Fuel Prices
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Speculation of oil cuts in oil production and rising demand.
The price per barrel yesterday was at a high of $55.17. From what I've read, that was a 19 week high... Oil is expected to top $60 a barrel, or even $80 due to rising demand in Asia, particularly from China. Futhermore, there were shut downs in US refineries and there has been general cold weather all over the world increasing the heating gas consumption.
Remember the price of oil per barrel is speculation on the futures market. As our economy does better, the rule of thumb is we consume more oil, if the increase in demand can't be kept up from the supply, the price goes up.
Apparently, the world's oil supplies can supply 89 million barrels a day, and we're reaching an estimated 84 million barrels a day consumption, so people are worried that the producers will not be able to keep up.
The funny thing is, the people at gas stations aren't effected THAT fast of the gas prices, the often gouge by what the media says. I remember a few years ago, some guy got fined after 9-11 and he jacked his gas prices to like $5.00 or something...
The funny part is, US stock piles of oil have been increasing... so you would think that prices would go down, but its all based on speculation. OPEC produces I think somewhere around a 1/3 (i think its like 40%) of the world's crude oil production. In all actualilty a small change in the crude oil production will have very little effect ont he overal price of refined oil's such as gasoline, but will have a large psycological effect to the speculators.
Anyway... expect high gas prices
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that pisses me of everytime im about to get my license back or get a new vehicle the price of gas goes up, and when im left without a vehicle or license the gas prices go way the fuck down. why???????????
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smtomps1955 wrote:
that pisses me of everytime im about to get my license back or get a new vehicle the price of gas goes up, and when im left without a vehicle or license the gas prices go way the fuck down. why???????????its the same way for me too!!
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LankorDie wrote:
I hope this Canada oil line gets built that should help some.When I filled up my beater today ( 22 Galon tank BTW ) it was 45 bucks.....
from what i have heard that oil line is going to be built...and running through alot of north dakota so i think it will help us alot.
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Haha you guys have to see the big picture here, the purposed pipeline that would run through north dakota is 30 inches in diameter...
the maximum yield is "Roughly 400,000 barrels of crude oil a day would pass through any portion of the pipe. "
Ok, so we're talking 400,000 barrels a day, and there is no way they would be using it at capacity either. now look at the world's oil consumption... 80+ million...
Yup. You won't be seeing any impact on prices at the pumps... remember this is CRUDE oil that we're talking about, its the refinement process that often dictates prices more then anything
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Jim wrote:
The funny thing is, the people at gas stations aren't effected THAT fast of the gas prices, the often gouge by what the media says. I remember a few years ago, some guy got fined after 9-11 and he jacked his gas prices to like $5.00 or something...The funny part is, US stock piles of oil have been increasing... so you would think that prices would go down, but its all based on speculation. OPEC produces I think somewhere around a 1/3 (i think its like 40%) of the world's crude oil production. In all actualilty a small change in the crude oil production will have very little effect ont he overal price of refined oil's such as gasoline, but will have a large psycological effect to the speculators.
First of all, you are misinformed about gas stations. You know how much gas stations make off a gallon? Well we make about ten cents a gallon, and we sell between 300-500 a day. Not even enough to pay my salary.
Secondly, its usually not the gas stations that set the price, its their supplier. There is one guy in Jamestown and Carrington who sets the price. He tells the gas stations what price to go to.
Lastly, our stock piles are up, because Bush keeps buying it to fill the reserve. So its dutch door action for us here. Not only do we take it at the pumps, but thats where our tax money is going. One thing that would help the gas price is if Bush would stop buying fuel for the reserve for awhile, but that wont happen cause the oil men in office are making too much.
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AntiBling wrote:
First of all, you are misinformed about gas stations. You know how much gas stations make off a gallon? Well we make about ten cents a gallon, and we sell between 300-500 a day. Not even enough to pay my salary.Secondly, its usually not the gas stations that set the price, its their supplier. There is one guy in Jamestown and Carrington who sets the price. He tells the gas stations what price to go to.
Lastly, our stock piles are up, because Bush keeps buying it to fill the reserve. So its dutch door action for us here. Not only do we take it at the pumps, but thats where our tax money is going. One thing that would help the gas price is if Bush would stop buying fuel for the reserve for awhile, but that wont happen cause the oil men in office are making too much.
Either way, the prices that the consumer pays at the pump have little to do with the actual crude oil production.
The price that we pay for refined oil should not flutuate the way it does in correlation with crude oil production.
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1.09 or 2.09? 1.09 would have been the sale of year.
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