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Gas prices keep climbing even as oil prices drop

May 29th, 2008 . by TexasFred

NEW YORK (AP) - The gasoline price record keeps getting broken with each passing day. AAA puts the national average for a gallon of regular at a record $3.95. It’s jumped 35 cents in the past month and is 76-cents-a-gallon higher than a year ago.

If you need premium, it’s also never been more expensive. The auto club says the national average for premium is $4.35. That’s an 84-cent-a-gallon jump over last year.

Oil prices fell back Thursday ahead of a report expected to show U.S. inventories of crude and petroleum products grew last week.

Prices remained volatile, though, buffeted about by threats against Nigerian oil facilities, worries about falling gasoline demand in the U.S. and a strengthening U.S. dollar.

By midday in Europe, light, sweet crude contract for July delivery was down 65 cents at $130.38 a barrel in electronic trade on the New York Mercantile Exchange.

In London, July Brent crude fell 86 cents to $130.07 a barrel on the ICE Futures exchange.

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Gas prices keep climbing even as oil prices drop

There are many things that can be said regarding this oil and fuel pricing crisis and much of it can be summed up in 2 words blurbs that are so easy to understand that even the dimmest of libbers should be able to comprehend their meaning…

Not the real cause: oil shortage, short supply, high demand

The real reasons we have incredibly high gas prices: price gouging, greedy bastards, Big Oil, rich Arabs, profit taking, record profits, price fixing, consumer abuse, rich executives, massive bonuses, tree huggers, spotted owl, snail darter and the list goes on and on, but I think you get the idea…

I don’t begrudge any company the opportunity to make money, that’s what free enterprise is all about, but when the oil companies sit back on their butts and tell us how much they are doing for us, and what it’s costing them to do it, well, I am astounded that the American consumer is falling for that line of BS.

I know a little bit about business, and you don’t have all those operating costs that Big Oil is saying they have and those supposed costs being what is driving them to record levels of profit, BILLIONS of dollars in profit, look folks, profit is figured in AFTER all costs of doing business are taken out, these record profits are just that, profit, financial gain, money in the pockets of the Big Oil executives, profit is what’s left after ALL operating expenses are covered…

By ALL, I mean exploration, drilling, production, transportation, refining, marketing, all of it, those costs are, or should be figured in before so much as a dollar of profit is figured into the equation, otherwise, if Big Oil was laying all that money out there and not making anything in return, it would be called losses, record losses, and I don’t recall hearing of any Big Oil companies that were recording record losses

We’re being taken for a ride my friends, and the Big Oil companies aren’t even greasing it before they stick it to us…

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5 Responses to “Gas prices keep climbing even as oil prices drop”

  1. comment number 1 by: BobF

    I found this article from just two short years ago interesting.  Notice what Chavez was threatning and compared to what we have today.  In an interview with BBC Newsnight’s Greg Palast, Mr Chavez - who is due to host the Opec meeting on 1 June in Caracas - said he would ask the oil cartel to set $50 a barrel as the long term level.

    During the 1990s the price of oil had hovered around the $20 mark falling as low as $10 a barrel in early 1999.

    “We’re trying to find an equilibrium. The price of oil could remain at the low level of $50. That’s a fair price it’s not a high price,” Mr Chavez said

  2. comment number 2 by: Katie

    I sometimes thank God for crises like this one.  Maybe it will get the Congress to get up off their backsides and finally allow drilling in Alaska and Off-Shore (I’m sorry, but Yellowstone must remain off limits.  It is a National Park).  And I thank God that I’m not living in Europe where gas is $9 a liter.  And Saudi Arabia, Kuwait, Iran and other oil producing nations should be thankful to God that we haven’t blown them to Kingdom Come, then gone in and taken the oil. I find so much to be thankful to The Master of the Universe.  I just wish I could find the money to fill the gas tank!

  3. comment number 3 by: TexasFred

    Katie,  ANWR is a NATIONAL Wildlife Preserve…

    So, what’s the difference?? Park, Reserve, if it’s done correctly, no one suffers and all the little tree huggers can still commune with nature and eat pine nuts…

    And I don’t knock anyone for their religious beliefs but WTF?? You won’t type the word GOD but you will reference Him as Master of the universe??

    I took the hyphen OUT, I don’t edit comments too often but I make NO bones about it, GOD is His name, I am very proud OF that name and say it proudly, you can call Him anything you like in YOUR blog but PLEASE don’t use a hyphen in GOD here, I am personally VERY offended by that…

  4. comment number 4 by: GUYK

    I would imagine that big oil figures its profit margins just like any other business has to figure them..the percentage of capital investment gained after all business expense..10 percent a year of a trillion bucks is a lot of bucks but not hi-jacking. Hi-jacking is when it costs the Saudis less than five bucks an hour to produce the crude..hell most of their stuff is flowing and pushed to the pipeline via bottom hole pressure..and then hold the world up for over a 100 bucks a barrel for the crude.Big oil just doesn’t “own” near the producing fields they used to own..most except in the USA have been nationalized and the oil companies may produce it but then they have to buy it from the country where it is produced. In the USA though the royalty owner is usually a private citizen and gets from a cut of the gross..off the top..usually 1/8 and sometimes as much as 3/16 depending on the deal made on the royalty lease.I would like to see big oil as much as anyone but I can’t blame the oil companies much for making all they can while they can..I remember whenthe bottom dropped out before and so many USA independent producers went bankrupt..

  5. comment number 5 by: Katie

    Could you imagine anyone drilling a hole in Yellowstone?  Could you imagine what that would do to the geysers?  Or the geyser the hole would become (and not of oil).The only reason that people go to Yellowstone is to see the geysers and bears.  (Although they could go to Chicago in the winter to see the Bears.  They did very well last year.)

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