Gas prices

I paid $1.39 per gallon in Bloomington Indiana yesterday.

Then I paid $4.89 per gallon for aviation gas in Pittsburgh this morning.

What the fuck!

So, how low can it go?

4.89?

4.89? Originally Posted by Atomic Hamster

Yes, 4 dollars and eighty nine cents per gallon for 100LL avgas.

It's putting the rag heads in the poor house! Drill baby drill!

It's also causing the U.S. oil and gas industry to cut their discretionary spending, halt or cancel plant upgrades, lay off workers and ripple into the natural gas industry in certain instances, which is also pulling back since there's less demand because of cheap crude.

It's going to be an interesting year

I can't figure out why engine oil is still so flipping expensive. For the same price, you can either buy an entire barrel of crude, or 5 quarts of Mobil 1...

It's also causing the U.S. oil and gas industry to cut their discretionary spending, halt or cancel plant upgrades, lay off workers and ripple into the natural gas industry in certain instances, which is also pulling back since there's less demand because of cheap crude.

It's going to be an interesting year Originally Posted by Atomic Hamster

Cheap gas is not good for most people.

I know it's been axe-murdering my 401(k)

within the past year or so the saudis' starting flooding the market with oil....
I think they were looking to drive out the competition....
there was a large glut on the market....
atomic hamster is right....it has hurt the oil companies...
and will effect the bottom line of many companies.....
one group who does profit from lower prices are poor folks....
minimum wage earners....
they don't have to work 2 hours a day just to pay for gas to get to and from work....

Cheaper gas prices mean better business for me so not everyone is affected negatively. I would love to see it go lower.

I know the local oil and gas workers are being laid off, but fuck them. No secondary educated low skill workers making $150,000/yr a few years ago. Should of known it wouldn't last forever.

Oil & gas is quite cyclical. The industry booms / busts every few years. The old adage applies, “the best cure for high oil prices is high oil prices,” as more people drill increasing supply. “The best cure for low oil prices is low oil prices,” as companies shut in wells, stop drilling, etc reducing supply

I'm glad I don't own an airplane.

I can't figure out why engine oil is still so flipping expensive. For the same price, you can either buy an entire barrel of crude, or 5 quarts of Mobil 1... Originally Posted by EBPEM1

The last time I checked, Mobil 1 wasn't distilled from crude oil. It is made through a chemical process starting with raw materials like methane, carbon monoxide, and carbon dioxide.

So, how would the low price of crude oil impact the price of Mobil 1?

Maybe you could save some money by dumping crude oil into your engine's crankcase.

The last time I checked, Mobil 1 wasn't distilled from crude oil. It is made through a chemical process starting with raw materials like methane, carbon monoxide, and carbon dioxide.

So, how would the low price of crude oil impact the price of Mobil 1?

Maybe you could save some money by dumping crude oil into your engine's crankcase. Originally Posted by Big Stig

Mobil 1 is currently made from a Group III base stock, which is still hydrocracked petroleum. Exxon switched away from PAO base stocks for M1 a long time ago.

Regardless, you understand what I'm getting at...

Gas market headed for time of year when prices ‘can jump very quickly’


Americans are likely to spend about $27 billion less on gasoline this year than last, but prices are set to spike as the spring refinery maintenance season kicks in.
The average U.S. price for a gallon of regular gasoline stood at $1.806 late Friday, according to GasBuddy.com. That’s down 23.6 cents from last year’s average of $2.042 a gallon.

But prices have a ways to go before they hit their peak this year, according to Tom Kloza, global head of energy analysis at the Oil Price Information Service.
He sees a high around $2.50 a gallon for gasoline this year, and it won’t necessarily be because of a rally in crude. He thinks a “substantive meeting between delegates from Russia and OPEC is as likely as a substantive meeting between Donald Trump and Rosie O’Donnell.”

Even so, Michael Green, a spokesman for AAA, said that if crude stabilizes above $30 a barrel, “then most drivers may soon pay more at the pumps.”
“We are entering the time of year when gas prices can jump very quickly,” Green said. “ It’s common for gas prices to jump this time of year as refineries conduct seasonal maintenance, which means the days of paying less than $2 for gas might be numbered.”

Kloza said that gasoline may rally, in part, “thanks to money flow with speculative funds, hedge funds, algorithmic investors ... chasing April or May futures higher because of upcoming refinery turnarounds, [a] slight year-on-year demand lift, and the difficulty in making spring/summer gasoline specification of gasoline.”
Futures prices for gasoline may even trade at twice the value of crude-oil futures—with a $1.78-a-gallon reformulated gasoline futures equal to about $75 a barrel, he said. “We may indeed see gasoline in the $70’s per barrel, with crude in the $30’s.”
On Friday, gasoline futures settled above $1.13 a gallon, while West Texas Intermediate crude finished at $33.62 a barrel.
Within days, retail gasoline prices may see an off-season low, maybe at $1.79-ish, and t hen prices may climb to something closer to $2.50 in the second quarter, he said.
“This wouldn’t be exceptional or unusual—it would simply match last year’s rally,” he said.
OPEC predicts an average price of $2.149 to $2.249 a gallon for gasoline. That would mean U.S. divers are set to pay about $306 billion for gasoline this year, compared with $333 billion in 2015, said Kloza.
Myra Saefong is a MarketWatch reporter based in San Francisco. Follow her on Twitter @MktwSaefo