Oil prices drop while gasoline.....doesn't drop the same way??

[SwimExpert]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

 

[Toro]

Oil is a feedstock to refined products. In the short-term, the price of gasoline is a function of the spread between crude and refined gasoline. When there is more oil than refining capacity, refining spreads rise and refiners make higher profits. However, refining is one of the most commmoditized products. When spreads get too high for too long, new capacity comes on to the market, and spreads come down. If the price of crude stays the same when refining capacity increases, the price of gas will fall. Thus, in the long-term, more crude in the market will mean lower gas prices.

 

[Moonglow]

What you are also seeing is the bubble bursting on oil and gas prices, which for decades have been manipulated by OPEC..Now it is OPEC's payback period...

 

[Redfish]

The price cycle between crude prices and gas at the pump prices is not instantaneous. The gas we are buying today was brought to the surface months ago. We will see the benefit of todays low crude prices next summer.

 

[Remodeling Maidiac]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

I supported the pipeline for the jobs it would have created. I am probably a bit biased though as I have close friends who are engineers in the industry.

 

[Redfish]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

I supported the pipeline for the jobs it would have created. I am probably a bit biased though as I have close friends who are engineers in the industry.

Agree. It would have created jobs here in the US and would have allowed Canada to sell its crude to us rather than China.

Blocking it was a partisan move by the divider in chief. The country is already criss crossed with pipelines, the environmental argument was bullshit, the safest way to move oil is by pipeline.

 

[initforme]

As long as every last drop of that oil was used in the us I am fine with the pipeline. If any of that oil was able to be shipped out, then not so much.

 

[Moonglow]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

I supported the pipeline for the jobs it would have created. I am probably a bit biased though as I have close friends who are engineers in the industry.

How are they enjoying their vacation?

 

[Remodeling Maidiac]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

I supported the pipeline for the jobs it would have created. I am probably a bit biased though as I have close friends who are engineers in the industry.

How are they enjoying their vacation?

He makes well over 6 figures so I suppose his time off doesn't bother him too much.

Next stupid question?

 

[tyroneweaver]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

Buffet bought Burlington Northern Railroad. That's why obama vetoed keystone. Just a mere payback to Warren to truck that oil overland.
Amazing how Buffet knew that oil would never be pumped.

 

[LordBrownTrout]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

Of course you never connected the dots with buffet buying a railway to ship oil and whispering to O that he would play along and scream about his secretary paying too much in taxes.

 

[DarkFury]

Oil is a feedstock to refined products. In the short-term, the price of gasoline is a function of the spread between crude and refined gasoline. When there is more oil than refining capacity, refining spreads rise and refiners make higher profits. However, refining is one of the most commmoditized products. When spreads get too high for too long, new capacity comes on to the market, and spreads come down. If the price of crude stays the same when refining capacity increases, the price of gas will fall. Thus, in the long-term, more crude in the market will mean lower gas prices.

ADD to that refined crude will be moved to storage NOT market to keep profits stable.

 

[edthecynic]

Here is a handy little price calculator for the price of gas at any crude price you plug in.
At $30 per barrel gas is $.99 per gallon. Current price of crude is $30.89

Gas Calculator: Predict Fuel Price from Crude Oil Price - New Car Calculator - MPG Trending

 

[Redfish]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

Buffet bought Burlington Northern Railroad. That's why obama vetoed keystone. Just a mere payback to Warren to truck that oil overland.
Amazing how Buffet knew that oil would never be pumped.

typical democrats paying off their rich friends. legalized bribery.

its amazing how this goes on day after day and the stupid libs continue to bitch about the republicans and the evil rich.

Yo, dems, are Hillary and Bill rich? you dumb shits, they are using you and you are too stupid to realize it.

 

[amrchaos]

Seems to me Buffet is going to lose in that--The Chinese look like they are going to crash hard

Considering they are strong armed commies, you can forget tax cuts.
Also, since they have little regulations to begin with, deregulation won't do much.

We may see 90's style fuel prices for some time. The world's biggest exporter is in turmoil meaning some space might open up in the market for Americans to exploit.

This is all hand waving, but it looks like the next president is going to inherit a nice economy for once.

 

[Rustic]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

All the faults of this country are due to career politicians and their progressive federal government, socialism is an disease.

 

[SuperDemocrat]

Here's a treat for those people who still think that the Keystone XL would have led to lower gas prices in the US.

The drop in prices means that Phillips can buy the crude it refines more cheaply. And it profits from the fact that the price of gas hasn't fallen as much as the price of oil has. Phillips' refining profits actually rose last year to $2.6 billion from $1.6 billion in 2014. "People don't notice it because the price at the pump has come down so much, but gasoline prices are quite high relative to crude," said Tom Kloza, chief oil analyst for the Oil Price Information Service.

Warren Buffett's $1 billion bet on oil

According to people who supported the Keystone XL, the price of gas HAD to go down because more oil would mean cheaper oil, and that would mean cheaper gas. But it's just no that simple. There's more to it, which is probably why some of the dimmest bulbs were the most vocal to support the XL, all while not actually saying anything. But why bother with thinking when we can just bury our heads in the sand and indulge in easy answers, right?

There is no real mathematical formula for the price of anything. Should gas be three times crude? More than likely the local demand for gas is high so the price of gas stays high. A lot of other factors go into play such as availability. Cheaper crude may not be available to all parts of the country at once. It may only be available to some because the price of gas isn't same in all parts of the country. Cheap crude alone doesn't necessarily mean that gas will go down it is more of a question of availability. When something is scarce it goes up in price but when it is available in abundance demand seems to go down.

 

[whitehall]

Gas prices and home heating oil prices came down substantially, where have y'all been? They do a lot of other stuff with oil besides fuel cars and trucks.

 

[LordBrownTrout]

Seems to me Buffet is going to lose in that--The Chinese look like they are going to crash hard

Considering they are strong armed commies, you can forget tax cuts.
Also, since they have little regulations to begin with, deregulation won't do much.

We may see 90's style fuel prices for some time. The world's biggest exporter is in turmoil meaning some space might open up in the market for Americans to exploit.

This is all hand waving, but it looks like the next president is going to inherit a nice economy for once.

Next president is going to have a near impossible task of reviving the current disastrous economy.

 

[Siete]

oil and gas could be free and the whining RW's would gripe about it hurting the econoomy, or something else.