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There is a pretty good piece on MSNBC that explains how gas prices are set. It is written in a "FAQ" format and does quite a good job of breaking this down for the layperson. I think some of the material may have actually creeped into a report on Friday's NBC Nightly News (link to netcast-not sure if it works). Ultimately, the price of gas prices is set by the price of crude oil on the futures market, which (I believe) is out of the hands of grandstanding politicians. If this much gets through to the public, I'd say we've made progress. The problem however, is that, in the eyes of the public, we've just replace one mystery (gas prices), with another (crude oil prices). The fact is that the futures markets is opaque. Sure, financial news services come up with narratives about why the futures do what they do, but they never really cite any evidence for them. Does anyone, even the wise readers of the The Oil Drum, really know the true reasons why crude oil prices are high? Is it because the supply of crude oil is diminishing? Anxiety over Iran and Nigeria? Mere speculation by investors? Chances are that it's all of these things. Investors do things for all kinds of reasons, and they certainly don't act as a monolithic block.
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What is the current platts price for automotive gas oil?
This is the price of crude oil. The amounts will vary depending on the supply and demand that is placed on the oil.
What pitfall to objective thinking is reflected in a person's view that oil companies are price gouging the consumer?
Loaded Terminology
Why are gas prices rising when oil is falling?
There is no logical answer to this question. Gas at my local Arco was $1.55 when oil was $45 a barrel. Now oil is $36.00 a barrel and gas has risen to $1.99. This is a clear case of price fixing and manipulation. The oil companies are hoping we are so happy with sub $4.00 gas that we wont notice the sneaky ratching up the the price when it should be falling. Based on my calculations gas should now be $1.24 a gallon or 34.45% of the price of a barrel of oil.
How does dependency on oil affect gas prices?
Since there is a constant need for oil the people who sell the oil may raise the price on Oil to make profit in result it rases gas prices.
Baltimore Gas and Electric Company gas price per therm?
Sep - Oct 2011 bill reflected BGE Natural Gas Commodity at .5675 per therm & .5605. They were switching to winter rates.
What is the current platts price for automotive gas oil?
This is the price of crude oil. The amounts will vary depending on the supply and demand that is placed on the oil.
Is the oil and gas drilling industry growing?
It generally depends on the price of oil and natural gas. When the price of oil/gas gets high, drilling for oil/gas generally increases thereafter. Oil and gas drilling has been growing in areas such as the northeast United States because of new discoveries and technology regarding shale gas.
Why is the price of gas rising?
oil company GREED
What pitfall to objective thinking is reflected in a person's view that oil companies are price gouging the consumer?
Loaded Terminology
How does oil central heating compare to gas central heating?
Oil central heating tends to be more expensive when compared to gas central heating as the price for heating oil tends to be higher when compared to natural gas. The price of heating oil also tends to be more volatile than natural gas.
What was the price of gas the last time oil was 70 a barrel?
In December 2009, the price of crude oil was $70.53 per barrel.
Why are gas prices rising when oil is falling?
There is no logical answer to this question. Gas at my local Arco was $1.55 when oil was $45 a barrel. Now oil is $36.00 a barrel and gas has risen to $1.99. This is a clear case of price fixing and manipulation. The oil companies are hoping we are so happy with sub $4.00 gas that we wont notice the sneaky ratching up the the price when it should be falling. Based on my calculations gas should now be $1.24 a gallon or 34.45% of the price of a barrel of oil.
How does dependency on oil affect gas prices?
Since there is a constant need for oil the people who sell the oil may raise the price on Oil to make profit in result it rases gas prices.
What was the average price of a gallon of gas in 1995?
In 1995 the average price of gas per gallon was $1.11. Oil was an average of $16.75 per barrel for the year.
Baltimore Gas and Electric Company gas price per therm?
Sep - Oct 2011 bill reflected BGE Natural Gas Commodity at .5675 per therm & .5605. They were switching to winter rates.
What was the price of gas when oil was 97.00 per barrel?
Oil reached $97.00 a barrel in 2008. That year, the average price for a gallon of regular gasoline was $3.27
What affects the oil field machinery industry?
The health of the oil and gas field machinery industry is inextricably tied to capital expenditures in the oil and gas extraction industries whose health in turn is dependent on the price of oil.
