Why is gas so cheap?

[Shaun @ Tru6]

Paying $3.29 for regular, $3.65 for 93.

Would think that with the Middle East in turmoil, we'd be at $4/gallon for 87.

[gr8fl4porsche]

$2.99 here for the cheap stuff.

[WolfeMacleod]

Pththt. We're just starting to get below $4/gal here in Seattle again.

[porsche4life]

3.07 here in the valley of the sun! I ain't complaining!

[Tobra]

Election in November

[sammyg2]

Originally Posted by Shaun 84 Targa

Paying $3.29 for regular, $3.65 for 93.

Would think that with the Middle East in turmoil, we'd be at $4/gallon for 87.

That's still allot of money, but the price of oil is lowwer than it has been in quite a while.
Last i checked it was $92 bbl WTI which is way off what it's been recently. Bout $10 lower than last year.

On top of that the demand for gasoline has remained level or dropped slightly and the supply is strong, so prices are falling.

It has nothing to do with politics unless we're talking taxes.

U.S. Energy Information Administration (EIA)

[widgeon13]

Originally Posted by tobra

election in november

+1

[ossiblue]

Don't get too excited. It won't be long before you'll see refinery closures for "seasonal maintenance", "winter fuel conversion," "pipeline problem," or unexplained "accident/fire" which will cause a temporary shortage and a price increase. At least that seems to be the pattern here in Ca.

[sammyg2]

Originally Posted by ossiblue

Don't get too excited. It won't be long before you'll see refinery closures for "seasonal maintenance", "winter fuel conversion," "pipeline problem," or unexplained "accident/fire" which will cause a temporary shortage and a price increase. At least that seems to be the pattern here in Ca.

Instead of making up foolish conspiracies, just ask.

Refineries do scheduled maintenance. Every operating unit has to be overhauled to replace thin piping, work out machinery, etc. That interval can be from 18 months (catalyst regeneration in a platinum reformer unit) to 5 or 6 years for a fluild catalytic cracking unit. The cost can get over $120 million each.

They do that to prevent explosions and fires. It is the safest manufacturing industry in the US now, but wasn't always that way.

The planning for an outage such as this takes at least two years to fully plan and prepare for.

They almost always take place in the winter months when demand is lowest in order to have the least impact possible on the market.
To do otherwise would probably land someone in prison.

The gubmint knows when these turnarounds are planned well in advance.

The only manipulation that goes on is to make sure than too many refineries are not down at the same time.
This is the most closely regulated industry there is outside hte nuclear generating industry.

The gubmint is inside the refineries every single day, watching. Making sure there is no funny biddness. Otherwise someone goes to prison.

So loosen up the tin foil hat, refineries DO NOT and CANNOT manipulate the market in the US.


Oh and the switch from winter to summer blends? Not our idea, we think it's a waste of time.
But the gubmint MANDATES IT. They say we gotta do it so we do it. And yes it can disurupt the supply temporarily. Thank sacramento for that.

[VINMAN]

Under $3.00 around here.
Unfortunately, the marinas havent come down at all with their prices.

[pksystems]

$1.15/L here for Reg. It's gone down 4cents in the past couple weeks.

[beepbeep]

is it? 7.73$ a gallon here...

[Tobra]

It is not the refineries manipulating anything that I am talking about Sam. The government can affect when these changes take effect, n'est pas?

[wildthing]

Supply: US now producing more than ever. If I'm not mistaken, US is also exporting.

Demand: China slowing down.

Floor: As I understand it, if it goes below a certain price per barrel it is no longer worthwhile for companies to produce. I just don't know what that floor is, but it has to stop at some point.

[intakexhaust]

Who's calling it cheap? Its not the commodity, its a taxes jack.

[Embraer]

i pay $7.49 a gallon for leaded 112 octane.

[kidrock]

you know our situation must be pretty dire when we start considering $3.00 per gallon as "inexpensive". Big Oil and the U.S. Government know exactly how to play their sheep.

[Ferraripete]

Originally Posted by Tobra

Election in November

nah....that goes up as a talking point for the right.

[intakexhaust]

Originally Posted by kidrock

you know our situation must be pretty dire when we start considering $3.00 per gallon as "inexpensive". Big Oil and the U.S. Government know exactly how to play their sheep.

+1
The cooperation of big oil and gov. is pathetic. Gov. loses billions in tax rev' if the retail cost drops. They don't want to lose sight of that revenue, now would they?


Its really interesting to see as the mid-east is in a most volatile situation, the Russia and Ukraine conflict and that the US can hold their breath on domestic fuel retail cost. Normally we'd see price hikes.

To me its a cautionary price arrangement with Big Oil and USA, Inc. Call it skidish... the reason its slightly lower is the economy is more fragile than the sheep know. We can ride the Ponzi scheme markets but its only a matter of time and how long. When the day comes of stock sell off, the middle class is way beyond their means and will be crushed. Its also why they didn't raise borrowing rates last week.

[mattdavis11]

Originally Posted by intakexhaust

+1
The cooperation of big oil and gov. is pathetic. Gov. loses billions in tax rev' if the retail cost drops. They don't want to lose sight of that revenue, now would they?

Taxes are levied against the gallon, not the total cost to the consumer. So it doesn't matter what the price is, they still get $.xx cents per gallon. Right now the federal gasoline tax is 18.4 cents per gallon. Diesel is 24.4. State and local taxes vary, but they also are levied by the gallon.

Paid $2.95 9/10ths this afternoon.

Now if you are talking corporate taxes, that is different.