Gasoline Prices going back up!

[Phil C]

Yesterday OPEC announced a reduction and in Sinton it didn't take long for prices to go up today as they went up about 15 cents already. :(


"The fat cats didn't take long to take advantage of a situation to raise prices so they can increase their profits." said the Sinton GodFather while on his way to the snack bar for a cup of coffee.

[3afan]

but Phil, rumor has it YOU are one of those fat cats !!! :eek:

[Phil C]

Originally posted by 3afan
but Phil, rumor has it YOU are one of those fat cats !!! :eek:

Unfortunately that rumor is false. If it were not I would be counting my millions. :)

[Pick6]

Originally posted by Phil C
Yesterday OPEC announced a reduction and in Sinton it didn't take long for prices to go up today as they went up about 15 cents already. :(


"The fat cats didn't take long to take advantage of a situation to raise prices so they can increase their profits." said the Sinton GodFather while on his way to the snack bar for a cup of coffee.

Interesting since OPEC doesn't meet until tomorrow. Everything until then is speculation.

[wimbo_pro]

Originally posted by Pick6
Interesting since OPEC doesn't meet until tomorrow. Everything until then is speculation.

More than that...demand continues to drop worldwide, and the proposed cut in production probably wont keep up with the drop in demand...it will drop again quickly, I predict. also, inflation at the consumer level just dropped 1.7% for the month...HUGE drop.

What OPEC is hoping for is a worldwide crisis of sorts to boost fear, which will boost prices. Scary, right?

[JasperDog94]

Originally posted by Pick6
Interesting since OPEC doesn't meet until tomorrow. Everything until then is speculation. And we all know that speculation can't possibly cause an increase in price.;)

[Pick6]

Originally posted by JasperDog94
And we all know that speculation can't possibly cause an increase in price.;)

Speculation is what caused it to go so high in the first place. The point was that OPEC hasn't met yet as some one said they met yesterday.

[Necks_Fan]

I got gas for $1.34 in Freeport the other day.


It cost me $21.50 to fill it up. It has cost me over $75 to fill it up before. :)

[Emerson1]

Originally posted by wimbo_pro
More than that...demand continues to drop worldwide, and the proposed cut in production probably wont keep up with the drop in demand...it will drop again quickly, I predict. also, inflation at the consumer level just dropped 1.7% for the month...HUGE drop.

What OPEC is hoping for is a worldwide crisis of sorts to boost fear, which will boost prices. Scary, right?
I read Americans drove something like 15 billion less miles this year

[I_Do_Care]

Originally posted by wimbo_pro
More than that...demand continues to drop worldwide, and the proposed cut in production probably wont keep up with the drop in demand...it will drop again quickly, I predict. also, inflation at the consumer level just dropped 1.7% for the month...HUGE drop.

What OPEC is hoping for is a worldwide crisis of sorts to boost fear, which will boost prices. Scary, right? smart fella ;)
cutting too much production will have a negative effect on demand, so in essence they'd hang themselves if they cut too much.

[cshscougar08]

Originally posted by Emerson1
I read Americans drove something like 15 billion less miles this year

Yeah I saw something like that somewhere too. I guess people finally got it in their heads that gas is definitely an expendable resource. And it's also good to see that even with the lower costs, people haven't really gone back to old habits either.

[wimbo_pro]

If I am not mistaken, the largest percent of a barrel of oil is used for products OTHER THAN fuel...if not the largest, very close to it. This means that the falling demand for these other products (due to the recession) affects the price. Add to it the less miles driving, and demand is down. I think the driving miles will actually go up soon because less people are traveling to far away places for vacations, and will drive as opposed to fly for cheaper vacations and weekend getaways.

Of course, less trucking miles for delivery of products affects this too, but i am refering to indivduals.

[alaskacat]

Hereis a reason why those Oppec ragheads dont want o screw around with the US to much, they cant quite make it without us.

World oil export leaders and their reliance on the U.S. consumer market.

Without us they go broke

(numbers are in million barrels per day, 2004 data from EIA)
chart ©2006 Gibson Consulting
Country Net Oil Exports U.S. Imports Reliance on U.S. Market
Saudi Arabia 8.7 1.27 15%
Russia 6.6 0.047 <1%
Norway 2.9 0.1 3%
Iran 2.5 0 0%
Venezuela 2.3 1.01 44%
UAE 2.3 0.021 <1%
Kuwait 2.2 0.27 12%
Nigeria 2.1 1.16 55%
Mexico 1.8 1.66 92%
Canada 1.8 1.8 99+%
Algeria 1.6 0.26 16%
Iraq 1.4 0.57 41%
Libya 1.3 0.051 4%
Kazakhstan 1.0 0 0%
Qatar 1.0 0 0%

[alaskacat]

I worked in engineering in several different refineries, and basically gasoline is a by product low profit item

The refineries make most of their money off light items such as namtha, solvents, polymers (the stock they make plastics out of), acetone etc etc. Those items when refined more than pay for all the cost of a barrel of oil plus a tidy profit

her is a breakdown per barrell


19.15 Gal. Gasoline

09.21 Gal. Diesel Fuel

01.75 Gal. Heating Oil

01.76 Gal. Heavy Fuel Oils (Residuals)

03.82 Gal. Jet Fuel

01.72 Gal. L.P.G.

07.27 Gal. Misc. Other Products

Other products as listed above are any and all additional products and bi-product made from the heaviest of all after the refining prossess. These Items range from Low end items like, Tar for our roads to mid-range items like cosmedics and clothing, to highend items like medications and heart valves. At the prices they get for the high end items that $100 per barrel is easily paid for over and over again.

[sahen]

true the high end items will pay for a barrel of oil but you have to remember it cost a lot more to make the high end items than the low end items....so there is a trade off there, its not like everything the manufacturer gets over the price of a barrel of oil is going to be profit, they have to pay for workers and machines and such...some of the stuff is very cost intensive which is why its so expensive to buy....

[wimbo_pro]

Originally posted by alaskacat
I worked in engineering in several different refineries, and basically gasoline is a by product low profit item

The refineries make most of their money off light items such as namtha, solvents, polymers (the stock they make plastics out of), acetone etc etc. Those items when refined more than pay for all the cost of a barrel of oil plus a tidy profit

her is a breakdown per barrell


19.15 Gal. Gasoline

09.21 Gal. Diesel Fuel

01.75 Gal. Heating Oil

01.76 Gal. Heavy Fuel Oils (Residuals)

03.82 Gal. Jet Fuel

01.72 Gal. L.P.G.

07.27 Gal. Misc. Other Products

Other products as listed above are any and all additional products and bi-product made from the heaviest of all after the refining prossess. These Items range from Low end items like, Tar for our roads to mid-range items like cosmedics and clothing, to highend items like medications and heart valves. At the prices they get for the high end items that $100 per barrel is easily paid for over and over again.

Interesting data...my confusion is these do not come close to totaling 100%. What am i missing? Unless you meant to say "Other products OTHER THAN listed above...."

[rcbulldog34]

Screw OPEC and the camel they ride in on.

[I_Do_Care]

Originally posted by rcbulldog34
Screw OPEC and the camel they ride in on. it's likely they rode in 100k vehicles you "infidel" haha ;)

[IHStangFan]

Originally posted by Phil C
Yesterday OPEC announced a reduction and in Sinton it didn't take long for prices to go up today as they went up about 15 cents already. :(


"The fat cats didn't take long to take advantage of a situation to raise prices so they can increase their profits." said the Sinton GodFather while on his way to the snack bar for a cup of coffee. gotta fund the expanse in exploration here at home somehow so that in the future we're not dependent on foreign oil. That and us guys and gals who drive diesels.....the steep increase we've seen in price over the last several years is an example of how the whole "green" movement can backfire in our faces financially. The green peacers decided to "clean up" diesel and that required further refinement which meant upgrades to plants and production facilities....and we're paying for the upgrades out of our pocket at the pump w/ increased prices to cover the upgrade costs.....

just my $.02 based on what I know from pretty much my entire family being in the biz from the rigs to upper echelon w/ Conoco Phillips, Shell, etc.

[Electus Unus]

Originally posted by I_Do_Care
it's likely they rode in 100k vehicles you "infidel" haha ;) 100K vehicles aren't much to them. They probably carry that much money in their pockets.

[IHStangFan]

Originally posted by Electus Unus
100K vehicles aren't much to them. They probably carry that much money in their pockets. true...when I was in Kuwait, Dubai, etc......it was common to see Porsche GT3's, All makes of Ferraris, Lambos, Bentley GT's, etc. at each stop light. The wealth there shared among the privileged few is grotesque. They would smash one of these, climb out and leave it on the side of the road. Blew my mind.

[Electus Unus]

Originally posted by IHStangFan
true...when I was in Kuwait, Dubai, etc......it was common to see Porsche GT3's, All makes of Ferraris, Lambos, Bentley GT's, etc. at each stop light. The wealth there shared among the privileged few is grotesque. They would smash one of these, climb out and leave it on the side of the road. Blew my mind. My father was at a horse sale in Miami, Florida and he met Sheikh Mohammed who owns the race track over in Dubai and he's the worlds 5th richest royal. Ironically my father said he was just dressed in some jeans and a t-shirt I guess keeping a low profile. Also while he was at the sale he Mohammed purchased a horse for 16 million dollars.

[IHStangFan]

Originally posted by Electus Unus
My father was at a horse sale in Miami, Florida and he met Sheikh Mohammed who owns the race track over in Dubai and he's the worlds 5th richest royal. Ironically my father said he was just dressed in some jeans and a t-shirt I guess keeping a low profile. Also while he was at the sale he Mohammed purchased a horse for 16 million dollars. yeah, I've seen him on tv.....and he did have jeans on. I guess he understands "when in Rome......"

[slpybear the bullfan]

Originally posted by wimbo_pro
Interesting data...my confusion is these do not come close to totaling 100%. What am i missing? Unless you meant to say "Other products OTHER THAN listed above...."

You are not adding percentages up. The units listed indicated how many gallons are in a barrel of crude.

Only problem is that there are 42 gals per bbl of crude... not 45 gal.

[wimbo_pro]

Originally posted by slpybear the bullfan
You are not adding percentages up. The units listed indicated how many gallons are in a barrel of crude.

Only problem is that there are 42 gals per bbl of crude... not 45 gal.

Oh ok...i gotcha...

[Trashman]

Price here in Deadwood is stable. The cheapest price I've seen is 1.43.

[IHStangFan]

I'm wonderin what gives.....saw diesel for 2.49 over off of Hwy 99 / Grand Parkway.....and not 30 miles away in Rosharon, it was 2.15. hmmm....