Why Did Gas Prices Shoot Up Rather Than Rise Gradually ?

[jseankil]

Is there a fair explanation? I understand supply and demand but I have a hard time believing China had hundreds of factories go online all at once sucking vast amounts of oil. Prices should have gone up gradually rather than the spike we have seen these last couple of years. I also understand that a storm like Katrina can knock out oil facilities causing temporary price spikes but why are prices still so high?

[Duer 157099]

1. It's like ripping a band-aid off quickly

they know that we'll yell for a bit, and then go back to sleep

[uppityperson]

2. And then they will forget the pain so you can up it just a little bit more

[OldLeftieLawyer]

3. Obscene profits are more fun

when they come in fast.

Sort of like NASCAR.

[demosincebirth]

4. They go down gradually...they always go up like a rocket.

They are screwing you without even a kiss.

[aden_nak]

5. Because your alternative to buying gasoline is. . . what?

That's why the price shot up. Because it can. If a person could be charged for oxygen, it'd be five bucks per inhale by the end of the year.

[Lexingtonian]

6. sadly easy to explain....

The oil companies and supplier countries were doing a slow and quiet cartel-type price run-up, but big speculators (e.g. hedge funds) ran out of other places to make profits when the U.S. economy slumped and corrupted and shifted to favor corporate management profiteering and got in on the oil game.

Buyers went into some panic when they realized a squeeze was taking place, and then smaller supply players- Enron, electricity suppliers, natural gas companies- started manipulating some regional markets, screwing up the orderly way things were being rigged.

[tulsakatz]

7. I don't know but......

....I have noticed something interesting. Remember when gas prices went up so much and the oil companies insisted they couldn't do much about it, even though they continue to make record profits?

When everyone started getting so outraged about it, I noticed gas prices (here at least) went down about a nickel and the next week they went down another nickel!

So if the oil companies really do have to charge that much for gas, how were they able to reduce the price when the only thing that had changed was the public's opinion?

[louis-t]

8. Gas here went down $.10 today.

I thought I was dreaming. Down $.20 since last week. Filled up at the first station I saw at $2.77. Then I saw it at $2.72. Chimpies on the horn "jawboning" again.

[jseankil]

9. Getting excited about $2.72 That sucks.

The Grand Oil Party will pay this November and beyond, I'll promise you that.

[Jim Warren]

12. Up 20 cents here in that same week

Down there, up here, a month ago we had some of the lowest prices in the country, today the highest.

It's gotta be price manipulated like Enron did in Ca. with the electric grid.

Have some sick fun at http://www.gasbuddy.com/ playing with the time and price graphs for different regions.

[ThomWV]

10. Movement In Proportion To Our Threat To Iran

What the hell does the world expect out of oil prices when America brings war to the nation with the 2nd largest reserves and threatens war with the 3rd?

[McCamy Taylor]

11. Oil Companies tell W. to threaten Iran when they need more profits.