Anyone notice nice drop in gas prices the last month

[JackTripper]

Ain't that what crude oil futures investing is about? Maybe you should reconsider your stance.

Explain why I should reconsider?

 

[Totally Bored]

Demand hasn't changed.
Only the candidate changed

Do they think we're that ignorant

Many are that ignorant.

 

[Geo]

You just implied the WH controls supply through the permitting process.

The biggest inputs into pump prices are price of oil, refining costs, distribution/marketing costs and lastly gov taxes. Which one of these levers is the WH manipulating?

The biggest input is the actual supply.

 

[JackTripper]

The biggest input is the actual supply.

Not necessarily. But you had it right in your top post at the very beginning of the thread--it's the economy, which implies demand.

Pump prices also have a normal seasonality to them that peak in the summer months (when travel demand is high) and drop during the fall/winter (when travel demand softens). In the US, there is also a refining component, which is the switch away from "summer" blends that occurs in September, which burns cleaner and is mandated by the EPA in dense US markets. Summer blend costs more to refine than the winter blend, adding another 10-15 cents per gallon.

 

[VonBonfire]

Explain why I should reconsider?

Because current white house policies affect crude futures. Not sure how you can't make that connection when you are saying the "white house doesn't control oil prices etc etc". I mean, you are kind of right, but also wrong at the same time. Just my two cents. I hope your day is well.

 

[JackTripper]

Because current white house policies affect crude futures. Not sure how you can't make that connection when you are saying the "white house doesn't control oil prices etc etc". I mean, you are kind of right, but also wrong at the same time. Just my two cents. I hope your day is well.

If by WH policies you mean the relationship between the administration and the Saudi's then yeah, I would agree. The Saudi's, after all, control the spickets and there can certainly be influence and reciprocity there. At the same time, today, I wouldn't exactly call the relationship between the Biden Administration and the Saudi's warm and fuzzy. At this point, it's barely transactional. The Saudi's obviously prefer Trump, so they will leverage that. That's been baked into crude futures for some time now.

 

[Geo]

If by WH policies you mean the relationship between the administration and the Saudi's then yeah, I would agree. The Saudi's, after all, control the spickets and there can certainly be influence and reciprocity there. At the same time, today, I wouldn't exactly call the relationship between the Biden Administration and the Saudi's warm and fuzzy. At this point, it's barely transactional. The Saudi's obviously prefer Trump, so they will leverage that. That's been baked into crude futures for some time now.

No, WH policies like canceling the Keystone pipeline on day one.

 

[JackTripper]

No, WH policies like canceling the Keystone pipeline on day one.

...Or how about the WH decision to allow Exxon and Mobil to merge notwithstanding the Sherman Antitrust Act so they could compete in the global nationalized markets? Of course, the WH can directly impact energy policy. But isn't this discussion right now about the WH manipulating prices lower before an election?

If the Biden Administration wanted to manipulate prices lower, wouldn't it make sense for them to reverse policy on the Keystone pipeline? Seems it would be a lot easier than having to kiss the ass of the Saudi Prince, doesn't it?

 

[Geo]

. But isn't this discussion right now about the WH manipulating prices lower before an election?

No, I commented on this, then you commented on what I said.

 

[JackTripper]

No, I commented on this, then you commented on what I said.

Maybe I need a flowchart for this conversation. Time for me to slide down the back of a dinosaur, my day is over. Have a good weekend.

 

[MadAsAHatter]

Don't forger about environmental regulations that affect production. That comes indirectly from white house policies and don't fluctuate near as much as other factors, but can affect prices at the pump.

 

[shar-vell Dan]

Don't forger about environmental regulations that affect production. That comes indirectly from white house policies and don't fluctuate near as much as other factors, but can affect prices at the pump.

No not really Oil Corps do what they need to and skirt whatever if needed.
Only time Petroleum or Gas Co's ass is in a sling is what they cause a disaster and even then they just pay a big fine.

 

[Floyd Eye]

No not really Oil Corps do what they need to and skirt whatever if needed.
Only time Petroleum or Gas Co's ass is in a sling is what they cause a disaster and even then they just pay a big fine.

More bullshit. One of my friends owns an oil and gas company and I guarantee you’re wrong.

 

[MadAsAHatter]

No not really Oil Corps do what they need to and skirt whatever if needed.
Only time Petroleum or Gas Co's ass is in a sling is what they cause a disaster and even then they just pay a big fine.

That's only partially true and really just applies to larger producers like Exxon. I've worked on the regulation side of that industry. They mostly do things by the books, but there are a few things that are cheaper for them to take the fine than revamp their production. They however do tend to pass that cost along to the customer when it happens.

Edit: And my uncle was CEO for Georgia Gulf until he retired. He's kind of an ass and has his head in the clouds on some things, but I do believe him when he says during his time he made sure to do things right. Unfortunately the cost to do things right did get passed down to the customers to offset costs.

 

[shar-vell Dan]

That's only partially true and really just applies to larger producers like Exxon. I've worked on the regulation side of that industry. They mostly do things by the books, but there are a few things that are cheaper for them to take the fine than revamp their production. They however do tend to pass that cost along to the customer when it happens.

Edit: And my uncle was CEO for Georgia Gulf until he retired. He's kind of an ass and has his head in the clouds on some things, but I do believe him when he says during his time he made sure to do things right. Unfortunately the cost to do things right did get passed down to the customers to offset costs.

Then you know they have teams of high powered Attorneys that can get them out of anything.

 

[MadAsAHatter]

Then you know they have teams of high powered Attorneys that can get them out of anything.

Of course they do. But a couple hundred thousand dollar fine is generally cheaper for them to pay outright and really just a drop in the bucket compared to the millions it would cost to revamp a system or fight things in court. A week or two of passing that costs down the line and they'll make it up.