barrel of light crude dropped $1.17 to $69.19 - does this have anything to do with today price in gas station?

Question

I still am confused if the price of light crude that is set by demand fears (iran, hurricanes, etc), does that affect the price we see at the gas stations where we fill up today or tomorrow or i guess in the comign week..

Answer 1

Yes, there's an effect, but no it won't affect today's price. It takes a while for the cheaper oil to make its easy through the refineries and actually get to the gas station, so there's a bit of lag time.



There's a decent article here about prices: http://www.npr.org/templates/story/story.php?storyId=5365439

Answer 2

Yes and No. Light crude is a direct input for the refining of gasoline. Therefore, any movement in price will trickle into the price of gas. There is no direct relationship that states e.g. that a $1 drop equals a $0.05 drop in the price at the pump because gas like all other commodities is priced based on supply and demand. Oil supply based on output etc... and demand the number of people willing to buy it.

Answer 3

Of course it does... people panic and oh the hurricanes oh the mess in Iraq that we started, Oh I voted in the people that are destroying this country... all is woe...anyhow there is no shortage of oil on this planet. People's greed dictates the prices.. Unless you listen to the news or are informed like you seem to be... there are many people who are not... so they will just keep on paying because now they expect to. Any change lower they think it is a bonus.. The gas stations unless they are like the one on the bridge are not to blame.. they only make about 10C on the one gallon they sell.. it is your government. the millionares and the ones you see on TV to blame.. again there is no shortage of gas and a week by week is not the answer. Do you see how They have you on the limb asking about gas prices in the next week... They want you to feel that way.... They the ones in office knew exactly what they were doing and bought up stocks.. much like the priests who take a vow of poverty but still roll a caddie and a 3 piece suit..

Answer 4

The price changes at the gas station change are related to swings in the price of crude oil, but not directly. The swings in oil prices are based on commodities traders betting that oil will become more scarce compared to demand (increased consumption in India and China for example) , therefore the price will go up. The gas stations are raising their prices as a result of these swings, but not as a result of any direct change in the cost to provide you the gallon of gas you just bought.

Answer 5

LOL It takes seconds for the increase of oil to been seen at the pumps. It takes weeks before you will see a drop at the pump when oil goes down.



They know how to steal every cent.

Answer 6

it takes weeks for the cost of a barrel to make a difference at the pump.

Answer 7

You are aware gasoline is made from Oil, right?

Answer 8

no. it is more a refining issue