Price of oil dropping.

[smitty16s]

FINANCE - Oil prices extend decline, drops below $127 - Top News - Comcast.net

If oil is dropping or "tumbling" as the article say....like its a bad thing then why is my diesel going up here in little rock? makes no sense to me.

[smitty16s]

so gas has dropped to 3.70 but diesel is still 4.85??

[sldghamr]

it's called "Oil Futures". the price per barrell is what companies will pay several weeks/months from now.

[Patrick]

$4.75 here Woo Hoo! I cant believe I'm excited about $4.75 fuel.

[smitty16s]

gotcha...so by then the future price will have gone up again.. and we will never see change? therefore the oil company just "eats" the excess profit?

[blowinsmoke4life]

hey patrick im also from the pittsburgh area and i was drivin north thru export and a sunoco and a citgo had it fir 4.79 and tire place had it for 4.69

[choctaw]

Originally Posted by sldghamr

it's called "Oil Futures". the price per barrell is what companies will pay several weeks/months from now.

If thats the case then why is it when oil goes up, fuel prices go up? To me the futures price is reflected in our fuel prices immediately. Up not down by the way.

[smitty16s]

Originally Posted by choctaw

If thats the case then why is it when oil goes up, fuel prices go up? To me the futures price is reflected in our fuel prices immediately. Up not down by the way.

i agree completely so I'm just baffled.

[outlaw07]

Yeah they always say that they have to raise the price of fuel immidiatly to cover costs when oil prices go up, but say that fuel prices can't go down until the fuel made with the cheaper oil gets to the pump. All just double talk to keep makin the big profits.


Jay

[turbolariat]

one thing i dont get is, and there might of already been a thread about this, but how come diesel was always cheaper than gas and now it is more?