Oil Drops over 30% since summer, now what?

[Bigfoot62]

. . . I'd rather watch . . . MSNBC for business news.

Marxist
Socialist
Nationalized
Bull
Crap




I'm also enjoying lower fuel prices. (I burn a bunch more diesel than gas, but it's lower too)
I don't pretend to be wise enough to understand all of the ups and downs of the crude oil prices.
I DO know that I'm still paying about the same for a 55 gallon drum of oil as what I did back when crude prices were double what they are now. (and I don't understand that either)

 

[Tomtint]

Here is the other shoe soon to fall. Cheaper gas and more fuel efficient cars will put pressure on states tax coffers. As cars become more fuel efficient they spend less and less at the pump paying less and less tax. States will be jumping on this low gas price opportunity and jack the tax per gallon when know one is looking.

 

[Cpjlube]

Marxist Socialist Nationalized Bull Crap I'm also enjoying lower fuel prices. (I burn a bunch more diesel than gas, but it's lower too) I don't pretend to be wise enough to understand all of the ups and downs of the crude oil prices. I DO know that I'm still paying about the same for a 55 gallon drum of oil as what I did back when crude prices were double what they are now. (and I don't understand that either)

Engine oils never seem to enjoy the drop in price when crude goes down. Of course when crude was high motor oil price increases were blamed on that. When crude dropped the reps started talking about additive package costs.
I do understand that conventional motor oil is not as "simple" as it once was but it is amusing how the excuses change for lack of price reductions, or more likely, price increases.

 

[westcliffe01]

Has anyone noticed that diesel is still 3.99/gal ? The price has not changed 1 bit in more than a year.

 

[murphy1244]

Has anyone noticed that diesel is still 3.99/gal ? The price has not changed 1 bit in more than a year.

Here its been from 3.43 to 3.95 but this is heating time so its been steady at 3.85

 

[tcartwri]

It's going to be a gong show in Alberta, which is where the majority of the North American crude is coming from these days. Big problem for the Canadian economy.

 

[Rustyiron]

What was the oil price when gas was $2-$2.25? My memory (only so so) thinks it was about where it is now.
Why should't we see these gas prices again?

 

[SPIKER]

Has anyone noticed that diesel is still 3.99/gal ? The price has not changed 1 bit in more than a year.

I agree been waiting for on road to drop & get a good winter grade at the pumps. I need some for the farm tractors and cant figure out the now over a buck more per gallon while it takes less refining and makes more per bbl than gas. Only real thought is the refiners are using China/Japan and Europe as a excuse to keep rates high (we can sell to them for that so you have to pay those prices.)

As for the Speculators driving prices up.down they DO simple fact is if they were not making butt loads of $ doing it they wouldn't simple as that. They profit by taking money off BOTH ENDS so the guy pumping oil out of the ground (& land/lease holder) gets hurt & the guy putting it into his tank of his truck pays extra for it. No one can argue those facts period. In these wide quick swings again it is the people who pay for it as the speculators dump positions (longs) and sell (short) the delivery only to cover prior to delivery dates. Many try to say it is neutral on prices I call BS as they are taking a cut off/on both ends of the sale so someone is paying/loosing out while the speculators profit. Price fluctuations is where the consumer is hurt worst (oil jumps a buck per bbl gas jumps 10 cents same day, price of bbl of oil drops a buck it takes 3 weeks and comes down 2 cents at a time.


Gas here is still up 2.79 more than it should be based on the price of a bbl of oil. One of these days we will see a major hike just for road maintenance taxes as others said it is already in work talked about softening up the drivers... I have personally heard it talked about probably 20 times in last 2 or 4 months.

Mark

 

[NoTrespassing]

What was the oil price when gas was $2-$2.25? My memory (only so so) thinks it was about where it is now.
Why should't we see these gas prices again?

Gasoline vs. Crude Oil Prices Chart

I don't think we're quite there yet. In this 2012 chart it looks like oil was down around $55 when gas was in the low $2 range in early 2008. I do expect to see gas sell for $2 somewhere in the country before it rises again but I doubt if the average will make it down there. Checking gasbuddy you'll find gas as low as 2.25 in some areas right now.

Kevin

 

[NoTrespassing]

Oil at $40 Possible as Market Transforms Caracas to Iran - Bloomberg


This new article 11/30/14 from Bloomberg predicts some pretty major changes because of the drop. I'm not surprised, this is a very big deal that will have a huge impact on many countries. Hide and watch!