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Not sure why you asked me that, I was thinking of asking the same thing on here. Gas around here has gone from $2.62 to $2.99 in the last week.
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Not in the real world the rest of us live in. It has jumped the very day oil prices go up on many occasions? That has happened more times than not when there is no way it should happen that way.
Then don't try to tell us that gas prices don't go at the time or before oil goes up. If word comes out that a refinery will shut down for maintenance gas prices jump before it even shuts down.
Prices go up Fast and Go down slow... that is how business works. I've said that all along. Of course individual Gas stations react to the market quickly on increases and then react slowly to price decreases. But there is always a reason for the fluctuation and it's a legit reason.
This happens all across the spectrum of goods and services. It's just way more noticeable at the Gas pump. People don't notice the instant increase in a box of Cereal right away with talk of low wheat and corn yields because it's not on a Big sign on the highway, and most people don't track the Price of lucky charms from week to week either like we do gas.
This happens all across the spectrum of goods and services. It's just way more noticeable at the Gas pump. People don't notice the instant increase in a box of Cereal right away with talk of low wheat and corn yields because it's not on a Big sign on the highway, and most people don't track the Price of lucky charms from week to week either like we do gas.
They do according to the data in normal situations. Prices increases go up fast if some crisis reason comes about... supply chain disruption, War etc.
www.eia.gov
Both situations can be true depending on the circumstances. It's a complex system and increases can come from the Price of Crude and it's production usually a lag in time or from the Front end when your local gas stations increase prices for various global or domestic reasons. .
Gasoline price fluctuations - U.S. Energy Information Administration (EIA)
How and why gasoline prices fluctuate according to changes in gasoline markets.
Both situations can be true depending on the circumstances. It's a complex system and increases can come from the Price of Crude and it's production usually a lag in time or from the Front end when your local gas stations increase prices for various global or domestic reasons. .
I don't recall any time around here that gas prices don't jump at even the mention of oil going up or some disruption in a refinery. They never lag behind oil price hikes by a couple of weeks or months. Gas station owners do set their own price, they're told by their distributors when and how much to increase.They do according to the data in normal situations. Prices increases go up fast if some crisis reason comes about... supply chain disruption, War etc.
Gasoline price fluctuations - U.S. Energy Information Administration (EIA)
How and why gasoline prices fluctuate according to changes in gasoline markets.
Both situations can be true depending on the circumstances. It's a complex system and increases can come from the Price of Crude and it's production usually a lag in time or from the Front end when your local gas stations increase prices for various global or domestic reasons. .
I agree large Distributors have a considerable market control over gas prices. But the corporate Convenience store is just reacting to the Distributors increase or decrease, and the distributor is often reacting to the market value of Crude... weather it be sweet or sour crude and the cost of refining those grades.
That just proves you were wrong when you said gas price increases lag behind oil price increases by a couple of weeks or even a month. You seem to want to leave that part out. That is what got all this started. Gas only goes down slower than oil prices, when there is even a hint of oil going up gas prices go up immediately.
Do you think I just made up that gas prices at times lag behind oil increases and decreases? That is not how I operate. I don't form my opinions based on personal small sample sized view points. I am simply relaying the Data that has been studied by economist.
www.stlouisfed.org
www.investopedia.com
Disagree with their analysis if you want.... but they are the ones who coined the
theory of Rockets and Feathers not me. But have it your way if you want. I stated Gas Prices usually reflect the price of crude several months back and that the price at the pump often lags depending on the market. A price decrease and the Price falls like a feather. Price Increase and the price increases like a rocket. My point is 100% valid.... you are not seeing the big picture that I was informing you about.
https://fredblog.stlouisfed.org/2022/06/oil-and-gas-prices-move-together-like-rockets-and-feathers/
Why Gas and Oil Prices Don't Always Move in Sync | St. Louis Fed
The market for gas often is local, and the prices tend to adjust faster when they are low relative to oil prices than when they are high relative to oil prices.
What Causes Oil Prices to Fluctuate?
Discover how OPEC, demand and supply, natural disasters, production costs, and political instability are some of the major causes in oil price fluctuation.
Disagree with their analysis if you want.... but they are the ones who coined the
theory of Rockets and Feathers not me. But have it your way if you want. I stated Gas Prices usually reflect the price of crude several months back and that the price at the pump often lags depending on the market. A price decrease and the Price falls like a feather. Price Increase and the price increases like a rocket. My point is 100% valid.... you are not seeing the big picture that I was informing you about.
https://fredblog.stlouisfed.org/2022/06/oil-and-gas-prices-move-together-like-rockets-and-feathers/
I do know what I see at the pump and oil price increases are talked about on the news on a regular basis. You and you stats seem to be the only ones that think it doesn't go just like I said.Do you think I just made up that gas prices at times lag behind oil increases and decreases? That is not how I operate. I don't form my opinions based on personal small sample sized view points. I am simply relaying the Data that has been studied by economist.
Why Gas and Oil Prices Don't Always Move in Sync | St. Louis Fed
The market for gas often is local, and the prices tend to adjust faster when they are low relative to oil prices than when they are high relative to oil prices.
What Causes Oil Prices to Fluctuate?
Discover how OPEC, demand and supply, natural disasters, production costs, and political instability are some of the major causes in oil price fluctuation.
Disagree with their analysis if you want.... but they are the ones who coined the
theory of Rockets and Feathers not me. But have it your way if you want. I stated Gas Prices usually reflect the price of crude several months back and that the price at the pump often lags depending on the market. A price decrease and the Price falls like a feather. Price Increase and the price increases like a rocket. My point is 100% valid.... you are not seeing the big picture that I was informing you about.
https://fredblog.stlouisfed.org/2022/06/oil-and-gas-prices-move-together-like-rockets-and-feathers/
If you read the stats it actually supports what I said and what you said as well. That at times the price rockets up quickly at the pump do to speculation or crises, and then slowly decreases feathers down as things stabilize. But in normal times the price of gas does lag weeks and months do to various market movements and speculation of the market.
I give up. I don't know what normal times means but I've NEVER known gas price increases to lag weeks or months behind oil price increases.
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