Gas Check !! What's your price? 04-13-11

[Marshall Bennett]

Originally Posted by cj

This is in a small area of town, three or four stations, but lines are forming to get gas there. There is a new On Cue there and they are driving a price war. Gas is about $1.95 most places.

I waited in lines back in the late 70's, but this was due to a shortage and had no option. Be damned if I'd ever wait in another just to save a couple bucks because it's 15 cents cheaper. It's also a set-up for disaster if you're stuck in the middle of a line and trouble erupts. People are crazy.

[JustRalph]

2.09 this morning back in Arlington Tx

[raybo]

I suppose the inevitable question, "why are oil/gas prices continuing to decline?", might as well be asked here, now. It will eventually anyway.

Is it because US production, as well as other places, is increasing, adding to the world's supply of oil? But, then why isn't OPEC decreasing production in order to keep their profits up?

Is this an attempt by OPEC to bankrupt US "frackers", whose cost of production is higher than more traditional gas production methods? Possibly, I wouldn't put anything past OPEC, and they do have lots of reserves in both oil and money from which to ride it out.

Is it, solely, due to China's lower demand for oil? Again, why doesn't OPEC cut production?

Is it because more fuel efficient vehicles are finally making a significant impact, worldwide? I have my doubts.

Is it something else? Or, is it a combination of several things? Or, is it pure geopolitical manipulation? Maybe, probably, good question.


I think that only the people in control of production can answer that one, and they ain't talkin'!

[raybo]

Originally Posted by JustRalph

2.09 this morning back in Arlington Tx

Walmart/Murphy's (in GBC) dropped from $2.22 last night to $2.14 this morning.

[cj]

Originally Posted by Marshall Bennett

I waited in lines back in the late 70's, but this was due to a shortage and had no option. Be damned if I'd ever wait in another just to save a couple bucks because it's 15 cents cheaper. It's also a set-up for disaster if you're stuck in the middle of a line and trouble erupts. People are crazy.

The lines aren't bad, nothing like the 70s, but certainly busier than most stations.

[raybo]

I'm certainly delighted to see gasoline prices lower, but, is there another foot about to fall? Something just doesn't make sense to me. Why is OPEC keeping their production levels high? Why are they ramping up for larger deliveries to China, when China's economy is not increasing at previous rates? How can the refineries keep up with the glut of oil on the market, wasn't the lack of adequate refinery capability the original reason given for the doubling of gas prices, almost overnight, several years ago? This situation bothers me, maybe I'm nuts, but something isn't right, somewhere.

[cribking]

Wal Mart/Murphys Illinois $2.08

[davew]

Originally Posted by raybo

I'm certainly delighted to see gasoline prices lower, but, is there another foot about to fall? Something just doesn't make sense to me. Why is OPEC keeping their production levels high? Why are they ramping up for larger deliveries to China, when China's economy is not increasing at previous rates? How can the refineries keep up with the glut of oil on the market, wasn't the lack of adequate refinery capability the original reason given for the doubling of gas prices, almost overnight, several years ago? This situation bothers me, maybe I'm nuts, but something isn't right, somewhere.

OPEC is no longer an oligopoly. Even if they stopped extracting/selling any oil, there would still be more supply than demand. Their best chance of continued income is to let the price drop so that it is below extraction costs for many of the suppliers. The first casualty if this seems to be Russia. Refineries do not need to keep up with supply, they need to keep up with demand for their finished products (or maybe not, then they could get more margin for their added value).

[raybo]

Originally Posted by davew

OPEC is no longer an oligopoly. Even if they stopped extracting/selling any oil, there would still be more supply than demand. Their best chance of continued income is to let the price drop so that it is below extraction costs for many of the suppliers. The first casualty if this seems to be Russia. Refineries do not need to keep up with supply, they need to keep up with demand for their finished products (or maybe not, then they could get more margin for their added value).

The problem with OPEC pumping at high rates, IMO, is that they will soon run out of places to store all that oil. My understanding is that they don't have enough tanks to store much more, which would mean manufacturing more, which means they will spend lots of money on tanks while not making as much on the oil they do export. And, the demand will surely go up as prices continue to be low, after all we are talking about human beings and their autos, they love to drive them, especially when gas prices are low.

But, I agree that the logical reason for them producing at present levels is to bankrupt those whose production costs are higher than normal. I have no idea what it costs the Russians to produce a barrel of oil so I can't speak to them being the first casualty, but US frackers will certainly become distressed if prices drop too low.

[onefast99]

Costco NJ 2.15

[cmp92]

$2.98. Buffalo, NY.

[JustRalph]

1.75 in Keller Tx. North side of Dallas

[raybo]

Yeah, when it hits $1.99 I'm going to so something I said I wouldn't do again until it dropped below $2.00 (quite a while back), and that is fill up my car. I haven't filled the tank in well over 2 years, and the last time I did was because I was going on a trip.

[dartman51]

Down to $1.99 in Murfreesboro, TN.

[Tor Ekman]

http://cloudfront-media.reason.com/m...pg?h=420&w=555