Oil and Water

downtheroad wrote:
Am I getting this wrong?

Oil is trading around $26 per barrel right now.
Doesn't that make it cheaper than a gallon of drinking water from the store?

It would seem so, at $26 a barrel even if only a 42 gallon barrel, that is $0.62 a gallon!

Maybe all the states should start repaving all the poor asphalt roads!!! Should be cheap now!

Actually the drum the oil is in cost more than the oil that is in it!

downtheroad wrote:
Am I getting this wrong?

Oil is trading around $26 per barrel right now.
Doesn't that make it cheaper than a gallon of drinking water from the store?

Yeah, there are a lot of suckers out there that pay way too much for water. If they stuck an empty milk jug unter their kitchen tap they'd get the same thing for a couple cents.

Sport45 wrote:

Yeah, there are a lot of suckers out there that pay way too much for water. If they stuck an empty milk jug unter their kitchen tap they'd get the same thing for a couple cents.

Not in Flint Michigan.....:E

Am I getting this wrong?

Oil is trading around $26 per barrel right now.
Doesn't that make it cheaper than a gallon of drinking water from the store?

Yes, your price comparison is wrong. Retail packaged potable water verses unrefined crude oil sold on the wholesale market.

1. That $26 per barrel of oil is a measurement of crude oil.
It is not actually packaged in 42 Gal drums (barrels).

2. Crude oil is not sold on the retail market like the gallon of
water you are comparing the price to. There is absolutely no
retail consumer demand for crude oil.

Just a question I thought of: When crude oil was $90+ a barrel a quart of 10-40W was around $4.00. Now with crude at less than $25 the quart is still the same price. Any idea why?

3oaks wrote:
Am I getting this wrong?
Oil is trading around $26 per barrel right now.
Doesn't that make it cheaper than a gallon of drinking water from the store?

Yup oil it traded on the stock market.

I hope all those Wall Street boys loose the shirts off their backs right now that it is at a record low. To pay for when it was traded so high people couldn't afford the gas to go to work.

They need to get crude oil off the stock market.

Marine By Choice wrote:
Just a question I thought of: When crude oil was $90+ a barrel a quart of 10-40W was around $4.00. Now with crude at less than $25 the quart is still the same price. Any idea why?

Part of the answer is that at the time they bought the crude oil to make the 10-W40 sitting on the shelf today, it was selling for a lot more $90/barrel. Also the cost of the crude oil is only part of the price of the oil on the shelf. You also have to factor in the cost to refine it, package it, ship it, etc. Most of those costs haven't changed.

rockhillmanor wrote:
... They need to get crude oil off the stock market.

Ain't that the truth.