Caoboy

iTrader: (2)

Has anybody else noticed gas prices going up again while the oil prices aren't?

I swear gas prices jumped right before Christmas, from 1.65 for premium to (for now) 2.16!

This is ridiculous...If it isn't the oil companies over speculating...it's the gas companies jacking us for profits now?

If it keeps on this way...we'll appreciate what $4.00 gas was...

At the same time, falling demand and a report showing much larger domestic oil inventories sent crude oil plunging more than 12% to $42.63 a barrel in New York, wiping out all of its gains for the year.

I don't think a 7 dollar jump (oil at $35 a barrell) would equal +.51/gal jump would it? Or are the gas companies keeping ahead of the oil prices now.

I8ABMR

I think we may have had a little spike arounf the holidays because of all of the traveling. Its kid of like the longer spikes we get in the summers. It sucks that gas in the most exspensive when we are all running our A/C's constantly. I am still not gonna complain about the price of gas. We are real lucky for now. Imagine the 5 dollar a gallon gas and the economy this way.

IS-SV

Big part of low gas prices is the slowing market/overall economy slowing worldwide and the expectation that things will just get worse.

dsp979

a few factors regarding the gas prices.

OPEC is cutting production, therefore you will see oil prices slowly creep up.

Refineries had to shut down to switch over to winter blend. Means less gas production, less gas to go around, increasing gas prices.

Just supply and demand.

btw, we're making out like bandits because we don't pay as much as other countries.

Lil4X

In the past two weeks the oil industry has become concerned that the low per bbl price of crude has remained for more than a few weeks. They are saying that the sustainable price is still $80-$90, but with the current $40-$50 price they are postponing a lot of projects until the price recovers.

It shouldn't take long. We know that the cost of recovery of oil hasn't changed and nether high nor low excursions from that general range can't be supported for long. Witness the high prices of last summer and fall. A couple of things driving the price of crude upward right now:

• We're just coming out of the Holiday season, a time of historically low fuel consumption as many people have been off work for the Holidays, either on vacation (mostly at home this year) or on enforced leave as some large companies closed their doors for the Christmas-New Year's period. Added to school closings on winter break and you have a sharp decline in commuters on the road.
  
  
• The coming spring/summer driving season and the Feb-March switch back to summer blends will move gas prices upward as demand increases.
  
  
• The record cold in Europe and North America is driving a boom in heating oil consumption. Whatever happened to global warming?
  
  
• The closing of pipelines from Russia has left Europe freezing in the dark. While this is largely a feud between Russia and her former client states, it's having a disastrous effect on Europe.
  
  
• The war in Gaza could spread to the Gulf States should Iran get more involved, which only adds to the growing fear that economics is being replaced by geopolitics as a driver for the oil market. The last time we saw that was in the seventies. Not a good sign.

There are a lot of elements in play that mitigate for a sharp advance in crude prices, probably in the next 60-90 days. Enjoy that cheap gas now, but start your negotiations on a Prius!

19psi

the funny thing is, diesel hasn't moved much at all recently. it finally dropped to $2.19/g about a month ago and has been there ever since, while i've watched gas go up during the same period.

bad co

i love that its awsome my sprinter aka boost bus makes sence again 20+ mpg on highway compared to 13+ in a chevy express

19psi

yeah i've quit running biodiesel since pump diesel is affordable again. now i don't have the weekly hassle of going out in the middle of the night to get nasty fryer oil and convert it; and the exhaust smells good again instead of like burning fryer oil!

Koma

iTrader: (3)

Isn't biodiesel terrible for the environment? This is what I hear. Does a new clean diesel engine still have clean properties when using biodiesel? Can new diesels even run biodiesel? Educate me cause I know you love your turbodiesel.

Lil4X

There has been some concern that biodiesel and particularly the new ULSD products that have all but eliminated the sulfur content of the fuel. It seems that sulfur performed a lubricating function much as lead did in gasoline years ago. With the loss of sulfur compounds, some diesels, particularly those LARGE powerplants used in heavy equipment, locomotives, ships, and power generation, are experiencing some premature wear and loss of fuel efficiency.

One of my wife's customers (and hopefully soon, mine) has one of a number of companies that sells fuel additives for these applications. (http://www.envirofuelslp.com/) It is currently being used successfully in "highway" applications - in large over-the-road trucks to reduce friction, oxidation, and improve lubricity of the fuel. How this might apply to an automobile, I haven't a clue and the fellow is out of the country for a couple of months. Among other things, I intend to ask him when I visit with him again is how his results might apply to smaller engines.

IS-SV

Oil at sub $40 barrel should impact gas prices this spring.

19psi

actually biodiesel(bd) is very clean. the problem with pump diesel is that when it burns, we get soot and carbon. well, because of the chemical make up of biodiesel, there is no soot or carbon coming out of the exhaust compred to diesel. i don't know the exact numbers but it's significanly less.
you can even tell when you look at the exhaust of a Bd burning truck. no black smoke.

talking about the new low emissions diesels, they can[t run BD, the oils and lower burning temperatures of bd will basically clog up the particulate filters on a new truck.
the engine will run fine but the exhaust will clog up because the filter isn't designed to burn the exhaust of BD.

Caoboy

iTrader: (2)

Crude oil (NYMEX) (per barrel) $37.59

Unleaded gasoline (per gallon) $1.0841

I'm guessing this is a base price for refined gasoline, trading at $1.08 per gallon?

Regular gasoline in my city ranges from $1.85~$2.05, where I buy premium it's $2.19...

So at most they make 97 cents on the gallon (regular), then that profit gets distributed...I guess right now is where it should be eh?

Hopefully things will level out and stay this way at least until summer..I wouldn't be surprised if we see another HUGE price hike again in the summer. News (MSN) said that even though OPEC cut production, the demand is just not there and is undermining what they do, which is why oil is still dropping. That should be a good thing unless they do something drastic like cut production really low, and there ends up being a shortage..