What are you guys paying for gas?
- Thread starter Nick87
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Southern Elk
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California's $6 gas could spread nationwide, JPMorgan warns
The average price for gasoline in California hit $6 a gallon Tuesday for the first time -- and analysts at JPMorgan are warning that price could be the national average before the end of the summer.
www.cnn.com
rick19Kilo
Member
$5.30 for 87
over $6 for diesel
over $6 for diesel
SAJ-99
Well-known member
"The markets are telling us there's a shortage," Jim Mitchell, Refinitiv's head of Americas oil analysts, told Insider. "This is a tailwind for inflation. We're demanding more diesel than anyone can supply."I imagine that demand for some types of fuel are very elastic while others are fairly inelastic.
For instance jet fuel, there aren't a ton of "necessary" reasons to fly especially post Covid. While at the same time people need to get groceries and go to work. I think peak pandemic flights were down 85-95% while gasoline usage was down ~40%, though that only lasted for a few weeks.
So I imagine that "$6" gas is a bit of a metaphor for the upper limit.
I found round trip tickets from Denver to Boston last year for $250, I just paid $800 for one... I've got to imagine that changes some folks plans.
Also I don't think that percentage wise demand has to drop all that much to cause prices to drop, the average for 2020- early 2021 was ~15% below normal. So something like a 5% reduction likely get's us back in the reasonable price range.
Which is also the reason I think companies are a bit hesitant to ramp up production too much, it takes a while to go from drilling to pump so if you ramp up 40% and then by the time your gas get's to market demand has dropped 5% you could be looking at $45 oil again.
Also
Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65 | OilPrice.com
Lack of internal support for a full EU embargo on Russian crude oil may take out one of the key fear factors for oil, which may send prices crashing back to $65 per barreloilprice.com
If you think gas prices are bad, diesel is in its worst crisis since the 1970s and has even raised fears of localized rationing
"The markets are telling us there's a shortage. This is a tailwind for inflation. We're demanding more diesel than anyone can supply."
markets.businessinsider.com
I remember the chorus of calls in 2007-2008 to build more refineries...and nothing got built. Rinse and repeat, I guess.
Redmt
Well-known member
Diesel $6.69 and regular $5.89 at Chevron 132 and Hart in Modesto CA. Diesel $6.19 at cheapo station 1/2 mi away. Gouging? Nah, just fair market pricing.
GoGriz
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BigHornRam
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I remember Brian Schweitzer on 60 Minutes telling everyone how we could make diesel from Montana coal. That idea didn't go any where either."The markets are telling us there's a shortage," Jim Mitchell, Refinitiv's head of Americas oil analysts, told Insider. "This is a tailwind for inflation. We're demanding more diesel than anyone can supply."
If you think gas prices are bad, diesel is in its worst crisis since the 1970s and has even raised fears of localized rationing
"The markets are telling us there's a shortage. This is a tailwind for inflation. We're demanding more diesel than anyone can supply."
I remember the chorus of calls in 2007-2008 to build more refineries...and nothing got built. Rinse and repeat, I guess.
SAJ-99
Well-known member
It’s possible. Just like it’s possible to make diesel from plastic. What is possible and what is realistic are rarely the same thing.
EYJONAS!
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275 bucks to fill up. Had to run my card twice. Wonder how many campers will be for sale this summer that got bought 2 years ago.
Makes me hinder my jet boat dreams when you average 1.8 to 2.7 miles per gallon
Makes me hinder my jet boat dreams when you average 1.8 to 2.7 miles per gallon
Nick87
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Son of a bitch
EYJONAS!
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Don't worry I'm still buying one
Nick87
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Yup your just like me don't let logic get in your way. When there's a will there's a way.
Southern Elk
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Has anyone cut back on their driving? That’s the only thing that will stop the prices from rising.
EYJONAS!
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Yes we have with work considerably.
Nick87
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Yah, people will shop online more maybe. Oh wait they use diesel to deliver that. The only place your able to really cut back is recreational. People still have to go to work, kids gotta go to school, gotta grocery shop.
EYJONAS!
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These freight companies are completely asinine. We got a freight quote from a guy to deliver us some equipment (atv sized creates) not drive on.
6500 bucks from Minneapolis to Billings, half a trailer load AND THAT WAS A SPLIT COST. The full load to Montana was 13k
.Needless to say he didn't get the job
BigHornRam
Well-known member
Either the process wasn't economical, or no one wanted to make the investment. Haven't heard any renewed interest since the price of diesel has blown up.
Montana Governor wants to turn coal into a liquid diesel fuel
Anyone channel surfing last night that happened upon 60 Minutes might have recognized a familiar face: Montana Governor Brian Schweitzer. Last month, Grist published a story about Schweitzer, who is now promoting his latest big idea: turning Montana coal into a liquid diesel fuel. It's not...
grist.org
Can't. 100 miles round trip for work daily. I buy groceries 2 miles from work and find the cheapest gas between here and there. Never really did much extra beyond that.
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