Diesel Prices May Have Peaked --- For Now

[JBlock]

This is Dream land

The price of fuel is just a speculative bubble that is about to burst. Just like the stock prices of the 90's were insaine for companies who never made a dime in profit ... oil speculation will come crashing down in the next 6 to 12 months ... then be ready for the diesel pumps to say Reg. 89. 9

Special 99. 9

Super 109. 9

Diesel 79. 9

The average selling price of a export barrel of crude in the middle east is now over $50. 00, the speculators are going to get squeeze out and the crude producers have learned the market will bare this kind of pricing. It not good. I hoping for average of $2. 00 a gallon again.

 

[klenger]

I'll bet all the mom and pop oil companies in the USA are smiling all the way to the bank. Their operating costs are no higher than before, but now they are selling oil for a bunch more than they were before. God bless them.

 

[MMeier]

Dont think we are going to get any light at the end of the tunnel on this one now.



Just heard over the radio this morning despite record high prices last year we consumed 2% more gasoline than last year... ...

... don't tell me you believe everything you hear on the radio,( or read in the paper)!!

 

[mhenon]

The price of fuel is just a speculative bubble that is about to burst. Just like the stock prices of the 90's were insaine for companies who never made a dime in profit ... oil speculation will come crashing down in the next 6 to 12 months ... then be ready for the diesel pumps to say Reg. 89. 9

Special 99. 9

Super 109. 9

Diesel 79. 9

Fatcat... . I don't know what you're smoking... but you've got to lay off the stuff for awhile. You're heads all clouded up man.

The bubble has busted alright... on "low" fuel prices. While I'm sure the price will fluctuate over the course of a year... low fuel prices are gone. I don't care if it's a gallon of gas or a can of pea's... if the demand is there. . the price goes up. . simple as that. And, We demand fuel! Problem is China, India and others want their share too.

I wouldn't put too much stock in the article by Kudlow either. Him and his buddy Cramer are nothing but hired "mouthpieces" for the NY stock exchange.

$1. 00 a gallon fuel??..... AIN'T GONNA HAPPEN!

Mike

 

[Big Sur]

Isn't diesel fuel less expensive to produce than gasoline? Why is it more expensive than Premium gasoline (at least here in Cali)?

 

[JBlock]

Isn't diesel fuel less expensive to produce than gasoline? Why is it more expensive than Premium gasoline (at least here in Cali)?

Big Sur



Your are correct. It isa selective shortage, it appears the refinery capacity shortage is being target for diesel market. My guess is "It probably a business decession. People that use diesel can cut back life driver of gasoling on their driving styles. So the truckers have no choice but to pay the extra charges. "



The good and bad news is. Since the enviromental constriants so ridge, it is nearlynearly impossible to build new refineries inside the USA boarders. I would vendure to say the next US refinery will be in Mexico. The most recent proposal for a huge refinery in arionza was cancel as the enviromental requirements made impossible to build at show a profit even at $3. 00 gallon pricing leveles. But the Saudian Arabian Government will step in to help by filling the gap, The Saudi are planning a million barrol a day refinery and will export the finished white products (gasoling, diesel) to USA.



Yes the propose refinery is specificaly target to the US Market.

 

[JBlock]

Larry Ludlow Article refernece above is worth reading.



We’re already seeing signs of progress. The Excelon utility company has just received an early site permit for nuclear power, and Duke Power has nearly completed its combined operating license permit, which includes a pre-approved reactor design.



Bush admistration has a powerful force in New Energy Secretary Sam Bodman, Is Bodman the right man for this job? Absolutely. Bodman, a chemical engineering scientist who has taught at MIT, was the chief operating officer of the super-sized Fidelity mutual fund company and is a former venture capitalist. This is a guy who will quietly manage the U. S. effort to break out of the current OPEC-reliant paradigm and shift to the development of multiple new energy sources.



Wish him Luck and the still to pull it off.