# Oil Prices Tumble



## Capt Worley PE (May 6, 2011)

Riddle me this: Oil prices dropped eight percent yesterday http://finance.yahoo.com/news/Oil-prices-d...ml?x=0&amp;.v=1

But...local prices went UP four cents overnight.

Hmmmmm.......


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## RIP - VTEnviro (May 6, 2011)

> Lower crude prices usually translate into lower gasoline prices, but the effect is delayed.


This was my thought before reading it. The stuff at the pump today is not the less expensive stuff taken out of the ground yesterday. It needs to be packaged, shipped, and processed first.


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## Dexman PE PMP (May 6, 2011)

The problem is that the gas prices will rise as quickly as the oil prices do, but once the oil prices drop the gas seems to lag behind a bit.


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## udpolo15 (May 6, 2011)

Dexman PE said:


> The problem is that the gas prices will rise as quickly as the oil prices do, but once the oil prices drop the gas seems to lag behind a bit.



That how it always appears to me.


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## Capt Worley PE (May 6, 2011)

Dexman PE said:


> The problem is that the gas prices will rise as quickly as the oil prices do, but once the oil prices drop the gas seems to lag behind a bit.


I'd be fine with a lag, but that's the biggest overnight _jump _in more than a month.


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## roadwreck (May 6, 2011)

I blame George W. Bush


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## ALBin517 (May 6, 2011)

Dexman PE said:


> The problem is that the gas prices will rise as quickly as the oil prices do, but once the oil prices drop the gas seems to lag behind a bit.



+1

“Consumers don’t understand that the supply chain for gasoline is weeks long…”

But there’s an earthquake in Japan and prices go up THAT DAY.


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## Dexman PE PMP (May 6, 2011)

Here's how I understand gas vs oil prices.

They parallel for a little while until an event happens. Gas spikes that day, but oil takes a few days before it goes up. Oil prices start to rise, justifying a further increase in gas prices. Eventually, oil prices peak and start to fall again. Citing a lag in production/stock on hand prices, gas stations maintain their prices (maybe a little fall). Meanwhile, oil prices have fallen, which eventually the news becomes more "common knowledge" forcing the gas prices to fall and eventually even out again (at least until the next event).

The part that pisses me off is the scaling effect of each event. For example, Lybia is responsible for 5% of world oil production, however when they went through their recent/current period of unrest, gas prices escalated from ~$2.50 to ~$4.00. I need an explaination as to why a 5% supply is responsible for a 60% price increase, other than the r-tards on Wall Street and their knee jerk over-reactions.

Here's a quick MS paint graph:


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## envirotex (May 6, 2011)

ngnrd said:


> The sad part is that the cost of oil production is basically the same from day to day. It's the idiot speculators that keep jacking with the value.



This is true, the average cost to get a barrel of oil to the surface is between $5-$10. It can be higher though for tar sands (like in Canada) or off-shore...break even prices for most O&amp;G companies is about $35-45/barrel, at least that's the target that most use for planning.


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## snickerd3 (May 6, 2011)

ours went up too i purposely try to avoid looking at the price part when I an pumping. I use at least 4 gals a day to get to/from work. It is was it is and I can't change my gas consumption even a job change wouldn't do it.


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## Capt Worley PE (May 6, 2011)

I'm just glad I use a little over a gallon a day.


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## Kephart P.E. (May 6, 2011)

Capt Worley PE said:


> I'm just glad I use a little over a gallon a day.


Me too


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## RIP - VTEnviro (May 6, 2011)

The place where I filled up yesterday was $4.059 yesterday, and $3.999 today. I live in eternal hope.


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## RIP - VTEnviro (May 6, 2011)

My job is 4.5 miles away. I'd jog there if we had a shower.


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## wilheldp_PE (May 6, 2011)

I also have a short commute. I fill up once about every 3 weeks, so even when gas goes up, it doesn't affect my monthly expenses by enough for me to get upset about.


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## Dleg (May 6, 2011)

We're at $4.86 here. You guys are finally catching up to us...


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## Dexman PE PMP (May 6, 2011)

I use about a 1/2 tank per week = $30 for all of my various travels.


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## Guest (May 7, 2011)

Dexman PE said:


> Here's a quick MS paint graph:


If you put that graph on a treadmill .... will it take off?

JR


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## csb (May 9, 2011)

Dleg said:


> We're at $4.86 here. You guys are finally catching up to us...


Oh no! Gas is even more expensive in the future!

Wait, is that not what you meant by catching up?

I started walking/riding my bike to work too, for a few days at least. Short commute, but it raises lots of questions at work..."You WALKED here?!" It's like I said I teleported.


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## RIP - VTEnviro (May 9, 2011)

I'd bike to my job if it wasn't so suicidal to do so at rush hour, and if we had a shower here.

I should jog home some days, it's 4.5 miles and there are sidewalks


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## snickerd3 (May 9, 2011)

but then you have to jog back the next morning...


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## RIP - VTEnviro (May 9, 2011)

I mean jog home for exercise, than pick up the car in the evening when my wife gets home. No gas savings, just for workout purpoes.


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## Road Guy (May 9, 2011)

I actually drove my wife's POS Prius all weekend, were still under $4/gallon in my hood, but shuttling back between ball fields all day,when your late, in a hurry, sucks up gas in my daily driver... V8 type thing...


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## snickerd3 (May 9, 2011)

back under $4/gall here by work. $3.98 but still under $4


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## RIP - VTEnviro (May 9, 2011)

It's hovering at $4 here.

Stop and Shop and Shell Gas have an arrangement where you get 10 cents off per gallon for every $100 you spend on groceries. Once a month I let it get down to almost empty and top it off at 60-70 cents per gallon less than the listed price.


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## snickerd3 (May 9, 2011)

Heck my gas light goes on about twice a week. I was so excited when i got the CRV way better gas mileage so I figured I wouldn't have to fill up and often as with my blazer...I was so wrong...the gas tank was smaller so I have to fill up just as often.


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## RIP - VTEnviro (May 9, 2011)

I also drive a CRV. Decent gas mileage (sure it was better when it was new) but yeah, tiny tank.

Rented an Altima recently, drove about 300 miles around all weekend on less than 3/4 of a tank, but yeah, it cost $45 to goes from well above empty back to 3/4 before I dropped it off.


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## Road Guy (May 9, 2011)

some stations in atlanta are starting to give a .05/gallon discout for paying cash...


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## snickerd3 (May 9, 2011)

^places do that around here for truckers.


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## wilheldp_PE (May 9, 2011)

VTEnviro said:


> I also drive a CRV. Decent gas mileage (sure it was better when it was new) but yeah, tiny tank.
> Rented an Altima recently, drove about 300 miles around all weekend on less than 3/4 of a tank, but yeah, it cost $45 to goes from well above empty back to 3/4 before I dropped it off.


I have a 2008 Altima. If I have a lot of highway miles, I can get 500 miles on a tank, but with all city driving, I usually get about 350. At nearly $4/gallon, it costs me $65 for a fill-up.


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## mudpuppy (May 12, 2011)

^I found out when I rented an Altima and pre-bought a tank of gas that they have giant gas tanks. I lost my shirt on that deal, since I figured the 300 miles I was going to drive it would get it close to empty. NOPE!

I too am going to start riding my bike to work, at least when the weather cooperates. It's only 4 miles, and only a half-mile of that is on a busy street. I'm not doing it to save gas, though. Just for exercise.


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## wilheldp_PE (May 12, 2011)

Oil dropped about $3/barrel yesterday...so the gas stations around here jacked the price up 27 cents per gallon. For the first time this year, regular unleaded is over $4/gallon.


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## mudpuppy (May 12, 2011)

Thankfully prices haven't risen here. Still hovering around $4.15/gallon. I'm waiting for them to go down to fill up the 30-gallon tank in the Bronco.


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## snickerd3 (May 12, 2011)

that sounds about right. gas took a 20+cent jump here by work so it is around 4.20/gal, but a mere 20 miles south they are at 3.98/gal sounds like price gouging to me. Even my little rural town is 4.09/gal


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## Capt Worley PE (May 12, 2011)

It was 3.71 this morning.


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## roadwreck (May 12, 2011)

wilheldp_PE said:


> Oil dropped about $3/barrel yesterday...so the gas stations around here jacked the price up 27 cents per gallon. For the first time this year, regular unleaded is over $4/gallon.


The news I heard this morning said the price hike in gasoline prices in the last few days hasn't been due to oil prices but by _speculation_ that some refineries in Louisiana may be impacted by the flooding along the Mississippi.


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## Capt Worley PE (May 12, 2011)

roadwreck said:


> wilheldp_PE said:
> 
> 
> > Oil dropped about $3/barrel yesterday...so the gas stations around here jacked the price up 27 cents per gallon. For the first time this year, regular unleaded is over $4/gallon.
> ...


Oh, no.

I remember after Katrina, the run on gas was so hard that I couldn't FIND any station that had some. And I had to drive 50 miles home. i was sweating it.


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## wilheldp_PE (May 12, 2011)

Speculators can find more asinine stuff to affect the price of commodities than any normal person should be capable of.


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## envirotex (May 12, 2011)

From the horse's mouth...$60-70 per barrel.

http://news.yahoo.com/s/nm/20110512/bs_nm/...oil_speculation


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