What I'm not understanding is the very minimal effect on fuel prices.

Oil has fallen nearly 60% (147--->89)

Fuel has fallen (in the states) from est. $4.00/gallon to $3.63/gallon, percentage: 9% roughly.

If fuel prices fell from $4.00 by even 40% the price would be: $2.40

Think about this as well, Unleaded gallon trading on the market was: $2.23USD/gallon

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Gee, I wonder what the 3rd quarter oil company profits will be?

I heard there were 52 oil platforms destroyed by Ike. The gas shortages in the southeast have been severe. There was no gas in Charlotte last weekend!

Gas is still over $4 here

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T
2008 BMW 135i Convertible
2007 BMW X5 3.0si
2007 BMW X3 3.0si
2003 BMW X5 3.0i (retired)

No it hasn't - that is a 40% reduction (39.46%)


You are forgetting that the petrol retailer needs to pay staff, overheads and make a profit, plus there is the cost of refining, transportation of the oil to the retailer, and any taxes - so retail prices are always going to be significantly higher than the trading price. Fuel prices always lag the market prices - fuel in the forecourt now was probably purchased 2 weeks ago and so it should be compared against the oil price at that time. However it is true that prices go up faster than they come down.

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StumpyPete



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Doh, good catch.

My bill is in the post.

Heard on radio that analysts say that gas will drop to below $3/gal.

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Wag, I love your bio line that states REAL oil prices vs. current pricing. It really annoys me that with current PPB we are still nearly 4.00 a gallon for Premium.

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