Fuel/Gas Prices

[Old Ryder]

Here are a couple of other data points:

It really is the stock market’s worst. year. ever.

The opening days of 2016 are the worst-ever for the venerable Dow Jones Industrial Average. That’s according to Howard Silverblatt, the man who meticulously tracks the performance of the Dow, the S&P 500 and sundry other market metrics at S&P Dow Jones Indices. To be clear, the first 12 days of trading in a given year have never been this lousy for returns, based on records stretching all the way back to 1897.

http://qz.com/598758/it-really-is-th...rst-year-ever/

Global depression around the corner? Ship cargo rates at all-time low

The global economy appears to be in danger. The Baltic Dry Index, an indicator of international cargo trade, has fallen to its all-time low.

In the past, the index is notorious for falling ahead of some of the biggest economic depressions – including the dot com bust in 2000 and the great recession of 2008.

http://www.hellenicshippingnews.com/...-all-time-low/

I thought the world was running out of oil for the past 40+ years ?

Oil plumbs new lows below $27 as oversupply woes persist

U.S. oil prices crashed below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer.

Oil has fallen more than 25 percent so far this year, the steepest such slide since the financial crisis, piling more pain on oil drillers and producing nations alike. Yet they keep pumping more oil into an oversupplied market.

http://www.reuters.com/article/us-gl...-idUSKCN0UY04U

Yep---all lines up with what I have heard and read.

It is really a combination of 2 big events.

1-China has an economy that is really slowing down. They have become the world center for manufacturing and either the world is requiring less or the world is looking elsewhere because of the poor quality of the items produced. Their lack of demand is producing a glut of oil combined with factor #2

2-The US has discovered how to mine oil in the Dakodas, Montana, and all the area up there. They always knew there was oil there, but it was contained in shale (rock) and was not able to pump out in convention methods. Then in the mid 2000's, somebody figured out how to pump steam underground and extract the oil from the rock and suddenly the US has become one of---if not the largest oil producers of oil on the planet---again. They are now controling the market more than OPEC. When I was on the Victory boards, there were a number of roughnecks that moved there for the "boom"---they said that if you could weld 2 pieces of metal together, you could get hired at a base pay of $35 per hour with all the overtime you desire. One guy paid for his Victory Vision in a few months.

http://www.ibtimes.com/hard-times-bo...dakota-2224834

I read a lot---maybe too much.

[willtill]

Would be nice if there was a way to pre-purchase a large volume of gas at these low prices (5,000 gallons or so); and then redeem it over time at the fuel pumps when the price jumps back up.

[Bob Penn]

Can anybody remember what we were paying for gas the last time crude was selling for $27.00 a barrel? You know before the Bush administration declared a crude shortage. Seems to me it was under $1.00 a gallon. So why are we now paying 30% more under Obama? Seems we can't win when the game is rigged by the Gods of Washington.

I have noticed though, the Russians are upset as their oil based economy is faltering Yugoslavia and the Arabs are losing their ability to buy munitions. HMMMMM sounds like a good plan to me!

I might even change the oil in my bike this month!

[Retired Army]

Does all this mean the price of cars will fall accordingly?

[jm21ddd15]

Last summer a barrel of crude was slightly over $100. Now it is around $27. A barrel hold 55 gallons, and there are 4 quarts in each gallon. So there are 220 quarts in each barrel. Since the price of a barrel has dropped by approx. $75, or 75%, why do we still pay between $4 -$6 for a quart of oil at our Dealers and auto parts stores. Gas should not be the only petroleum product that the price should drop significantly. Some how, the oil companies are still making very good profits, despite what we see on Wall Street.

[Old Ryder]

Last summer a barrel of crude was slightly over $100. Now it is around $27. A barrel hold 55 gallons, and there are 4 quarts in each gallon. So there are 220 quarts in each barrel. Since the price of a barrel has dropped by approx. $75, or 75%, why do we still pay between $4 -$6 for a quart of oil at our Dealers and auto parts stores. Gas should not be the only petroleum product that the price should drop significantly. Some how, the oil companies are still making very good profits, despite what we see on Wall Street.

Forget that!!!! What about the cost of roof shingles. When those prices skyrocketed it was blamed on the price of crude. They have not come down at all!

[MOODY]

Last summer a barrel of crude was slightly over $100. Now it is around $27. A barrel hold 55 gallons, and there are 4 quarts in each gallon. So there are 220 quarts in each barrel. Since the price of a barrel has dropped by approx. $75, or 75%, why do we still pay between $4 -$6 for a quart of oil at our Dealers and auto parts stores. Gas should not be the only petroleum product that the price should drop significantly. Some how, the oil companies are still making very good profits, despite what we see on Wall Street.

Oil comes in 42 gallon bbls has to be highly refined depending on gravity, the blacker the lower the grade, WTI (West Texas Intermediate) where i'm from is a middle grade, I'm not a chemist so can't tell you what yield is on oil to gas, but 1 bbl oil will yield from mineral spirits to grease.

[jm21ddd15]

You are correct, my mistake on the comment of 55 gallons in a bbl of crude. I did a Google search on the issue of, how much gasoline from 1 bb of crude. The answer I got was, crude is heated to 370 degrees. it evaporates, and the lighter molecules rise up 1st, then is separated, and cooled back to liquid form. These are usually gasoline products, then a bit heavier for diesel, etc. The article stated a 42 gal bbl of crude will produce approximately 19 gallons of gas, 10 gallons of diesel, 4 gallons of jet fuel, and 9 gallons of "other" petrol products. That is a lot of products from a $27 barrel. Anyway, I'm no chemist, so I can't verify what the article stated. I was just interested. I am enjoying filling my fuel tank nowdays. Was $1.67 in town today.

[ths61]

Yep---all lines up with what I have heard and read.

It is really a combination of 2 big events.

1-China has an economy that is really slowing down. They have become the world center for manufacturing and either the world is requiring less or the world is looking elsewhere because of the poor quality of the items produced. Their lack of demand is producing a glut of oil combined with factor #2

2-The US has discovered how to mine oil in the Dakodas, Montana, and all the area up there. They always knew there was oil there, but it was contained in shale (rock) and was not able to pump out in convention methods. Then in the mid 2000's, somebody figured out how to pump steam underground and extract the oil from the rock and suddenly the US has become one of---if not the largest oil producers of oil on the planet---again. They are now controling the market more than OPEC. When I was on the Victory boards, there were a number of roughnecks that moved there for the "boom"---they said that if you could weld 2 pieces of metal together, you could get hired at a base pay of $35 per hour with all the overtime you desire. One guy paid for his Victory Vision in a few months.

http://www.ibtimes.com/hard-times-bo...dakota-2224834

I read a lot---maybe too much.

With respect to #2, Iran will be also be producing more oil once the sanctions are lifted and the ME oil producers are trying to put the US oil production industries out of business. The last one standing with the deepest pockets wins.

Oil price crash: rout reaches $27 as Opec warns US shale will be forced to relent

Cartel says persistent low prices will finally begin to bite for rival producers, as cost for some barrels of US crude turn negative

Oil slumped to below $28 a barrel in early morning trading on Monday - its lowest level since September 2003 - as traders digested news of Iran's return to the world's over-supplied markets.

http://www.telegraph.co.uk/finance/o...rice-rout.html