Ain't this chart pretty? (Gas prices)

[Tilted]

RBOB Gasoline has continued to come down, it's now around $2.72. At the pump, and ballpark-ing it, that would represent a savings of something like $50 Billion for Americans over the course of year as compared to where prices were a month or so ago.

WTI Oil is also at a 6-month low, below $98. But don't worry Larry, the soundness of your slumber is still not at all in jeopardy.

 

[Tilted]

RBOB peeked its head down below $2.40 a few minutes ago, right now it's a little above that. That's the lowest I can recall since early 2011 (though it may have briefly dipped lower since). And WTI Oil is below $90 this morning.

Though the price declines could reverse themselves at any time, I think it's possible that we'll see some pump prices with a 2 handle in coming weeks. We'll have to keep our collective fingers crossed. At any rate, we've gotten some significant relief from where we were a few months ago.

 

[SG_Player1974]

We'll have to keep our collective fingers crossed. At any rate, we've gotten some significant relief from where we were a few months ago.

Ummm... what exactly are you saying here? As far as I know, the price of gasoline at the pump has INCREASED in the last 2-3 weeks to the tune of ~15 to 20 cents per gallon!

What "significant relief" are you referring to? Not trying to be snarky... just wondering where your logic is pointing to :shrug:

 

[Tilted]

Ummm... what exactly are you saying here? As far as I know, the price of gasoline at the pump has INCREASED in the last 2-3 weeks to the tune of ~15 to 20 cents per gallon!

What "significant relief" are you referring to? Not trying to be snarky... just wondering where your logic is pointing to :shrug:

As that passage you quoted indicates, the significant relief I referred to was from where gas prices were 3 months ago.

We've seen a major downward move in gas prices over the last few months. During that time the line hasn't been straight down, such things rarely are - there have been smaller moves in both directions within the larger trend. Nationally gas prices have been mostly flat over the last couple of weeks, but there certainly would have been different moves depending on just where you are and the circumstances of the gas stations you're getting your gas from - no doubt some prices have gone up a little as compared to some point a week or two ago. The point is that the larger move has been quite favorable and, unless something changes quickly in the wholesale markets, we can expect further movement downward at the pumps in the coming weeks.

 

[Gilligan]

Overall, all positive in this summary too.

http://www.marinelink.com/news/production-falling-rising378603.aspx

 

[GURPS]

As that passage you quoted indicates, the significant relief I referred to was from where gas prices were 3 months ago.

We've seen a major downward move in gas prices over the last few months.

$ 3.12 per gal for 85 @ BJ's Waldorf last friday

 

[Gilligan]

Bloomberg update on crude pricing...

http://mobile.bloomberg.com/news/2014-10-17/oil-is-cheap-but-not-so-cheap-that-americans-won-t-profit-from-it.html?hootPostID=db141df47df18a491dd96ecd26f2e410

 

[SG_Player1974]

So..... Instead of $8 Billion in profits, the companies will have to settle for $4 Billion?

How will they EVER survive?

Wake me up when the price at the pump for Unleaded is at $1.50/gallon!!

 

[SoMDGirl42]

Wake me up when the price at the pump for Unleaded is at $1.50/gallon!!

That's a long time in a coma

I paid 2.83 last week with a coupon Felt like I won the lottery paying less than 3.00

 

[Baja28]

$2.61 on Rte 3 just before Fredericksburg.

 

[Gilligan]

So..... Instead of $8 Billion in profits, the companies will have to settle for $4 Billion?

How will they EVER survive?

Wake me up when the price at the pump for Unleaded is at $1.50/gallon!!

Perhaps you could explain why you think the gross magnitude of any company's profit means anything?...as compared to profit as a percentage of sales volume, which does. Are you aware how the crappy profit margins in the refining segment have resulted in the closure or sale to third-tier operators of many a refinery? The profit margins for refiners suck rocks..and have for quite a while.

 

[Grumpy]

So..... Instead of $8 Billion in profits, the companies will have to settle for $4 Billion?

How will they EVER survive?

Wake me up when the price at the pump for Unleaded is at $1.50/gallon!!

You never struck me as one of the Occupy Wallstreet guys.

 

[SG_Player1974]

Perhaps you could explain why you think the gross magnitude of any company's profit means anything?...as compared to profit as a percentage of sales volume, which does. Are you aware how the crappy profit margins in the refining segment have resulted in the closure or sale to third-tier operators of many a refinery? The profit margins for refiners suck rocks..and have for quite a while.

I would kindly point back to the facts that I stated in a previous thread....

If someone could explain to me why the price of gas at the pump increased a total of $1.20 in 25 years (mid-70's to 2000) yet... it has increased almost twice that amount in half the time. And once again... please don't even try to sell me the "demand has gone up" argument! Even when gas prices started going up to ridiculous prices in the mid-2000s there was excuse after excuse (not enough ships coming in, etc.) My personal favorite was when the price would go up $0.10 to $0.15/gallon because "The hurricane MIGHT cause an offshore refinery to close!" REALLY? MIGHT? and 1 refinery would cause this??

Too many lame excuses and no real data to support it. Bottom line is that it is a commodity that has no real regulation and people are getting rich off of it.

You never struck me as one of the Occupy Wallstreet guys.

I'm not. I am just in favor of paying a fair price for a product. Not the over inflated price based on what some schmuck "thinks" it will be because some seagull crapped on a power wire 5 miles offshore next to an oil rig!

 

[Gilligan]

I would kindly point back to the facts that I stated in a previous thread....

!

"Kindly pointing" always includes a link. Thanks.

 

[Gilligan]

... please don't even try to sell me the "demand has gone up" argument!

Just as soon as you show that you have even the slightest understanding of the current economics involved with the refining process....this might go somewhere. I know I sure as heck am glad I'm not invested in it in any way!

 

[Gilligan]

I am just in favor of paying a fair price for a product. !

So you will decide what is a fair price. I see.

 

[SG_Player1974]

http://www.thepeoplehistory.com/70yearsofpricechange.html

Hmmm...

Average cost for gas at the pump 1980 = $1.19
Average cost for gas at the pump 2009 = $2.05
Average cost for gas at the pump 2013 = $3.80

You are right... nothing odd going on there! I guess the demand, costs of running refineries, whatever... went up that much in 5 years huh?

I guess the weather problems and Middle East wars have been much more of an impact in the last 5 years as opposed to the other 29!

 

[Gilligan]

[ costs of running refineries, whatever... went up that much in 5 years huh?

!

So then explain why so many have been shut down and the ones remaining are barely profitable. Because really stupid people got tired of making too much money?

 

[itsbob]

Even if we stick to closing prices (which narrows the range), the high to low difference is closer to 16 cents. That drop was over less than 3 weeks - not an earth shattering or even particularly unusual move, but still welcome relief from the run up that preceded it. And just for giggles, 16 cents per gallon at the gasoline pump would represent about $20 Billion per year for Americans.

Owe Malley will ensure he gets his share.. I'm thinking like around Nov 10th he'll be announcing all the new taxes, and toll hikes.. you know RIGHT after the election. he's been talking about the gas tax hike now for awhile and with gas prices going down he'll ensure the prices won't go down for Marylanders.

 

[SG_Player1974]

So then explain why so many have been shut down and the ones remaining are barely profitable. Because really stupid people got tired of making too much money?

Why do a lot of businesses lean towards hiring 2-3 part-time people to fill the positions of 1 full-time person?

Its cheaper to run 1 refinery at 120% production than to run 3 at 90%

You get to save money on the costs of the other refineries (by not operating/closing them) AND... you get to reap the benefits of the price increases due to the pseudo-shortages in production!