Gas Prices In California Hit Record Highs...

Discussion in 'Politics' started by paulitician, Oct 5, 2012.

  1. paulitician
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    paulitician Platinum Member Supporting Member

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    Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.

    Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.

    The gasoline shortage “feels like a hurricane to me, but it’s the West Coast,” Jeff Cole, Costco’s vice president of gasoline, said by telephone yesterday. “We’re obviously extremely disheartened that we are unable to do this, and we’re pulling fuel from all corners of California to fix this.”

    Spot gasoline in Los Angeles has surged $1 a gallon this week to a record $1.45 a gallon premium versus gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg show. That’s the highest level for the fuel since at least November 2007, when Bloomberg began publishing prices there. On an outright basis, the fuel has jumped to $4.3929 a gallon.

    Gasoline at the pump gained 8.3 cents to $4.315 a gallon in California yesterday, according to AAA.com, 53.1 cents more than the national average of $3.784. In Los Angeles the price was $4.347. Gasoline futures for November delivery on the Nymex rose 14.34 cents to settle at $2.9429 a gallon, after falling yesterday to a 10-week low. Retail price movements tend to lag behind those of futures.

    More:
    California Gas Stations Shut as Oil Refiners Ration Supplies - Bloomberg
    DRUDGE REPORT 2012®
     
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    This hurts poor people the most, that why the Gov't lets it happen by not allowing exploration.

    Nothing like a little artificial scarcity to reward the big oil donors!
     
  3. Old Rocks
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    Old Rocks Diamond Member

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    We are exporting gasoline and diesel by the tanker load. So, if we really needed more exploration, why are we doing that?
     
  4. uscitizen
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    uscitizen Senior Member

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    We have plenty of oil right now the problem is refining capacity.
    Refine baby refine!
     
  5. High_Gravity
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    High_Gravity Belligerent Drunk Supporting Member

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    I can only imagine, gas is expensive as fuck in California.
     
  6. eflatminor
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    eflatminor Classical Liberal

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    Wow, you really have zero idea how the international oil market works. It matters little where the buyers of oil products are physically located, the price of oil is affected by worldwide production. The more production, the lower the price regardless of where that production takes place. More importantly, we need more exploration here because there are companies that are willing to pay to do so, creating jobs in the process.
     
  7. eflatminor
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    eflatminor Classical Liberal

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    We need both. And both are restricted by the government meddlers that know what's best for everyone else. But keep voting for the nanny staters...their EPA will certainly allow for more refineries. :eusa_whistle:
     
  8. bodecea
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    bodecea Diamond Member

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    Oil prices are down lately...From $100 a barrel to $90...so everyone explain why the price of gas is spiking? Now? It actually went down around the Labor Day holiday period and is now up...a lot...again.
     
  9. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Well lets see, you don't like FoxNews sources, you hate rich people so Forbes is out. Here, in "Living Green Magazine":
    Why Gasoline Prices Are High: U.S. Refineries Are Closing AND Exporting Gasoline : Living Green Magazine
    See when you intentionally shut down production OR refinement thats called "Artificial Scarcity" and drives prices up.
    Do the Oil Companies save some Oil and Gas for us Americans to use? No! That's not "Free Market" silly! Are you a Communist or something?
    Do our Elected Officials demand that the Oil Companies save some Oil and Gas for Americans? No! They're owned by those same Oil Companies! What do you think this is, a Democracy? It's a Crony Corporatocracy we live in!

    Anyway, there's more:
    Oh and OldRocks do you know why Domestic Demand is falling? Liberals like you will say it's because we're using more Windmills and Solar Panels and Fairy Dust but that's not true.

    It's because the Economy is Shutting Down!

    And finally, the Oil Companies threaten layoffs if they aren't allowed to export. Isn't that nice of them?:
    Gee I wonder why the US Gov't, when they parcel out drilling contracts and permits, demand that a certain amount of oil and gas be left behind for US Consumption?
     
  10. uscitizen
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    uscitizen Senior Member

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    yep the more production of Gasoline the cheaper the price.

    and oil only impats the world prices if it can be gotten to market. Why Tar sands oil is cheaper for us to buy now than it will be after the XL pipeline is built.
     
    Last edited: Oct 5, 2012

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