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4/1/2008
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Brent World, VT
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Edited Date/Time
1/25/2012 6:16pm
if gasoline comes from petroleum, what does oil prices have to do with gas prices? i was riding my bike yesterday and crossed over a warning sign of an underground petroleum gas line so it made me wonder...
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I thought it came from corned beef and cabbage?
Yeah. And if you own all the cookers, you can pretty much price the output anywhere you want, no matter what the raw materials cost.
I may be wrong but I think that's backwards. I was watching it on DC and it showed that the heating process shows different levels and the highest being jet fuel, then regular gas and near the bottom, diesel. Which is why I cant understand why diesel is so much higher.
Of course, I had a few drinks in me at the time so I may be mistaken.
LMAO!!
I may be wrong but I think that's backwards. I was watching it on DC and it showed that the heating process shows different levels and the highest being jet fuel, then regular gas and near the bottom, diesel. Which is why I cant understand why diesel is so much higher.
Of course, I had a few drinks in me at the time so I may be mistaken.[/quote:gjj294p8]
It is a distillation process. The diesel and tar are near the end because they are heavier. Diesel is so high because of course we have a "new and improved" versions.
http://lincoln.pps.k12.or.us/lscheffler ... hapter.htm
I may be wrong but I think that's backwards. I was watching it on DC and it showed that the heating process shows different levels and the highest being jet fuel, then regular gas and near the bottom, diesel. Which is why I cant understand why diesel is so much higher.
Of course, I had a few drinks in me at the time so I may be mistaken.[/quote:hka6jxk1]
It is a distillation process. The diesel and tar are near the end because they are heavier. Diesel is so high because of course we have a "new and improved" versions.
http://lincoln.pps.k12.or.us/lscheffler ... hapter.htm[/quote:hka6jxk1]
Diesel is higher than gasoline because something like 80 percent of a barrel of oil is converted to gasoline. The rest makes diesel, jet fuel, grease, motor oil, etc..
As far as gas and oil prices, you have to remember this: there is a futures market for oil. People bid on the markets for the oil futures contracts, which the refiners then purchase for whatever the going rate is. (more bids=higher oil prices)
Then there is a gasoline futures market. Same principle applies. People bid on futures contracts for gasloline, which the distributors then buy, and sell to the gas stations. So you have two futures markets where investors are taking profits at both points in the process.
Normally, the prices of oil and gasoline are driven by the market pressures of supply and demand. However, at present, with the dollar free falling, investors are using oil and gas futures to hedge against inflation.
In short, lube up, because the rich man is screwing the poor man several times in the supply chain
Post a reply to: gas and oil...im confused...