The price of gas in Arizona crept up 3 more cents this week, despite the price of crude oil dropping from a multi-year high.
Gas cost an average $3.762 a gallon across the state Thursday, still below the national average of $3.984.
Crude dropped again this week. The commodity traded in the high $90s to the low $100s.
According to AAA Arizona, "Retail gasoline prices have been hesitant to reflect this sharp decline, likely because of the threat of refinery outages flooding in the South has caused."
"Although we've seen the price of oil drop considerably, predictions of steep retail price drops should be tempered," said Linda Gorman, spokeswoman for AAA Arizona. "So long as the commodity price correction continues and the price of crude sustains its current price point, we should see prices move lower. However, it is too soon to tell how far prices will fall in the long-term, given the impending summer driving season and the start of hurricane season in June."
verysoreloser posted at 5:33 pm on Thu, May 12, 2011.
It would be nice if physical supply and demand issues dictated gas prices however that is not the case currently. Nobody knows where the prices will go next, even the investor riffraff. The commodities exchanges were created in order to allow users of the commodity to lock in a price over a future time frame so that they could then operate accordingly, thus smoothing out their oil price expectations.
Now however with all of the hedge fund, pension fund, ETF riffraff in the market, the exchange has become more like the stock market where investors are influenced by sentiment, supply/demand, theories, charts, and momentum. They don't take delivery, only buy and sell. The exchanges have been twisted into creating a worse market climate than before it was created.
Get the investor riffraff out of the oil/gas futures commodity exchanges. There is an ancient proverb which purports to correctly determine the sanity of an individual. A person is shown a stream of water flowing into a stagnant pond. He is given a bucket and asked to commence to drain the pond. If he first takes steps to effectively dam the inflow to the pond, he is adjudged sane. If, on the other hand, he ignores the inflow and tries to empty the pond bucket by bucket, he is designated as insane.
Until this is resolved, no jobs, housing, or general economic recovery
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/12/investopedia52265.DTL#ixzz1MBiiB8J9
Poorman posted at 7:22 am on Fri, May 13, 2011.
On one or two occasions i noticed that folks who were supposed to know what the causes were for the price rise in gasoline, did not have an answer.Thats a new one,they can't seem to come up with any good reason this time.Wow!