Gas is gonna get cheap, sell your oil stocks!

[sammyg2]

Recently created over-capacity is taking it's toll, gas is going to get real cheap real soon. A whole bunch of new production is hitting the market, coupled with reduced demand is gonna drive the price down. Probably going to result in shutting down at least several refineries.
We may even see $1.50 a gallon by mid-winter. What's that going to do to the state governments who rely on all that sales tax?

If you have any oil refining stocks, you might want to re-evaluate your holdings.

if you have major oil company stocks they may take a hit but not as bad as the independents are getting hit and will continue to get hit for the next year or so.

Could get ugly.

[URY914]

Prices here are dropping daily

[NICKG]

as long as heating oil is under $1.95 a gallon i will be happy....gas can be 4 a gallon...its the heating oil that kills me in my home

[onewhippedpuppy]

Does that mean I should invest in SUVs?

[dd74]

....yeah, and unload the hybrid.

[Rick Lee]

Darn. Better sell the bike now.

[Rikao4]

so much for us drilling for our own...
gas is cheap..we don't need to drill

Rika

[strupgolf]

I've heard it before. There will be a way for the companies to keep prices high even though demand has fallen, and keeps falling. I cant understand it

[rnln]

how about investing in turbo engine

[m21sniper]

Strategically, it is in the long term best interests of the US to use up all the ME oil first.

In 50 years, these nations will all be coming to the US and Canada for their petroleum needs.

[Rikao4]

Canada may still be around...
the other..

Rika

[sammyg2]

Originally Posted by strupgolf

I've heard it before. There will be a way for the companies to keep prices high even though demand has fallen, and keeps falling. I cant understand it

The oil companies don't control the price. Take off your tin foil hat. If they did control the price do you really think they'd let it get to this point where they are losing money on every gallon produced?

If they lose too much money for too long they'll start shutting down refineries. That reduces supply to a certain extent and that is the only way they can influence price.

BTW they would only keep them shut down until prices rose back up to the break even level, then they'd start them back up. An idle refinery goes bad in a big hurry.

[Porsche-O-Phile]

So can we get rid of the g0dd@mn ethanol subsidies already?

[turbo6bar]

I read that supply is about 2 million barrels over demand and the storage facilities are packed. Tankers are being rented to hold the oversupply. When demand does not come back, barrel prices could plummet, especially as speculators do not hold the line.

Come on, deflation!!!

[nynor]

Originally Posted by sammyg2

Recently created over-capacity is taking it's toll, gas is going to get real cheap real soon. A whole bunch of new production is hitting the market, coupled with reduced demand is gonna drive the price down. Probably going to result in shutting down at least several refineries.
We may even see $1.50 a gallon by mid-winter. What's that going to do to the state governments who rely on all that sales tax?

If you have any oil refining stocks, you might want to re-evaluate your holdings.

if you have major oil company stocks they may take a hit but not as bad as the independents are getting hit and will continue to get hit for the next year or so.

Could get ugly.

prices don't affect the taxes, the taxes are built into the price of the fuel at the pump and don't go down with the price of fuel. around here, they were talking about taking advantage of the reduced price of gasoline and INCREASING the already ridiculous level of the taxes, already running at somewhere in the region of .55 per gallon.

[legion]

Nynor, not quite.

Most states tax gasoline twice. There is a gasoline tax AND a sales tax on every gallon. The sales tax is a percentage of the price--so when the price goes up, so do the sales tax receipts. The inverse is also true.

[nynor]

here in utah, there is no sales tax on gasoline, just the huge tax at the pump.

[legion]

Illinois double-taxes gasoline. I'd imagine California does as well.

[Joeaksa]

Originally Posted by Rikao4

so much for us drilling for our own...
gas is cheap..we don't need to drill

Rika

A very short sighted outlook.

We need to drill, and while doing so use their oil. In 5-10 years or whenever things change start using our oil at our rates and let them wonder what happened.

[nynor]

i think rika was being sarcastic.

the fact is that we do need to start tapping our own resources, of which we have plenty, and stop padding the bank accounts of those that have sworn to destroy us.