Where is the bottom?

[Zarrella]

I paid $2.33 yesterday in Valdosta, Ga. Today I paid $2.53 in Lake City, Fl.

 

[BoaterGuy]

The bottom will come when the Russian economy suffers severely (with a possible war) and OPEC can reclaim supply control over the worlds oil supply. These are not normal market forces playing here.

Heres a good read on what happened to Russia in 1998 when we had similar conditions:
http://viableopposition.blogspot.com/2014/12/russia-1998-currency-devaluation-and.html

Also OPEC wants our Shale industry to suffer as well, although I see break even prices for US makers around $30-40/bbl.

http://www.telegraph.co.uk/finance/oilprices/11283875/Bank-of-America-sees-50-oil-as-Opec-dies.html

You also have to remember that Gas taxes are much higher than in the past too, I think the current tax in MD per gal is around $0.43. So it will not fall as easily under $2 per gal like in the past when the price per barrel was this low.

 

[biglar155]

Different hearing other people's perspective, @Master-Spud .... Never really thought about how the lowering of the price of oil would effect the workers that produce that oil. All you ever hear is how the oil companies are making money hand over fist. My wife is a banker and she quickly reminds me that I probably have an oil company or two in my 401K, so don't be too quick to judge.

Oh, $1.99 in Republic, MO.

Yeah, I still remember during one of the early congressional investigations into oil prices. They had one of the big oil execs sitting there and they were grilling him over the "unfair" profits that oil companies make. He looked at them and asked "Exactly where were you people when we were loosing our asses on every gallon of gas we sold?"

I'll stop there to to keep from sounding any more political than it already does...

 

[txav8r]

North of DFW, I have only seen as low as $2.18 for unleaded. Diesel is unbelievably high IMO.

 

[Murf'n'surf]

Must be nice guys! Paid $2.87 today in Naples.

 

[Jim Robeson]

Finally hit $1.99 in Springfield...crazy, just last night it was $2.07 then this morning at the same station it dropped. Only thing I don't understand, and this is just ignorance on my part, why is diesel still above $3.00?? Is it harder to refine or is it more of a demand thing??

 

[BigN8]

I think demand

 

[Bruce]

Only thing I don't understand, and this is just ignorance on my part, why is diesel still above $3.00?? Is it harder to refine or is it more of a demand thing??

Here is a good article on why diesel is more expensive http://www.nacsonline.com/YourBusiness/FuelsReports/GasPrices_2013/Pages/Why-Diesel-Costs-More-Than-Gasoline.aspx

It boils down to demand, both domestic and foreign, refining capacity, new refining cost of ULSD and higher taxation.

 

[Jim Robeson]

Thanks @Bruce ... i forgot about Europe when considering the price of diesel. Wouldn't have thought that 98% of passenger vehicles being gasoline, would have guessed a lower number. Funny how supply and demand seems to be ruling the price now versus speculation the passed few years.

 

[Julian]

@Bruce interesting article.....supply and demand!

More diesel-powered vehicles mean more demand for diesel fuel. Comparing October 2010 demand to that of October 2012, demand for gasoline has decreased 3.4% while demand for on-road diesel fuel has increased 11.8%.
​

That is a huge demand change.

Interesting to see how different the demand is for diesel here vs Europe (this is 5 year old data):

It is also amazing to see how many diesel cars are available elsewhere in the world that we never even see here! India is full of tiny compact diesel cars!

GM plans to get in on the game in the US, but this price differential now might get them thinking (assuming it last much longer)

 

[MikeyL]

Must be nice guys! Paid $2.87 today in Naples.

LOL .............. Sorry. Guess that's what you get when you're livin' the Good Life, In HIGH COTTON, in Naples !@

Best Wishes - Mikey Lulejian - Lake Oconee, GA

 

[Julian]

Diesel is down to $3.09 down the street here....hoping it will go under $3! (Regular is $2.59 at the same station)

 

[GiddYupJoe]

Am I misremembering that Premium always used to be about .20-.30 more per gallon for the most part. It seams that recently at least around Dayton Ohio, Premium is upwards of .40-.50 more per gallon than regular. Just curious if this is now the norm.

 

[BigN8]

$1.99 at QT in Lake Dallas on I35

 

[Britboater]

Once the Rouble is shot then prices will return to normal.

 

[Britboater]

Diesel is a horrible smelly fuel and I've hated diesel cars with a vengeance for years, I'm with the BBC Top Gear crew .
Diesel popularity in Europe has only come about due to the better MPG and fuel cost but gas cars have now caught up, to a degree.
Paris is considering banning all diesel cars with London possibly following, hooray !

http://www.telegraph.co.uk/news/earth/environment/11280067/London-will-follow-Paris-and-ban-diesel-cars-campaigners-warn.html

Stay with gas guys, you owe it to the planet .

 

[brockhals]

Gas was 1.99 this morning...Diesel still over $3.50! I picked a great time to buy a Diesel...

 

[BigN8]

I still have to dump about 48 gallons in the boat for Winter, but I keep procrastinating watching the price drop!!

 

[Julian]

Diesel is a horrible smelly fuel and I've hated diesel cars with a vengeance for years, I'm with the BBC Top Gear crew .
Diesel popularity in Europe has only come about due to the better MPG and fuel cost but gas cars have now caught up, to a degree.
Paris is considering banning all diesel cars with London possibly following, hooray !

http://www.telegraph.co.uk/news/earth/environment/11280067/London-will-follow-Paris-and-ban-diesel-cars-campaigners-warn.html

Stay with gas guys, you owe it to the planet .

The new Ultra low Sulphur Diesel and the new emmisions requirements actually make diesel cars (at least in the US) cleaner burning than Gasoline cars. So I think your perspective is related to older model "smokers". I smell NOTHING from my Audi.....no smoke....

 

[GTBRMC]

Gas here in Wisconsin seems to be stuck at about $2.39 per gallon.