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Subscribe to RSSWe’re all used to gas prices going up in the springtime when the driving season is about to approach, but this year the increase is happening sooner, and it is going up more than before. Experts say a combination of things — tensions in the Middle East, big refineries on the east coast shutting down, big demand for gas in Asia — sent gas prices up 13 cents in the last month alone.
Prices at the pump soar ... and it's only February
Gas prices are back on the rise, and some analysts say it could get even worse before the summer driving season. NBC's John Yang reports.
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As I listened to this report on the news last night my first question was, Why are big refineries on the East coast shutting down? Anyone have an answer other than oil speculators want them to do so.
I saw on CNBC that trading margins and contract margins are squeezing refiners to the point of not making a profit. Don't forget they are wedged between the Oil Markets and Gas Markets, they have very little ability to control prices..
Unfortunately the current structure of the Market Rewards tight supply, not production.
Refiners are the lost soul in this whole equation, they are being forced to become global sellers. IE Keystone Pipeline, Keystone has always been about routing the Global selling of Gas to other Nations, it was never about Jobs or Local Production. Amazing the GOP loyalist can't do 5 minutes of research to see who really benefits.. Hint, Its not the USA
There's only one factor at work here. The stock market. Every year you have to out perform the last or your stock price will go down. Every year is a record year and record profits. Well guess what, you have to do better next year. Each year they sell less so they inflate the price. It has nothing to do with anything else in the world except increasing their stock. It's not a case that expense is going up so retail price matches it. They are netting more an more profit each year. That's not raising the price to break even... it's sticking it to the customer because we can't live without it.
I'm not sure who's pennies are getting pinched, but it sure isn't the big oil execs making billion dollar incomes... I'm for the gov stepping in and regulating Oil to stop the greed factor and gouging we are seeing constantly.
@Kevin- So you're saying we get no benefit here in this country? So- the jobs to build and maintain the pipeline will go to other countries? Amazing the DEM loyalist can't use common sense to see any benefit to the people of this country. And don't give me the crap about possible pollution to the aquifer- there are so many regulations anymore, the chance is slight. But, like anything else, there is some risk. You can't escape it. If you drive to work in the morning, there is a slight chance you will have an accident. Does that mean we ban all cars? How about nuclear power plants? Do you realize how many people benefit from technology that poses a slight risk to the environment?
The price of gas has averaged much much higher for longer under Obama than Bush, in-spite of the overall world economy being better during the Bush presidency as well. Now with Europe and other countries teetering on the brink of recession, (including the US, despite what the admin cheerleaders are saying), gas is shooting up. Guess Obama's in bed with big oil, Haliburton, commodities traders,...... So which is it democrats, market forces at work, as they were under Bush, or your guy is just as deep in the pockets of big oil as his predecessor. You can't have it both ways.
Goldman-Sachs, JP Morgan etc will help fund this years elections for both parties. That money has to come from somewhere so lets drive up oil prices. Politicians don't come cheap.
the speculation in the stock market has to stop, notice the price of food? Well the stock market is now speculating on food also...look it up it's true! This all has to stop, it is collapsing the lively hoods of no one but the 99%. It won't be long until we all just have to work to eat!
Lisa calling me a Dem loyalist is like an elevator in outhouse, doesn't fit.
Any jobs it creates is a good thing, however most will be contract, even the owners have admitted that most permanent jobs are already established.
I have no issue with anything done by free markets, however the Oil Industry pays no taxes and continue to get sweetheart deals like this one to benefit very few.
But the base of my comment was it will not benefit prices or refineries. This is being built so companies can export oil..
These crooks should be regulated to the max. Even taken over by the government wouldn't be a bad idea. They have gotten way too big. WAKE UP AMERICA.
I live outside of Philly and the Sunoco plant is closing next month. They say it's because they have lost 800 million dollars in the past year. They are also closing the other Sunoco plant in Marcus Hook as well for the same reason. These are the last 2 refineries in the Northeast. Lots of lost jobs and now these plants will sit for decades while the company and the city fight over who's responsible for the land.
Of course profits sored on the news of the closings. There are going to be a lot of people out of work from this.
Terryknight - I don't think you honestly know what it is that you're saying. Government control of ANYTHING, let alone the lifeblood of our economy, is a horrible thing. Sure, companies get too big for their britches and take advantage of the common man, but Government control is not the answer to that. If you want to see the poster child of inefficiency and mismanagement, take a look at ANYTHING that the Government controls. Then ask yourself if that's what you really want when you fill up at the pumps.
Yes GedePrime the government shouldn't control but they do need to regulate them. Requiring speculators to actually take delivery on what they are buying would drop oil prices substantially. During the run up in price during the Bush years speculation accounted for 30% of the price increase. I would it bet it is much higher now.
Unfortunately Wall Street owns so many politicians that I doubt anything will be done.
Yes. They all shut down for a period of time each year for cleaning. Usually its rotated so they aren't all down at once.
pwj
I'd betcha the speculators and BIG OIL go together like rum and coke. This whole sham should be investigated.
Ans it's about time white collar criminals did some serious time too. JMJ
Pretty sure Big Oil ARE the speculators ( a significant part of the market for commodity contracts.) They have lots of cash and a valid reason to buy contracts that set future prices.
Anyone can buy the contracts - they are publicly traded. Oil companies (and lots of consuming companies like airlines, retailers, refiners, etc) buy contracts to stabilize their future prices. Sometimes it saves them money, sometimes it costs money, but it lets them know what their price will be in advance, which is very useful.
Meanwhile, our legislators argue over crap that doesn't matter. Watch this recovery come to a halt when gas is $4.00 a gallon.
$4 a gallon? Europe pays closer to $10. The price of gas is never substantially going down again and our economy will have to adapt. Sucks to be us, but that's the pattern of oil use on our planet. As long as it continues to explode in population centeres like India and China, and as we deplete the easy oil and move on to reserves that are difficult to extract, the price will only get higher.
We should have started our migration away from oil decades ago. Any idiot can see where prices are going.
What recovery, Rob???
Thats why europe is in recession and why were not far behind. It's corporate America 's way of controling our politics and these republican crooks and grover norquist. This is a big election Democrates, WAKE UP or the middle class is gone.
AG99 The gas used in England is quite different than what's used here in the US... also, the cars in England have a substantially higher MPG/KPG than here in the states. VW's Polo Blue Motion gets 74MPG us standard measurement, you are lucky to find a car in the US that actually gets the reported 40MPG!! Comparing Euro gas and cars to US gas and cars is like comparing Budweiser to Guiness. Sure they are both "beer" but they just are not the same.
Ignore the gas differences, this was the case for a while, but not much so any longer, althought octane ratings are higher in the UK vs the US. However the Taxes imposed on UK oil is the reason for the massive cost hike. Bottom line, taxes aside, the UK pays almost a dollar less for it's oil than the US does. So suck it. www.babeled.com/2008/06/02/us-versus-european-gas-prices/
"
In the U.S., about 11% of the final cost per gallon is from taxes. At the $4.00 per gallon average cost, this means that $0.44 is tax and $3.56 is the pretax cost per gallon. Europe’s prices, on the other hand, are comprised of 70% taxes and 30% pretax cost. Taxes on the $8.70 average per gallon cost are $6.09 and the pretax cost per gallon is $2.61. Wait, did you catch that? If you disregard taxes, Europeans pay $0.95 LESS than Americans for one gallon of gasoline."
Pretty good spin there. So can someone in Europe "disregard" the taxes and buy gas for $2.61 a gallon?
Taxes are a minor issue in the grand theme of things. We can have pipelines, refineries and drilling a plenty, but the world-wide market controls (from speculators to demand) the price of oil sold here, not the federal government. The only way oil prices will be reasonable is if the federal government implemented more controls via regulations, but those rightwingers who are whinning about the price will be screaming socialism. You can't have it both ways.
The Bamster sees the rise in gas prices as a sign the economy is getting better...Idiot.
wb52 you are an idiot. I looked in every reputable right wing website and periodicals like the Washingtimes, Wallstreet Journal, Forbes magazine along with the Fox news web. The only mention of Obama saying that rising oil prices was good for the economy was in rw blogs and rags on the internet. Its a shame that people believe whatever they are told without fact checking it. I refuse to look at cable political show or listen to talk radio or read unsubtantiated blogs. The only objective of the media listed in my last sentence is mislead, control the mindset, and stir the emotions of idiots both on the right and left.
You can thank the Koch's.
What!? I think you'd better explain that comment.
sadly, we've had 40 years to fix the problem (starting from the oil embargoes of the early 70s), including 20 years of GOP presidents, and we've still failed as a country to get off the middle east oil merry go round.
i'm just trying to pre-empt the "obama is to blame" nonsense. He's may be part of the problem..but at best only a small part.
Refineries shut down to switch over to summer blends ... happens every year.
Looks like they are shutting more down permanantly each year.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=wgfupus2&f=4
These refineries are actually closing for good. It sucks. We live near both plants and know people who will now be unemployed after this.
Obamas plan is to do nothing but spend tax dollars on failing Green Energy companies that are ran by his buddies. Another one went under this week in Michigan. Gas prices have risen 83% since he became President, I bet Liberals want to say it's Bush's fault and will give him a pass as usual. The ones truly suffering are the poor who are ironically his biggest supporters. Unfortunately for them there is no welfare from Obama with gasoline... Maybe they will wise up before November and vote with their wallets instead of listening to his old, tired, worn out class warfare rhetoric. ~(:>(
yawn, gas prices doubled under bush too..its all part of the global economy cycle.
so quoting (and bolding! lol) the 83% number is just silly. they were low when he took over thanks to the Great Recession of 2008, and now that the global economy is recovering, they are going up again. duh!
Individual presidents aren't to blame for gas prices. Collectively we've failed for 40 years..including BOTH parties.
Hey Mr vermontguy - Gas prices must necessarily rise to make green energy viable or did you conveniently forget that statement? No policies to help Americans while sending Billions for drilling in South America not creating any jobs here or relief from high prices. China is drilling 90 miles from Florida now how do you feel about that? Sure you don't care but you should. By producing more of our oil here, we could be doing so much better, tell me otherwise and I'll call you stupid. Just think buying less oil from unfriendly countries that want to see us fail as a Society and jobs for Americans. I'm sure you disagree so enjoy spending money that could be helping the American recovery on high gas prices and oh tell the poor you could care less about them cause you do. ~(:>)
@Earle St Petersburg FL
Just an FYI the US exports more oil than it imports. Just sayin. Now lets see where you are getting your information from?
Earle St
You failed to read above, Sunoco is closing refineries.
And where were you three weeks ago, MSNBC ran a story - OIL, and GAS are our two largest Exports. BIG OIL manipulates, contrives and all the while laugh at the whole world that is caught in the dilema, they've created. So you want more exploitation, more pipelines, so BIG OIL can sell more of our resources to foreign countries, increase their exorbitant profits, and keep our gas prices up EVEN when demand goes down ?
If we had a legitimate federal government, someone would be doing some serious prison time. JMJ
Earl just in case you have had your head up your and missed it. The oil companies are one of the corpoate masters of the Republican Party. After years of trying they finally got the oil industry deregulated then in 2000 oil men takeover the whitehouse and gas goes from $1 to $4. It only came down when it was apparent Obama was going to become pres and there had been talk of a windfall profit tax. Since they were not punished they are seeing what they can get away with. Since they own the Republican Party they want gas to go as high as possible so you numbskulls can blame Obama. They have enough Republicans in office now to protect them so hold on there is no telling where gas prices will go. America under the Obama administration has become more energy independent than it has been in 60 years which happens to be the time the oil companies sent our oil jobs to Iran etc becuse it was cheaper for them to get it there than to pay Americans. I have an idea how to break it off in em but it would require so much capital I don't know that I can pull it off. For now we are at their mercy and they are sticking it to us. If there is a shortage why are they closing refineries. They had rather sell us 1 gal for $4 than for us to get 4 gals. It is greedy capitalism at its worst. There was a time when our government wouldn't allow that but thanks to the Republican Party and a few they managed to buy or decieve we are at the mercy of greedy capitalist just as our forefathers tried to warn us.
The big oil companies are going to make the White House pay for killing the Keystone oil pipeline. They'll jack the public on gas prices to stall the economy with rising prices and hope the voters drive Obama out this year. Then a GOP White House will give them their pipline.
doing better than last year or your stocks suck is whats screwing up everything cut more jobs make more money sell more stock when will it end ?
The reason we are paying $3+ per gallon is because on one bitched and $3 became the new $2. If there is no nationwide complaining at $4 it will become the new $3. It's called conditioning. We will see $3 gas as a bargain and be happy to pay it. It's also about control. Raise the price high enough where the locals can't travel. That way there is control in the movement of the common folks and we're easier to contain. We're the schmucks in this deal. With no revolt we deserve what we get.
Good lord people, no President or politician has any direct control on commodity pricing and that includes oil and gas. While it's easy to point fingers at Obama, it's just ignorant. The LAST thing we need is government regulation in the commodity markets, people simply forget that it's a global market now and the US government trying to control it would have disastrous effects. While I would agree the fundamentals of supply and demand really aren't in play right now, they will be. All bubbles burst. That being said, it is a concern that the demand destruction in the US is being offset by increasing demand in China and India. It's quickly becoming a different ballgame on a different playing field. I can say though that gas prices don't really have a negative impact on my life, sure they "affect" me because as gas goes up so does everything else but I make a more than sufficient income to handle any conceivable price of gas. It's nice to be in the %95+ group, oh and we got where we are at by getting a job and working, not camping out and whining about not having the world handed to us but thats neither here nor there...
Jeff, please cease and desist the use of logic in your arguments. You're scaring the others.
Not just commodity prices - the President has very little control over the economy, period. I would love to see someone (any party) make a campaign speech like this:
"My Fellow Amurikuns - the facts of life. POTUS does not control the economy or federal spending. Congress controls the spending and taxing, which has some effect on the economy, but does not control it. The Executive branch (President and all the agencies) does what Congress says to do regarding spending and federal employment, and establishes/enforces regulations as permitted/required by Congress. If elected, I will recommend to Congress that they establish conditions that reasonably encourage and support the economy while also doing the best we can to protect the security and safety of all the States and their people."
It's funny how people are so willing to give our land to Canada. You think they will hire dumb redneck Americans to build their pipeline. Heck no. They will bring their own people down here to build it.
Good. Now my stock in TOTAL, Statoil, Royal Dutch Shell should take off...
Glad that I drive a Hyundai Accent!
sounds like its time to crack open some of our thousands of capped oil wells and put a stop to all this forein oil garbage we dont need it and when we start to use it oil prices will go down and the economy up
You simply don't get it. Oil is sold in a global market so no matter where it comes out of the ground it's sold to the highest bidder. Increasing domestic production's only benefit is in our GDP, the more petroleum and petroleum based products we can export the more money our country makes but it'll do little to nothing to lower prices. That's one of the biggest GOP lies out there. Combine that with the horribly flawed concept of "hydraulic fracking" which poisons ground water, it's just not worth it, that is unless you like drinking water you can light on fire.
What about peak oil and money printing as causes as well?
if we don't buy it we don't have to sell it we just have to say no an it takes Iran and the straight and hurricanes and all the other garbage out of the picture weather they want to admit it or not. The contaminated ground water is from fracing but it is coming from fracing for natural gas at least so far anyway
And let's be clear here, drilling in America will not effect this. Prices are not set by what we have on hand. Its all speculation baby!
And the higher the supply the cheaper it gets. Ever hear of supply and demand fool?
Ugh... If supply and demand was the driving force in the oil markets right now the price of oil would be roughly $55 and the price of a gallon of gas would be roughly $2.25. It's simply not that straightforward anymore. Because of how futures contracts are bought and sold they practically beg speculators to get involved and they introduce psychology into the market so now you start tacking on premiums for fear and what might, could, possibly, potentially, maybe happen some day. Maybe you should have a better understanding on what's driving oil prices these days before you start calling someone else a "fool".
And what goes into the fears and calculations? Maybe a dependable study supply would reduce the need for futures instead of everyone jumping off a cliff every time a member of OPEC sneezes. And with China and India consuming more oil daily, I think your figures are 10 years old.
If you're really interested in why Solyndra actually failed and the state of green energy due to excess cheap natural gas at bargain prices, impatient venture capitalists that wanted faster returns than the clean energy sector couldn't deliver for a few more years, and China eating our lunch dumping cheap solar panels and wind turbines on the market, check out the current issue of Wired magazine.
You'll find out why Solyndra was and still is the best technology (which is why investment in it was so key) that ultimately couldn't compete against big oil and China. If Congress had taken action when Obama came into office and moved faster and truly dedicated to green energy, we'd have the jobs and market share that China now has instead of us.
The total amount of government investments and tax breaks in solar, wind, and other green technologies is miniscule in comparison to the existing tax breaks and subsidies out of our tax dollars that go to the big oil and gas companies. It's obscene how much we're all paying to companies that are making record profits and who still feel a need to raise gas prices every year going into summer for no good reason other than pure greed.
If you want to blame someone in the Federal government, blame the GOP and oil and gas owned members of congress who fought the needed investment that could have really paid off in jobs and energy independence.
I guess corporate and personal profits and tanking the economy to make Obama a one term president were much more important than investing in a stronger and cleaner America.
Is everybody's memory REALLY that short? Take a stroll down memory lane with me to July, 2008, when gasoline prices soared to $4.50/gallon. At that time, they hammered the petroleum commodities market's speculators for market manipulation. Well, folks, they're baaaaaaack!!! And they're doing it, all over again! This is the very thing that brought down our economy. Only they did that with the real-estate market. When will we EVER learn? This has much more to do with speculation in the petroleum commodities markets and global supply than anything else. Just as the SEC should have been watching the banks back in 2008, they should now be watching the petroleum commodities market speculators. We're fast-approaching the justifiable price ceiling for gasoline, if we haven't already passed it. There's plenty of crude on the world markets, folks. Plenty. What we DON'T have. . . . .is increased refining capacity. PJW (at the top of these postings) has it exactly right. If we are losing refineries on the East Coast and regulations are making it tougher to build new ones, then it would be a safe bet that speculators are behind that, too. They're trying to deliberately short the market on refined product, to justify the higher prices for it, because global demand certainly is NOT going away, anytime soon.
Lack of coherent comprehensive energy policy... Maybe the government can invest in solar powered vehicle companies...
With solar powered cars we'd all be able to drive 2 miles a day.
People still have to remember drivers will adjust to gas prices the higher prices go the less people will drive. I still think this is supply manipulation because big oil wants to get rich so they close a few refineries and if there isn't a shortage you create one.
Maybe our illustrious Congress and President shouldn't so glibly exclude Iranian oil from supplying world markets (hint: WE are the world market) with their oil. This is going to get much worse the more we insist on sanctioning regimes producing a commodity we so desperately need. What gets me is the fact that the USA and EU timed the sanctions to correspond with our collective winters, when demand for heating oil and gasoline are at a premium, what a collection of bozo politicians we have!!!
If Bush was sill in the White House this would be all over the liberal news. How it's all his fault and how he's in bed with big Oil.The liberal loonies crack me up when comes to not blaming O'bummer for anything and still blaming Bush for everything.Just like all the news(CBS,CNN,ABC,NBC) on the economy coming out and telling us how great things are.What a freaking joke!!!!!!!
"Necessarily skyrocket"- Obama's own words.
You forgot to mention that Cheney had a lot to do with being the puppet master.
Maybe soros is smarter than Cheney. You have to admit he is a much lower profile puppet master in this administation.
There goes the economy! The last time they "soared" the prices, people quit spending, quit traveling, quit eating out, quit buying. People became very conservative with their car travel and cut back on everything. Now the low-life that raises the prices of gas and oil comes slinking back to the forefront. When everything collapses again, they'll scurry back into their little hidey-holes and point fingers at everyone else. That slime helped bring us down once before; here they go again. If any industry needs regulation its the gas and oil companies. Has anyone else noticed their MASSIVE profits the last few quarters, too?
When has there NOT been tension in the Middle East! Actually, I believe it would make more sense if gas prices went up due to a breakout of peace in the Middle East. It's just pure unadulterated gouging. They raise prices because they can and if you want the crap in your gas tank, then you'll pay it.
Misty, Yeah for Peace in the ME. It will never happen, as hoped for by the oil industry speculators. Yes the president of BP sneezed yesterday, so in SOAP Opera fashion, tragedy prevails.
Maybe one thing that would prevent gas prices from soaring would be the CEO's inability from coming up with new original excuses. (Not) We use more so the demand is up, we use less so the demand is down but the profit margin is down so up goes the price regardless.
AS long as big business and government are in financial bed together, (congress) we the people, will pay the price.
Aengus, agree with much of what you say. Yes the BIG OIL PIGS are at it again. This Greed is epidemic, and starting early this year. These scum are so self confident that they're pulling this garbage in a major election year, and why not. They have more to say about the way we're governed than the voting public. The two major parties fight and squabble like maniacs, except when it comes to money. It is then that they're on the same page with these low lifes. They all sleep in the same bed. JMJ