Gas futures fall 8% on report of less driving

Discussion in 'General Motoring' started by C. E. White, May 12, 2011.

  1. C. E. White

    Guv Bob Guest

    Dropped about 10 cents in S Calif in the past 2 weeks.
     
    Guv Bob, May 15, 2011
    #21
  2. Dropped about 10 cents in S Calif in the past 2 weeks.

    It looks like they may be going up again tomorrow another 7 cents here in
    Illinois.

    BOHICA.
     
    Charles Grozny, May 16, 2011
    #22
  3. C. E. White

    C. E. White Guest

    Yesterday at Costco regular was $3.759. In general prices have been edging
    back down. The local paper had an article on gas prices and how speculators
    had driven up the prices.

    http://www.newsobserver.com/2011/05/15/1198728/analysis-speculators-fuel-climbing.html
    (link will probably only work for a few days...

    .........

    "No oil shortage

    "Although those numbers are stark, the numbers on supply and demand make it
    clear that the high prices aren't coming from there. There is no shortage of
    oil stocks by historical standards. There's an estimated 3 million to 4
    million barrels per day of excess oil production capacity in the world
    today. That's much more than when supplies were tight in 2008.

    "U.S. crude oil stocks on April 29, the date oil peaked this year above $113
    a barrel, stood at 1.768billion barrels, according to the Energy Information
    Administration. That's about 700,000 barrels more than in July 2008, when
    oil prices hit all-time highs.

    "And that's plenty to meet U.S. needs, because consumption isn't growing.

    "The United States consumed 20.68 million barrels per day in 2007. Then came
    the financial crisis, and consumption dipped to 19.5million bpd in 2008.
    Last year, the number was 19.5million bpd. This year's projection is 19.28
    million bpd.

    "So if supplies are plentiful and consumer demand isn't rising, why are
    prices?

    "Could it be that refineries aren't able to produce enough gasoline? No.
    Refiners are running their plants at below cruising speed, and they've got
    lots of room to produce more if consumers need it.

    "The latest data from the EIA on the rate at which refineries are utilized
    showed a rate of 79.8 percent in February. That's 20 percentage points below
    full-blown production. The last time the rate was lower: 1986. If demand for
    gasoline was soaring, these plants would be cranking at a higher rate.

    "Though evidence of speculation is increasingly obvious, the facts haven't
    yet been acknowledged enough to force corrective regulatory action.
    ........

    Read more:
    http://www.newsobserver.com/2011/05/15/1198728/analysis-speculators-fuel-climbing.html

    My advice remains the same - buy less gas. This will stick it to the
    speculators better than anything Congress can or will do.

    Ed
     
    C. E. White, May 16, 2011
    #23
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