Low gas prices are bad

[wannadrag]

1.95 here for low grade ethanol added to it crap,non ethanol 2.60

 

[SlinktRR]

You would think that with crude oil prices as low as they are now that the cost of producing motor oil would be considerably less that it was a few years ago. Even the cheap oil at NAPA (NAPA branded oil is actually Valvoline) is still $4 a quart. I know that it's not a direct comparison with crude and gasoline, but you would think that motor oil price would come down a little. Anyone in the business that can enlighten me?

Most motor oils these days dont use 100% petroleum base stock and are extensively formulated with additives not derived from crude oil. Downstream petroleum products like engine lubricants are less of a commodity than crude or gasoline and dont fluctuate as much in cost. Plus, there's a lot of tech in even the cheapest modern oils to keep up with the constantly improving API standards.

 

[Bruzilla]

You don't know why gas is so cheap as opposed to months ago ? When there is a glut on the supply, that means commerce is not moving, because no body is buying, no body is working to use what's produced. So they are selling gas off cheap, because the producer won't cut his production (Saudi's), so not to hurt himself. The companies that sell it now have to get rid of it. Thus cheap gasoline. At least that's how I understand it. This don't translate necessarily to a good thing.

The reason for the glut is on both the production and consumption sides. On the production side, the Saudis finally had enough of the OPEC problem children like Venezuela and the African countries over-producing like crazy because they need every dime they can get to fund their Socialism and military adventures, then demand the Saudis produce less to make up for their over-production. That had been costing the Saudis dearly for decades and they were tired of losing market share to these dweebs. What would normally happen is OPEC members would cut back their own production, but since they blow their money as fast as it comes in, they are producing even more to keep what revenue they can coming in. And now we have Iran bringing their production online in January, and they stated this week they need money and are gonna pump balls to the walls, which is why oil just dropped another 5% this week.

On the consumption side, China was the main driver of consumption for the past 12 years, but now they're starting to stall. Their economy isn't in recession yet, but likely will be before long, and demand for oil is dropping. The other factor right now is this is a very mild winter so far, so demand for home heating oil is down, which is a major driver of oil prices in the winter.

 

[jeepers007]

The prices of a lot of goods that are impacted by gas prices haven't budged even though oil prices have been falling for close to a year now. Milk is about the only thing I've seen get cheaper. I suspect no one wants to drop their prices and then have to escalate them again.

Exactly... Why haven't tire prices and package delivery services cut their prices yet? UPS and FEDEX must be ready to post some record profits.

 

[ws23jrt]

I see no need for panic. These low prices for gas are just a temporary set back from the norm we are used to. Things will be fine.

However when we complain about the weather it always seems to improve so maybe venting about low prices for gas will bring them back up just as bad weather always improves after a storm.

 

[6pktgo]

I was in Toronto on Sunday, Gas was $1.00.9 per liter $4.60 Cdn per gallon. Even in US terms, with the dollar difference, that`s $3.54 US per gallon, for cheap stuff! High test $6.27.

 

[Roger63]

Lower diesel prices have cut my operating expenses almost half of what it was the same time last year. We also adjust our fuel surcharge based on the weekly d.o.e. average. when you're buying in excess of 25000 gallons a year that makes a significant difference.

 

[Warpspeed]

I can't figure out why they, the media, still call it 'fossil fuel'!! Oil is way below the ground level where you find dead dinosaurs and 'fossils'. AND the supply keeps growing and growing.

Trying to tell my nephew in college that the CO2 could double in volume and we still wouldn't be hurt from it since it is only .ooo1 percent of the air we breath. The more CO2, the more green plants!

We are at $1.66 gallon in S.C.

 

[SteveSS]

Being in the oil business I need $90/Bbl again.