Originally Posted by adam32
Um, no. Because refining costs haven't increased (they haven't built a refinery since the late 70's) so thats not it. Transportation costs have gone up only because the price of oil went up. Cost to actually sell the fuel, are you serious? Like advertising and stuff?
So what is actually driving the price of crude up? Whats the "real" reason?
Why did I pay $4.14 for diesel a half hour ago?
Refining costs haven't increased??? Hmmm.....something tells me you aren't thinking straight!
I suppose you think that all those folks working in the refinery are still working for 2004 wages??? You think the refineries are paying the same amount for electricity, water and other consumables as they were in 2004??? You think the cost of turnarounds and other maintainance has remained the same since 2004??? Just because they haven't built a NEW refinery since the 70s doesn't mean that they don't have to keep the existing refineries running!! The more they produce, the more work they require to just stay running, not to mention what it takes to meet federal regulations! You think that it costs the same to produce a gallon of ultra low sulphur diesel as it did to produce a gallon of diesel in 2004???
"Transportation costs have gone up only because the price of oil went up." Another Hmmm...
I suppose you think that crude is transported to the refinery in trucks??? And, I guess you think all the refined fuel is taken straight from the refinery to the gas station in trucks???
Cost of selling the fuel hasn't gone up??? One more time.....Hmmm.....
Again, are those folks working in the fuel stations working for the same wages as in 2004.....are the owners paying the same costs for insurance, electricity, taxes....etc???
Sorry, but you obviously don't have a clue!
What is driving the price of crude??? I'm not sure there is enough bandwidth allowance to mention every influence......but here are a few.....
China and India are rapidly increasing their consumption of petroleum products.....we all buy from the same global market......as demand rises, so does price. OPEC is doing a better job of regulating output, therefore limiting supply.....they aren't "cheating" output as much as they once did either......And, maybe the biggest factor......world unrest.....especially in the areas that produce oil.......in case you haven't noticed, Nigera, Iraq, Iran, Venezuela, etc aren't exactly shining examples of stability right now......when traders, who buy and sell based on speculation as to what prices will do next week, next month or next year, see anything that makes them think supply will be interrupted or lessened, the price goes up.....
Why did you pay $4.14/gallon of diesel a half hour ago???? I guess because you don't want to walk????