Are gas and diesel prices equalizing?

[number two]

Simply put,the summer blend of gasoline is a product that evaporates at a higher temperature,and costs a little more to refine.It is desireable to have the winter gas evaporate(or atomize) at a lower temp to allow easier starting and summer gas evaporate at a higher temp to reduce vaporlock(does this happen anymore with fuel injection?).So gas is cheaper in the winter because of lower costs and lower demand.And then there special areas that have special requirements-i.e. boutique fuels for that zone-usually a lower evap rate.
I watch CNBC for market info and you can usually add 60-70 cents to the the futures to come with the pump price of fuel.The speculaors last year(hedge funds)helped hurt us with the high prices-they seem to have had their day.
And of course New England uses a large amount of heating oil,their local favorite as opposed to propane for those that don't have natural gas.
Diesel prices have been down with lower with lower transportation demand with a bad economy/as well moving into summer.
It's a very complex scenario and I hope to undrestand it someday.

 

[JohnBarlow]

Latest news around here is that speculators believe the world economy is improving and they have been driving up the price of crude oil.

Crude oil production (worldwide) will peak soon (a number of people believed it peak last year, I'm one of them). Crude oil (and everything derived from it - fuel, plastics, pesticides, medicines, glues, fabrics, etc) will get more and (rapidly) more expensive.

The general manager of TOTAL (the french petroleum company) says the world has 20 years of oil left.

Saudi Arabia is not developing one of their oil fields so that their "children will have oil".

US crude oil peaked in 1970. The US only got out of the problem by smoothing things over with OPEC to buy oil from them. After the world peak in oil - there won't be any other countries to buy crude oil from.

Of the 98 countries that produce crude oil, over 60 are past peak production.

Just look at Mexico - past its peak recently, soon they won't be able to sell oil to the US, as they won't have enough (daily oil production) to meet internal demand

The world economy might be getting better, but lack of available crude oil is pushing up prices - demand keeps climbing, capacity to produce crude oil is level, and starting to fall.

Check out ASPO International | The Association for the Study of Peak Oil and Gas

I'm scrapping my backhoe, and growing more food.

John Barlow