Why is the price of gas going up?

[kentuck]

And how much does it have to do with Iran?

Are the oil companies betting on future military action against Iran?

Or do we have a shortage of oil at the present time?

Or is it just greed by the big oil companies?

What is your opinion?

[valerief]

1. Because it can. nt

[shanti]

21. exactly.

because they can.

[nanabugg]

25. You beat me to it. nt

[rurallib]

26. with the media greasing the skids.

[CurtEastPoint]

2. speculators? Greedy mofos?

[liberal N proud]

3. Greedy oil companies doing their part to kill an economic recovery

It all is because of a deep seated hate some rich white men have for one.

[applegrove]

32. I think trying to kill an economic recovery could be part of the reason why.

[Bruce Wayne]

4. Well, if more people are working & more companies are delivering goods...

supply and demand sorta demands that an improving economy will see rising gas prices. Of course if you don't like supply and demand, I guess it's cool to ignore rational scientific explanations and just assume it's a big conspiracy by elites out to destroy whatever it is you personally support. I hear that's a very popular way to think these days.

[theophilus]

34. Well, I'll wager that you will not find demand up this time of year. Also, did you know that "we"

are EXPORTING lots of gasoline? Funny,huh? Also, in my area (and maybe yours)almost this exact thing happened last winter. You know when the economic news started sounding good. Gas went up here between January and May by almost 90 cents. Then the good news turned sour. Oddly enough the price of gas went down in the summer and bounced around within a narrow range. My "theory" is that the rat bastard oil companies will do anything to suck any extra money out of the economy. Should we praise them in this? I think not.

[tridim]

5. Big oil threatened "Huge political consequences" if Obama didn't approve the pipeline.

http://www.huffingtonpost.com/2012/01/04/jack-gerard-obama-keystone-pipeline_n_1184281.html

They are now enacting that threat. All the reasons you hear about on the "news" are cover for the real reason.

[Politicalboi]

7. Because they can

And it makes it look like Obama is the one who is doing it. It's their next talking point.

[greendog]

8. Tax refunds are on the way.

The oil companies are just changing their prices to reflect the fact that a few extra dollars are available.

[Magoo48]

9. Consumption worldwide is in decline,

therefore they are scaling back production.....manipulate the supply/demand ratio.....manipulate the public thru advertising. The oil business is, both literally and figuratively, the filthiest racket on the planet IMO.

[Rosa Luxemburg]

17. we need to bypass oil altogether

[spin]

33. Very true. Unfortuantely we can't bypass oil this year or next or even in a decade...

However, we can make a good start in 10 years.

[notadmblnd]

10. we're down to 3.19 here about 30 miles north of Detroit.

People were lined up at the pumps like they were giving it away. I've noticed that every time there is something said about Iran and Israel that escalates tensions, it spikes between 25 and 30 cents then slowlt decreases in price again. This week it's gone down quite a bit, last week it was up in the 3.50's

[kentuck]

11. We just went above 3.00 per gal for regular...

Here in Colorado Springs.

[NutmegYankee]

31. 3.80 here in S.E. Conn

[Texasgal]

12. Spring is coming

lots of driving for traveling families!

Spring break is less than a month away!

[theophilus]

35. It did this last winter. Up in the winter.....down in the spring....

at least in central Arkansas. Also, when the economic news is good it seems to go up. Not blamed on increased demand, though. I believe demand is way down and yet the Petro Pirates continue to EXPORT gasoline to other countries. Throw them all in prison I say.

[FarCenter]

13. Some, no but the speculators are, sort of, and partly

And how much does it have to do with Iran?

There have been modest increases in price following sabre rattling on both sides, but Iran is not the only factor. There is unrest in Nigeria for example. Also significant is the rise inconsumption by developing countries.

Are the oil companies betting on future military action against Iran?

No, the oil companies would be trading to hedge positions. The speculators in the futures market would be making the big bets on whether or not there will be a shortage or interruption from Iran.

Or do we have a shortage of oil at the present time?

Emerging economies are placing more demands on the supply. There is no physical shortage as long as prices are allowed to rise so that users who cannot afford the higher prices cut back their consumption.

Or is it just greed by the big oil companies?

The big oil companies don't set the prices, if by big oil companies you mean Exxon Mobil, Shell, BP, etc. The prices are set by the futures trading markets and by the national oil companies of the big producing countries.

[pwb]

14. I thought prices would go down after Iraq.

A lot less fuel being used without our military tear assin around so much. Gas prices go down, threaten Iran and up they go, it works every time.

[Spider Jerusalem]

15. Oil is $120 a barrel

the oil price quoted in US financial reports is for West Texas Intermediate crude oil which only accounts for about 5% of total US production; WTI is priced lower because of excess inventories at the oil depot in Cushing, Oklahoma, and a lack of pipeline capacity to move it out. Every other grade of domestically produced crude oil is trading around $120 a barrel. So is every grade of foreign-produced crude oil. Global oil demand is at about 89 million barrels per day; global oil production is at about 10 millon barrels a day less than that, and crude oil production has been flat since 2005.

[Yo_Mama]

16. It's not because of increased usage in the US

I think it is partly speculation - the ECB has dumped a lot of money into banks in Europe. Banks in Europe have used a lot of the money to repay loans coming due. That money has to go somewhere, and a good guess is that some of it is going into commodities. Iran provides a pretext and the ECB money provides the fuel.

[Ikonoklast]

18. Record exports of refined gasoline and diesel leaving the market for overseas.

The oil companies are creating artificial shortages in order to keep domestic prices high by exporting.

[FarCenter]

22. We import the crude, refine it, and ship the refined gasoline and diesel to other countries

At least we make money on the refining.

[Spider Jerusalem]

23. not really

those exports are of oil that was imported in the first place from Mexico or Canada or elsewhere because the US has the refinery capacity. If there were demand in the US it wouldn't be exported; as it is, even allowing for the export of refined products the US is a net oil importer. Not exporting the fuel wouldn't affect prices much if at all because the price is determined largely by the market price of oil and not of refined products like gasoline (and total world demand is still very high).

[Ilsa]

19. Oil cos are doing it to derail

Obama's economy and re-election. They also promised to be vindictive about the pipeline issue.

[sendero]

20. There are lots of reasons...

..... among them being that people who have REAL stuff are getting leery of trading it for pieces of paper that are being printed like there is no tomorrow.

A dollar is not worth a dollar if you toss several trillion of them into the economy in a futile attempt to save a banking system that is on life support.

Expect oil, food, virtually every commodity that you use to rise in price at several percent a year until this nonsense stops, if ever.

[jenmito]

24. I think it's Iran. n/t

[Booster]

27. Because they want to point their finger at Mr. Obama and yell "IT'S HIS FAULT".

[Ron Green]

28. We all paid way too little for way too long

and built our world accordingly. A different future is coming, whether we're ready or not.

[Samantha]

29. Speculation by 5 investment banks "betting" on the future price of oil

Additionally, the Koch Brothers have bought huge supplies of oil while the price is low, wait for Wall Street to drive the prices up, and then sell high. They have supertankers parked off shore with huge supplies of oil. They are simply waiting for the price to shoot up to sell.

Saudi Arabia has already said it could replace any shortages which occurred by Iran's withholding or inability as a result of a war to supply oil, so it strains credibility for the investment banks to project huge increases in cost as a result of a decreased availability, but it is very easy to believe they are simply attempting to grease their own financial pockets. All it takes is trades between the banks to start driving up prices, and they have shown in the recent past they are willing to do whatever it takes to maintain their projected profit levels.

Although the link below is an older article, it just shows what MSNBC revealed yesterday. There are 5 major banks currently speculating in oil and driving up the price. Additionally, 20 to 40 cents of the price one now spends on each gallon of gas goes directly to the Koch Brothers. (Sorry, I can't remember which MSNBC show showed the chart; it was a long news day yesterday....) But Morgan, Stanley and Goldman, Sachs were two of the five investment banks listed as currently driving up speculative prices.

Sam

http://www.smartplanet.com/blog/intelligent-energy/obama-asks-doj-to-investigate-oil-speculators/5759

and an interesting article on the Koch Brothers and their influence over the price of oil through speculation:

http://thinkprogress.org/report/koch-oil-speculation/

[kentuck]

30. I think this is the major reason...

Just my opinion.

[madokie]

36. Its greed by the big oil companies

You can't make billions in a quarter and not be greedy


splchk

[taterguy]

37. Because walking to work is a drag

Sometimes it rains