Oil nears $50, heading for $60?

RawAlex · 09-27-2004

Colin, local prices have much more to do with refinery activity and stock, rather than the actual price of a barrel of oil. For each barrel you get about 20 gallons of gas, plus another 24 gallons of "other petrolium products"... so call it 42% flow through on the price increases, divided by 20.

a $40 barrel @ 42% of price to gas/ 20 gallons = about 85 cents
a $60 barrel @ 42% of price to gas / 20 gallons = $1.26.
and amazingly:

So all other things being equal, the price increase at the pumps should only be about 40 cents per gallon. However, as many government bodies charge tax as a percentage of price, you will see a larger increase than that. If all other things remain the same, $40 gas is about $1.75 per gallon, and $60 gas would be about $2.35 - not as big an increase as you might think.

Florida right now is seeing a major increase as refineries in the gulf are not able to produce as much as before, which creates a market shortage. That pushes the retail price MUCH higher than anything else.

Alex

09-27-2004	#3
RawAlex Members $100 for every ImLive sign-up Join Date: Oct 2002 Posts: 4,036	Colin, local prices have much more to do with refinery activity and stock, rather than the actual price of a barrel of oil. For each barrel you get about 20 gallons of gas, plus another 24 gallons of "other petrolium products"... so call it 42% flow through on the price increases, divided by 20. a $40 barrel @ 42% of price to gas/ 20 gallons = about 85 cents a $60 barrel @ 42% of price to gas / 20 gallons = $1.26. and amazingly: So all other things being equal, the price increase at the pumps should only be about 40 cents per gallon. However, as many government bodies charge tax as a percentage of price, you will see a larger increase than that. If all other things remain the same, $40 gas is about $1.75 per gallon, and $60 gas would be about $2.35 - not as big an increase as you might think. Florida right now is seeing a major increase as refineries in the gulf are not able to produce as much as before, which creates a market shortage. That pushes the retail price MUCH higher than anything else. Alex __________________ Let's go to the edge of disaster Push the pedal and go a little faster Let's slam into a wall at ramming speed Let's go to the edge of a mountain Jump off and lets start countin' Hit the ground and tell me if it bleeds