That is insane.

Interesting that you should say this because I've been noticing more Hummer H2s on the roads around here lately. Maybe people who parked them when gas prices spiked up are now dragging them out and using them again. You'd think they would be embarrased to be seen in one of those things now.

I go to an ARCO station near the house and I paid $2.35 a gallon on Monday, plus the 35 cents surcharge (1-1/2 penny per gallon). That'd make it $2.365 a gallon.

I could have gone to the shell station across the street and paid $2.74 for the exact same gas, made by the same refinery, but without the 35 cent surcharge.

$2.365 vs $2.74 ..... dunno that's a toughie.

Yet there were cars pulling into that shell station willing to pay 40 cents a gallon more for the exact same stuff. I doan get it.

You get what you pay for ....

Only in the bay area would people be "embarrassed" over something like that.

It's a friggin tahoe.

Sammy, is the higher price of diesel mainly due to the cost of the whole USL thing? a buddy of mine that works for Hess, said its a big factor. Just wanted your take on it.

Sales of hybrid cars are down significantly, sales of full size pickups and SUVs are up significantly. The usual thing we see when gasoline prices fall sharply. A lot of consumers make 5-8 year decisions under the assumption that present conditions will continue forever.

Realistically, the odds that oil will stay at $50 for over a year are, I think, low. The US shale production will start drying up by late 2015 unless US producers drill a lot of new wells now, and they aren't doing so.

Why would they drill them? They need $70 oil for them to pay. They know where the oil is and can wait. The drillers are the ones losing out.

Agreed.

Plus, the producers were complaining about rising drilling costs and wages, so they'd like to see that come down too. The bigger producers would also like to buy down smaller distressed producers.

At some point, oil traders will see declining US production and, unless demand is collapsing, will start bidding oil prices up.

Regular is now $1.75. What tickles me is that E85 is now sitting at $2.15.

Unfortunately, these prices wont stay like this for ever. Only a matter of time before they shoot back up to where they were.

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I feel like hoarding gasoline like .22LR