<p>Why is it that gas prices change every day? What determines the price of gas? And here in missouri we just had a 27 cent increase in a day. What could have caused it?</p>
<p>Thanks</p>
<p>when the gas stations have to pay more for the same amount of gas, the price that you pay goes up.</p>
<p>27 cent increase in 1 day? that's quite odd</p>
<p>Demand and supply. It is the name of the game. Population growth and increased reliance in automobiles and long distance transportation have far outpaced oil production over the last 30 years.</p>
<p>It's all China's fault for coming into the 20th century finally and driving cars. Damn you commies!</p>
<p>I know why it's going up "long term." But what drives the price on a day to day bases? I'm not refering to news. But is it oil bought at CBOT? Is it the traders at CBOT that cause it to go up/down?</p>
<p>If you studu it over weekly trends, they usually raise the price on Thursday morning and then lower it Monday after the weekend. Has nothing at all to do with S & D, its just that people travel more on the weekend, the gas companies know this thus raising prices every Thursday.</p>
<p>During the early and mid-1990s, the Clinton administration began permitting oil companies to merge. Hence, we got mergers of Exxon and Mobil, Chevron and Texaco, BP and Amaco, etc. Apparently Clinton felt it was better to rape consumers by permitting oil companies to buy new capacity through mergers than to invest in oil exploration which would have helped us now. His administration also felt it was better that oil companies not have too many competitors that might force lower gas prices all the while the environmentalist prevented oil companies from adding refining capacity. As world demand increases, oil companies are able to raises prices as high as possible thanks to your old buddy Bill "Big Oil" Clinton.</p>
<p>Joev, about raising prices for the weekend, that has everything to do with supply and demand. The supply is the same but the demand is greater thus causing a shortage an increase in price.
Its all the fault of the Arab Cartels jumpin up the price to fill their pockets.</p>
<p>"Its all the fault of the Arab Cartels jumpin up the price to fill their pockets."</p>
<p>Isn't the bigger problem the existence of a cartel itself?</p>
<p>Yes, yes it is averagemathgeek. And the biggest issue is that there are groups such as OPEC and the WTO which try as hard as possible to drive up prices for oil companies so they make more money and regular consumers get the shaft.</p>
<p>And Joev, while China is increasing their automobile technology, it is not entirely their fault. The fact is that the Western world relies so heavily on oil that it causes most foreign policies to be based around it. Bush just granted a permit to drill for oil in a national wildlife reserve. </p>
<p>We should be buying and praising cars like the Prius and Hybrid Hondas and Fords. Instead, we view and glorify Hummers. Problem? Yes.</p>