Three Buck Diesel is Here Now

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Bob Zambenini

Well-known member
Joined
Mar 4, 2005
Posts
270
Location
Orange County California
Had to make a run up to LA area this AM and coming back, at my favorite Arco, they had Diesel at $3.09 and that was not enough. A few blocks at a Union Station it was $3.16.

I see the highest at Flying J is $2.92 but will probably hit $3 in a day or two.

It is said to be a short term spike due to local refinery problem . We hope so!

Bob
 

fredethomas

Moderator Emeritus
Joined
Mar 2, 2005
Posts
420
Location
SIERRA VISTA, AZ or on the road.
I think we are stuck with $3 dollars a gallon.  There is 85 million barrels of oil a day being pumped and 84 million being used.  Any event - anywhere is the world is going to create suspected or a real shortage.  I think the Iraq war - with all the ocean shipping, the support and war vehicles and added aircraft hours - are using a great deal more than peace time usage.

What we saw in the northeast corner of Utah this year was every well pumping.  All through the desert area there is tank truck after tank truck moving oil - even Sundays those gravel desert roads were lined with trucks  I bet by years end oil will be $70 a barrel.  The New York oil brokers are making a fortune - that is where the price is set.

 

BruceinFL

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Joined
Mar 12, 2005
Posts
3,205
You poor left coasters. I just paid 2.179 at the Flying J on I24 in Kentucky. ;D
 

Jim Dick

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Joined
Feb 11, 2005
Posts
7,651
Location
Titusville, FL
BruceinFL said:
You poor left coasters. I just paid 2.179 at the Flying J on I24 in Kentucky. ;D

Bruce,

It's anywhere between $2.47 and $2.59 in CT. It's amazing that the cheapest fuel to refine is now, in many cases, the most expensive to buy. There's more to this than just the world situation.  :mad:

 

Phil

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Joined
Mar 5, 2005
Posts
982
Jim Dick said:
It's amazing that the cheapest fuel to refine is now, in many cases, the most expensive to buy. There's more to this than just the world situation.  :mad:

Jim,

Diesel is not quite as cheap to refine now that the United States has adopted the low sulphur requirement that the rest of the world has had for a while. 

More "good" news is an announcement in the local paper today about a jet fuel shortage.  Looks like we may get to pay even higher prices for diesel in the future.  :mad:  It seems that the world demand for diesel fuel, jet fuel and heating oil has increased.

Phil
 

Jim Dick

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Joined
Feb 11, 2005
Posts
7,651
Location
Titusville, FL
Phil,

Maybe it isn't as cheap as it used to be but is it more than all the regular gas? I've seen it higher than the highest octane gas. I know different states tax fuel at a different rate but it still doesn't seem right.



 

Phil

Well-known member
Joined
Mar 5, 2005
Posts
982
Jim Dick said:
Maybe it isn't as cheap as it used to be but is it more than all the regular gas? I've seen it higher than the highest octane gas. I know different states tax fuel at a different rate but it still doesn't seem right.

Jim,

I don't know how much the new sulphur requirement increased cost of production but, I believe demand is a bigger part of the equation.  Here is some more "good" news that came out today.  :mad:

The oil price is being driven by a dramatic increase in demand from China, but America is also consuming heavily. Yesterday, the Energy Information Administration said US stockpiles of gasoline had dropped 2.1m barrels last week and are now 7.9m barrels lower than this time last year.

Phil
 

Jim Dick

Moderator Emeritus
Joined
Feb 11, 2005
Posts
7,651
Location
Titusville, FL
Phil,

The other scary thing is China wants to buy one of our oil companies. We have sold so much of America now there's little left. I'm afraid greed is going to sell us out completely!

 

blueblood

Well-known member
Joined
Mar 16, 2005
Posts
1,082
fredethomas said:
I think we are stuck with $3 dollars a gallon.? There is 85 million barrels of oil a day being pumped and 84 million being used.? Any event - anywhere is the world is going to create suspected or a real shortage.? ?I think the Iraq war - with all the ocean shipping, the support and war vehicles and added aircraft hours - are using a great deal more than peace time usage.

What we saw in the northeast corner of Utah this year was every well pumping.? All through the desert area there is tank truck after tank truck moving oil - even Sundays those gravel desert roads were lined with trucks? I bet by years end oil will be $70 a barrel.? The New York oil brokers are making a fortune - that is where the price is set.
 

The market us being driven by speculators not fundamentals. Fundamentals are very good and market price should be $20/barrel lower right now. The speculators are making lots of money  right now (like Internet stock guys in 90's) but the fundamentals will come into play as they all ways do and when they do it'll be hell to pay. The barrell price will drop dramatically. It's not too far off.
 
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