So let me get this straight... When Oil was 140 plus a barrel, a gallon of

[WCGreen]

gas cost about 4.25-4.50. Now that Oil is down to half that, 70-71 per barrel, how come gas is inching closer and closer to 3 bucks a gallon...

This tells me one thing and one thing only; there is no rationality when it comes to the free market.

All this bullshit about letting the market decide like there is nothing we mortals can do to influence the markets is crazy nonsense. The markets aren't driven by supply and demand, there is all sorts of oil sloshing around the world because of the economic slowdown so that excuse is out the door.

No, it's a cabal that is gouging in order to get as much money as they can before other forms of energy kick in. Remember the Seven Sisters, there use to be Seven large oil companies for those of you who came of age during the unfettered Merger and Acquisition phase of our so-called free market system. Well now there are only three of four tops and they have more action on the profit side than every capitalists whipping boy, OPEC.

It's all a scam to say that markets, in this day and age, are "organic" and just follow supply and demand.

It's all crap, has been since the 70's when the first oil crisis hit our shores.

There is no free market.

There is a speculative market in commodities and a control tight market on the corporate side and the citizens of the world accept this all with glee because to think about something so hard would take time away from being all a Twitter, American Idol, Lost and every other distraction that is thrown our way.

[sandnsea]

1. Speculation. Bubbles.

Said it all along.

Is the country, the planet, for the people and living things... or for less than 1% of the greediest scumsuckingest bastards ever created.

We all need to decide.

Move your money to green investments today - and watch us take back our power and our freedom.

[CaliforniaPeggy]

2. Well said!

And even better, damn right.

Bread and circuses, darling, bread and circuses.

We just don't want to work that hard, and the powers that be sure as hell know it.

They're making the most of it, too.

K&R

:patriot:

[NYC_SKP]

4. Look who's back!

You!

:hi:

[CaliforniaPeggy]

9. My dear NYC_SKP!

Yup, since Monday...

Come see!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105x8836743

:hi: back atcha!

[dipsydoodle]

3. There is no direct relationship

between the price of oil / barrel and refining costs. Of course you're welcome to put the raw stuff in your car if you seriously believe it will run on it.

[nichomachus]

7. Also, the "price of oil" is a futures price

the stuff you're putting in your car was bought a long time ago, probably when prices per barrel were higher.

However, right now there is a glut of oil. All the reserves are full and there are hundreds of tankers just floating around full of oil, waiting for a place to drop it.

[WCGreen]

12. The price of the oil that is going in our tanks now was about 35-40

per gallon...

[John Q. Citizen]

5. I'm sure their is manipulation of both commodities, but your example may not be

proof of such.

Since there are other costs that go into refining and distribution other than the oil.

[truedelphi]

6. The oil people's lobbyists sure cost a pretty penny. n/t

[Freddie Stubbs]

8. The price of oil is only one of the component costs of gasoline

There is also the cost of refining, as well as transportations costs.

[WCGreen]

13. I sure do understand that...

But the costs of refining and transportation sure as hell didn't fluctuate that much in the last six months...

I know there are a lot of diferent blends that are sent out across the country, but those same costs were there last summer...

[Statistical]

10. Fixed costs & taxes.

Retail markup is generally $0.10 - $0.20 and doesn't vary based on wholesale price.
State & Federal taxes also strangely are fixed and don't change when prices rise.

So $140 Oil & $4.25 gasoline. National average is around $0.50 in taxes.
So $4.25 gasoline is actually $3.75 pre-tax.
Take out fixed retail markup say $0.15 = $3.60 wholesale

$70 oil $2.70 gasoline - $0.65 (taxes & retail) = $2.05

Oil = 50% of peak
Gas = 56% of peak

It gets weirder when gas goes even lower.

At $2.70 per gallon gas the fixed tax is 19% of price of gas.
At $5.00 per gallon gas the fixed tax is 10% of price of gas.
At $1.50 per gallon gas the fixed tax is 33% of price of gas.

Now if taxes were not fixed their would be a more linear relationship however it would hurt a lot more.
Say 20% tax = $1.00 extra @ $5.00 gas and only $0.40 at $2.00 gas.

Here is non tax gas price & oil.

[mullard12ax7]

11. Hedge funds and "deregulation"

All part of the culture of corruption that will rule America's people until they stop them by putting them in jail. That doesn't look like it's going to happen anytime soon either.

[DCKit]

14. + banks with hundreds of billions of federal $$$$ to spend.

Geez, who knew?