OP
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it went up .30 cents from the morning to the afternoon here in Phoenix yesterday
Current gas prices in your area
- Thread starter Griffin
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BlackGold6.4
Well-known member
we are at 1.949/liter and heard the south just went over 2 bucks... so we should see a huge increase very soon.
quietpeen
Well-known member
There is definitely greed going on. At the end of this Exxon will post their highest ever profits again.
Been noticing that as well or maybe 20 to 30 day to day.
OP
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I’m just terrified on how high it can possibly go. There is no relief in site and who’s gonna regulate it going higher and higher. Definitely not going to be stopped by this administration
Trailmaker
Active member
I will help put the right people in the House(and Senate) in mid term this November. Honestly if it dropped back to 2.25 this month, too many will forget and not vote this fall. Sounds crazy (and $120 per barrel is nuts) but we need it to be above $100 a barrel through October. We don’t want it to spin out of control when it does drop. I was working in South Houston when Obama “shut down” NASA and really hurt our local economy. 65-75 per barrel is probably the sweet spot but we can float at $55
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Trailmaker
Active member
What is strange is that it has not slowed traffic down and it seems like my gym my favorite restaurants and my friends are just as busy as ever. Myself included. (I might not idle as much)
OP
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I have been thinking the same exact thing everyday I drive around! Almost seems like there are MORE people driving than 3 months ago. I ask myself how everyone is making money with all the job openings/no workers and no more stimulus $
grouch
Active member
I got a new research journal the other day and am working through it. Crude oil is not as high as it has been. It got up to $147 back in 2008. I think it's around $120 right now. Russia/Ukraine is responsible for about $19 of that. China is still driving consumption.
The trend is we might be heading into a world wide recession. With the current dependence on Chinese imports, if there's a collapse, all the stuff we get from China might be hard to get. Also, containers come from China to the U.S., here they are loaded with food products and head to southern Africa. There isn't much exports from there so the containers build up there.
Eventually, the auto shortage will go away when people quit buying new vehicles. The premiums on new cars will be history too. Gasoline and diesel will eventually drop due to lowered demand.
In short, eventually prices will drop but not for a while.
The trend is we might be heading into a world wide recession. With the current dependence on Chinese imports, if there's a collapse, all the stuff we get from China might be hard to get. Also, containers come from China to the U.S., here they are loaded with food products and head to southern Africa. There isn't much exports from there so the containers build up there.
Eventually, the auto shortage will go away when people quit buying new vehicles. The premiums on new cars will be history too. Gasoline and diesel will eventually drop due to lowered demand.
In short, eventually prices will drop but not for a while.
Trailmaker
Active member
I was living in CO when that peaked. Bush released the reserve and halted the gas tax. I think something similar will happen when the house switches control at mid term.
OP
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It’s a NOPE for me!
grouch
Active member
We have already dipped into the oil reserves. As for fuel taxes, that's more up to the states. Yes, there is a Federal fuel tax. However, most of the fuel taxes are state centric. Going 15 miles across the river to Kentucky can save as much as 20 cents per gallon. I don' like to get too low as it's depressing to fill up. Unless I've made a long run with the truck (12-15 mpg) it's not worth the trip.
OP
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Your statement about being depressing is an understatement. I am a very easy going person and don’t get upset too easily, but when I spend $170 each time I fill up, I get extremely pissed! Mainly because this gouging could have been avoided
Trailmaker
Active member
There is more to gas than taxes…but 0.44$ at $4bucks is nuts.
In a simple illustration, let’s assume an oil company is paying $100 for a barrel (42 gallons) of basic crude oil. Their cost for a gallon will be about $2.38. At a gasoline-pump price of $4.00 per gallon, 44 cents has to pay for taxes and 20 cents for distribution and marketing expenses. This leaves $3.36 for the oil companies. Out of that total they have to pay for the cost of the gallon of crude oil itself which was $2.38 and also the 40 cents to refine it into gasoline. This leaves $0.58 profit per gallon of gasoline. As noted, however, depending on which report one looks at, this profit-margin can range anywhere between an estimated 30 to 60 cents per gallon.
(Kinda old information. I got it 3 months ago)
https://www.whatitcosts.com/crude-oil-refining-process-gasoline-cost/
In a simple illustration, let’s assume an oil company is paying $100 for a barrel (42 gallons) of basic crude oil. Their cost for a gallon will be about $2.38. At a gasoline-pump price of $4.00 per gallon, 44 cents has to pay for taxes and 20 cents for distribution and marketing expenses. This leaves $3.36 for the oil companies. Out of that total they have to pay for the cost of the gallon of crude oil itself which was $2.38 and also the 40 cents to refine it into gasoline. This leaves $0.58 profit per gallon of gasoline. As noted, however, depending on which report one looks at, this profit-margin can range anywhere between an estimated 30 to 60 cents per gallon.
(Kinda old information. I got it 3 months ago)
https://www.whatitcosts.com/crude-oil-refining-process-gasoline-cost/
OP
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Very interesting. Thanks for that description
grouch
Active member
This morning, the open market price of crude oil was $120 per barrel. People think of a barrel of oil as 55 gallons but it isn't. Oil is fairly thermoexpansive. A barrel of oil is 42 gallons at 65 degrees F. The early oil companies used wine barrels is why it's 42 gallons. Around here, several of the well heads are owned by oil companies. The wildcatters are the ones that sell to the highest bidder.
You're correct in that there's a lot of costs to oil besides taxes and refining. This is also the time of year when a lot of change overs and maintenance is done. That's part of the reason so many local storage tanks are full.
Trailmaker
Active member
Right! So if they are making 0.58 profit per gal. (18.56 at 32 gal) on a 100 dollar barrel, then at $120 per barrel is going to have a lot of small guys want in and it will drive production up. And if demand is lessened by 10% ( I read that is how many EV will have entered the market from March-November) then it will come down on its own. But, with a few pen strokes, the President can make an immediate dent. He won’t, but he could. He seems to think the 10% of EVs added is a a win!
Trailmaker
Active member
Stock market is driven by supply and demand but…big BUT, it is also volatile, as emotions can cause a spike fairly easy. That is why when Tump said “ companies like caterpillar…” (when making a point about American companies) during his campaign, caused Cats stocks to climb after the election. Emotion!
Trailmaker
Active member
My other truck is a Raptor… it does not have a sound when the radio is on. Gets 18 with 37s
The same as my 4banger Jeep on 32s my wife suv gets a whopping 14mpg with her 5.7! So we spend $900 a month in fuel on just those 3. Unfortunately I have more fuel consumption used because of my Ranch vehicles/equipment/wagon. I post the emoji of me
and it’s a glimpse of my pain.
