Gasoline

Tunanut

Ten Pointer
I am just confused why gas went to the commodities market. traders purchase thousands of futures on oil that they never even handle. the market dictates gas prices by traders on a computer.

another problem is I don't think the US has built a new refinery since the 70's. plenty of crude that can't be manufactured efficiently.

Yep, crude is traded roughly 28 times from the time it gets on a tankers in Saudi till it hits our shore.

1978, Marathon in Garyville, LA. It's the last refinery to be built or permitted in the US. The only thing we've done with refineries in the US is shut them down and move them offshore to more refinery friendly countries. The EPA thinks we have enough, maybe too many. Personally, I think every state should be required to have at least one, so that a hurricane that hits LA/TX doesn't effect the supply of the whole eastern seaboard.
 

rustvyper

Ten Pointer
Here's what's happening. The Saudis are really spooked by all our shale oil production.
However, shale oil extraction is far more expensive than the traditional well method. So the Saudis are intentionally flooding the market to try to stop the spread of shale oil production.
The good news is cheaper oil & that it's gonna really hurt guys like Putin & other unfriendly nations that rely on oil money.
The bad news is if you're employed by the shale oil fields.
 

gefecht

Guest
Had to pay $3.19 on 6 forks yesterday. Could have driven a few miles down the road but was just a small small amount to carry me to payday. Still makes me sad to know that an hour away it is 2.89.
 

Eric Revo

Old Mossy Horns
Contributor
http://oilprice.com/Energy/Crude-Oil/Where-The-US-Got-Its-Oil-in-2013.html
I'm sure this isn't a shock for some. I just wanted those that explained a reduction in gas prices due to oil production and price fixing of the middle eastern countries to realize the true facts of oil import.
Gas prices are due to several factors, which TRICKLE down....not fall drastically in a couple of months right before a very important election. Did you notice a dramatic difference just before Zero's last election? No ?..Why ?
 

manybeards

Ten Pointer
$2.98/gallon for regular in Wilmington...... Unfortunately, the only lead free available is in high grade($3.55/gallon) and it's still pretty painful to fill up that 70 gallon tank on my boat.......
 

bryguy

Old Mossy Horns
Can't remember where I saw it, but the Saudis and Kuwait's break even price is somewhere around $35 a barrel on their crude.....Russia and Venezuela are like in the 50 to 60 dollar range.....also heard that at around 75 or so a barrel you will see US production shuttered due to cost


Sent from my iPhone using Tapatalk
 

ThrillofDaChase

Ten Pointer
http://oilprice.com/Energy/Crude-Oil/Where-The-US-Got-Its-Oil-in-2013.html
I'm sure this isn't a shock for some. I just wanted those that explained a reduction in gas prices due to oil production and price fixing of the middle eastern countries to realize the true facts of oil import.
Gas prices are due to several factors, which TRICKLE down....not fall drastically in a couple of months right before a very important election. Did you notice a dramatic difference just before Zero's last election? No ?..Why ?

I will definitely read the article, and I am not doubting there are multiple factors that control pricing. That is quite logical. However, I am correct when I say gas prices dropped in 08 and 2012. Summer 2008 I made 60 bucks in tips one day and put all of it in the tank of my mustang after my shift. Gas was $4 a gallon. I remember driving back from ecu after hanging with some friends in late October early November, and paying mid $1 range. This link below addresses 2012, there was a significant decrease in prices then too. If you want to get conspiracy theorist, political plays are put into motion years in advance. I'm a very logical and rational guy. I know there are a multitude of factors that determine price. With that being said, one would be silly if they don't recognize the power of political influence. Just read OPECs mission. That is also a factor.

http://carolinas.aaa.com/media/Pages/DROP-IN-GAS-PRICES-FUELS-INCREASE-IN--THANKSGIVING-HOLIDAY-TRAVEL.aspx
 

sky hawk

Old Mossy Horns
Contributor
However, I am correct when I say gas prices dropped in 08 and 2012.

Yep. Google "history of gas prices" and you will see a big drop in Sept. 2006, a huge drop starting in Sept. 2008, a significant drop starting Oct. 2012, with another large drop right now. The only election year without a significant drop within 2 months of the election was 2010.

The factors that play into gas prices have always been too numerous and confusing for me to understand because every time it goes up, it's like they are picking another reason out of a hat. Technically with middle east unrest recently gas should be going up (according to past reasoning), but it's not. It is fun to point out regardless of which of the many factors is actually causing the short term drop.
 

bryguy

Old Mossy Horns
Yep. Google "history of gas prices" and you will see a big drop in Sept. 2006, a huge drop starting in Sept. 2008, a significant drop starting Oct. 2012, with another large drop right now. The only election year without a significant drop within 2 months of the election was 2010.

The factors that play into gas prices have always been too numerous and confusing for me to understand because every time it goes up, it's like they are picking another reason out of a hat. Technically with middle east unrest recently gas should be going up (according to past reasoning), but it's not. It is fun to point out regardless of which of the many factors is actually causing the short term drop.

Honestly one of the biggest factors in the price of crude is the relative strength or weakness of the American dollar and the feds monetary policy..........a weak dollar drives prices up while a strong dollar drives prices down..................
 

sky hawk

Old Mossy Horns
Contributor
Yeah, I was thinking about that last week since the dollar has strengthened. I read where one of the concerns ahead is foreign profits being devalued when brought back to the US by domestic companies. What I can't figure out is how the dollar can be strengthened while the Fed is "clicking" money into existence at an unprecedented pace.
 

bryguy

Old Mossy Horns
Yeah, I was thinking about that last week since the dollar has strengthened. I read where one of the concerns ahead is foreign profits being devalued when brought back to the US by domestic companies. What I can't figure out is how the dollar can be strengthened while the Fed is "clicking" money into existence at an unprecedented pace.
Honestly, it is because the rest of the world is grasping at straws and sees us(our currency) as their best hope.......hell the Euro zone is worse off than we are, china's economy is starting to tank and the rest of the world isn't much better............not that we, the US, is much better, but we are less bad than every where else......
 

Eric Revo

Old Mossy Horns
Contributor
If China's economy continues to spiral downward, we may be able to pay them back all of our debt to them in a mere 100 years or so. Or send them a truck load of Nabs..those seem to keep their value quite well.
 

bryguy

Old Mossy Horns
If China's economy continues to spiral downward, we may be able to pay them back all of our debt to them in a mere 100 years or so. Or send them a truck load of Nabs..those seem to keep their value quite well.
I would love the see the Chicoms go down in flames....as well as Putin..............
 

ArmyMutt

Eight Pointer
I think the price drop has a little to do with the Dow being in a pretty good dive for the past couple of weeks. WRAL was praising the gas prices and nary a mention of the economy plunging right with them.
 
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