RV Fuel Issues & Prices - Post 'Em Here!

[Dick_A]

All other fuel threads will be automatically deleted. 🙂

[SRT]

Yup, the price of gasoline is rising again. Just in time before the summer driving season. The speculators are alive and well.

[LindsayRichards]

Over 70% of the price of fuel is the price of oil. The world price of oil continues to go up. This is a world market and the world is recovering from the recession quicker than the US. Refinery operations and refinery stockpiles do affect the price of gasoline, but not nearly as much as worldwide oil prices. A bbl of oil is worth the same all over the world (with some small local variations due to ease or difficulty of refining). When the recent much heralded approval for exploration (not drilling) was made, there was also a continuation of the ban on domestic sources totaled 16.5 billion bbls of oil reserves. This would replace all of our imported oil for over 4 years and save Americans about $700,000,000,000 per year. Much of this oil could be in our fuel tanks within 3 years. This would also produce hundreds of thousands of jobs and go a long way towards reducing our balance of payments. Our oil crisis is a political one, not a supply one.

[bid_time]

AO_hitech wrote:
The price of oil will likely (can't predict the future, but...) come down. Not because of an increased supply as the current inflated price is not caused by a lack of supply vs demand. It is likely to come down because of the threat of an increased supply making speculators worried.

But yes, it was a clearly political.

I'm betting the price will only go up from here, and yes, I've put my money where my mouth is.

[AO_hitech]

The price of oil will likely (can't predict the future, but...) come down. Not because of an increased supply as the current inflated price is not caused by a lack of supply vs demand. It is likely to come down because of the threat of an increased supply making speculators worried.

But yes, it was a clearly political.

[Fezziwig]

AO_hitech wrote:
It looks like it will be drill, baby, drill, so the price should be coming down soon.

Not soon, because it takes several years to get to market, if the oil companies decide to drill. All the US does is let out oil leases to private companies (which are 60% foreign owned). "We" own no oil rigs.

The oil companies will be happy to buy leases at todays depressed prices and hold on, at low rents, until the price increases. They're not going to voluntarily pump and refine while prices are low.

Anyway, the available oil is only about 6 days supply for the US, and we will only get about 20% to our markets. About half will go to the Chinese. At low prices.

I think that this is just a low cost attempt by Obama to preempt a Republican issue for the fall. It's all politics. It will have no effect on our lives.

[AO_hitech]

It looks like it will be drill, baby, drill, so the price should be coming down soon.

[zackt06]

I want to say its about $3.30 here in good ol anchorage alaska!

[SRT]

The price per gallon dropped another 2¢. Funny thing, it was still 2¢ a gallon cheaper in the city 21 miles to our northeast up the lake.

[koda55]

Reading our local paper today they announced that many refineries are being shut down. They aren't making enough profit because of our cutting back and driving less due to the economy. YThey said there is an excess of gasoline right now. I guess supply and demand doesn't count here. Looks like many will have to curtail long distant vacation this year. Since it seems that the goverment wants to control everything else why not the oil companies.

[SRT]

Well, the price of gasoline has gone up another 6¢ a gallon to $2.85. If this keeps up, we won't be traveling very far this summer. Especially with the financial condition of this country. Grumble, grumble!! :M

Between Washington DC and the tree huggers we're in for a rough ride.

[LindsayRichards]

This is the way commodities markets work or all commodities and won't work the way you suggest. The US is a large player in the usage and a minor player in the production of energy. We could be ahuge producer, but are constrained by politics and pay huge prices as a result. Good article linked by Investors Business Daily below

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=521249

We have brought these high prices on ourselves and can ix them whenever we want.

[AO_hitech]

LindsayRichards wrote:
The person who holds the time sensitive futures fuel contract is required to take delivery. If you have a May contract you must take delivery in May or sell it. The can get sold many times between purchase and sale. Works like this all over the world.

Exactly the problem.

[LindsayRichards]

The person who holds the time sensitive futures fuel contract is required to take delivery. If you have a May contract you must take delivery in May or sell it The can get sold many times between purchase and sale. Works like this all over the world.

[AO_hitech]

ronharmless wrote:
You don't know a whole lot about commodities market do you. When you buy, you do take delivery, unless you sell it before the delivery date.

There you go, you made my point for me. If they required you to take delivery of everything you purchased (NO SPECULATION) then the price would be MUCH less.

[SRT]

koda55 wrote:
I was reading a couple articles and all say they expect gas to increase to around the $3.25 price range this summer. I figure diesel will be around $3.65 Looks like everything will be going up.

I think it is really amazing that with this country in the financial doldrums, that the price of fuel will go up. Really puts the screws to the people out of work or "under employed." Obviously there are other forces at work here......:E :R