What are you guys paying for gas?

[Derek44]

View attachment 222238

Is it though? I can't say I know anyone who is actively reducing their gas consumption. Most folks are still road tripping on the weekend. I'm watching multiple groups of friends and family travel across the south west in motorhomes on social media.

Everyone is complaining about the gas prices. Nobody I know is changing their behavior because of them.

And these are people that are pent up. Of course they’ll splurge. The people you are speaking of aren’t trying to operate business off what’s going on.

And that is put simply with zero judgement. I’m bringing up the inflation and sustainability of supply chains

 

[Derek44]

What happens when it costs more to transport a load of fuel to the end users that exceeds what the end users are willing and able to pay?
Rationing????
Thank you @wllm1313 and @BigHornRam for giving me the proper terminology.
Demand destruction right??

I just think we all need to mindful to the bigger picture

 

[Dave N]

Well they aren’t raisin everything! I’m not getting a 10% raise.

Hell, I'd take 1%!

 

[Derek44]

Whoa, that seems a bit extreme.

When what crashes? fuel, lumber?

I guess what you describe could happen but I see that as highly unlikely.
Suppliers and manufacturers don't make $ sitting on product so it's more likely they simply increase the price of a bag of chips, loaf of bread, can of coke, 2x4, etc.. and keep shipping.
High shipping costs will limit the distance some products can be shipped economically but there will still be a food at the grocery store.

At the end of the day consumers will pay for it all. They will keep paying the increases as we have seen in cars, lumber, fuel, etc..

I certainly do not see lumber being an issue as construction will slow down due to high interest rates which should bring down lumber costs, With demand dropping there will be more supply than usual.

And this is the exact thing I’m speaking to. You’re right. Construction will slow because it’s not feasible, travel will slow because it’s not feasible, how far do we have to blow up this balloon before it pops and buying groceries isn’t feasible.

As far fetched as it may seem and as uneducated as I am, I can still see the writing on the wall

 

[Tradewind]

Headlines today:
Major truckstop chains Loves and Pilot warning about imminent diesel shortages in the eastern half of the US
Might not get the demand destruction via price, you speak of. Just not enuf to go around

 

[Nick87]

As far fetched as it may seem and as uneducated as I am, I can still see the writing on the wall

Because you learned simple math in grade school.

 

[Derek44]

Because you learned simple math in grade school.

. Thanks!!! 2+2 only equals 6 if you have both 3s

 

[Deleted member 28227]

And this is the exact thing I’m speaking to. You’re right. Construction will slow because it’s not feasible, travel will slow because it’s not feasible, how far do we have to blow up this balloon before it pops and buying groceries isn’t feasible.

As far fetched as it may seem and as uneducated as I am, I can still see the writing on the wall

You’re exactly right, but as those things happen prices will slowly drop.

The real question is not whether prices will go down they will, but will it be because demand is destroyed or supply is increased.

Pro economy folks want supply to increase “drill baby drill”.

Climate change side wants permanent demand destruction, too costly to ship via truck so suddenly people start looking at trains again (that kind of thing).

 

[Derek44]

North central WA, my fleet pricing stayed solid for 3 days straight now at 5.46 for on road diesel. Consumer retail pump prices are showing 5.69 to 5.75 depending on which station.

 

[DouglasR]

i heard Fauci will be recommending a 2 week shelter in place order in order to flatten the curve on these fuel prices.

 

[DouglasR]

i heard Fauci T.Fauc will be recommending a 2 week shelter in place order in order to flatten the curve on these fuel prices.

 

[Stocker]

Right, really only 3 quarters of "loss", preceded by who knows how many good years, followed by steady upward profit for the next 5-6 quarters and resulting in 7 year record profits.

All on a commodity that we absolutely must have to function, controlled by a handful of players, and subsidized via bargain basement public lands leases.

If a company in that type of environment folds, I cant find where I'm supposed to be sympathetic.

If only there was a way to buy into some of those companies to be one of the “handful”………..

 

[BuzzH]

If only there was a way to buy into some of those companies to be one of the “handful”………..

I'm invested...you can quit worrying.

 

[BigHornRam]

You’re exactly right, but as those things happen prices will slowly drop.

The real question is not whether prices will go down they will, but will it be because demand is destroyed or supply is increased.

Pro economy folks want supply to increase “drill baby drill”.

Climate change side wants permanent demand destruction, too costly to ship via truck so suddenly people start looking at trains again (that kind of thing).

Or you can be like Warren and own both oil and trains!

 

[Stocker]

I'm invested...you can quit worrying.

 

[BuzzH]

View attachment 222275

You goddamn right...may as well get mine.

 

[BigHornRam]

You goddamn right...may as well get mine.

Sorry Greta. Buzz is dumping you to chase monopoly money. How dare he!

 

[Deleted member 28227]

@Derek44

"But any increase in diesel production is unlikely to be able to reverse the depletion of inventories fully and return them to pre-pandemic levels.

Prices will therefore have to continue rising until they begin to restrain consumption or the economy enters a cyclical downturn."

U.S. diesel shortages lift refining margins to a record

Global stocks of refined petroleum products have fallen to critically low levels as refineries prove unable to keep up with surging demand especially for the diesel-like fuels used in manufacturing and freight transportation.

www.reuters.com

 

[Derek44]

@Derek44

"But any increase in diesel production is unlikely to be able to reverse the depletion of inventories fully and return them to pre-pandemic levels.

Prices will therefore have to continue rising until they begin to restrain consumption or the economy enters a cyclical downturn."

U.S. diesel shortages lift refining margins to a record

Global stocks of refined petroleum products have fallen to critically low levels as refineries prove unable to keep up with surging demand especially for the diesel-like fuels used in manufacturing and freight transportation.

www.reuters.com

Interesting article. Thanks!!

 

[Deleted member 28227]

I'm invested...you can quit worrying.

Either directly or indirectly...

@BigHornRam

I've done this before with the AK permanent fund

I've highlighted the funds that I know off the top of my head are OG funds.

Michigan State Pension Fund

https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/Meeting/SMIB_Report_32422_web_ada_op_749896_7.pdf?rev=cddb98c5e1624196a05d0deec1e546a2

Here are the OG companies that are in the EnCap portfolio