1$/gal. gasoline? Maybe, but what does it mean really?

[NoTrespassing]

I tend to watch the petroleum market very closely. I'm not sure why but it fascinates me, I guess because it effects the economy so greatly. 2015 was a very volatile year for the oil industry and it seems like the only place anybody is making money now is in tankers and storage facilities. The world is pumping 2 million extra barrels per day and they're running out of places to put the stuff. Iran will probably come on line with more oil in the not too distant future and Saudi says they aren't going to quit pumping. Something has to give sooner or later and it probably isn't going to be pretty.

In the meantime we're enjoying some of the lowest gas, diesel, and heating oil prices we've seen in over a decade. Gasoline is selling in the $1.30's in more than one state now and I won't be shocked to see $1 per gallon gasoline somewhere in the US before this is over.

How long with these low prices last and what will happen to end them? Oil producing countries, especially small ones are really hurting. Most of their budgets were predicated on $100/barrel oil. Prices changing this drastically will surely come to an end badly sooner or later.

Before it's over I'm hoping to get some really cheap airline tickets to the Philippines though I'm thinking $500 round trip maybe? Last time we paid over $1700.

Kevin

 

[sld]

Unfortunately it means our economy is doing very poor.

 

[Tomtint]

I had read a while back that Saudi was able to produce oil at a $8.00 break even price. I believe the break even for shale is 45-48 per barrel. Saudi is simply going to drive the competition into bankruptcy.

 

[Bird]

I filled up with gas yesterday for $1.539. I think the last time I bought gas that cheap was 11 years ago. And I think the diesel was $1.669.

 

[mjarrels]

My last trip to the Philippines was in 2014, $1310.00 round trip via Korean air. Round trip before that was $1320.00 round trip again on Korean air.

mark

 

[JBourquin]

Gas can't seem to dip below $2/gal here. But that's NY taxes for ya.

 

[cat fever]

Here in Salt Lake, diesel is still $2.20ish and gas is $1.95

We have 4 refineries within 10-12 miles of downtown SLC, yet can't seem to get our prices down to the lower end of the national average.

I have been wanting to buy a 500 gallon diesel tank.(and fill it of course) Just waiting for what I think will be the lowest price.

 

[k0ua]

Gas here in Branson is $1.47 and Diesel is $1.73. yeah something has to happen, and by looking at he market selloff's I think it is called a recession

 

[cat fever]

I had read a while back that Saudi was able to produce oil at a $8.00 break even price. I believe the break even for shale is 45-48 per barrel. Saudi is simply going to drive the competition into bankruptcy.

And when the Saudi's run out of oil we'll see how exporting sand works for them. However, that will not be in our lifetimes.

 

[teejk]

I have my tin foil hat on...I think this is largely political. ISIS (or ISIL...whatever) fuels its terrorism with oil money (black market sold at a discount). And Russia needs oil money. We and the Saudi's are trying to put the squeeze on them I think.