Dropped $.45 over night! Down to $2.99 a gallon here.
Diesel fuel price drop
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I read an article last night that said industry forecasts are for the pump price (of gasoline) to fall another 35 to 75 cents per gallon, possibly more if this drags on. That would get us down to or under the $1.teen mark here for 87 octane if that happens!! Oil gluts are fabulous!
Good for people buying gas/diesel like myself. But is will lessen the push to get to electric or other non fossil fuel vehicles which we need to sooner rather than latter.
Futures price of gasoline this morning is $0.53 / gallon.
I suspect over the past decade with gasoline powered cars getting more efficient, the increase in EV vehicles and the rise in on-line deliveries that the proportion of diesel to gasoline has increased. Supply and demand may be influencing the disparity between gasoline and diesel prices at the pump.
My understanding is that only a certain percentage of a barrel of oil can be made into particular products. So, the market for each refined product, gasoline, diesel, Jet-A, lube oil, etc. is a market unto itself and there is disproportionately high demand for diesel, which is why it costs more than gasoline, even though the base product (crude) is the same and diesel requires less refining/processing.
Originally Posted by SubieRubyRoo
I read an article last night that said industry forecasts are for the pump price (of gasoline) to fall another 35 to 75 cents per gallon, possibly more if this drags on. That would get us down to or under the $1.teen mark here for 87 octane if that happens!! Oil gluts are fabulous!
Not necessarily , for the oil producing states or those employed by the oil production / products industry . :-(
I read an article last night that said industry forecasts are for the pump price (of gasoline) to fall another 35 to 75 cents per gallon, possibly more if this drags on. That would get us down to or under the $1.teen mark here for 87 octane if that happens!! Oil gluts are fabulous!
Not necessarily , for the oil producing states or those employed by the oil production / products industry . :-(
Originally Posted by Astro14
My understanding is that only a certain percentage of a barrel of oil can be made into particular products. So, the market for each refined product, gasoline, diesel, Jet-A, lube oil, etc. is a market unto itself and there is disproportionately high demand for diesel, which is why it costs more than gasoline, even though the base product (crude) is the same and diesel requires less refining/processing.
I think a lot of gasoline is made by cracking heavier petroleum molecules ? If that is correct , then you may be only partially correct .
Petroleum refining has gotten pretty sysificated ( sp ) .
My understanding is that only a certain percentage of a barrel of oil can be made into particular products. So, the market for each refined product, gasoline, diesel, Jet-A, lube oil, etc. is a market unto itself and there is disproportionately high demand for diesel, which is why it costs more than gasoline, even though the base product (crude) is the same and diesel requires less refining/processing.
I think a lot of gasoline is made by cracking heavier petroleum molecules ? If that is correct , then you may be only partially correct .
Petroleum refining has gotten pretty sysificated ( sp ) .
Originally Posted by WyrTwister
Originally Posted by Astro14
My understanding is that only a certain percentage of a barrel of oil can be made into particular products. So, the market for each refined product, gasoline, diesel, Jet-A, lube oil, etc. is a market unto itself and there is disproportionately high demand for diesel, which is why it costs more than gasoline, even though the base product (crude) is the same and diesel requires less refining/processing.
I think a lot of gasoline is made by cracking heavier petroleum molecules ? If that is correct , then you may be only partially correct .
Petroleum refining has gotten pretty sysificated ( sp ) .
The refineries can change the outputs for some products. There's only so much they can do economically however.
Originally Posted by Astro14
My understanding is that only a certain percentage of a barrel of oil can be made into particular products. So, the market for each refined product, gasoline, diesel, Jet-A, lube oil, etc. is a market unto itself and there is disproportionately high demand for diesel, which is why it costs more than gasoline, even though the base product (crude) is the same and diesel requires less refining/processing.
I think a lot of gasoline is made by cracking heavier petroleum molecules ? If that is correct , then you may be only partially correct .
Petroleum refining has gotten pretty sysificated ( sp ) .
The refineries can change the outputs for some products. There's only so much they can do economically however.
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
There must be a flaw in this concept. What is it?
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Might be a good time to lock in heating oil purchase for next winter- fill up those tanks!
Originally Posted by doitmyself
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Competition. Gasoline delivery fights for fractions of a cent. Anytime another company can lower their bid they do.
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Competition. Gasoline delivery fights for fractions of a cent. Anytime another company can lower their bid they do.
Originally Posted by dareo
Originally Posted by doitmyself
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Competition. Gasoline delivery fights for fractions of a cent. Anytime another company can lower their bid they do.
Gasoline at the pump lags price drops a month or more around here.
There are still some stations over $2 so they definitely try to keep prices high but competitors don't allow it for long.
88 octane gas is under a $1.50 in Appleton
Originally Posted by doitmyself
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Competition. Gasoline delivery fights for fractions of a cent. Anytime another company can lower their bid they do.
Gasoline at the pump lags price drops a month or more around here.
There are still some stations over $2 so they definitely try to keep prices high but competitors don't allow it for long.
88 octane gas is under a $1.50 in Appleton
Originally Posted by loneryder
2.40 here in SW FL.
$1.85 for regular here in Central Florida
Diesel hasn't fallen so fast though, still hanging in there around $2.19
2.40 here in SW FL.
$1.85 for regular here in Central Florida
Diesel hasn't fallen so fast though, still hanging in there around $2.19
Originally Posted by doitmyself
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Too many flaws to go into. But basically someone else hit it. I go to where ever the price is cheapest. Those that like a particular brand have bought into the marketing that various brands do. If they hold their prices high, then no one goes to that store and eventually they go out of business. If it's too low, everyone goes there and they lose money between what they pay for a barrel and what they sell. Fuel system problems due to the brand of gasoline you buy are actually quite rare. My cars usually died because the transmission went or the car rusted out or it blew a head gasket. None of it ever had to do with the fuel.
You also run into the problem like some countries where once you start to subsidize the cost of gas, you start getting riots when you try to remove them or increase them. There's no rioting here when gas prices go up or down because that just reflects the realities of the market.
Why can't the oil companies just lock their gasoline price at a certain level regardless of the cost of crude? Under the current circumstances, continual lowering of gas prices is not going to result in more demand. They would essentially be keeping their income at a certain level selling less gas at a higher profit margin.
There must be a flaw in this concept. What is it?
Too many flaws to go into. But basically someone else hit it. I go to where ever the price is cheapest. Those that like a particular brand have bought into the marketing that various brands do. If they hold their prices high, then no one goes to that store and eventually they go out of business. If it's too low, everyone goes there and they lose money between what they pay for a barrel and what they sell. Fuel system problems due to the brand of gasoline you buy are actually quite rare. My cars usually died because the transmission went or the car rusted out or it blew a head gasket. None of it ever had to do with the fuel.
You also run into the problem like some countries where once you start to subsidize the cost of gas, you start getting riots when you try to remove them or increase them. There's no rioting here when gas prices go up or down because that just reflects the realities of the market.
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