RV Fuel Issues & Prices - Post 'Em Here!

[Dick_A]

All other fuel threads will be automatically deleted. 🙂

[cekkk]

And the next week those figures are always revised and invariably to a worse number.

[LindsayRichards]

Looks like the hurricane is not going to increase fuel prices as it is not going to go into the present oil drilling or refining areas. Also, due to the long recession here and overseas, inventories are high. Experts are saying prices will continue to drop. Here in Florida, it is very, very wet, but is needed as we were behind in rainfall. Experts are folks who think they are experts. Every week, when the unemployment figures come out they are unexpected by the experts. Those experts do worse than a coin flip, so maybe the hurricane experts are wrong.

[cekkk]

00 BUCK wrote:
Hurricane reported now watch the dog and pony show as prices go up

Becharite.

[00_BUCK]

Hurricane reported now watch the dog and pony show as prices go up

[SRT]

Prices continue to very slowly drift downward. The highest price is now $3.69, down from $3.75. They are saying below $3.00 real soon now..:R

[koda55]

In Florida on I75 exit 285 at the Flying J gas was $3.05 and with the Pilot/ FlyingJ card paid $3.03 today.

[gene327]

Here in Liberty Mo, I bought diesel #2 for less than the price of regular unlead. I was amazed as this had not happened since the 1990s. Diesel was $2.98 and Gasoline was $3.04. At the Quick Trip

[DelCamper]

Actually world demand is dropping significantly. When Greece and Spain take dramatic economic cuts it reflects in oil demand. US demand has dropped 3 million bbls / day since 2008. China demand is dropping as Europe and the US buy less stuff from them. Conversely US production is way up.

[LindsayRichards]

Many of the OPEC nations are very mad a Saudi Arabia for over pumping their quota and reducing the price. Many think this is an attempt to lower fuel prices in an attempt to influence the upcoming elections. After the elections, then they will make their loses back. Oh Boy. Our defense against this is to use more of our own domestic oil. Additional oil produced here increases the world supply and reduces the price.

[DelCamper]

When crude oil was $150 a bbl I paid $4.30 / gallon which was a far cry from $3.20. That accounts for about $45 / bbl. Refining stocks (using a pure large refiner Valero) as an example) are not making big money. In their peak (outside of Katrina) they were $75 share and are about $23 presently.

I think the full effect of the drop in crude will not be felt for another six weeks assuming it sustains it's downward trend. These sudden drops are most likely geo-political with the world economy declining lowering demand. That kinda bumps the prices up and down. The good news is that new technology in crude oil production as an offshoot of fracking natural gas has the ability to dramatically increase US oil production. All of that oil trapped in shale rock can be harvested with this technology.

A bbl of oil is 42 gallons. $2 a gallon equals $84 per barrel just for crude. Refiners make 25 cents if lucky adding about $12 a bbl. Taxes are easily 40 cents gallon adding about $18 a bbl. The service station adds another 5 cents gallon for about $2 a bbl. Don't expect gasoline to be $2 a gallon until the price of crude drops to about $48 a bbl sustained.

[cekkk]

DelCamper, any thoughts as to why gas was roughly the same this trip when oil topped a hundred as when it neared 150/bbl?

And if world demand remains low or goes lower, do you see any reason why Jake's $2/gal, or that neighborhood, isn't in the offing? Best guesses welcome.

[Gale_Hawkins]

I just filled up at $3.06 locally and noticed diesel is only about 30 cents more. The difference has been running about 40 cents.

[DelCamper]

The crude oil is purchased by contract some time ago. In order for the refiners to lock in a price they do this. Many are not getting the lower price yet. As the contracts expire (and they vary regarding time but a month to three months is common) the cheaper oil comes into the system. Everyones contract does not expire at the same time so some cheap oil is getting in and it's increasing daily. The refiner that bought under the longest term ends up being unable to pass the cost on to the consumer towards the end. Conversely when it spikes the gas stations raise the price expecting an increased cost in the next shipment.

Refining is a feast or famine business. Upstream (exploration and production of crude oil) is a black hole with supply / demand options, puts and speculators all having an input. I don't know of anyone that truly understands it variables.

Yes it rises faster than it drops.

[jake2250]

Got fuel at Costco in Citrus Heights Ca, 3.64. Also, I read that fuel is just Below $80 a barrel,,,, Wasn't it @ $2.00 a gallon when it was that low??? Why are they still gigin us???

[AO_hitech]

It has come down here from 4.17 to 3.89. I am hoping the trend continues. It dropped 10 cents from morning to evening one day. Maybe we can get down to where it isn't quite so painfull.