Oil Price Per BBL

[Shootin 4 Fun]

For the typical hourly worker, it's taken five-seven years of cost of living increases just to cover the addition gasoline expense caused by the oil boom. $60 oil and $2 gasoline seems like a fair compromise when just 15 years ago well owners would pump like hell when prices hit $18.

 

[Shadowrider]

For the typical hourly worker, it's taken five-seven years of cost of living increases just to cover the addition gasoline expense caused by the oil boom. $60 oil and $2 gasoline seems like a fair compromise when just 15 years ago well owners would pump like hell when prices hit $18.

Those weren't horizontally drilled, multi-stage fracked wells either. But your overall point is valid, the oil companies will adjust and figure out a way to operate as long as the .gov gets out of the way. The Saudis will lose and they know it, it's a desperation move on their part. And ya'll don't forget about Russia either...

 

[B Gordon]

To me, it just feels like normal supply and demand on the world market.

One little tidbit I did get from scanning a bunch of articles on the matter.
Years ago Diesel was cheaper than regular unleaded in the US but that changed when the US started exporting refined Diesel product to Europe where it can be sold at a premium.
Diesel fuel has been flowing from the US to Europe on the tanker's return leg after they bring crude to the US.
Sort of a triangle route for the tankers.
Middle East to US to Europe and back to Middle East.
Due to the sharp cutback on imported crude to the US there are fewer tankers lined up to take Diesel on the return leg.

Lots of tankers will be taking Diesel from the US to Europe and return empty for more Diesel, skipping the Middle East leg, which will increase the cost of Diesel in Europe and hopefully make it cheaper in the US as compared to normal unleaded as supply and cost reach a balance.

 

[Wheel Gun]

A month or so ago, the Saudis started selling oil on the spot market for well under the market price. This was a planned, purposeful move meant to lower the global price of oil and destabilize their competitors. I think it actually got away from them and went lower than they planned. Rumor is that they hoped to get the price to the mid-70s, but it just kept going down. Now, they're very close to their break-even price over there.

Market forces didn't cause this. This was a government decision meant to harm other nations. If this sticks for a while, many many US oil jobs will be lost.

 

[Okie4570]

To me, it just feels like normal supply and demand on the world market.

One little tidbit I did get from scanning a bunch of articles on the matter.
Years ago Diesel was cheaper than regular unleaded in the US but that changed when the US started exporting refined Diesel product to Europe where it can be sold at a premium.
Diesel fuel has been flowing from the US to Europe on the tanker's return leg after they bring crude to the US.
Sort of a triangle route for the tankers.
Middle East to US to Europe and back to Middle East.
Due to the sharp cutback on imported crude to the US there are fewer tankers lined up to take Diesel on the return leg.

Lots of tankers will be taking Diesel from the US to Europe and return empty for more Diesel, skipping the Middle East leg, which will increase the cost of Diesel in Europe and hopefully make it cheaper in the US as compared to normal unleaded as supply and cost reach a balance.

That's interesting info. Do you know if the price of diesel increased in Europe at the same time it did the US due to EPA standards for the increased refinement due to the additional removal of sulfur?

 

[SoonerP226]

Actually diesel hasn't dropped much if any.

The Country Boy supermarket east of Norman on Highway 9 had dropped its diesel to $2.99/gal as of Sunday--it's about as cheap as local off-road diesel. My dad was talking about taking his PSD and all of his diesel cans out there.

 

[CHenry]

The price of diesel in Europe was already outragios I think. Something like $7.00/gal is what one guy I know over there told me.

 

[Okie4570]

The Country Boy supermarket east of Norman on Highway 9 had dropped its diesel to $2.99/gal as of Sunday--it's about as cheap as local off-road diesel. My dad was talking about taking his PSD and all of his diesel cans out there.

Still $3.49 here, has dropped $.10 since March when I sold my diesel truck.

 

[SoonerP226]

That's interesting info. Do you know if the price of diesel increased in Europe at the same time it did the US due to EPA standards for the increased refinement due to the additional removal of sulfur?

IIRC, all that happened was US diesel rose to match foreign prices. I wouldn't be surprised if it all went up, though, as the boom in demand for diesel in China was a big driver of costs--if memory serves, Cat was making bank selling equipment over there.

 

[CHenry]

Diesel is 3.35 in tuttle I believe.
Used vegi oil is still free though. ; )