I live in the Twin Cities. I paid $125.9 at the pump Saturday. I drove 60 miles through the metro tonight. Every station was $139.9. Is this a result of Friday's $28+/barrel?

-- John (LITTMANNJ@AOL.COM), January 17, 2000

Answers

I would say yes - easy way for independents to make a profit, blame the rise in POO. At any rate, I recently posted an article that basically said it would take 4-6 weeks for a rise in POO to hit gasoline. Check out Downsteamers forum at

http://pub3.ezboard.com/fdownstreamventurespetroleummarkets.showMessag e?topicID=166.topic

Excuse the following if it doesn't format properly ;o)

Prices at the pump ---------------------------------------------------------------------- ---------- From a consumer's perspective, the first (and unfortunately in most cases the only) worry is the price of gasoline at the pump.

From the time the cost of crude goes up any significant amount, how long does it take from that point to the time the cost of gasoline per gallon goes up at the pump?

marc Unregistered User (1/16/00 4:24:14 pm) Reply price at the pump ---------------------------------------------------------------------- ---------- Unfortunately not very long. Expect prices at your local gas station to go up this week already. Hey, let me know !

MJ Unregistered User (1/16/00 8:40:41 pm) Reply Jumped already ---------------------------------------------------------------------- ---------- Prices jumped in So. Central Kansas on last Thursday from 1.13 to 1.25, and today 1.21.

Laurane Unregistered User (1/17/00 1:10:21 pm) Reply Oil Prices at the Pump ---------------------------------------------------------------------- ---------- On another site I read that Oil generally goes up after Thanksgiving and down in the New Year - seems to be doing the opposite, but then this is Canada...dropped 2 cents per liter = 8 cents for US gal this last week at our local station but I see prices up to 2 cents higher at other places. Seems like nobody knows what the prices should be doing. But the increase in oil added a little more to the value of the portfolio last week and today it seems to be taking off seriously - that's the upside. If gas goes 1 cent higher we will be looking at $2.60 Cdn a gal. Anyone want to buy a biiig gas guzzler?

Andy Local user (1/17/00 2:40:36 pm) Reply Re: Oil Prices at the Pump ---------------------------------------------------------------------- ---------- SAN FRANCISCO (CBS.MW) -- When crude oil prices rise to their highest level in nine years, drivers across America clutch their gas cards a little tighter.

That's what happened Thursday when February crude hit a high of $27.80. See related story. But consumers' worries may be premature, according to experts. "It's important to remember the oil market reacts to every little bit of news everyday," said Paul Moreno, spokesperson for the American Automobile Association of Northern California. "It's not at all unusual to see a sudden jump in oil prices and then see the price come crashing down within a day or two."

Even so, fears of nosebleed-high gas prices are justified, he said, especially in California where prices rose for reasons unrelated to oil prices.

"We saw historic prices earlier last year when there were refinery problems throughout California happening all at once," said Moreno. "At the same time crude oil prices started creeping up from above $12 a barrel reaching to about $25 a barrel in recent weeks."

How to calculate the pain at the pump. So what does an increase like $13 per barrel mean to consumers?

"For every dollar increase in a barrel of crude oil, that translates into about a 2.5 cent increase at the gas pumps, but the lag time is anywhere from two to six weeks before the change in oil prices are reflected at the pumps," said Moreno. "During that time period, if the prices do come down, then that will help offset the retail impact."

David Pursell, vice president of upstream research at Simmons & Company, an oil research firm in Houston, Texas, said consumers may feel the impact of a revived OPEC. "If you think back to a year ago this time, many industry observers thought OPEC was dead and buried and as a cartel was irrelevant. But that's not the case now."

If OPEC stays the course and extends its current cuts, that could drive gas prices higher, said Pursell.

"Crude oil will continue to be volatile to the upside and if crude oil is volatile to the upside, prices of refined products will (move higher)."

Advice for consumers

Assuming that prices stay high for a few weeks, Pursell predicts consumers will feel the bite.

"You're also seeing a corresponding increase in the price of gasoline, heating oil and jet fuel," he said. "You're going to see a significant increase at the pump as well."

Moreno's advice to drivers: price shop the pumps. "Check out the prices in your own neighborhood so you know where to go for the cheapest gas when you're ready to fill up. That way you don't have to drive around."

He also suggests checking your owners manual to see what grade of fuel your manufacturer recommends.

"Too many consumers are buying higher priced premium fuels which their car doesn't get any benefit from," Moreno said, noting that most cars are made to run on regular unleaded gasoline, the cheapest type available.

-- Andy (2000EOD@prodigy.net), January 17, 2000.

John, If oil prices go up, what happens to fuel ? Up Up and away John, and get use to it. Listen BOY, The dollars in your bank account and your pocket will be devalued 5 to 1. This is coming within a year. Can you spell FUNNY MONEY "JOHN". There's a thing called Gold that will protect you, but everyone you talk to will say your a nut for buying it. John thats because most people don't know any better. Most people should still be wearing diapers, and they will when they find out their savings have been robbed and they have pee running down their leg. No one is going to get rich in the stock market and all that money is going to be taken away with "INFLATION. John, do you still believe in fairy tales ? Then if you do find a pretty picture someone has painted for you. GET REAL, JOHN

-- Wes (wes@aol.com), January 17, 2000.

John, you dumb dumb, the only thing that will save your life is gold. You can eat it, cook it, clean with it, sleep with it, brush your teeth with it, come on man, buy gold today.

-- Buy Gold (gold@bugs.here), January 17, 2000.

On my way home from work I saw several stations at the same intersection with vastly different prices. Shell, BP, Citgo and Chevron were in the $1.449/gal for 89 octane. Sunoco, Speedway and Marathon were at $1.329/gal for 89 octane. At one exit off I-75, the Sunoco, the BP and Shell all displayed their prices and all were pumping gas into cars.

I cant remember anything quite like it before. I would have though everyone would buy from Sunoco until Sunoco ran out of gas or they raised price.

Seems price volatility is.... VOLATILE!

-- Bill P (porterwn@one.net), January 17, 2000.

John, you don't seem like the brightest crayon in the box, do 'ya boy?

-- Uncle Nutsy (not@fruity.atall), January 17, 2000.

Hey John,

Glad to see your poste. I assume your posting was innocuous and not an attempt to troll, but maybe some others felt that it was. I just want to stop and say thank you for posting the information about pricing. It is informative and helpful for us to see how quickly the prices are reacting to the latest oil moves. I hope you don't take offense to any of the previous posts on the thread and you will still feel like posting here again.

In regards to your question, the answer of course is affirmative. Some wholesalers wasted little time in responding to the latest jumps or declines in oil and respond at the pump accordingly. In theory maybe it should take 4 to 6 weeks, but with JIT policies and the fact that normally most refineries only have a 3 to 4 day supply of inventory on hand. This is due in part to shortsighted governmental policies relating to enviro regulations on storage plus inventory taxing policies. The industry just doesn't have the storage capacities that it used to have (thank you EPA) and inventory taxes simply make the JIT concept an economic necessity. Hope that helps to answer the question.

-- RC (racambab@mailcity.com), January 17, 2000.

John- I too live in Twin Cities and can confirm your prices. The lowest price I saw today was $1.35 at the cheapest off brand gas place. The price was $1.17 when I filled up there just yesterday. Highest I spotted was $1.58. YIKES!!!

-- Gia (laureltree7@hotmail.com), January 18, 2000.

RC, I would like to confirm John's report, I also live close this area. Gas prices that I have seen for regular, range from 1.24/gallon to as high as 1.43/gallon. A company(Super America) seems to have the highest prices.

-- Bill (Sticky@2sides.tape), January 18, 2000.

John- if you're new here- "Wes" is performing a very very poor imitation of a long time regular poster here~~shakey~~, and "Buy Gold" wishes he had the attributes of another good regular, "Andy". Don't let them get to you, they're merely children wishing they were grownups. Both Andy and Shakey are worth your time,the imitations just waste it.

on de rock

-- Walter (on de rock@northrock.bm), January 18, 2000.