What is wrong with this math?? - Montana Owners Club

bncinwv · 05-05-2011, 06:04 AM

So I am monitoring the price of a barrel of crude oil and it seems that over the past three days (including today's $6.00 drop) that the price of a barrel of oil has dropped around $11.00 or so. Now, when the price of oil raises, it seems like the next day that the price of gasoline and diesel reacts in a linear fashion. An $11.00 drop equals about a 10% in the price per barrel. My deductive reasoning skills therefore lead me to believe that we should see somewhere around a 10% decrease in pump prices which in WV calculates to about 42 cents per gallon. I am going to go down to the station and wait for this drop and fill up the car, the truck, the boat and the jetski. Be back in a few minutes............................
Bingo

SlickWillie · 05-05-2011, 06:13 AM

Just commented to DW about that a couple days ago.

Art-n-Marge · 05-05-2011, 06:26 AM

I've always wondered why the price of fuel rises IMMEDIATELY after the price of crude rises. After all, the price of the fuel we are going to buy was manufactured with cheaper crude some time before and the fuel we are getting the next day is now gouging!!!

It takes a few days or weeks to get to the refinery, then there's the time to process it, then there's the time to get it to the consumer.

Then as Bingo points out, the price of crude drops 10% but it takes a while before that savings is passed back and it may not go back down the same percentage it went up. Did anyone see the reports of the billions in "increased" profits made during this time? If there was a concern that consumers are driving less during this time, who bought the fuel and got them those profits? Bunch of opportunistic liars!!

Another example of corporations getting big profits from deregulation. All this crap about blaming the unrest in the Arabian regions shouldn't be putting billions of extra profit in oil companies pockets, because in actuality it doesn't seem to be affecting THEIR costs.

Until then, the Monty stays parked, we don't go very far, but as a retired minority we can do that. I feel terrible for my friends and kids who must still make their commutes and pay these prices for fuel.

Waynem · 05-05-2011, 06:29 AM

The first quarter saw over $72 BILLION (read BILLION) of profit for the top 4 or 5 oil companies.

So to answer your question in one word:

GREED!

Johnnyg · 05-05-2011, 07:03 AM

One station in my Area
4/29/11 = 4.19
5/02/11 = 4.25
5/04/11 = 4.29
Guess they didnt hear about the drop in crude?

Mrs. CountryGuy · 05-05-2011, 07:47 AM

Bingo,

Hope you have food available, water too, restroom??

You might be waiting a while, eh??

racerjoe · 05-05-2011, 07:49 AM

Bingo, are you back yet??? or has your DW brought you some lunch and a sleeping bag??

grampachet · 05-05-2011, 08:32 AM

We probably shouldn't hold our breath waiting of you, now should we?

Fiver Get You Ten · 05-05-2011, 08:37 AM

Waynem nailed it!

Bill-N-Donna · 05-05-2011, 08:47 AM

The good thing about this Bingo is that you can sleep in the Monty while you wait. I think you should take it with you where I believe you’ll have a long wait.

Phil P · 05-05-2011, 10:41 AM

Hi

Quote:

quote:Originally posted by Waynem

The first quarter saw over $72 BILLION (read BILLION) of profit for the top 4 or 5 oil companies.

So to answer your question in one word:

GREED!

This is an unjust way to try and illustrate if the oil companies are making undue profits.

The correct way to state this is like Huffpost AOL News did “oil profits up 42%” to 72 billion dollars.

Now you have the information to decide if the oil companies are price gouging.

The profit increase is not larger that the cost increases. So this puts you in “perspective” as to what the oil companies are doing.

If the crud had only increase 10% and the oil companies profits increased 42% then you have reason to complain.

In reality the crude has increased about 45% and the oil companies profits have increased only 42%.

Phil P

Waynem · 05-05-2011, 11:45 AM

So a few years ago when an oil company executive was "asked" to retire, they gave him a severance pay of $450 million dollars, stock options, and use of the corporate jet if he traveled. The incoming CEO got a $350 million incentive bonus.

I guess they earned it?

Is it the people that sell the crude that we have to think about?

Is it the speculators on wall street that say, "I think there is going to be a shortage, so I'm bidding up."?

What is the answer to the original post?

indy roadrunner · 05-05-2011, 11:57 AM

There was a Saudi Prince on TV that made a statement that they could produce crude oil and sell it at a profit for $2.00 a barrel. Now someone answer why we have to pay over $100 a barrel. Supply and Demand ie China and Brazil, stock market speculators????You take oil futures off the stock market and watch the price fall. JMO

indy roadrunner · 05-05-2011, 11:58 AM

Bingo, please go home you family misses you.

kylec2 · 05-05-2011, 12:09 PM

It seems we can boil it down to one thing: G R E E D

SlickWillie · 05-05-2011, 12:13 PM

Quote:

quote:Originally posted by Phil P

Hi

Quote:

quote:Originally posted by Waynem

The first quarter saw over $72 BILLION (read BILLION) of profit for the top 4 or 5 oil companies.

So to answer your question in one word:

GREED!

This is an unjust way to try and illustrate if the oil companies are making undue profits.

The correct way to state this is like Huffpost AOL News did “oil profits up 42%” to 72 billion dollars.

Now you have the information to decide if the oil companies are price gouging.

The profit increase is not larger that the cost increases. So this puts you in “perspective” as to what the oil companies are doing.

If the crud had only increase 10% and the oil companies profits increased 42% then you have reason to complain.

In reality the crude has increased about 45% and the oil companies profits have increased only 42%.

Phil P

So, that means the oil companies are not just passing along the increase in cost per barrel, but in order to get that 42% increase in profits, are tacking on additional costs per barrel to the end consumer. Fuzzy math? Sure sounds like Greed to me.

clutch · 05-05-2011, 01:46 PM

I hope Bingo dosen't starve while he is waiting. Perhaps they are using a new type of math.

noneck · 05-05-2011, 02:25 PM

Bingo...you there? We miss you...

I didn't hunker down but went last weekend cause I'm getting older and being in my RV is too much fun! Ok, so, I'm now a poor run down old Monty owner.

bncinwv · 05-05-2011, 02:47 PM

Now, imagine that. The gas station still has the price at $4.29. With all of that mathematical deduction and reasoning, I am in agreement that it all comes down to..........

GREED!!!!

Bingo

Waynem · 05-06-2011, 03:50 AM

Well, I still have to believe that it is all greed, but in fairness to the gas station owner, how much did he have to pay to fill up his underground tanks? He is not going to lower the price until he gets his next supply, but even then I don't think the supplier will lower costs. It still comes down to greed.

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