$40
 

Well the market finally cracked $40 today. It got as high as 40.15 and settled back to close at $40.06. (per barrel/crude).

Unfortunately Brandon, you are one of the very few here that is happy about that!!!:p :p

Oil price doesn't mean that much, even if it were $10 a barrel gas prices will still be high. We are just out of refining capacity. People need to stop with the "not in my back yard" so we can build more capacity. I pass refineries everyday, wonder if I could tap in and fill the tank.

Quoted from Shell Trading daily Market Commentary:

"Rising demand in China and tighter gasoloine specs in the U.S. are cited as reasons for the recent highs in Crude Oil and Unleaded gasoline"

It amazes me that some believe crude prices don't effect gasoline.

It George Bush I tell ya.. it is all George Bush. :D :D :rolleyes: :rolleyes:

EPA regulations instituted by the Clinton administration through the EPA (and not repealed by the Bush administration) are the reasons for the tight refining capacity.

The new fuel rules as well as the very restrictive regulations for building new refineries are a large part of the cost. Crude oil prices are definitely part of the equation. Who said they were not ?

It is a very complex issue that is the culmination of many factors including; terrorism, demand from China, supply from OPEC (They do not supply all the oil) and self imposed US regulations(refineries, drilling, etc.).

No one person can take or should be saddled with responsibility for the current situation.

OK having said that, why are oil companies reporting record profits? And how come Brandon can afford fancy new seats in his top gun? :confused: NK

These factors are exactly why the prices are the way they are today. All of these reasons you have stated have been listed in many other threads.

The only reason I brought it up, was because some have stated that crude has no effect on the cost of gasoline. There are many other factors that contribute to the rise in prices.

Easy there "Cheif Speedmaster the 6th" how many sets of Cheif engines do you have? :D ;) :D


because Keith could barely walk after the Islamorada run. :D :D

Heard an analyst say today that if consumption increases by 5% this we are screwed because the refineries can not keep up since they are already running at full capacity. That is why you see oil companies recording record profits, if the cost of goods was the sole reason the oil companies would not see record profits. It's not that I don't think crude prices effect the price of gas, the inability for the refineries to keep up is a bigger issue. Crude prices could come back down in the short term but our inability to keep the refined supply in pace with increase consumption is a very long term problem.