Gas prices

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Submitted by Trojan4Life on October 10, 2008 - 3:47pm

I think we're all relieved to see oil under $80 per barrel, but why aren't gas prices dropping as well? The price of gas sure as heck went up quickly with the increase! Based on today's closing price, gas should be (unscientific calculation here) about $2.50 per gallon, right?

When will we see this price reduction in gasoline? Will the major oil/gas companies milk this one for all it's worth, coming up with some lame BS answer as to why the price at the pump cannot come down due to the need for infrastructure improvements?

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A barrel purchased today will
Submitted by temeculaguy on October 10, 2008 - 5:57pm.

A barrel purchased today will not be at the pump tommorrow, the stuff at the pump was bought for over $100. Oil also was under $80 for a very short time, unlikely that every oil company bought next month's supply during that ten minutes. They average what they have to pay. Will is get passed on asap? No. Eventually it will go down, if these oil prices hold for a month and they stay around $80 every day for the next month, we will see it fall below $3 at the pump, maybe $2.75 at Costco.

Look at the average price for a month, not just closing price but the average it gets to in a day and a month. Even today, it was $79 for a little while and $83 for a while, so toady's average was really $81, other days it may settle at $83 but spent time at $88, so you can't use the low water mark in calculating what they got it for since we as a country buy oil every second of every day.