Fuel - It's Happening Again

[JohnDar]

My question is, do the prices reflect what the "big oil" companies are charging to get it out of the ground or are the wild price jumps and dips the result of commodity speculators in the market? I think the latter is the culprit. That the oil companies make outrageous profits if the speculators bid up the price of a barrel is another story. The other side of this are the basic supply and demand rules. More and more people every day wanting cars and fuel, and less of it available every day. There isn't any new oil being made and building new refineries at todays cost and regulation would put any oil company in big red numbers. And after the Gulf spill, getting it out of there or the North Slope isn't a real popular idea. There are the oil shale deposits in the west, but the "not in my backyard" crowd is already harping on that prospect. And until the processing technology can be made less costly than pulling a barrel of liquid crude out of the ground, it's still not a viable industry.

So, where does this leave us? We can hoot 'n' holler, stamp our feet, yell and scream, but at the end of the day, if we want to play, we've got to pay. Could be worse. We could be paying in Euro's and getting it by the quart.

 

[Dave49]

I see not a thing I can do about the cost. I just hope it doesn't bring this country to its knees once again. My estimation it will, but who am I? I guess a few less nights out to to dinner will defray the cost for now, just hope thats all I have to do.

Dave

 

[jmgratz]

FYI - Port Arthur, Texas (where I grew up) - Construction is currently in progress expanding all the the several refineries there. When completed PA will have the world's largest oil refinery. What is weird is fuel prices are higher in Port Arthur where the oil is refined than it is in Houston where the the oil is consumed. Guess Washington and other places have the same situation. We need to all be smart consumers and not be wasteful. I do remember when I was a kid I could buy gasoline for 17 cents a gallon. But I could also get a loaf of bread for 25 cents. Times have changed. How many are going to have to cancel plans of going to the Rally because of financial issues?

 

[JohnDar]

Expanding or updating an existing facility is less expensive or regulation inhibited than building a new one in a green field. And then there's always the question of whose backyard you gonna build it in and how many palms need to be greased.

But to answer your question; nope, we're not cancelling anything.

 

[kkamshop]

JohnDar has it right - look at the commodities trading chart and you can see when the "guys with money" decided to jump back into buying futures.

http://www.bloomberg.com/markets/commodities/futures/

Just wish it wasn't our hard earned money they were playing with

 

[Nabo]

WOW - on my way home today, diesel was $3.65 - up 51 cents since tuesday. Guess tax refund will be put aside just for fuel

 

[hillsonwheels]

Tax refund???????? What's that??????? Saw prices yesterday in a drive about here in central FL as high as $3.67. Here in Lady Lake it's at $3.45 at Sam's.

 

[boatto5er]

$3.79 9/10 here

 

[TravelTiger]

Gee, only $3.49 in Terrell, TX 2-25-11

 

[2psnapod2]

Gee, only $3.49 in Terrell, TX 2-25-11

Only? As far as I think, anything over about 1.75 is too much.

 

[jbeletti]

Noticed on the Flying J or Pilot sign tonight between Knoxville and Crossville, TN that it was $3.63. That's probably cash/exempt.

 

[beardedone]

On my way back to Alberta on the I-15 and at Idaho Falls I paid 3.59 for Diesel. When I get back to Red Deer, AB I will be paying 99.9 per liter at Flying "J". Surprisingly with the value of Canuck buck at $1.02 per US $ it works out fairly close to equal because prices in the US have been going up a lot faster than at home. I have seen advertised prices from 3.69 to 3.79 in the last 12 hours. Maybe time to put a tuner on the truck.

 

[tmcran]

Just got back from Baytown,Tx. Talked with friend in the oil distribution end.Said the refinerys had no place to store any more oil. He said there were between15-20 tanks over the horizon waiting to unload. He said the speculators are looking for any excuse to bid up the price.

 

[JohnDar]

Diesel at a BP near the freeway was $3.85. At a 7/11, they had it for $3.40, so I stopped there. But the pump was so slow I gave up after almost 10 minutes to get 3 gallons. Went to a Shell closer to home and got it for $3.70.

 

[porthole]

We have been paying between 1.349 and 1.369 for the past week.

 

[2psnapod2]

I just paid 3.49 in Milwaukee, WI.

 

[Ray LeTourneau]

Diesel at a BP near the freeway was $3.85. At a 7/11, they had it for $3.40, so I stopped there. But the pump was so slow I gave up after almost 10 minutes to get 3 gallons. Went to a Shell closer to home and got it for $3.70.

John, if you have a Chase BP card, you get 5% back on fuel purchases at BP stations. That brings that 3.85 down to 3.66 Every little bit helps. Oh and that rebate can be received many ways. check, BP gift card etc.

 

[JohnDar]

John, if you have a Chase BP card, you get 5% back on fuel purchases at BP stations. That brings that 3.85 down to 3.66 Every little bit helps. Oh and that rebate can be received many ways. check, BP gift card etc.

Thanks, Ray, but the BP station I mentioned is 25 miles away and just happened to be near the shop where I had the fuel tank installed. The ones nearer don't carry diesel or charge freeway prices. I was getting it very close to home at a Marathon station, but they switched the diesel pump to E-85. So, usually, I end up at the Shell station. I prefer to use my Capital One card for almost everything and get the cash rewards. Kinda tee'd me off with the 7/11 molasses pump, though.

 

[mmomega]

Between $3.49-$3.69 here depending on which corner of town you're in. I usually fill up at our local Grocery store gas station so for every 50 bucks or so you spend in groceries you get 10 cent of/gallon we only shop their anyway so they aren't drawing us in anymore than usual to get the discount. Again every little bit helps.

 

[SJH]

As predicted but still a shocker...Chevron diesel is $4.12 this morning! That was a big increase!