Why are gas prices so high when oil is $106/barrel (Page 2): Simply stated, gouging. I understand a "fair" profit, but look at the numbers. My uneducated guess is the with electric...

waymond Loc: Pflugerville, Texas

Simply stated, gouging. I understand a "fair" profit, but look at the numbers. My uneducated guess is the with electric cars coming the gas suppliers are cushioning for that impact upon their bottom line. Huge profits now for investing to cushion the shock of future lost profits. It's as good a guess as any.

HamB

Gasoline is a refined product.
To turn crude oil into a usable product requires transport and processing, then the refined product has to be distributed and delivered to the local vendors.
Each step is costly and each processor looks to profit (why else would they do it?)
Lastly, State and local governments tax every gallon of product.

Canisdirus

jerryc41 wrote:

Oil companies are making record profits. When their costs go up a little, their prices go up a lot.

https://www.usatoday.com/story/money/economy/2022/05/07/oil-company-record-profits-2022/9686761002/"

ExxonMobil pocketed $5.5 billion after taxes; Chevron gained $6.3 billion; and ConocoPhillips made $5.8 billion"

https://www.newyorker.com/news/our-columnists/as-gas-prices-reach-new-highs-oil-companies-are-profiteering

LOL...total hit pieces...last places to go for good info.

Most oil is controlled by governments, not the private sector. Prices are driven by ...governments.

Notice how they kept saying how many billions they are going to make after taxes...

ZERO mention of how many billions were invested first.

It's the percentage of net profit which counts.

Private oil is around 8% net...which is very average.

Apple's is...22% net...and use Chinese slave labor to do it (indirectly, but makes no difference). People fawn over that company...the hypocrisy is amusing.

SteveR Loc: Michigan

HamB wrote:

Gasoline is a refined product.
To turn crude oil into a usable product requires transport and processing, then the refined product has to be distributed and delivered to the local vendors.
Each step is costly and each processor looks to profit (why else would they do it?)
Lastly, State and local governments tax every gallon of product.

The same would apply when oil was $200/bl, but gas is higher now that it was then.

olemikey Loc: 6 mile creek, Spacecoast Florida

I think it simple - GREED

jbk224 Loc: Long Island, NY

SteveR wrote:

That doesn't explain a lot to me. I remember when crude was at $200 and gas wasn't this high.

I think that you are 'misremembering' the cost of oil. Attached link will give you the facts from 1970 to the present.
We are currently experiencing the highest cost/bbl ever.
Supply & Demand and lack of 'proper' refineries in US. Simple answer but complex issue. And it doesn't look like it will get better anytime soon.

https://www.thebalance.com/oil-price-history-3306200

Picture Taker Loc: Michigan Thumb

The prices reflect several things. Cost of crude, world wide. The cost of delivery (the pipe line or a tanker carrying it 1/2 way around the world. The futures (the future value, is a guess but influences) This then brings up in the US long term investment in drilling. No one will spend the money to find oil for a short term, it takes time to get drilling cost back, if they hit oil. In the U.S. they can't see a future in oil now.

genocolo Loc: Vail and Gasparilla Island

jerryc41 wrote:

Oil companies are making record profits. When their costs go up a little, their prices go up a lot.

https://www.usatoday.com/story/money/economy/2022/05/07/oil-company-record-profits-2022/9686761002/"

ExxonMobil pocketed $5.5 billion after taxes; Chevron gained $6.3 billion; and ConocoPhillips made $5.8 billion"

https://www.newyorker.com/news/our-columnists/as-gas-prices-reach-new-highs-oil-companies-are-profiteering

Largest oil and gas producers made close to $100bn in first quarter of 2022
Shell made $9.1bn in profit, almost three times what it made in the same period last year, while Exxon raked in $8.8bn

Curtis_Lowe Loc: Georgia

SteveR wrote:

Maybe somebody can explain it to me because I don't understand it. I remember when oil was $200 a barrel and gas was less. If the supply is low, why isn't the price of oil higher?

Higher wages primarily

genocolo Loc: Vail and Gasparilla Island

Curtis_Lowe wrote:

Higher wages primarily

Sorry. “Oil Workers Aren’t Seeing Bigger Paychecks as Prices Surge”. Bloomberg

Let’s face it—the oil companies are just taking advantage of all of us—GREED

jbk224 Loc: Long Island, NY

Oil was NEVER $200/bbl. Not even close.
The price of oil increases 2.4c per gallon for every $1.00 increase in crude (2021). This is only the increase in crude. This does to factor in changes in cost to refine and ship/handle. This does not include wholesale and retail changes in costs + margins. This does not include the affect of inflation or expected inflation and the value of the US$.
Not simple. I'm not happy paying $62 for 13 gallons! Stop blaming the oil companies, wholesalers, and retailers and put the onus where it belongs.........1600 Pa Ave.

Canisdirus

genocolo wrote:

Largest oil and gas producers made close to $100bn in first quarter of 2022
Shell made $9.1bn in profit, almost three times what it made in the same period last year, while Exxon raked in $8.8bn

What was the investment risked?

No data there I'll bet...lol.

One sided coins...all look alike.

TheShoe Loc: Lacey, WA

Longshadow wrote:

Supply and demand?
Higher refinery/transport wages?
Greed?

I vote for greed.

jbk224 Loc: Long Island, NY

How many of 'us' receive SS? Got some decent increases and expect another one soon.
Now how about the hit we get..just from inflation! The value of our $ has decreased as it has not kept up with inflation.
Anyone done any work around the house? Lumber, sheetrock, finish materials? All gone up...a lot! Do I hear constant whining about this? Nope. Why, because it is discretionary and limited. If you don't like the prices--don't do it. Or, suck it up since it is a one-time expense. I guess it sucks to have $$ and complain. Not gas. We all need it. No choice. Not milk and bread. No choice. Not housing. No choice. And all of these price problems come from the same place. And those who are affected the most..are those who can least afford this! It's time to use common sense and make those accountable who can help fix all of these problems.

Canisdirus

jbk224 wrote:

How many of 'us' receive SS? Got some decent incre... (show quote)

All my early working years I was told how great SS will be...but ironically...looking into investment literature as a precursor to my own investing/tax deducting...I did the math on SS...holy smokes...what a crap investment.

So I opted out of SS when I was 30...it can be done. Instead I took the very same check that went to the SS office...and invested in blue chip stuff...at first.

I stopped calculating the difference in a few years...no point.
My conservative private portfolio beat the bejeebus out of SS pretty quickly and only widened as time passed.

I do now get a SS check every month...along with a chuckle.
Hey...it's run by the govt...what does anyone expect?