pocketbook. I can't think of a better argument for people to get out there under their own power.
Posted by capecodcyclist at August 13, 2005 03:09 PM
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Comments
Ready? Yes, the gas at the pump was probably brought in the night before. Here is how I see the pricing work.
After the NYMEX (NY mercantile) closes, big oil sets it's daily gallon price for deliveries made after midnight.
The stations sell in ground at old price until some magic time during the day when they have to start compensating for the overnight cost change.
The big oil companies are setting the daily price on gas that was refined about a month ago on what the barrel price is trading for today. That's why prices go up faster than they come down.
Anticipation of bad things to come is more rampant than good possibilities.
Posted by: Rebe at August 13, 2005 08:03 PM