Fuel/Gas Prices

[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!

[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

[fxdl2051]

True that...I believe there are 20-30 people who rule the earth using us as pawns !!!

63 of the wealthiest people have as much wealth a 3.5 billion of the poorest.

[Davidk]

Notice that the economy tanked when gas went up and tanked again when gas went down?

Ups, fedex, airlines, etc all charges gas surcharges. Where's our surdiscounts?

[shooter]

Not only that David but most of my part as suppliers charge a gas surcharge , and they haven't gone down. Two of my tire suppliers and one parts supplier charge between 3 and 5 bucks daily. I sell welding gasses and other types of gas. Between hazmat and fuel surcharges its about 3 dollars a tank. These guys are getting rich on surcharges.

[Dirtstiff's F6B]

Banks have subsidized oil, gas, coal and other energy exploration. The banks are taking the biggest hit right now, causing the monetary value hit equivalent in the stick market.
Self sustained energy, glut in supply and Iraq are just adding to the negative side of the equation. Futures have also over invested months back, so that investment is also trying to become whole.. China just adds confusion to the market picture.

[Steve 0080]

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!

This could be due to the devalued dollar...What ever the reason or who is behind it...it's getting ready to BLOW !!!!!!

[wjduke]

Not only that David but most of my part as suppliers charge a gas surcharge , and they haven't gone down. Two of my tire suppliers and one parts supplier charge between 3 and 5 bucks daily. I sell welding gasses and other types of gas. Between hazmat and fuel surcharges its about 3 dollars a tank. These guys are getting rich on surcharges.

We use one supplier as little as possible for this reason shooter. They added the gas surcharge when it was around $4 a gallon and never took it off. They're the only ones that show it as a line item. Pretty dumb if you ask me. At least take it off and add a couple bucks to the tire. It's ATD ( American Tire Distributors ) Not sure if you use them. I believe they're nationwide.

[shooter]

Believe it or not Wayne they charge me the least. Dropped from $4 to $2 last summer. Nobody else dropped the price. I just changed trash companies. They were charging $6 a month on once a week service. I have a 2 year contract with the new company for no surcharge. It will save me a little over $140 the next two years. That's a lot of gas for the B.

[wjduke]

ATD is on a mission to steal our customers. They have a local warehouse and an ex employee worked there for a bit. Use them only as a last option.