Fuel Prices - Jan 2016

[p1l0t]

Originally Posted by HunterGreene

Seeing around $1.59/ gal for regular here in the Cleveland area (don't ask about premium, they all price gouge as much as $2.49/ gal near the city. In the suburbs its averaging around $1.65/gal regular and $2.30/ gal premium. Goddamn price gougers.

It could be gouging, but it also doesn't sell in the same volume so it may take longer to come down. It's almost like 100LL for the small planes, we pay $5/gal still for that stuff. But it's a small market.

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[HunterGreene]

Originally Posted by p1l0t

It could be gouging, but it also doesn't sell in the same volume so it may take longer to come down. It's almost like 100LL for the small planes, we pay $5/gal still for that stuff. But it's a small market.

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Fair enough, you may be right. However, I do see the prices change at the same time, so I have a feeling there is a bit of a gouge going on. Frankly, I can't say I blame them, they're trying to make some kind of money back. There are a couple stations within reasonable distance from my home that are closer to $2/gal for premium. Its just a matter of where you look.

[p1l0t]

Originally Posted by HunterGreene

Fair enough, you may be right. There are a couple stations within reasonable distance from my home that are closer to $2/gal for premium. Its just a matter of where you look.

Exactly, and then people find out is $2 somewhere else and the guy with $2.50 93 that paid $2.25 for it from the distributor gets stuck with it for months.

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[HunterGreene]

Originally Posted by p1l0t

Exactly, and then people find out is $2 somewhere else and the guy with $2.50 93 that paid $2.25 for it from the distributor gets stuck with it for months.

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True, but the majority of the stations in my area are high-volume, and there is a sucker born every minute, so it still doesn't stay put for long. Also, since gasoline does actually "expire" (it has a sell-by date), they eventually have to eat the costs and lower the price if its there that long.

Keep in mind that they also make money back when the price jumps and suddenly they can charge $0.40 over cost instead of $0.20.

[p1l0t]

Originally Posted by HunterGreene

True, but the majority of the stations in my area are high-volume, and there is a sucker born every minute, so it still doesn't stay put for long. Also, since gasoline does actually "expire" (it has a sell-by date), they eventually have to eat the costs and lower the price if its there that long.

Keep in mind that they also make money back when the price jumps and suddenly they can charge $0.40 over cost instead of $0.20.

Yeah retailers do better with lower prices because they can take higher percentages actually. That's probably why they are so slow come down, they are trying to take some profit. Airline prices haven't really budged much, they are just like oh look we are actually making money this year imagine that.

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[Re_Invention]

Originally Posted by p1l0t

There are huge over supplies, here in the United States we are nearly at 'top tanks' which means we won't even be able to store anymore. Unless we built more storage but that would be kind of silly at these prices. If we hit top tanks expect a further crash to under $20/barrel. Don't forget too even $35/barrel should be $1 pump gas not $2 so we haven't even caught up to where we are if that makes sense. I'm doing my part though I drive my 74 Lincoln Mark IV on my days off in the warmer months.

Firstly, beautiful Lincoln.

Secondly, is this what you're referring to:

http://www.eia.gov/naturalgas/crudeoilreserves/ ?

Or are you referring to the SPR? I don't see how that matters so much to consumer price - unless you're getting into DOE sales to industry players which is above and beyond my economic playing skills*. It's also hit over 700 million gallons several times since Bush's initiative in '01, right? I don't see what the hoopla is with that. Consider in 2013 we had 73,962,000,000 gallons of petroleum in stock - we consumed ~290,672,130,000 gallons that year. That's total storage, too, the SPR makes up less than 40% of that (29,232,000,000 gallons or roughly 10% annual consumption). It's a good resource to have for emergency situations but I think entirely overkill for market playing, we could reduce the storage capacity by half, save on maintenance (several hundreds of millions per year), still be a player in the IEA and still be in a fine position with our proved reserves when SHTF especially since identification has rose dramatically these past few years and start-up tech is the best its ever been reducing turn-time and stabilization cost. But maybe I'm missing an elephant in the room, do you mind spilling the beans on the price crash link to a full SPR?

*If anything I could imagine the price going up to 'stabilize' if the DOE decides there's an opportunity for greater support to fund tax driven programs and manipulating (er.. changing) the SPR SSPs. It's been over 10 years, could be due for an 'update'

[daiheadjai]

Originally Posted by go_a_way1

$0.70/L CAD for reg gas here. works out to $1.87 per US gallon with the exchange rate lmao!!

Nice! I knew it couldn't ALL be bad news!
If you fill up at Costco, 91 octane is about $0.93 per litre.

[MisterSheep]

My coworker was bitching that "omgz gas prices are too expensive! I had to pay $2.50 a gallon! It was like $40 to fill up my van!" Ugh, I wonder what the hell she was thinking before when it was around 3.50. Fucking dumbass...

[p1l0t]

Originally Posted by Re_Invention

Firstly, beautiful Lincoln.

Secondly, is this what you're referring to:

http://www.eia.gov/naturalgas/crudeoilreserves/ ?

Or are you referring to the SPR? I don't see how that matters so much to consumer price - unless you're getting into DOE sales to industry players which is above and beyond my economic playing skills*. It's also hit over 700 million gallons several times since Bush's initiative in '01, right? I don't see what the hoopla is with that. Consider in 2013 we had 73,962,000,000 gallons of petroleum in stock - we consumed ~290,672,130,000 gallons that year. That's total storage, too, the SPR makes up less than 40% of that (29,232,000,000 gallons or roughly 10% annual consumption). It's a good resource to have for emergency situations but I think entirely overkill for market playing, we could reduce the storage capacity by half, save on maintenance (several hundreds of millions per year), still be a player in the IEA and still be in a fine position with our proved reserves when SHTF especially since identification has rose dramatically these past few years and start-up tech is the best its ever been reducing turn-time and stabilization cost. But maybe I'm missing an elephant in the room, do you mind spilling the beans on the price crash link to a full SPR?

*If anything I could imagine the price going up to 'stabilize' if the DOE decides there's an opportunity for greater support to fund tax driven programs and manipulating (er.. changing) the SPR SSPs. It's been over 10 years, could be due for an 'update'

Thanks, and yeah it maybe it is people crying wolf a little although I don't think they would build more storage at these prices. The true cost for the US to get it out of the ground is about $60/barrel on avg and it will probably go back to that price range eventually but for now I think it's going to go lower before it goes higher as long there is a growing surplus.

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[strat61caster]

Gas hasn't been this cheap in 8 years, will be interesting to see how long it lasts. I have a hunch it's an attempt to stave off the growing electric car market. Funny that it coincides with election cycle isn't it? Vote establishment, we'll keep your costs low we promise! lol. Can't wait to see the articles about how Sanders/Trump will make gas cost $10/gallon (which they seemed to survive in the U.K. just fine, wonder why...)

Price differences based on region have been pretty stable throughout my entire life, shits not rocket science.

With regards to crude oil prices, again, nothing new to see here:
http://www.gasbuddy.com/Charts

[adamg]

columbus ohio
$1.38 for 89
$1.78 for 93

[HunterGreene]

Originally Posted by strat61caster

Gas hasn't been this cheap in 8 years, will be interesting to see how long it lasts. I have a hunch it's an attempt to stave off the growing electric car market. Funny that it coincides with election cycle isn't it? Vote establishment, we'll keep your costs low we promise! lol. Can't wait to see the articles about how Sanders/Trump will make gas cost $10/gallon (which they seemed to survive in the U.K. just fine, wonder why...)

Price differences based on region have been pretty stable throughout my entire life, shits not rocket science.

With regards to crude oil prices, again, nothing new to see here:
http://www.gasbuddy.com/Charts

Nice hunch, but Occam's Razor applies here...the simpler solution, and likely the correct one, is that the Chinese economy is slowing massively, and they are one of the biggest consumers of oil (still behind the US, but a very large consumer nonetheless). Add to this that demand in general is lower because of this slowdown, yet the suppliers are not cutting production, leading to an oversupply of oil. Iran will also be coming online soon with their oil, as well, further adding to the glut. Basic supply and demand is at work here, not a vast conspiracy to help the political establishment.

[daiheadjai]

Not to mention the Saudis have been keeping supplies up in a bid to strangle North American production (and possibly Iranian production as well).

[MisterSheep]

I just paid 2.699 a gallon at chevron in concord for 91