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Has the price of diesel jumped $0.35/gal everywhere over the last two weeks?
- Thread starter CCiatteo
- Start Date
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Ditto My 05 Cummins has 9000 miles on it, my 89Toyota pu 120 K miles. Sure enjoy my Cummins when I do drive it
Doesn't have anything to do with lack of refinery capacity or supply and demand.
Last week, refineries were only operating at 83% capacity nationwide, so the the FINA refinery shutdown was a non-event.
Due to decreased demand, crude oil inventories went up for the 7th straight week - up by more than 30 million barrels since the beginning of the year.
Gasoline inventories hit a FOURTEEN YEAR HIGH - yep, more gas on hand than any time since 1994!
And inventories of distillates (ie, diesel) remained fairly steady.
So why are we getting screwed?
We already know one answer - traders and speculators on Wall Street trying to make a killing on oil futures at everyone else's expense. And thanks to our government rewriting the law so that the SEC no longer has oversight of electronic trading, they can short oil futures to their heart's content.
And those turkeys are now moving to long-term positions on oil futures - in other words, they now expect and NEED oil to stay above $100/barrel so they don't loose their shirts.
For gawd's sake, when even OPEC is saying there's a supply glut on the global market and there's no rational reason for oil to be this high, that ought to be a wakeup call.
Those morons on Wall Street are going to do the same thing to oil prices that they did to the housing and credit sectors with subprime mortgages - run it up thru the roof until the bubble finally bursts and everything comes crashing down - and screw over the entire country in the process.
A possible reason why gas hasn't increased much and we have record high inventories is simple - it's an election year. Gotta try to keep as much gas on hand and as cheap as possible to keep all those potentials voters, 90% of which drive gas vehicles, happy. I've seen several reporrts that the refineries kept concentrating on gas production even thru their traditional home heating oil season.
Another reason for them to keep cranking out gas at the expense of diesel - ethanol and E85. Gotta have gas to mix with that ethanol to make E85 and get the tax credits/subsidies from the government.
I've heard one other report that I haven't been able to confirm that OPEC no longer wants to be paid in dollars but in euros - they see us as being so debt-ridden now that the dollar will only keep going down in value, and they prefer a more "stable" currency.
My parents, who lived thru those times, are saying this is shaping up just like the 1930's all over again.
Last week, refineries were only operating at 83% capacity nationwide, so the the FINA refinery shutdown was a non-event.
Due to decreased demand, crude oil inventories went up for the 7th straight week - up by more than 30 million barrels since the beginning of the year.
Gasoline inventories hit a FOURTEEN YEAR HIGH - yep, more gas on hand than any time since 1994!
And inventories of distillates (ie, diesel) remained fairly steady.
So why are we getting screwed?
We already know one answer - traders and speculators on Wall Street trying to make a killing on oil futures at everyone else's expense. And thanks to our government rewriting the law so that the SEC no longer has oversight of electronic trading, they can short oil futures to their heart's content.
And those turkeys are now moving to long-term positions on oil futures - in other words, they now expect and NEED oil to stay above $100/barrel so they don't loose their shirts.
For gawd's sake, when even OPEC is saying there's a supply glut on the global market and there's no rational reason for oil to be this high, that ought to be a wakeup call.
Those morons on Wall Street are going to do the same thing to oil prices that they did to the housing and credit sectors with subprime mortgages - run it up thru the roof until the bubble finally bursts and everything comes crashing down - and screw over the entire country in the process.
A possible reason why gas hasn't increased much and we have record high inventories is simple - it's an election year. Gotta try to keep as much gas on hand and as cheap as possible to keep all those potentials voters, 90% of which drive gas vehicles, happy. I've seen several reporrts that the refineries kept concentrating on gas production even thru their traditional home heating oil season.
Another reason for them to keep cranking out gas at the expense of diesel - ethanol and E85. Gotta have gas to mix with that ethanol to make E85 and get the tax credits/subsidies from the government.
I've heard one other report that I haven't been able to confirm that OPEC no longer wants to be paid in dollars but in euros - they see us as being so debt-ridden now that the dollar will only keep going down in value, and they prefer a more "stable" currency.
My parents, who lived thru those times, are saying this is shaping up just like the 1930's all over again.
$3. 75 a gallon here. And thats at the cheap place.
Does that affect more than just me? Sure does. I'm no longer spending money on much of anything. When I do buy something I let UPS deliver it. Travel? Can't afford to prop up some other communites economy.
I wonder what those rich people will do when their nannies and gardeners can't afford to come to work anymore.
Does that affect more than just me? Sure does. I'm no longer spending money on much of anything. When I do buy something I let UPS deliver it. Travel? Can't afford to prop up some other communites economy.
I wonder what those rich people will do when their nannies and gardeners can't afford to come to work anymore.
"…This [world demand for the middle of the barrel has increased twice as fast as demand for gasoline] has led to what we believe is a somewhat unbalanced product market (and probably not sustainable over the very long-term) where the middle of the barrel (distillates) are priced higher than gasoline. From a pure production cost outlook, distillate should be cheaper than gasoline. We are not getting the historic relationship in pricing between the middle of the barrel and gasoline because the Europeans and other world refining centers are running full tilt to meet distillate demand, which is also yielding substantial volumes of gasoline components in excess of local demand. These gasoline components are then sold into the U. S. market.
Note that we at EPRINC don't view distillate as selling at a premium to gasoline, but gasoline being discounted to distillate. Of course, both statements are accurate, but how you look at this problem is important for understanding how the market is likely to shift over time. Over time we would expect the Europeans to reconfigure their refineries to reduce gasoline, and increase distillate output, but this will require substantial capital outlays…. "
Source: Oil & Energy Magazine - Extended Q&A
Note that we at EPRINC don't view distillate as selling at a premium to gasoline, but gasoline being discounted to distillate. Of course, both statements are accurate, but how you look at this problem is important for understanding how the market is likely to shift over time. Over time we would expect the Europeans to reconfigure their refineries to reduce gasoline, and increase distillate output, but this will require substantial capital outlays…. "
Source: Oil & Energy Magazine - Extended Q&A
Vaughn MacKenzie
TDR MEMBER
If you guys want to compare your stations with the average for your state and the nation, bookmark this web page- it's updated daily:
http://www.fuelgaugereport.com/sbsavg.asp
New York is the most expensive in the Lower 48.
http://www.fuelgaugereport.com/sbsavg.asp
New York is the most expensive in the Lower 48.
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My volunteer fire department has to keep two big diesels full of fuel at all times. We paid $100 for a 27 gallon half a tank fill up on Saturday. And we are non-tax!!! The squad F550 takes $125 for a full tank.
Its nearly impossible to do this as our budgets are shrinking. We only get a few thousand bucks a year from property taxes. The rest is Chicken BBQ funds.
We have buy oxygen, medical supplies, hose etc etc etc. And this increased fuel cost is terrible.
Someday... we will be limiting our calls on what we'll go on. Todays society wants us to now respond to everything under the sun... from real house fires to stubbed toes. The community demands it. Yet they keep dropping our funds from taxes each year.
Last year the property taxes were re-evaluated and went up. Yet no money was available for all of 2007 for us because of the re-assessment process. So we got $0. 00 for 2007. We're fighting to the town about that... becuase our BBQ money can't pay for everything they want us to do.
Its to the point now where volunteers are quitting and not joining in the first place becuase of the reputation that we are getting by having to do so many fundraisers. People want to join to help people... not serve food in a line.
They want all your spare time, get up at 2AM, risk your life, be away from your family at supper... THEN you HAVE to cook food to sell just so you can buy fuel for trucks and electricity for the station. The fund raisers take more time away from our lives than any fire or medical calls ever do.
Its nearly impossible to do this as our budgets are shrinking. We only get a few thousand bucks a year from property taxes. The rest is Chicken BBQ funds.
We have buy oxygen, medical supplies, hose etc etc etc. And this increased fuel cost is terrible.
Someday... we will be limiting our calls on what we'll go on. Todays society wants us to now respond to everything under the sun... from real house fires to stubbed toes. The community demands it. Yet they keep dropping our funds from taxes each year.
Last year the property taxes were re-evaluated and went up. Yet no money was available for all of 2007 for us because of the re-assessment process. So we got $0. 00 for 2007. We're fighting to the town about that... becuase our BBQ money can't pay for everything they want us to do.
Its to the point now where volunteers are quitting and not joining in the first place becuase of the reputation that we are getting by having to do so many fundraisers. People want to join to help people... not serve food in a line.
They want all your spare time, get up at 2AM, risk your life, be away from your family at supper... THEN you HAVE to cook food to sell just so you can buy fuel for trucks and electricity for the station. The fund raisers take more time away from our lives than any fire or medical calls ever do.
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Ncostello,
Our VFD is having hard times. We receive $25 per home per year. This has not been increased since 1978. If our county were not the 2nd fastest growing county in the state we would go under. Many new homes built here in the last 10 years.
Our Chief takes 95%
of the non-emergency calls so to keep that service from ending we bought him a used Bronco with fuel. Now our fuel bill has jumped to $1200 a month for the last year.
PM sent...
Our VFD is having hard times. We receive $25 per home per year. This has not been increased since 1978. If our county were not the 2nd fastest growing county in the state we would go under. Many new homes built here in the last 10 years.
Our Chief takes 95%
of the non-emergency calls so to keep that service from ending we bought him a used Bronco with fuel. Now our fuel bill has jumped to $1200 a month for the last year.
PM sent...
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I can't believe my eye's when I pass by some stations. The station on the right side will have diesel for $3. 87 the station on the left will have it for $3. 65, are there ALWAYS peaple filling up for $3. 87? YEP!!
As long as there are people willing to pay the price people will be willing to charge them. Even the Mexican contractor's are buying at the higher price, they must not be working for as cheap as we thought.
As long as there are people willing to pay the price people will be willing to charge them. Even the Mexican contractor's are buying at the higher price, they must not be working for as cheap as we thought.
I think the main reason diesel is more expensive than gas is the fuel surcharge that most truckers get. Fuel goes up - surcharge goes up - take home pay the same. No reason for truckers to complain of high fuel prices. Oil companies have this figured out and know that diesel prices can be raised without too much fuss.
What I really have trouble understanding is. I run I-85 from the 79 MM to the 60 MM. Yesterday was Friday and traffic was heavy as it usually is. I set the cruise on my 96 Regal at 68 mph in a 70 mph zone. Many times while traveling below 70 mph other drivers will line up behind me when they could easily pass. It's almost as if they were wanting to slow down but were afraid of being the first one to do so. At 4:30 am when the interstate is empty (and safe enough)I set my cruise on 55 mph. The average speed is 80 mph. Why won't people slow down a little and conserve? I am not saying drive so slow you can't use overdrive. Some how we have to send the world banks a message. I am, are you?
I am getting 31. 3 mpg with a 3. 8 liter engine. When I raise my foot from the go pedal this car will coast for ever. I always coast to stop signs. On my 28. 6 mile trip to work I have it down to a science as to where to start coasting.
I am getting 31. 3 mpg with a 3. 8 liter engine. When I raise my foot from the go pedal this car will coast for ever. I always coast to stop signs. On my 28. 6 mile trip to work I have it down to a science as to where to start coasting.
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Issue 128 – Digital Version
Digital Magazines
FREE!
TDR Test Drive - Digital Edition
Renew
Subscribe
Gift Subscriptions
Back Issues
Subscription Status
Address Change Form
Buyer's Guides
Ram Diagnostic Trouble Codes
The Perfect Collection
The Perfect Collection Vol. II
TSB Updates
Dodge/Cummins Historical Overview
Cameron Collection
What Makes Us Tick?
Product Showcase
Advertising
