Oil at $77 a barrel...

[mstewar1]

I don't claim to be all that bright, but how come when the price per barrel went up we saw an immediate upward jump in price but now that it's down, we don't see a corresponding drop? Have stations already paid for a certain amount from their suppliers at the old, higher price and yet to get offered a lower price?

 

[dako81]

I don't have a clue how it works, but I have noticed gas has steadily gone down the past week or so. It's $3.15 here when 2 weeks ago it was $3.89...

 

[Hellgate]

I don't claim to be all that bright, but how come when the price per barrel went up we saw an immediate upward jump in price but now that it's down, we don't see a corresponding drop? Have stations already paid for a certain amount from their suppliers at the old, higher price and yet to get offered a lower price?

You hit the nail on the head. It is dropping pretty fast however. In my area we've gone from $3.39 to $2.99 in two weeks. One station even had $2.87. We'll be at $2.50ish before you know it.

To give you an example, at $3.99 I paid $102ish to fill my truck up, about 23 to 24 gallons. Two days ago I paid $68 for about the same amount of fuel, not bad. Well, it bad, but you know what I mean.

 

[mstewar1]

Since I may be living in my car shortly, it'd be nice if I could actually drive it, too. And maybe keep ahead of the folks who'll be trying to repossess it...

 

[Cali rider]

Prediction: $40/barrel oil and $1.50/gallon gas around Christmas.

 

[reiobard]

Prediction: $40/barrel oil and $1.50/gallon gas around Christmas.

Merry Christmas:cheer:

 

[jsteinb95]

Merry Christmas:cheer:

LOL no kiddin.

 

[FZ1inNH]

Prediction: $40/barrel oil and $1.50/gallon gas around Christmas.

I'll take that bet. OPEC doesn't want it to be even this low. They will cut production soon and drive the prices back up. They will say it is solely based on the decrease in demand.

Not only the price of fuel and rate of change: How about all the products and foods that rose in prices because of the fuels needed to produce or transport the goods? Are those prices going back down? Not likely!

When oil is traded and bought, it is almost always for the upcoming month's supplies, never the current supplies. Why the price takes an immediate jump based on next month's purchase is beyond me.

The last gripe is why I can get fuel 12 miles from here for $2.74 today but here in the local city it is $3.11? I am CLOSER to the tanks they deliver from sitting here!!! It costs a bit MORE to get the fuel 12 miles further... Does any of this add up? wtf yo!

 

[Cuba]

I'll take that bet. OPEC doesn't want it to be even this low. They will cut production soon and drive the prices back up. They will say it is solely based on the decrease in demand.

Not only the price of fuel and rate of change: How about all the products and foods that rose in prices because of the fuels needed to produce or transport the goods? Are those prices going back down? Not likely!

When oil is traded and bought, it is almost always for the upcoming month's supplies, never the current supplies. Why the price takes an immediate jump based on next month's purchase is beyond me.

The last gripe is why I can get fuel 12 miles from here for $2.74 today but here in the local city it is $3.11? I am CLOSER to the tanks they deliver from sitting here!!! It costs a bit MORE to get the fuel 12 miles further... Does any of this add up? wtf yo!

You are correct sir. If you need to ship this cheaper oil from overseas, process it in our less than adequate number of refineries, and get it to the pumps it will take a while.

The problem is that the price decrease is due to a drop in demand, and a speculative MAJOR drop in demand. The speculators are betting that our economy will continue to slide and businesses will go under, people will be laid off, and as a whole we will require a lot less fuel. A million less people driving to work every day saves a bundle.

The fuel surcharges that I see from manufacturers and suppliers are NOT likely to go away, why would you the supplier want to be the first mover on that trend? If everybody else is doing it you're just making more profit.

The reason you pay more is due to the convenience factor. Fuel in cities is almost always more expensive because those that live and work in the city would rather pay more than drive out of town.

 

[GastonJ]

Could one of you please email me 1,000 gallons at the price you buy it for please, I'll paypal you the money, even if it was $4 a gallon :thumbup: Serious price drops don't happen here ever, 25% cut in the price in the UK would be most :welcome: as it stands I won't hold my breath.

 

[youngGun]

Regular had dropped from 3.99 to now 2.64 and super is now 2.79

I live in Durant Oklahoma

 

[dako81]

I'll take that bet. OPEC doesn't want it to be even this low. They will cut production soon and drive the prices back up. They will say it is solely based on the decrease in demand.

Not only the price of fuel and rate of change: How about all the products and foods that rose in prices because of the fuels needed to produce or transport the goods? Are those prices going back down? Not likely!

When oil is traded and bought, it is almost always for the upcoming month's supplies, never the current supplies. Why the price takes an immediate jump based on next month's purchase is beyond me.

The last gripe is why I can get fuel 12 miles from here for $2.74 today but here in the local city it is $3.11? I am CLOSER to the tanks they deliver from sitting here!!! It costs a bit MORE to get the fuel 12 miles further... Does any of this add up? wtf yo!

Actually it's not all of OPEC, just some of them.

Here is an article I just had to read for a class that touches on the subject, it's short maybe just a few minutes to read, but interesting:

Saudi Oil, OPEC's Ire

 

[Jman]

Since I may be living in my car shortly, it'd be nice if I could actually drive it, too. And maybe keep ahead of the folks who'll be trying to repossess it...

I seriously hope things are not going that badly for you and if they are I hope that everything will turn around to a positive direction.

 

[Jman]

Could one of you please email me 1,000 gallons at the price you buy it for please, I'll paypal you the money, even if it was $4 a gallon :thumbup: Serious price drops don't happen here ever, 25% cut in the price in the UK would be most :welcome: as it stands I won't hold my breath.

That does give me a good perspective on things - thanks for the reminder. That really stinks that you guys along with all of Europe gets really screwed when it comes to gas. I hope we start using some clean alternative energy sources soon.

 

[mstewar1]

I seriously hope things are not going that badly for you and if they are I hope that everything will turn around to a positive direction.

I'm just joshin' (I think...) but thanks for the positive sentiment none the less. I'm hopeful that no one on the forum is in too dire a strait.

I, too, have seen prices come down a little, but just not as quickly as they seemed to have gone up. I knew that there were a multitude of factors that influenced the fluctuations in price and that the good folks here would likely know about some of them.

Hold on folks, it's going to be a long, cold winter.

 

[Cuba]

Hold on folks, it's going to be a long, cold winter.

Yep. OPEC already said they were cutting production, should be just in time for winter heating costs to be "in line".

 

[GastonJ]

Sadly it's a fact of life that ordinary people will pay more for essentials such as energy, heating, food, clothes, somewhere to live, and always more tax. Prices very rarely go down and even if they do someone else will put the up price of whatever you need to buy off them just when you think you're managing to see the light at the end of the tunnel.

If they don't someone will put up the price of electricity so that the light at the end of the tunnel is switched off, either that or tax it more as not being green Who do you think is going to foot the bill for the banking situation and the stock market crashes? - one way or another it'll be you and I (hopefully I won't have to foot the bill on my own)

 

[casual_lee]

i'm totally drooling over the prices you guys are posting in your areas. Here in Los Angeles, I'm still paying $3.45 a gallon for the lowest octane in my car but I can't complain since two weeks ago it was $3.79. It's kinda funny, earlier in the year, the analysts all predicted that oil would hit over $150 per barrel by the end of the year which would put prices well over $5. I guess I have the world to thank since it was this very reason I got the fz6 in the first place. lol. thank you world.

 

[Jman]

I'm just joshin' (I think...) but thanks for the positive sentiment none the less. I'm hopeful that no one on the forum is in too dire a strait.

I, too, have seen prices come down a little, but just not as quickly as they seemed to have gone up. I knew that there were a multitude of factors that influenced the fluctuations in price and that the good folks here would likely know about some of them.

Hold on folks, it's going to be a long, cold winter.

Well, I'm glad to hear, but I do know and see people coming apart at the seams no small thanks to the economy plus our wonderful healthcare system(I use the term system loosely). It is a sad state of affairs. Just saw a homeless guy sleeping in a large grassy median in a place you wouldn't normally see something like that. I suspect we will see more and more of that.

 

[bc8240]

Prediction: $40/barrel oil and $1.50/gallon gas around Christmas.

I would faint if I saw this on the gas station board!