The Tulsa Premium

[joiei]

quote:Originally posted by iplaw

quote:Originally posted by Conan71

quote:Originally posted by Chicken Little

quote:Originally posted by Conan71

The marketers and refiners keep claiming it's our special blended fuel which is responsible for keeping us higher than other parts of the state.

Well, doesn't that make sense?  If you have a "special" blend, as we do because of previous ozone issues, then, all things being equal, this blend is going to cost more, right?

Pretty much what I said, CL.

However, that is a "summertime" blend.  Still doesn't explain why gas was .10 cheaper in OKC last winter.

Hmmm....

1.  Largest gasoline distributor in town...check.
2.  Can set prices as they see fit...check.
3.  Gas at QT in OKC is less...check.

Unless the gas they buy for Tulsa is more expensive then something is not right.

There are no QT's in OKC.  So I can not make that comparison you mention.

[Friendly Bear]

quote:Originally posted by joiei

quote:Originally posted by iplaw

quote:Originally posted by Conan71

quote:Originally posted by Chicken Little

quote:Originally posted by Conan71

The marketers and refiners keep claiming it's our special blended fuel which is responsible for keeping us higher than other parts of the state.

Well, doesn't that make sense?  If you have a "special" blend, as we do because of previous ozone issues, then, all things being equal, this blend is going to cost more, right?

Pretty much what I said, CL.

However, that is a "summertime" blend.  Still doesn't explain why gas was .10 cheaper in OKC last winter.

Hmmm....

1.  Largest gasoline distributor in town...check.
2.  Can set prices as they see fit...check.
3.  Gas at QT in OKC is less...check.

Unless the gas they buy for Tulsa is more expensive then something is not right.

There are no QT's in OKC.  So I can not make that comparison you mention.

Some friends went thru McKinney and Plano to Dallas this past Labor Day weekend.

They were surprised that regular unleaded gasoline ranged from $2.63 to $2.69 vs. $2.89 in Tulsa.

That's the Tulsa Premium.

[sauerkraut]

This fuel thing is something else. it does not look as if we will ever see $2.00 a gallon fuel anymore. I live in Columbus, Ohio and it's just like Tulsa, all the stations jack up the price fast and at about the same time. We have no QT stores in Ohio We have "SpeedWay" who seems to be the fastest and the first  to raise the price, but in less than a hour the new price is up all over town. it's now $3.09 a gallon. it was $2.70 a gallon yesterday on Labor Day. This really frosts me.[!]

[sauerkraut]

quote:Originally posted by Steve

Gasoline is an inelastic commodity, that is demand does not fall proportionate to price increases.
Gasoline retailers in Tulsa will charge whatever price the market will bear, given their wholesale cost.  There is nothing illegal going on I think, just good old supply and demand at work.  Isn't that the "American Way?"
The only way gasoline prices are going to significantly fall permanently is for the driving public to decrease demand on a long-term basis.  As long as we keep driving gas-hog vehicles and such and demand continues to rise, gas prices will continue to rise too.  I think demand is much more of a factor in gas prices than supply.

The thing is if you cut back oil use OPEC will cut back oil production and the supply stays tight, we cut back more, OPEC cuts back more. What will lower the price is more oil on the market & more drilling. There really is no oil shortage in the world, it's all a man-made shortage. We can't drill in Alaska, and we can't drill here and we can't drill there. Alsaka is floating on a sea of oil as is the Gulf Of Mexico, but enviromental wackos won't allow drilling. Oil seems to be one thing where the free market supply & demand thing does not work. Oil is like food we have to buy it. Other reasons for high fuel costs is gov't regs. There is also no incentive for oil companies to build new refineries, why should they spend billions of dollars for a new refinery when a new refinery will lower gasoline prices and cut profits? Gasoline prices are very tight, we even have to import gasoline because we don't have all the refinery space. A little refinery fire 1,000 miles away will raise gas prices all over. When we had hurricanes 30 & 40 years ago gasoline prices did not jump 50 cents a gallon overnight. A terrorist attack on a few refineries will cripple the nations transportation. it's not looking good in my view.[!]

[sauerkraut]

Opps, I'd like to add, I bet in the year 2008 we will see $4.00 a gallon gasoline in the Summer.

[claygate39]

quote:
There really is no oil shortage in the world, it's all a man-made shortage. We can't drill in Alaska, and we can't drill here and we can't drill there. Alsaka is floating on a sea of oil as is the Gulf Of Mexico, but enviromental wackos won't allow drilling. Oil seems to be one thing where the free market supply & demand thing does not work. Oil is like food we have to buy it. Other reasons for high fuel costs is gov't regs. There is also no incentive for oil companies to build new refineries, why should they spend billions of dollars for a new refinery when a new refinery will lower gasoline prices and cut profits? Gasoline prices are very tight, we even have to import gasoline because we don't have all the refinery space. A little refinery fire 1,000 miles away will raise gas prices all over. When we had hurricanes 30 & 40 years ago gasoline prices did not jump 50 cents a gallon overnight. A terrorist attack on a few refineries will cripple the nations transportation. it's not looking good in my view.[!]

It is unclear whether or not you are as dumb as you sound but here is the way the petroleum market works.

Neither the producer nor the producer sets the price and average worldwide refinery margins are generally modest. Prices are set on the worldwide financial exchanges that trade contracts on crude oil and refined products. These prices are a minute to minute reflection of how investors view future needs for energy and petroleum products. All parties are at the mercy of those estimates.

That is the way the market works – even someone from Ohio should be able to understand it.

[sauerkraut]

OK, but that is not the "Free-Market" and "Supply & Demand" like what the other poster mentioned. The demand for gasoline is very steady we used as much gasoline nation wide last week as we are going to use this week. Last week gasoline was selling for $2.70 a gallon, this week it was selling for $3.09 with the same demand. The demand stays the same but the price changes. People use about the same amount of fuel no matter the price we have to have it--it's like food we need it to do our daily lives, get to work and to the stores. There also is no comp. between stations. The price is the same all over the city. If ya take it on a world scale the price can be anything.

[claygate39]

quote:Originally posted by sauerkraut

OK, but that is not the "Free-Market" and "Supply & Demand" like what the other poster mentioned. The demand for gasoline is very steady we used as much gasoline nation wide last week as we are going to use this week. Last week gasoline was selling for $2.70 a gallon, this week it was selling for $3.09 with the same demand. The demand stays the same but the price changes. People use about the same amount of fuel no matter the price we have to have it--it's like food we need it to do our daily lives, get to work and to the stores. There also is no comp. between stations. The price is the same all over the city. If ya take it on a world scale the price can be anything.

One thing is really clear - you do not understand how markets work.

[joiei]

quote:Originally posted by joiei

quote:Originally posted by iplaw

quote:Originally posted by Conan71

quote:Originally posted by Chicken Little

quote:Originally posted by Conan71

The marketers and refiners keep claiming it's our special blended fuel which is responsible for keeping us higher than other parts of the state.

Well, doesn't that make sense?  If you have a "special" blend, as we do because of previous ozone issues, then, all things being equal, this blend is going to cost more, right?

Pretty much what I said, CL.

However, that is a "summertime" blend.  Still doesn't explain why gas was .10 cheaper in OKC last winter.

Hmmm....

1.  Largest gasoline distributor in town...check.
2.  Can set prices as they see fit...check.
3.  Gas at QT in OKC is less...check.

Unless the gas they buy for Tulsa is more expensive then something is not right.

There are no QT's in OKC.  So I can not make that comparison you mention.

that is not a premium, that is the price of gas in Tulsa and most of Oklahoma.  A good example of premium pricing is
in Ft Walton Beach, Fl you pay one price, in Destin, Fl which is 5 miles down the road you pay 5 cents more a gallon.  That is where the higher dollar resorts and most of the tourists are and that is pricing at a premium.

[sauerkraut]

quote:Originally posted by claygate39

quote:Originally posted by sauerkraut

OK, but that is not the "Free-Market" and "Supply & Demand" like what the other poster mentioned. The demand for gasoline is very steady we used as much gasoline nation wide last week as we are going to use this week. Last week gasoline was selling for $2.70 a gallon, this week it was selling for $3.09 with the same demand. The demand stays the same but the price changes. People use about the same amount of fuel no matter the price we have to have it--it's like food we need it to do our daily lives, get to work and to the stores. There also is no comp. between stations. The price is the same all over the city. If ya take it on a world scale the price can be anything.

One thing is really clear - you do not understand how markets work.

I don't think anyone understands how fuel/oil prices work. About a year ago or so WLW radio 700 in Cincinatti, Ohio The radio show host Mike McConnel was interviewing an oil company executive about how the gasoline prices work and why they change so fast up & down and why the prices go up fast and are slow to fall, and he could not give a clear answer- he talked in circles for the most part. This guy was in the oil industry. [B)]