Whats up with diesel prices?

[newbury]

Same here. Yet Diesel, or Heating Oil, is actually cheaper wholesale than gasoline. From what I hear there's a huge glut of crude and natural gas due to all the new fracking type oil fields.

Energy & Oil Prices: Natural Gas, Electricity and Oil - Bloomberg

From what I remember a year ago US domestic oil refineries were turning away US oil because of a fracking surplus in the midwest and the eastern refineries, set up for expensive Brent Crude, couldn't make enough profit.

 

[houstonscott]

There is real chance that we are in a deflationary spiral down. The price is dropping because there is less economic activity. Less "stuff" being made and moved around (trucks/diesel fuel) less over all production of everything because of less demand. When this happens generally your money is worth more so you would anticipate the price of gold to drop, which it has from it's highs. Prices fall as each widget company competes for less and less of a market, the sell off and in a few years where there were 5 widget companies there are now two. Fuel prices are not falling because of increases in production, Obama has seen to that.

HS

 

[RobertBrown]

Does the consensus here think it's time to fill up my tanks?
Or will it drop a lot further like it did in '08 when gas went from $4.12/gallon to $1.61/gallon?
Saving even $2/gallon would mean about $1200 difference.

I say fill one, and keep the other handy, as it's not likely to get much lower IMHO.

 

[smstonypoint]

Does the consensus here think it's time to fill up my tanks?

Or will it drop a lot further like it did in '08 when gas went from $4.12/gallon to $1.61/gallon?

Who knows. Gulf Coast ULSD futures are nearly flat over the next year:Gulf Coast Ultra Low Sulfur Diesel (ULSD)

Steve

 

[newbury]

Here's a link which seems to show I'm paying well below average.
http://www.eia.gov/pub/oil_gas/petr...troleum_status_report/current/pdf/table14.pdf

 

[schoolsout]

There is real chance that we are in a deflationary spiral down. The price is dropping because there is less economic activity. Less "stuff" being made and moved around (trucks/diesel fuel) less over all production of everything because of less demand. When this happens generally your money is worth more so you would anticipate the price of gold to drop, which it has from it's highs. Prices fall as each widget company competes for less and less of a market, the sell off and in a few years where there were 5 widget companies there are now two. Fuel prices are not falling because of increases in production, Obama has seen to that.

HS

We would have had a huge deflationary spiral down had the Central Banks not gone against capitalism and printed money. That is the reason Gas/diesel were so low in 2008. It only began to rise once QE (money printing) kicked in. There will not be another episode like that, though. Once the derivatives dominoes start to fall again (they already are), the banks (western world) will start printing to save the banks again....under the guise of helping the people.

Austerity kills politicians' careers and they know it. They will not let reality set in as long as they can help it and kicking the can down the road (again...and again) is all they know. In the end, it will be even worse because of it.

 

[newbury]

Another data point on prices - trip from Sandy Springs, Mississippi to Alexandria, Va 6/18/2012
Cherokee, Alabama 6/18 - $3.48/gal

From there to Chattanooga, TN prices rose.
Paid $3.59 outside Chattanooga.
Prices rose and fell a bit all the way up I81 till I got near Staunton, Va.
Filled up at a Sheetz, $3.50/gallon. Locally in Alexandria a low price is $3.60/gallon

/edit - and just back from a Sunuco in Alexandria, Va - Diesel $3.60/gallon

What's wierd to me is that in Fulton w/ diesel $3.50/gallon RUG was $3.05 (45 cents difference). Here diesel $3.60/gallon, RUG $3.50, only 10 cents difference.

 

[JDgreen227]

Back up to $3.99 per gallon now...what a surprise.

 

[Foxtrot08]

Wholesale on-road diesel costs about $3.20-3.30 depending on where we pull it from, to put in the ground, transport load (7500 gallons.) Taxes and all. Off road is that, minus taxes.

Street prices right now are crazy. If you have a tractor/truck of your own - consider getting your own small fuel tank. Most wholesalers should either A. give it to you depending on your volume or B. Rent it to you. 'Small quantity' fuel - so 275 gallons at a time up to 3000 gallons - is 15 to 20 cents a gallon higher then street prices typically. Some places will also sell fuel by the drum - another good idea.

Note: I am in NE Ohio.

 

[sw03]

this issue has been normal since like 2001...why is this an issue now?????