Gasoline price question....

[DiazDude]

According to Bloomberg..crude is at 64.55/bbl as of 9am today and Gas is roughly $2.50/gal.

My question is what was the price of gas the last time crude was this low? Are we paying more now than we should be based on the current cost of crude?

[HurricaneJesus]

I wouldn't worry about it and just enjoy our current respite. OPEC has been talking about cutting supply so the price of a barrel will be back up before you know it.

[jtm622]

Remember, oil is sold on the commodities market for "future" delivery... Also, refining costs comprise a major part of what a gallon of gasoline sells for - along with taxes, of course.
Moreover, the price of oil could drop to $0 per bbl, while the costs to refine that bbl of oil into "end" products could actually rise due to inflation and other economic factors; i.e., a 50% drop in the price of oil TODAY does not necessarily mean that the price of a gallon gasoline will cost what it did when oil was selling for 50% of today's price...

[BIGGERSTAFF]

I wouldn't worry about it and just enjoy our current respite. OPEC has been talking about cutting supply so the price of a barrel will be back up before you know it.

OPEC did cut production, and the prices still went down.

[The_Whale]

According to Bloomberg..crude is at 64.55/bbl as of 9am today and Gas is roughly $2.50/gal.

My question is what was the price of gas the last time crude was this low? Are we paying more now than we should be based on the current cost of crude?

in July 2007 crude was about what it is now and the average price of gas was 3.11.

But there is no price "we should be paying", crude oil and gasoline are two different products with different supply/demand curves.

[HurricaneJesus]

OPEC did cut production, and the prices still went down.

Really? Guess I haven't read the journal since last week and they were still chin-wagging about it at that point.
Interesting. Hope it stays this way for a little while, though....might actually make it through the holidays with some money in my pocket.

[Blue Fin]

We're being screwed as usual by the oil people...just accept it because there's nothing we can do other than stop using it.

[The_Whale]

OPEC did cut production, and the prices still went down.


OPEC lowered the quotas for its member producers, but that doesn't mean those countries have lowered production yet; many will cheat and non-OPEC producers can may take up the slack.

Actual production probably will not fall much, if at all. Unless of course, the price of crude really falls (to like say $20 a barrell).

The price in the near future will depend on how much gasoline we consume, if we keep our consumption low like we have been recently, the price of crude can get pretty low.

But I would count on us to start consuming more now that the price has come down. You know the way we are.....

[Barefoot]

Aren't we buying fuel made from higher priced crude from a few months ago.

It's going down.

Best way to keep it down is to drill everywhere immediately.

Work for alternatives but take as much control away from OPEC as possible until economically reasonable alternatives are a reality.




....remember just a few months ago how many eco nazis thought high crude/fuel prices were a wonderful thing 'cause the evil USA was using too much crude.....