So What Is The Latest "Rumor" On Why Gas Prices Are Up Again?

[Christine]

Sorry if I missed any recent threads on this.

After all the hurricanes settled down and right around Thanksgiving, I was very pleased to see the gas prices drop down to $1.87 for a gallon of regular.

After about 2-3 weeks, I started seeing it go up again. Then on Thursday morning, I saw a 5 cent increase and then, this morning, another 6 cent increase.

So what's the deal now?

 

[Bob Slydell]

The price of crude oil has spiked again in the past week or two, it's up about $5 a barrel over last week.

 

[ziggystardust]

Gas stations near where I work were $2.61 this morning.

 

[daannzzz]

It's because Lindsay Lohan was in the hospital.

 

[Christine]

It's because Lindsay Lohan was in the hospital.

That makes perfect sense--geez, why didn't I think that the bulimia admission wouldn't send the demand for gas higher and higher.

 

[Chicago526]

I noticed the hike too, my local Mobil and Citgo were both $2.39 for regular. I thought gas prices tended to be lower in the winter due to less demand?

 

[ziggystardust]

It's because Lindsay Lohan was in the hospital.

This does make perfect sense, b/c she is from my neighborhood. And it seems the gas prices here are always sooo much higher than anywhere else.


Wow daannzzz you hit the nail on the head. Someone better tell the media!

 

[Blondie]

I kid you not, on the way to work yesterday this one place had gas for $2.17.

On the way home 8 1/2 hours later it was up to $2.25? WTH is going on here?

 

[jekajekalynn]

I thought the same thought last week, and my dh says he doesn't even wonder anymore...

I sum it up with phrase "Because they {oil companies }can..."

 

[Crankyshank]

It's because Lindsay Lohan was in the hospital.

I heard it was because TomKat wedding might be off

Seriously though I read it has a lot to do with the Russia/Ukraine dispute. I have to fill up today - cheapest here is $2.24 as of this morning. Up from $1.98 just before Christmas.

 

[Christine]

I thought the same thought last week, and my dh says he doesn't even wonder anymore...

I sum it up with phrase "Because they {oil companies }can..."

Yeah, that's how I'm feeling. I'm actually starting to get paranoid about it. I keep thinking that they were trying to hold the priced down a bit through the X-mas season so that we would get out to the stores and spend. Now that this part of the season is over, they are going to hit us with high gas prices now. I swear it's a conspiracy. Where's my Prozac!

 

[BunsenH]

The stock excuse this time of year is that crude supplies and production are dedicated to making heating fuel, thus squeezing gasoline supplies.

 

[Bob Slydell]

The stock excuse this time of year is that crude supplies and production are dedicated to making heating fuel, thus squeezing gasoline supplies.

And that's true. There's a finite amount of crude oil and it's used to refine both products, so if refineries shift more of their production toward one product, the supply of the other goes down, thus creating a larger demand.

The main reason I've heard for the crude oil price jump has been the recent events in the Middle East, including Sharon's illness.

 

[Towncrier]

Why did the oil company raise gas prices up again? Because they can.

It's as simple as that.

I hadn't considered that Ariel Sharon's stroke might have a lot to do with it. That makes sense (although I still don't buy that as a valid reason for the sudden jump in gasoline prices). I stick with my original comment.

 

[Tigger_Magic]

Crude oil prices are rising because of increased tensions in the Middle Ease due to Airel Sharon's strokes and surgeries. From Reuters:

LONDON (Reuters) - Oil jumped to $64 a barrel on Friday as geopolitical factors in the Middle East and other key oil-producing regions sparked concerns over global supplies.

U.S. February light crude climbed $1.31 to $64.10 a barrel by 1512 GMT.

U.S. crude prices have posted gains of more than $5 since late last week, led by fresh investor money flowing into the market seeking to capitalize on the strength of commodities.

London Brent crude jumped $1.31 at $62.44 a barrel.

Analysts said instability in West Africa and the Middle East reinforced investors' concerns that the developing world controlled a large share of the world's energy resources.

"This just rams home how much the Western world is dependent upon the 'Wild West' for its energy supplies, whether its West Africa or the Middle East or Russia," said Ian Henderson at JP Morgan Fleming in London.

In the last few weeks, there have been attacks on Nigeria's oil pipelines, a Russia-Ukraine row over natgas prices that briefly cut European supplies, and the closure of Iraq's biggest refinery due to security threats.

Israeli Prime Minister Ariel Sharon's life-threatening stroke this week and growing concerns about Iran's nuclear intentions have also kept the market on edge.

"There has been a marked ratcheting up of geopolitical tensions this week," said Kevin Norrish, an oil analyst at Barclays Capital.

If crude oil prices start to rise, gas prices will start to rise in anticipation of higher production costs. Call it the Katrina effect. We'd better learn to live with it.

 

[BunsenH]

Crude oil prices are rising because of increased tensions in the Middle Ease due to Airel Sharon's strokes and surgeries. ...

Then by extending Pat Robertson's logic, God is responsible for high gas prices! (A causes B, B causes C, therefore A causes C)

 

[sodaseller]

No doubt all of the seriously suggested factors have a causal relationship (many factors involved), but the GAO has shown that the FTC and DOJ permitted too many mergers among trefiners and have let that market get too concentrated

 

[Tigger_Magic]

No doubt all of the seriously suggested factors have a causal relationship (many factors involved), but the GAO has shown that the FTC and DOJ permitted too many mergers among trefiners and have let that market get too concentrated

So, BunsenH, God is vindicated! It's actually all President Bush's fault!

 

[sodaseller]

So, BunsenH, God is vindicated! It's actually all President Bush's fault!

As is Dr. Pavlov by yours - might want to read the report. It's at Link

The FTC rejoinder is also available via search. Try to actually think about teh issue

 

[sodaseller]

dupe post