OT- Hurricane threat already causing gas price increase.

[BU_EMT128]

The threat of hurricane Gustav slamming into the New Orleans area has already caused speculators to increase the cost of gas. So be prepared to pay a lot more in the event this hurricane actually damages anything....

http://www.wandtv.com/global/story.asp?s=8923636

[Da Coach]

I think it's a bit of a lame excuse. Thursday, the same stations that had regular gas at $3.54, raised it $.25 to $3.79 Friday morning. Crude oil prices are falling, and there is a miniscule chance that hurricane Gustav will actually have a real effect on oil/gas supplies. I think it is a soft form of price gouging to nail the public just before the last big holiday/travel weekend of the summer.

[Stryker]

Contrary to popular belief, crude oil prices are not positively correlated with the price of gasoline. However, when crude prices go up every gas company uses it as an excuse to increase the price of gas.

[Da Coach]

Exactly. It is used as an excuse to manupulate gasoline prices.

[Da Coach]

Rick- what I mean by manipulation is-- how can you explain that every gas station in the area raises and lowers their prices simultaneously, and nearly the exact same amount. It is not simply supply and demand. As I mentioned above, Friday morning, all the stations along Knoxville in Peoria raised their price for regular $.25 simulataneously. I have a friend who works at a station, and he calls me on days when the prices are due to increase, and tells me to "get my tank filled, because at 2:00 the price will go up 10 cents a gallon". And sure enough, not only that station, but every station has a 10 cent increase at exactly 2:00. Coincidence?

[Stryker]

What oil companies do is create 'artificial' demand and a shortage. What happens in Mobil Exxon, etc. have bulk contracts set for 10-15 years that they buy crude with from OPEC and other nations. Most oil companies are paying less than $50/barrel right now because they have had their buy price locked in for so long. This is why MobilExxon has $10 billion profits every quarter. However, it is the refinery process that slows down supply, and is the reason why weather plays a major role.

What is really happening is oil companies use excuses to sell their product far far above what the cost is to produce it. I can much more in depth here, but I don't have the time now. basically big oil should be sued for collusion and trust activity. Sometimes they even influence supply regionally by sending truckers of their normal routes.

[BUBrave28]

Never knew that Stryk, but very interesting.. The next time I see an Exxon suit on TV I'm gonna start throwing sh... probably can't finish that word here.

[Chico]

When the price of gas went up over 4.00 for the first time I filled up at Hucks of Allen Rd. An irate customer was chewing out the clerk, but before he left he paid 2.00 for a bottle of water. I told him to follow me home and I'll pour him all the water he wants for 1.00.