Published: Tuesday, May 13 2014 2:15 p.m. MDT
It's happening nationally.... and the price of oil has not wavered more
than a percent or two over the last 4 or 5 months. Just a reminder that in this
case, price has little to do with supply, nor demand.
So when supply is low, the price goes up. When supply is high, the price goes
up. Now, I'm no economist, but I thought an increase in supply meant prices
were supposed to drop... Seems we ALWAYS have a reason why prices are up here in
Utah. There's always some refinery maintenance/issue that's to blame
for the increase.
In a perfect world where politicians, economists and governments did not play
games, the law of supply and demand would work. But we no longer live in that
world, regardless of what the econ teacher teaches. Be prepared for rising gas
prices in the next few years as laws are and have been manipulated outside of
what is being reported by mainstream media. The falling dollar has a lot to do
Yes we can! Yes we can! Yes we can!
We have to keep raising prices, that is the only way that each quarter the oil
companies can set new records for profit. Remember though without that taxpayer
welfare for oil companies we would be paying even more.
"Utah, on the other hand, is following its own characteristic pattern of
pricing..." That really should read something like this: "Utah petroleum
dealers continue to ignore the supply and demand facts to continue their gouging
of the public, hiding behind vague and confusing statements about so-called
current price per barrel, $110. Price a month ago $100. They can make 19 gallons
from one barrel, with many by products. Fracking North Dakota, and
the largest oil boom in US history has not helped America's drivers.
It's a lie when they tell us how drilling in primitive and pristine areas
will benefit us.
Currently, the US refines enough gasoline to meet our needs. In theory, prices
across the nation should not be affected by the cost of oil in the Middle East
or anywhere else.Much, if not most, if not all, gasoline sold in Utah is
refined here. Therefore, our costs should be cheaper year round. However,
suppliers and retailers charge what they can get. The higher the better for
them.While gasoline prices are not allowed to be set by competing
companies, the difference between the highs and lows in an area don't
change much.One interesting fact currently: Costco and Sam's Club
locations are charging about .17 less a gallon than other dealers. Clearly, we
should be shopping at these locations to help drive the price down at other
I think something is wrong when gas in the rest of the country has dropped 20+
cents per gallon at the same time it has increased 28 cents per gallon here in
Utah. That's a half dollar a gallon difference. I don't see how anyone
can justify that much of a variation. But beyond that, we're
still sitting in 25th place nationally out of 50 states. That's smack dab
in the middle, which in one sense doesn't leave much to complain about when
viewing the big overall picture. As long as we can be at average or below
compared to the rest of the country, that isn't terrible. That
said, the market supply dynamics in Utah are somewhat different than much of the
country, which does make an argument for lower than national average prices
here. Like one comment mentioned, Utah doesn't have to import much (if any)
of it's supply. Therefore, our price fluctuations should be fairly low
overall... pending something like a refinery fire or some unusual circumstance.
I haven't read or heard about anything like that happening lately to
justify this latest larger than average jump in prices.
RichardDB... your probably referring to two different type of crude. There is
Brent Crude which is always about $10 more a barrel, and then normal spot quote
oil with as of this writing is $101.62... right in the middle of the trading
range it has been in for months.And congress is on the verge of
voting on a bill that would allow for the first time in decades the export of
crude from the US to other nations. We have been able to ship refined
product... not crude. Its a funny business charged with lots of
emotion... and a lot less facts.
Price of wind power in Spanish Fork? No change. Price of wind power in
Milford? No change. Darn renewable energy. Once its in the
ground, its price doesn't change. Boring! Not Putin, not nuclear
disaster, not bad weather, not drought, not wild fires, not coal mining
accidents... nothing impacts its price once its built. Renewable
energy prices are locked in contracts and are known and predictable till the end
of the contract. Spanish Fork's contract runs out in 2028. We know the
price of its wind power then. We don't know the price of oil or natural
gas in 2028, let alone in the next six months.The quicker society
moves to renewable energy for electricity and switches to electric vehicles, the
days of worrying about yo-yo oil prices will be sorry memory.
Private companies should not be regulated at all in Utah by "big
Gas is traded as a commodity. As a result, speculators, nor supply & demand,
determine the price of gas. Unfortunately, the commodities market is one of the
least regulated for corrupting and price gouging. You can thank Mr. Reagan for
that. Yet another triumph for the party of low information voters.
I enjoy coming here and reading all the different theories of which bad people
are denying us the dollar a gallon gas that is our American birthright. If the
price of gas upsets you move somewhere where you don't have to drive to
survive. If you are not incarcerated you get to choose where you live and
work. And if you are incarcerated you probably don't drive much.
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