#2394415 - 05/16/11 12:44 PM
Re: 274 million
[Re: Stovepipe]
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Wildcat
Non-Typical
Registered: 06/10/00
Posts: 39193
Loc: Western Ky.
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okay, 4 years ago gas was $4gallon, then it bottomed out to $1.80 now it's back to almost $4 so is "production,labor,etc" still same when these ebbs and flows occur. there still looks to me like there is a couple bucks a gallon unaccounted for. what about labor,production,etc when it was $1.80? by the way, I was pretty sure I heard it was the little mom and pop at the gas station that was only making .2cents. This is the first time I've heard that the oil companies were the ones making the .2cents. 
The biggest is in the price of oil. Like it or not but oil is a commodity and is traded as such, that will never change.
Plus the 2 cents is PROFIT per gal. When you sell enough gallions you make some big money with just 2 cents a gal.
No Mom and Pop does NOT make that 2 cents profit, that ADD THEIR OWN MARK UP TO THE FINAL COST. SOME ADD 2 CENTS, SOME ADD 3 CENTS AND SOME ADD 5 CENTS PER GAL.
http://en.wikipedia.org/wiki/Commodity
A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.[1] A commodity has full or partial fungibility; that is, the market treats it as equivalent or nearly so no matter who produces it. Examples are petroleum and copper.[2] The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface, the perceived quality etc. And, the more valuable a stereo is perceived to be, the more it will cost.
In contrast, one of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, salt, sugar, coffee beans, soybeans, aluminium, copper, rice, wheat, gold, silver, palladium, and platinum. Soft commodities are goods that are grown, while hard commodities are the ones that are extracted through mining.
Also oil being a commodity that is traded with US dollars the vaule of the dollar adds to the cost. When the vaule of the dollar goes down the price of oil goes up as does everything else. When the vaule of the US dollar goes up everything inculing oil is cheaper.
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A Government that does not trust its law abiding citizens to keep and bear arms, is itself unworthy of trust..... - James Madison
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#2394733 - 05/16/11 06:12 PM
Re: 274 million
[Re: Stovepipe]
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BMan
14 Point
Registered: 02/06/06
Posts: 8974
Loc: Middle TN
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okay, 4 years ago gas was $4gallon, then it bottomed out to $1.80 now it's back to almost $4 so is "production,labor,etc" still same when these ebbs and flows occur. there still looks to me like there is a couple bucks a gallon unaccounted for. what about labor,production,etc when it was $1.80? by the way, I was pretty sure I heard it was the little mom and pop at the gas station that was only making .2cents. This is the first time I've heard that the oil companies were the ones making the .2cents.
The increase in the price of just purchasing the crude oil is the primary cause for the increase in prices. However, as that increases, bear in mind that the production costs also increase because they, too, use energy so their costs go up.
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