Saudis minus oil and gas

[tbaydog]

Prices of oil and gas are already up 11% on Merc. Is this not " price gouging "?

 

[karlchilders.sixpack]

Drone attacks

loss of 50 Per cent production capability,

Did you expect other?

 

[CoastDawg18]

Supply and demand isn’t price gouging

 

[PineGroveBully]

We are now produce most of our energy so the effect should be minimal. If it jumps $1.50 a gallon then I'd think it should be considered gouging, but hopefully the oil companies will only do what they have to and we see maybe a $0.50-0.75 rise.

 

[Scottfield1]

Gas prices wont rise more than .10-15 due to attack. Only 5% of worlds production to be effected for a few weeks. We will open our oil reserves to keep prices low. Attack Iran and all bets are off. Iran would immediately begin to attack Saudi and lay mines in shipping lanes.

 

[DesotoCountyDawg]

No, it’s the market reacting to a potential supply issue. I don’t guess you follow commodities trading much. As long as it doesn’t grow to be a bigger problem the market will correct itself.

 

[The Fatboy]

The world market only lost %5 of production. Traders are acting like Mississippi State fans and overreacting.

 

[Apoplectic_Objurgator]

they’ll price in this attack and the risk of future disruptions

 

[CoolDawg]

The thing that has always pissed me off is the fact that if oil prices start falling, it takes months for it to show up at the gas pumps. When oil prices rise, the price of gas rises the next day. To me that is profiteering and price gouging by either the oil companies or gas station owners.

 

[MarkDallas]

No, it’s the market reacting to a potential supply issue. I don’t guess you follow commodities trading much. As long as it doesn’t grow to be a bigger problem the market will correct itself.

I dabbled in orange juice futures in the 80s for a bit.

 

[tbaydog]

Supply and demand isn’t price gouging

Doesn't that same principle work in a hurricane for hotels, gas stations etc.

 

[tbaydog]

We are now produce most of our energy so the effect should be minimal. If it jumps $1.50 a gallon then I'd think it should be considered gouging, but hopefully the oil companies will only do what they have to and we see maybe a $0.50-0.75 rise.

Yesterday, up almost 6.00 a barrel

 

[tbaydog]

No, it’s the market reacting to a potential supply issue. I don’t guess you follow commodities trading much. As long as it doesn’t grow to be a bigger problem the market will correct itself.

Been in commodities for 42 years. Here's my point of discussion. Hurricane hits Florida, a disaster, gas stations, hotels, etc can not raise prices. Against the law. Supply and Demand.

 

[BeardoMSU]

I dabbled in orange juice futures in the 80s for a bit.

No pork bellies?**

 

[Apoplectic_Objurgator]

The thing that has always pissed me off is the fact that if oil prices start falling, it takes months for it to show up at the gas pumps. When oil prices rise, the price of gas rises the next day. To me that is profiteering and price gouging by either the oil companies or gas station owners.

retailers gamble with every fuel order - they price their gas on what the market will bear usually station next door

 

[Dawgzilla]

Doesn't that same principle work in a hurricane for hotels, gas stations etc.

Domestically, substantially raising your prices during a State of Emergency is a crime in many states. Once a governor declares a State of Emergency, then prices can only be raised to match cost increases.

Whether the oil producers are "price gouging" is a matter of opinion, but no crime has been committed. It's a fairly open market; OPEC manipulates prices by cutting production, not by setting prices

And, even though we produce a lot of domestic oil, it is still traded at world market prices. We could increase our own production to try to bring the market price down, but you can't expect local producers to sell below market price.

 

[The Usual Suspect]

No pork bellies?**

Mr. Valentine has set the price.

 

[Lowdog]

Dawgzilla is correct! Born and raised in the oil/gas exploration business, I want to add we are a lot better off than before as energy independence. But the Middle East still controls the price, they open the valve of production and the price goes down, they close the valve and price goes up. It’s that simple.

As far as refined products go there is only a small amount refineries in the U.S. and I believe I read somewhere that no new refineries have been built in the U.S. for like 30years+/-. And you want to blame gasoline prices on the oil industry, I would say I would blame the refinery industry. Or blame the environmentalists which make it next to impossible build a refinery anywhere in the U.S.. Or at build in a fashion that the refinery can obtain a profit.

 

[RocketDawg]

Cost at the pump today was the same it's been for quite some time. I was expecting it to have gone up. Chevron regular was $2.359 ... across town it's 25 cents cheaper for the same brand.

We had a state gas tax increase that went into effect Sept 1, and it still hasn't shown up at stations (either that, or it wasn't as low as it could have been before).

 

[karlchilders.sixpack]

As seen on CNBC, today.

The Saudi production lost, was equal to shutting down about 20 US refinery's.

Now, they were supposedly going to get about 33 Percent of that back up and running, by the end of the day.

The rest will take awhile.

Europe/China etc. gets much of the penalty.

 

[GloryDawg]

Dawgzilla is correct! Born and raised in the oil/gas exploration business, I want to add we are a lot better off than before as energy independence. But the Middle East still controls the price, they open the valve of production and the price goes down, they close the valve and price goes up. It’s that simple.

As far as refined products go there is only a small amount refineries in the U.S. and I believe I read somewhere that no new refineries have been built in the U.S. for like 30years+/-. And you want to blame gasoline prices on the oil industry, I would say I would blame the refinery industry. Or blame the environmentalists which make it next to impossible build a refinery anywhere in the U.S.. Or at build in a fashion that the refinery can obtain a profit.

Isn't oil traded in US Dollars and the value of the dollar has some effect on oil prices? Just asking.

 

[karlchilders.sixpack]

Effect on oil prices...

yes, but not as much as dismantling 6 percent of the worlds oil output, in one day,

 

[thatsbaseball]

Drill baby drill !

 

[Cooterpoot]

Those damn Saudis will do anything to get the price up.

 

[Dawgg]

And you want to blame gasoline prices on the oil industry, I would say I would blame the refinery industry. Or blame the environmentalists which make it next to impossible build a refinery anywhere in the U.S.. Or at build in a fashion that the refinery can obtain a profit.

The oil companies own the refineries. Marathon, ExxonMobil, and Valero refine the most oil.

I think there has been a grand total of about 6 new applications made for new refineries since 2014. There was about a 16 year gap before that. There’s no value in building and investing in new refineries since it would only drive gas prices down.

 

[Apoplectic_Objurgator]

The oil companies own the refineries. Marathon, ExxonMobil, and Valero refine the most oil.

I think there has been a grand total of about 6 new applications made for new refineries since 2014. There was about a 16 year gap before that. There’s no value in building and investing in new refineries since it would only drive gas prices down.

you dont build - you buy and retrofit

 

[tbaydog]

Where are all the Econ 101 masters, oil down 6 % and 5.50 barrel. Yet gas prices will go .50/gal, Called speculation.

 

[johnson86-1]

Domestically, substantially raising your prices during a State of Emergency is a crime in many states. Once a governor declares a State of Emergency, then prices can only be raised to match cost increases.

Whether the oil producers are "price gouging" is a matter of opinion, but no crime has been committed. It's a fairly open market; OPEC manipulates prices by cutting production, not by setting prices

And, even though we produce a lot of domestic oil, it is still traded at world market prices. We could increase our own production to try to bring the market price down, but you can't expect local producers to sell below market price.

Whether anybody is price gouging is a matter of opinion. It's one of those "I know it when I see it type things". I think laws against it should probably be done away with, or at the least, they shouldn't apply to anybody that is bringing new supply to the market.

 

[dorndawg]

Economists predict 25 out of every 10 events

 

[AROB44]

Saudis minus oil and gas

​

Just a bunch of Arabs wandering the desert. ​

 

[Hankp22]

Pump price is a different animal

Cost at the pump today was the same it's been for quite some time. I was expecting it to have gone up. Chevron regular was $2.359 ... across town it's 25 cents cheaper for the same brand.

We had a state gas tax increase that went into effect Sept 1, and it still hasn't shown up at stations (either that, or it wasn't as low as it could have been before).

Terminal Spot/Rack markets went up around .20 per gallon Monday. Prices then dropped .10 today at regional racks on the heels of the Saudi announcement they expect production to recover much sooner than initially anticipated.

Retail markets typically lag behind the spots. It leaves some retailers exposed. Retail in the O/G industry is a different animal. Retailers are often restricted by competition nearby, inventory replacement cycles, and lack of information.