View Full Version : Oil is at $78/barrel today
...last time it was selling for that, the national average cost of gas was $2.87/gallon. Today it's at $3.35. I'm sure gas stations will be sure to drop the price down accordingly first thing tomorrow...
micah360
10-10-2008, 15:24
hope so... I'm running on E....
Me too!
http://i118.photobucket.com/albums/o86/Atrain_dlp/2600070328_2a1b018d67.jpg
Look for some kind of disruption to get it higher
http://i118.photobucket.com/albums/o86/Atrain_dlp/34b4e892144a448601b70d870017890b-1.gif
Well even the Saudi's say that Oil should be around $60-70 a barrel. Hopefully it will hang around this price, this unto itself will go a very long way towards stabilizing the markets.
...last time it was selling for that, the national average cost of gas was $2.87/gallon. Today it's at $3.35. I'm sure gas stations will be sure to drop the price down accordingly first thing tomorrow...
but you have to look at the big picture for the prices to come down. they will eventually, but that price you are looking at (78 a barrel) is for crude oil. some of this might not even be on US shores yet let alone shipped to a refinery, then put in a tanker truck and driven to your local gas station, where they are still selling the gas they have from a week ago at those prices. Once they get the new gas, then they drop the prices accordingly.
Right now we are probably using gas at the $110/barrel, maybe $100 a barrel price.
Every day i watch the prices drop a few cents. I don't have to drive much so i am just sitting on a 1/4 tank for at least over the weekend if not until mid-week and then i will maybe get a 1/2 tank or so.
as long as the crude prices keep dropping, the price at the pump will follow. Just give it time and it will be down to $2.50 a gallon roughly.
it is already 2.70 in minnesota.
There are places in pueblo it is at 2.92
I am just hoping it gets to $2 a gallon or less. then I would be somewhat satisfied, although I would really like to see it get to $1.50, but i don't think that will happen again. you never know, but price would have to drop significantly more for that to be a possibility.
2.66 in Guernsey and Wheatland Wyoming this week.
If you can drive on crude, then you should be paying less. Since we've still not added any refinery capacity and had interruptions with a couple of hurricanes, you can't directly correlate the price of oil to the price at the pump.
Ask the folks in the SE why they've had difficulty even finding gas.
Great-Kazoo
10-10-2008, 23:11
Look for some kind of disruption to get it higher
russian oil interest might do something to disrupt oil flow from the mid-east. they have a major part of thier economy riding on high oil export prices to the EU. lower bbl price means they get hit very hard monetarily
Riiiiiight....
Thats the oil companies B.S. sales pitch. Remember these are the same oil companies who are recording record breaking profits in the BILLIONS of dollars. We aren't talking GROSS income, We're talking PROFIT.
The oil companies tell us that when we see the price of a barrel of oil go up today on the world market, they raise the price at the pumps the very next day. They say that so they can cover the new/higher price of oil....
So when we fill up the next day gas prices at the pump jumped 40 cents a gallon. We're now paying for the higher priced oil, yet that gas we're pumping was from say 75.00 a barrel oil.
It then stands to reason, when the price of a barrel of oil drops, the price of gas at the pump should drop the following day, because that "future" barrel of oil is only going to cost 75.00 bucks a barrel. Based on the Oil Companies logic for raising the price at the pump when crude prices rise.
But we see that it doesn't. Why, cause the oil companies will cite the same reason as you do below; "We're still pumping gas from 100.00 a barrel oil"...
HOLD ON HERE....
See my first point.... They already started charging us for the new price of oil even when we were pumping the cheaper price and now they continue to charge the higher price for days after the price of crude has dropped... Isn't that double dipping?!?!?!?!?!
Freakin' GREAT business model!!!!
If they weren't breakin' profit records in the BILLIONS, I might buy in to it, but NO WAY......
BTW, no offense to you....this is a very hot topic for me.....
but you have to look at the big picture for the prices to come down. they will eventually, but that price you are looking at (78 a barrel) is for crude oil. some of this might not even be on US shores yet let alone shipped to a refinery, then put in a tanker truck and driven to your local gas station, where they are still selling the gas they have from a week ago at those prices. Once they get the new gas, then they drop the prices accordingly.
Right now we are probably using gas at the $110/barrel, maybe $100 a barrel price.
Every day i watch the prices drop a few cents. I don't have to drive much so i am just sitting on a 1/4 tank for at least over the weekend if not until mid-week and then i will maybe get a 1/2 tank or so.
as long as the crude prices keep dropping, the price at the pump will follow. Just give it time and it will be down to $2.50 a gallon roughly.
it is already 2.70 in minnesota.
There are places in pueblo it is at 2.92
I am just hoping it gets to $2 a gallon or less. then I would be somewhat satisfied, although I would really like to see it get to $1.50, but i don't think that will happen again. you never know, but price would have to drop significantly more for that to be a possibility.
Evil Capitalist! Obama will fix their wagon! Billions in profits , pass to share holders and taxes. After Oil pays for taxes, the Feds, State and local governments make .47 cents on a gallon, which they do nothing to earn it. The tax is to improve roads ect... I thought income taxes did that? Oh no Fed income taxes do no more than pay the interest on the trillions borrowed from the Federal Reserve.
Not to worry the Government will soon annex the oil industry and run it like, humm public housing, schools & all the other things they've missed managed.
The storm is here and it's going to "CHANGE" this country.
Basic math I buy wigits for $5 and then sell them for $10. If whole sale prices drop, I will still try to get my profit in my wigits in inventory. So my wigits come from Oz. My dollars have gotten weaker than the OZ currency, so it takes more dollars to buy my wigits. I will pass this on to the consumer. The market doesn't reflect lower wholesale pricing over night. Oh and I sell wigits to make money. So if my wigits do not reflect a fair market value, demand slows down and I adjust my pricing or get bail out by Uncle Sugar.
The Feds stole almost a trillion yet I did not hear much belly aching. WAKE UP YOUR COUNTRY IS BEING STOLEN FROM YOU.
theGinsue
10-11-2008, 10:05
Now you've gone and done it, somebody kicked ssf's cot and woke him up.
Now you've gone and done it, somebody kicked ssf's cot and woke him up.
I thought someone made him a thread for times like this?
[Poke] [LOL]
Their profits are in billions. Have you taken the time to figure out what their costs in providing the product, including taxes, costs them? For any business you have to look at their profit margins. The oil industry has profit margins that are far below many other industries. Look beyond the big number on the news to find the real answers.
Profits in gasoline are so low that Shell is selling off its gas stations. Gas stations make more money selling a 'Big Gulp' than they do selling gas. If you want to get outraged about the high price of gas, don't focus on the 4 cents in profit for the oil company, pay attention to the 40 cents being taken in taxes. Government is far more guilty of raping us at the pump than the oil companies that we need to keep us on the move.
Their profits are in billions. Have you taken the time to figure out what their costs in providing the product, including taxes, costs them? For any business you have to look at their profit margins. The oil industry has profit margins that are far below many other industries. Look beyond the big number on the news to find the real answers.
Profits in gasoline are so low that Shell is selling off its gas stations. Gas stations make more money selling a 'Big Gulp' than they do selling gas. If you want to get outraged about the high price of gas, don't focus on the 4 cents in profit for the oil company, pay attention to the 40 cents being taken in taxes. Government is far more guilty of raping us at the pump than the oil companies that we need to keep us on the move.
Profit margin is 7% Microsoft 29% Federal Government 100%
StagLefty
10-11-2008, 11:53
Evil Capitalist! Obama will fix their wagon! Billions in profits , pass to share holders and taxes. After Oil pays for taxes, the Feds, State and local governments make .47 cents on a gallon, which they do nothing to earn it. The tax is to improve roads ect... I thought income taxes did that? Oh no Fed income taxes do no more than pay the interest on the trillions borrowed from the Federal Reserve.
Not to worry the Government will soon annex the oil industry and run it like, humm public housing, schools & all the other things they've missed managed.
The storm is here and it's going to "CHANGE" this country.
Basic math I buy wigits for $5 and then sell them for $10. If whole sale prices drop, I will still try to get my profit in my wigits in inventory. So my wigits come from Oz. My dollars have gotten weaker than the OZ currency, so it takes more dollars to buy my wigits. I will pass this on to the consumer. The market doesn't reflect lower wholesale pricing over night. Oh and I sell wigits to make money. So if my wigits do not reflect a fair market value, demand slows down and I adjust my pricing or get bail out by Uncle Sugar.
The Feds stole almost a trillion yet I did not hear much belly aching. WAKE UP YOUR COUNTRY IS BEING STOLEN FROM YOU.
Please post a pic of a wigit so I can better understand just what it or they are.Thanks. [ROFL1]
Their profits are in billions. Have you taken the time to figure out what their costs in providing the product, including taxes, costs them? For any business you have to look at their profit margins. The oil industry has profit margins that are far below many other industries. Look beyond the big number on the news to find the real answers.
Profits in gasoline are so low that Shell is selling off its gas stations. Gas stations make more money selling a 'Big Gulp' than they do selling gas. If you want to get outraged about the high price of gas, don't focus on the 4 cents in profit for the oil company, pay attention to the 40 cents being taken in taxes. Government is far more guilty of raping us at the pump than the oil companies that we need to keep us on the move.
yep. if you talk to the owner of a gas station, they don't own it to really sell gas. that is to get the customers in there. they make a lot more money of the sodas and the candy and chips and condoms than they do from a tank of gas in your car. If gas is at 3.00 a gallon, they are probably buying that at around 2.80. then to factor in the maintenance, cost of employees, rent/lease etc, that isn't much. but for a single candy bar they easily profit .75 when they sell it for a dollar. You get an even bigger profit margin off selling fountain drinks. the syrup is mixed with the carbonated water, and makes a ton of pop. I would say it would cost them maybe .05 per 12oz of soda.
As far the the reply to my post, no offense taken. And you can bet they will double dip where they can, but what happens is the market sees fear and they raise the prices a lot accordingly. The model i was talking about is right on. there are a lot of middle men that are buyers and sellers themselves then the gas eventually gets to the refineries and then to the gas stations. All that takes time. If you are a dealer, and you buy an AR for say $600 to be sold by you for $700, I don't think you are going to sell it for $550 just because the price of the rifle has dropped for the current production ones that aren't even being shipped to dealers yet.
In the end, we are at the mercy of the oil gods. they control how much we pay for everything...from food, to cars to homes, to vacations, to shipping for ammo. EVERYTHING is affected by gas prices, which is why it will be nice if we do start working toward more efficient vehicles that can be powered by resources more available to us in the US. Sure we have our own oil, but that can only go so far. either we take over all the middle east for all the oil we want and fight in out in WW3 or work toward being more efficient ourselves and saying screw em. then the demand will drop and we can still drive around our old vehicles for super cheap while the new technology prices slowly come down and eventually take over all but ridding ourselves of the middle east and destroying their economy.[Beer]
EVERYTHING is affected by gas prices, which is why it will be nice if we do start working toward more efficient vehicles that can be powered by resources more available to us in the US.
I don't think that coal powered cars are the way to go. ;) There is also a lot of talk about natural gas, but moving to a pressurized fuel has its own challenges that make it far more dangerous than gasoline.
Until this new uber technology is available that everyone dreams of but hasn't yet been identified, we've got to drill here and now. Increasing our supply breaks the stranglehold that everyone but us has on the market price.
Obama Has The Magic Alternate Fuel, Just Ask Him
Moonshine,, drive on home and then have some for yourslef,, a "win win" situation.....
brew it in the backyard...
robsterclaw
10-13-2008, 11:19
yep. if you talk to the owner of a gas station, they don't own it to really sell gas. that is to get the customers in there. they make a lot more money of the sodas and the candy and chips and condoms than they do from a tank of gas in your car. If gas is at 3.00 a gallon, they are probably buying that at around 2.80. then to factor in the maintenance, cost of employees, rent/lease etc, that isn't much. but for a single candy bar they easily profit .75 when they sell it for a dollar. You get an even bigger profit margin off selling fountain drinks. the syrup is mixed with the carbonated water, and makes a ton of pop. I would say it would cost them maybe .05 per 12oz of soda.
Most make even less then that on gas. My example is the little gas station beside Loaf N Jug in Fountain. When regular gas was $3.99 a gallon, they had to pay $4.01 a gallon. They had to keep it at them same price Loaf N Jug had it because of competition. They immediately lost $.02 each gallon. then they lost 4.5% per credit card transaction at the pump.
Granted, L N J gets their gas cheaper then the indy store. They still aren't making much on the gas. But take the soda. They make $.49 on each bottle of soda (before expenses)
Fountain syrup costs about 2.5 cents per ounce, so that 12oz soda costs 30 cents. The paper cup costs 5 cents, the plastic cups are about 10 cents. Not as cheap as 5 cents for 12 oz, but still a decent little markup.
You are right though. Gas is not where they make their money. In the soda business, 12 packs make Pepsi no money. It's the other stuff that makes money like the 20oz bottles. We have a saying. We make friends in grocery stores. We make money in convenience stores.
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