Gas prices are going up because there is glut in the market?

[kentuck]

Not because there is a shortage?

Everything we read indicates that there are no shortages of gasoline. All reports are that there is more gasoline than there is room to store it. In a complete reversal of market rules, of basic supply and demand, the Big Oil companies are conspiring to use their monopoly to put the screws to the rest of us.

In the normal world of supply and demand, the prices would go down, not up, whenever there was too much of a product on the market. But not with gasoline.

Although they are selling half of what they anticipated, instead of cutting prices to sell more, they double the prices to get their anticipated profits, no matter the rule of supply and demand. So is the power vested in monopolies.

[RDANGELO]

1. Same thing in the health care industry.

A limited amount of suppliers means that there will never be true competition. They will soak us for whatever they can get.

[Name removed]

26. Deleted message

Message removed by moderator. Click here to review the message board rules.

[leftyladyfrommo]

2. And then people cut their usage and demand goes down even further.

We live in an upside down world.

[Zynx]

3. The price movements we are seeing are driven by speculators in the commodities markets.

They can try to use recent weakness in the dollar as an excuse, but it hasn't declined nearly as much as commodity prices have risen.

It's the same shit as last year and is the typical behavior of markets. They always return to the last thing that worked first.

[kentuck]

4. Oh...the Congress did not reform that practice??

I guess not. The traders are back at it, making their little fortunes.

[ThomWV]

8. Hell no ...

The trader's just quit ripping us off with record speed and the Congress forgot about it just about as fast. Now, with no law to restrain them the trader's are back to do it all over again. Oh, and the "Peak Oil" fucking idiots will be right there to cheer them on.

[ejpoeta]

7. that's what i figured. speculation. i don't use more gas than normal

and i don't think others are. well, except that it is summer and they probably figure people will use more because they usually do in summmer. problem is, the more the price goes up the less they will use.

[Hannah Bell]

23. memorial weekend use was down something like 5% v. last yr

[dmosh42]

9. Yes, uou're right, plus our Dem controlled Congress goes along ...

with allowing Morgan, Stanley, hedge funds, and others to buy ship loads of oil to keep off the market. Some suggestion was made to allow only 'user' like airlines and truck companies to buy futures but our 'heroes' are always on the take.

[louis-t]

20. And prices will eventually collapse.

Just like they did before. But, meanwhile, any economic recovery will be muted.

[kentuck]

21. The same cycle over and over...

They drive the prices up as far as they can and make tens or hundreds of billions of dollars, then they lower the prices while the people are recovering from the shock. But they never lower them to the point they never make a handsome profit. This is all windfall for the oil companies. There needs to be a windfall profits tax or they need to be nationalized. They are criminal.

[Turbineguy]

5. Given that people have come to expect

higher prices in the "summer driving season" may explain why prices have been raised. In actuality, the law of supply and demand gets modified. Infrastructure has to be in place to cover expected demand etc.

[ThomWV]

6. As fewer and fewer people drive to work demand decreased and the price goes up

You see something unusual in that trend?

[baldguy]

10. The oil cartels are raising prices because they can.

They lost their bid to keep control of the White House, and there's as yet no oversight in place to control them.

[kentuck]

11. Now, where are those revenues we need to balance the budget??

I know they are here somewhere? Maybe they are under the desk? Nope! Not there. Where o' where could they be???

[baldguy]

19. Zurich, Hong Kong & the Caymen Islands.

[FarCenter]

12. The price is set by the demand from emerging market countries, not the US

Global production is pretty well maxed out.

Besides which, oil in the ground is appreciating faster than anything that you could buy with the profits from pumping and selling it.

[kentuck]

15. I don't think that is the case at this time...

They have rented tankers to store oil and there is no more room to store the excess oil. Refineries are operating at 85% capacity and there is no shortage at all. The traders on Wall St are up to their old games, bidding up the price. Consider that when gas goes up .01 per gallon, they make a billion dollars.

[Hannah Bell]

24. us = biggest user in world, us military = biggest user in us.

"emerging markets" supply 1st-world consumers mainly.

world production down something like 5% each of last 2 quarters.

[CK_John]

13. War drums in the background is causing the spike. n/t

[IDemo]

14. There's also this ->

The traders are banking on an upswing in the economy and are storing supplies offshore in the meantime.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5787467&mesg_id=5787467

[Cresent City Kid]

16. Has anyone heard of "summer blend" gasoline?

I heard about this on my local NPR station yesterday. It's supposed to give off less vapor in the heat of the summer, in an effort to improve air quality. I've never heard of this before, but they said it's one of the reasons gas prices go up around Memorial Day.

[backscatter712]

27. It's their lame-ass excuse.

Who actually buys that line of bullshit?

[TheWatcher]

30. You can't POSSIBLY believe that BS.

Oh wait, we're in America.....

I guess you can.

The Recession ended yesterday too, by the way.

:rofl:

[Cresent City Kid]

31. I didn't say I believed it

[TheWatcher]

32. I hope not. That's about as real as Corinthian Leather.

:rofl:

[lefthandedlefty]

17. People always start buying more when the price goes up

Here in KY traffic slowed way down when gas went down to 2 dollars now it is up to over $2.60 a gallon traffic is bumper to bumper every where,so it seem to me all one needs to do to increase consumption is raise the price.

[Joanne98]

18. The banks and the hedge funds are running it up. There's no shortage..

Inventories are full and RISING! It won't stop until they're ALL IN PRISON!

[sarcasmo]

28. Bingo.

[TheWatcher]

29. Stop Spewing Conspiracy Citizen!

You know damn well all of the Banks are profitable and righteous and have no need to engage in such skullduggery!

When have they ever lied to us Before?

I will need to see your Loyalty Papers, Please.

Conspiracy Theories are VERBOTEN!

:sarcasm:

[boomerbust]

22. Reverse

Supply and Demand:evilgrin:

[Politicalboi]

25. And Hybrids are going to raise them even more

Unless we get an alternative fuel we are going to be forced to buy electric cars when gas is $10.00 a gallon. This is the next big squeeze they have in store for us.

[SoCalDem]

33. Shades of the california drought

We got a letter from the water department./.paraphrasing..

because of the drought, we will be using tiered billing, and each "next tier" will cost more , so you better start conserving, or we'll rob you blind"

result?

people DID conserve like maniacs, and a few months later, a NEW letter arrived..paraphrasing again

Because people are not using ENOUGH water, we cannot make enough, so we are rasing your rates by 35% AND we are keeping the tiered system"

translation?

either way, you are F-ed:)