Good News!

[TObject]

U.S. oil prices tumble $3.64 to near $45.50 a barrel - biggest one-day drop in 3 years.

[Robert J. Yates]

Not to be a spoil sport but I fail to understand why that is good news. Gas prices make absolutely no sense and the price of oil does not seem to be relational.

For example, oil was at or above $50/bbl for months yet gas prices in my neighborhood are have been dropping and are at $2.10 which is down almost .35 in the past month alone. This makes no sense as the gasoline that is now being delivered should be some of the most expensive ever. Its even stranger when you think about last year when oil was at hovering at a now cheap $40/bbl, gas was in the $2.50 range.

Personally, I fail to see where the market competition is and basically think its a racket, almost a monopoly amongst a few big players - this is particularly true in refining and something I beleive to be happening in the oil futures market.

Oil and specifically gasoline should be declared a regulated utility IMO - our economy is basically structured on the premise of everyone needing to drive. As such, its no different than getting gas or electric into your house in my estimation. The inflation rate excludes core energy prices and as such, the true cost is not reflected in the value of your money.

[PK99TJ]

Dropping oil prices seem to rally markets, that's good news anyway.

[Iceman]

dang that's quite a reply Robert
But you're right in many ways -> there's so much out there that doesn't make sense or seem to be directly related to something it should be related to

Now let's make sure that diesel drops below 87 octane gas prices again ....... just like it used to be

[mrblaine]

Originally posted by Iceman
dang that's quite a reply Robert
But you're right in many ways -> there's so much out there that doesn't make sense or seem to be directly related to something it should be related to

Now let's make sure that diesel drops below 87 octane gas prices again ....... just like it used to be

You do know the curse of the genie, right? Something along the lines of being careful what you wish for, you may get it. When the genie grants your wish for a new car by killing your father so you inherit his car.

Diesel won't drop, they'll just raise the prices of gasoline to be higher like they've done here.

Yes, I paid less than 87 octane, but, it was still 2.29 a gallon.

[Iceman]

Originally posted by mrblaine
Diesel won't drop, they'll just raise the prices of gasoline to be higher like they've done here.

don't tell the oil companies that they can fulfil my wish that way

[Chris L]

The price of diesel is utterly rediculous. I was lucky to pay 2.19 a gallon yesterday. I have not been able to find it for less than 2.39 a gallon in the past few weeks.

[igofshn]

$2.39 up here in the big Valley. Been that way for about 3 months. Can't remember the last time it changed other than going up.

[Jeff Weston]

Well, after the price of natural gas for my vehicle jumped from $1.49 to $1.80 on November 1st, I'm happy to see that it dropped down to $1.62 today. The price only changes once a month but it can be a a shock. I'm back to $8 fill-ups again.

[Robert J. Yates]

Here is a quote I picked up today that ought to warm everyones heart for paying 2 bucks a gallon

"After a pullback in U.S. crude-oil inventories in August, as refined products built, and the hurricane effects of September, oil stocks have resumed their upward course. This confirms industry data showing that supply has exceeded demand all year. Year to date, DOE data show that crude-oil inventories held by industry rose by 19 million barrels. Inventories rose in each of the past six weeks, by a total of 20.2 million barrels, as hurricane recovery began. In addition, the U.S.-government-held Strategic Petroleum Reserve has increased by 33.3 million barrels so far this year, with other reserves worldwide also in well-built positions.

The recent retreat in oil prices reflects only a small pinhole in the oil bubble. Fundamentally, oil prices should be in the high $20-a-barrel range today, based on supply/demand economics and current inventory levels. Eventually, the barrel price should decline to the low $20s as oil inventories continue to build. The oil price still reflects about $15 a barrel of speculation"

I took this verbatim out of the National Review.

[Jeff Weston]

Why is it that I haven't invested in oil companies? Despite their crying wolf about prices of crude, etc., they continually seem to be making record profits ... but they are not gouging or artificially inflating prices.

[Iceman]

my prediction/wish came through -> the diesel price in Alpine is lower than the 87 octane gas
Diesel is now at $1.86 ......

[Chris L]

I payed $2.05 yesterday, which is a screaming deal around here.