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Why Retail Gasoline Prices Are Nearing Record High

Dow Jones Newswires --
Gasoline prices have climbed every day for the last 36 days so it's no wonder that consumers are worried that record levels are destined for the pump in the next few months. But the many reasons behind the climb aren't quite so easy to decipher -- making prices even harder to predict.

The simplest explanation for high gasoline prices goes like this: "you're paying more for gasoline because oil refiners are paying more for crude," said Byron King, editor of investment newsletter Outstanding Investments.

Recent political and military tension with Iran has added a "war risk" premium to the markets, he said. "War is bad for business, but rumors of war are good for the oil business."

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Submitted Mar 05, 2012 By: RENEGADEGAS

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mzd3 Rookie Author Ontario Posts:48 Points:429,885 Joined:May 2011	Message Posted: Mar 5, 2012 8:47:33 PM Ignore mzd3 Report Abuse Figures; we need to remove any requirement for Iranian oil, then who would care what they did.
swrestler Champion Author Grand Rapids Posts:6,135 Points:1,571,075 Joined:Oct 2008	Message Posted: Mar 5, 2012 8:46:17 PM Ignore swrestler Report Abuse Its The Speculators, Everybody Knows That....
IUVidiot Champion Author Indiana Posts:3,585 Points:708,360 Joined:Jun 2011	Message Posted: Mar 5, 2012 8:45:53 PM Ignore IUVidiot Report Abuse pure politics
shea33 Champion Author Pensacola Posts:2,368 Points:542,940 Joined:Oct 2011	Message Posted: Mar 5, 2012 8:44:25 PM Ignore shea33 Report Abuse we needed another election year issue
Saturn93 Champion Author Salt Lake City Posts:7,292 Points:1,640,885 Joined:Oct 2006	Message Posted: Mar 5, 2012 8:43:00 PM Ignore Saturn93 Report Abuse Another filler piece by an inexperienced "journalist" who doesn't understand the oil business (but then, who does). Actually oil prices have backed off a bit from their high of last week (see the Gas/Oil Price chart on this web site).
DriverofRed Champion Author Calgary Posts:2,173 Points:411,885 Joined:Dec 2011	Message Posted: Mar 5, 2012 8:41:50 PM Ignore DriverofRed Report Abuse politicians are guilty!
baconnie Champion Author Dallas Posts:2,797 Points:563,210 Joined:Jun 2008	Message Posted: Mar 5, 2012 8:41:21 PM Ignore baconnie Report Abuse we complain but you are lucky not to living in other countries, they are paying almost what we pay be the liter
NemoIL Champion Author Illinois Posts:3,025 Points:1,313,220 Joined:Aug 2008	Message Posted: Mar 5, 2012 8:40:57 PM Ignore NemoIL Report Abuse HOW TO FIX THE COMMODITIES FUTURES SPECULATION PROBLEM 1. require that all sellers of futures contracts have the actual underlying commodity on hand in physical inventory, or be in the day-to-day business of drilling for it, mining it, growing it, etc. Enforce this by random on-site inspection. Violation will be a federal felony with mandatory minimum incarceration on the first offense. 2. require that all buyers of futures contracts have the physical ability to take actual delivery of the underlying commodity. Enforce this by random on-site inspection. Violation will be a federal felony with mandatory minimum incarceration on the first offense. 3. eliminate the practice known as "naked short-selling." 4. reinstate the up-tick rule for all short sales. 5. reinstate the recently repealed Glass Steagal act and get bankers out of the trading business, and traders out of the banking business. And one more point: 6. require that all 'long' positions in commodities futures be transacted in the CASH ACCOUNT and not in the MARGIN ACCOUNT. Want to buy a contract? Fine - pay cash for it - all of it. And along with this, require that all short positions be "against the box" in the CASH ACCOUNT. If you don't know what "against the box" means, please look it up! Please note that the above provisions do NOT make "speculation illegal." What they do is to return the commodities markets and their exchanges to the original purpose: to provide a market and a liquidity to people and companies involved in the day-to-day production of the commodity.
BlackSbr Champion Author Nevada Posts:1,000 Points:563,175 Joined:Sep 2011	Message Posted: Mar 5, 2012 8:39:47 PM Ignore BlackSbr Report Abuse It's a wake up call
96sc1 Champion Author El Paso Posts:8,517 Points:1,367,440 Joined:Mar 2008	Message Posted: Mar 5, 2012 8:38:55 PM Ignore 96sc1 Report Abuse Did rumors of war raise the price of milk and eggs, too? No, that was due to the Obama administrations bad fiscal policy. Oh wait, that raised the price of gas, too.
radstoy Champion Author Pennsylvania Posts:16,459 Points:3,220,705 Joined:Feb 2003	Message Posted: Mar 5, 2012 8:36:14 PM Ignore radstoy Report Abuse Another Obama scew up
Macak_ Sophomore Author Barrie Posts:109 Points:490,805 Joined:Jun 2011	Message Posted: Mar 5, 2012 8:35:46 PM Ignore Macak_ Report Abuse The prices we are currently paying are low, wait till summer, then half the money on a paycheque will go to gas
Saturn93 Champion Author Salt Lake City Posts:7,292 Points:1,640,885 Joined:Oct 2006	Message Posted: Mar 5, 2012 8:35:35 PM Ignore Saturn93 Report Abuse Answer: The lack of a clear energy policy and poor foreign policy by the Obama administration.
jdc17327 Champion Author Pennsylvania Posts:2,560 Points:198,015 Joined:May 2009	Message Posted: Mar 5, 2012 8:35:32 PM Ignore jdc17327 Report Abuse Becuz they can get away WITH IT!
methaneman Champion Author Minnesota Posts:2,610 Points:1,284,450 Joined:May 2002	Message Posted: Mar 5, 2012 8:34:40 PM Ignore methaneman Report Abuse Easy to decipher? It is price manipulation run amuck. Any reason is an effort to BAMBOOZEL the american citizen. This should be fixed in november.
kcboy Champion Author Utah Posts:3,968 Points:1,507,800 Joined:Jun 2005	Message Posted: Mar 5, 2012 8:32:13 PM Ignore kcboy Report Abuse High gas prices is hurt those on a lower income. And those countries that are paying the higher price $8 OR $9 gallon is making double or more for a starting wage.
warlord1 Champion Author Georgia Posts:5,250 Points:1,034,975 Joined:May 2010	Message Posted: Mar 5, 2012 8:29:37 PM Ignore warlord1 Report Abuse BECAUSE OF GREED THAT'S WHY!!!!
danol43 Champion Author Modesto Posts:1,701 Points:589,235 Joined:May 2011	Message Posted: Mar 5, 2012 8:27:51 PM Ignore danol43 Report Abuse Obama and Chu are having their way with my wallet and I don't like it.
AngieMVA Veteran Author Richmond Posts:480 Points:427,665 Joined:Oct 2008	Message Posted: Mar 5, 2012 8:27:25 PM Ignore AngieMVA Report Abuse ok
Alaydown Champion Author Los Angeles Posts:5,116 Points:822,645 Joined:May 2007	Message Posted: Mar 5, 2012 8:23:38 PM Ignore Alaydown Report Abuse Obama and his Energy Secretary Dr. Chu have both said they want gasoline prices at “European levels” ($8-10 per gallon) to “encourage” conservation and to make higher priced "alternative" forms of energy more competitive. Until he is voted out of office or until he changes his energy policy, prices will continue to stay high. The national average price of gasoline when Obama took office was $1.79. Today it is $3.71. Fortunately Energy Secretary Chu's testimony to Congress is on videotape. Two weeks ago and in 2009, Chu said to Congress that the goal is not to lower gasoline prices because higher gas prices encourage conservation, which is the goal. After Obama's press secretary was asked about and surprised about those statements, Chu told Congress last week that they do not want to raise gas prices. This being an election year has forced Dr. Chu to lie under oath last week to Congress after he made the opposite statement to Congress on Tuesday the week before. Obama said that increased drilling will not lower fuel prices, but yet his regime has asked the Saudis to increase oil production in order to lower fuel prices. It seems that Obama says one thing to the American people, but says something else when he thinks no one is watching.
hank1326 Champion Author Los Angeles Posts:8,909 Points:1,733,585 Joined:Jun 2008	Message Posted: Mar 5, 2012 8:22:29 PM Ignore hank1326 Report Abuse Ditto to jwduke1. We can take care of one of the three culprits in November.
GigHarborHound Champion Author Tacoma Posts:2,532 Points:487,515 Joined:Sep 2011	Message Posted: Mar 5, 2012 8:19:53 PM Ignore GigHarborHound Report Abuse OOOOHHH, Bummer!!!
jwduke1 Champion Author Iowa Posts:15,604 Points:3,068,265 Joined:Apr 2004	Message Posted: Mar 5, 2012 8:18:03 PM Ignore jwduke1 Report Abuse Big oil, speculators, and O'Bummer are the causes of high priced gasoline!
preacherjohn Champion Author Modesto Posts:3,990 Points:1,919,760 Joined:May 2006	Message Posted: Mar 5, 2012 8:16:59 PM Ignore preacherjohn Report Abuse Seems like the price hikes have no end.
eye-spy Champion Author Quebec Posts:4,585 Points:2,417,785 Joined:Feb 2005	Message Posted: Mar 5, 2012 8:16:16 PM Ignore eye-spy Report Abuse One day, the bubble is going to burst!!
scrounger Champion Author Vancouver Posts:9,778 Points:3,043,430 Joined:Mar 2003	Message Posted: Mar 5, 2012 8:16:14 PM Ignore scrounger Report Abuse Mainly greed!!!
heysailor Champion Author Pittsburgh Posts:9,582 Points:2,332,670 Joined:Mar 2006	Message Posted: Mar 5, 2012 8:11:55 PM Ignore heysailor Report Abuse Byron's a pretty smart cookie - he speaks the truth.
captngasTN Champion Author Tennessee Posts:3,015 Points:1,326,975 Joined:Jun 2009	Message Posted: Mar 5, 2012 8:06:51 PM Ignore captngasTN Report Abuse not new news
Cashless Champion Author Akron Posts:3,520 Points:734,305 Joined:Apr 2011	Message Posted: Mar 5, 2012 8:06:27 PM Ignore Cashless Report Abuse We all know why.
Scottland Rookie Author Orange County Posts:56 Points:298,025 Joined:Jul 2002	Message Posted: Mar 5, 2012 8:06:15 PM Ignore Scottland Report Abuse No to the keystone pipeline, higher dividend taxes, no new drilling permits, pro-algae speech ... gas is going to get really expensive.
dollarwatcher Champion Author Wisconsin Posts:7,940 Points:1,534,995 Joined:Mar 2007	Message Posted: Mar 5, 2012 8:04:51 PM Ignore dollarwatcher Report Abuse OIL, OIL, OIL. Oh how it controlls our lives. Everything evolves around it.
rf6480 Champion Author Miami Posts:1,534 Points:547,805 Joined:Mar 2011	Message Posted: Mar 5, 2012 8:01:50 PM Ignore rf6480 Report Abuse The main stream media is just playing it's part in the Corporate control scheme.
stephen2155 Champion Author North Carolina Posts:3,024 Points:658,030 Joined:Jun 2011	Message Posted: Mar 5, 2012 8:00:42 PM Ignore stephen2155 Report Abuse The Obama adminstration!
camel1 Champion Author Minnesota Posts:8,270 Points:2,266,615 Joined:Jul 2006	Message Posted: Mar 5, 2012 8:00:29 PM Ignore camel1 Report Abuse GREED
swede Champion Author Cleveland Posts:3,767 Points:1,676,000 Joined:Feb 2003	Message Posted: Mar 5, 2012 7:58:43 PM Ignore swede Report Abuse thanks to Obama and the Obama EPA
gordontaos Champion Author New Mexico Posts:1,449 Points:433,510 Joined:Apr 2006	Message Posted: Mar 5, 2012 7:56:37 PM Ignore gordontaos Report Abuse I think that livedream is on the right track.
kelly1016 Champion Author Victoria Posts:1,953 Points:352,940 Joined:Oct 2011	Message Posted: Mar 5, 2012 7:55:14 PM Ignore kelly1016 Report Abuse These tensions with Iran are no good. Just let the Isrealies act in thier best interests.
bridgerunner Champion Author Virginia Posts:4,787 Points:1,006,835 Joined:Jul 2009	Message Posted: Mar 5, 2012 7:54:33 PM Ignore bridgerunner Report Abuse napermike79 is on the right track.
napermike79 Champion Author Twin Cities Posts:3,560 Points:1,728,630 Joined:May 2001	Message Posted: Mar 5, 2012 7:50:28 PM Ignore napermike79 Report Abuse NO - it's that our dollar is getting weaker with the rest of the world. And the media is just going along kissing his rear.
livedream Champion Author Michigan Posts:3,680 Points:754,835 Joined:Mar 2011	Message Posted: Mar 5, 2012 7:50:21 PM Ignore livedream Report Abuse I don't care how they want to spin it or try to justify it with pathetic lame excuses -- WE ARE BEING GOUGED BY INSATIABLE BIG OIL GREED.
oliver01BC Rookie Author Victoria Posts:8 Points:28,685 Joined:Feb 2012	Message Posted: Mar 5, 2012 7:47:11 PM Ignore oliver01BC Report Abuse No way! In the late spring of 2008 crude was $148 per barrel and gas was .55 per litre!!!! Now its' sitting at less than $120 and we're paying $1.25 per litre. Not logical!
duffee01 All-Star Author Mississippi Posts:776 Points:428,015 Joined:Sep 2011	Message Posted: Mar 5, 2012 7:46:03 PM Ignore duffee01 Report Abuse When something happens(war), then you raise the price of crude oil, not before. There should be some way to snare these oil speculators to make them find another type of business to go into.
southrob Champion Author Tucson Posts:3,595 Points:687,200 Joined:Mar 2011	Message Posted: Mar 5, 2012 7:45:45 PM Ignore southrob Report Abuse also we are nearing record stupidity for still importing oil while we export oil
bigLtowing Champion Author Columbus Posts:2,839 Points:592,565 Joined:Aug 2011	Message Posted: Mar 5, 2012 7:41:05 PM Ignore bigLtowing Report Abuse just greed
BrucePen Champion Author Ontario Posts:6,601 Points:1,361,840 Joined:Sep 2008	Message Posted: Mar 5, 2012 7:38:47 PM Ignore BrucePen Report Abuse Speculation
darkknight1 Champion Author Winston-Salem Posts:4,335 Points:895,835 Joined:Nov 2010	Message Posted: Mar 5, 2012 7:37:26 PM Ignore darkknight1 Report Abuse I'm tired of hearing all of the lame excuses for their greed
BigBob12345 Champion Author Gasbuddy Posts:1,521 Points:304,730 Joined:Aug 2011	Message Posted: Mar 5, 2012 7:34:53 PM Ignore BigBob12345 Report Abuse Thanks to the speculators.
gem1224 Champion Author Tulsa Posts:1,541 Points:491,640 Joined:May 2011	Message Posted: Mar 5, 2012 7:32:40 PM Ignore gem1224 Report Abuse Let's all specualate!!
vtroger Veteran Author Vermont Posts:284 Points:561,220 Joined:Mar 2011	Message Posted: Mar 5, 2012 7:31:47 PM Ignore vtroger Report Abuse We know why. Greed and speculation.
Topshopper2011 Champion Author New Jersey Posts:1,008 Points:276,365 Joined:Aug 2011	Message Posted: Mar 5, 2012 7:31:38 PM Ignore Topshopper2011 Report Abuse We need lower gas prices now!
SilentpartnerMN Champion Author Minnesota Posts:1,622 Points:477,110 Joined:Apr 2011	Message Posted: Mar 5, 2012 7:25:42 PM Ignore SilentpartnerMN Report Abuse It's no longer supply and demand that sets the price, but what they think the supply is an what they predict the demand will be. With a thought of war, or the stait being shut down, crude goes up. And China is demanding more diesel, so we refine what we import and ship it. Which drives the domestic price up. It all comes down to the almighty dollar.