Donger on Suicide Watch: Oil Nears $100 a Barrel
 

:)

http://apnews.myway.com/article/20080902/D92UIA0G0.html

SINGAPORE (AP) - Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.

Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46.

On Monday, when U.S. trading was closed for Labor Day, the contract had plunged $4.34 to $111.12 a barrel in late electronic trading. On Friday, the contract settled at $115.46 a barrel.

Traders were relieved that Gustav weakened as it approached the offshore oil rigs and Louisiana refineries, and appeared to have caused less damage than expected in New Orleans and surrounding areas.

But they quickly turned their attention to slowing global economic growth, speculating that will dampen demand for crude oil, even in developing countries such as China and India.

"The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "Action by OPEC and supply side concerns should put a backstop to any sharp price drop."

The Organization of Petroleum Exporting Countries is scheduled to meet Sept. 9 and has indicated it may take action to defend the $100 a barrel level.

There was some disruption to oil supplies as oil companies shut down production and evacuated facilities ahead of the storm. Altogether, about 2.4 million barrels of refining capacity had been halted, roughly 15 percent of the U.S. total, according to figures from Platts, the energy information arm of McGraw-Hill Cos. (MHP) The Gulf Coast is home to nearly half of the nation's refining capacity.

It could be a day or more before oil and natural gas companies can assess the damage to their drilling and refining installations. Louisiana Gov. Bobby Jindal said as much as 20 percent of oil and gas production that was stopped because of Gustav could be restored by this weekend, stressing that it was a rough estimate.

Traders are also keeping an eye on other storms brewing in the region.

Hurricane Hanna was predicted to come ashore in Georgia and South Carolina late in the week, and Tropical Storm Ike formed late Monday in the Atlantic Ocean and may become a hurricane in the next 36 hours as it approached the Bahamas.

"September is the peak of the Atlantic hurricane season. After Gustav, there are two more now on the radar screen. The storms are likely to provide some upside risks to the oil futures market," Shum said.

In other Nymex trading, heating oil futures fell 15.44 cents to $3.0375 a gallon, while gasoline prices lost 16.92 cents to $2.685 a gallon. Natural gas for October delivery fell 47.3 cents to $7.472 per 1,000 cubic feet. In London, October Brent crude was down $2.01 to $107.40 a barrel on the ICE Futures exchange.

Everybody fill up quick!!111!!11!!!1!1ONE1!

Good. It's hopefully going back to where it should be (~$70 - $80). It's down 8% alone.

Thanks everyone for cancelling your summer vacations and selling off your SUV's!!!

Gas should be below $3/gal by election time then...

lets all hope that Donger has the guts to follow through ........


don't be a puss, finish what you start!!!

My only concern with the drop over the past month or so is that we will put all these wonderful energy plans on the back burner because we think everything is back to normal. We still need to push for off-coast drilling and searching for alternative fuels.

Yes, $70/barrel is approximately $3.00/gallon.

Back to $110 right after the election. Bank on it.

Indeed. People need to remember the pain of $4.00 gasoline.

I spent $180 on gasoline last week.

It's not like $3.00 a gallon doesn't still suck. It just doesn't suck quite as much.

how do they know that light "sweet" crude is sweet? who tastes it? wonder if it is good on ice cream?

Well, yeah. Where do you think it should be?

$1.50

Why $1.50?

Um, it is easier on my budget.:rolleyes:

ROFL

I always thought anything over a $1.00 a gallon was too much - especially for something a bunch of friggin cavemen pump out of the ground.

That was one HUGE bubble

Is it any surprise Kiper is on vacation this week?

The musthaves have the puddle jumpers
The havenots have the tanks on wheels
film at 11

That's just silly.

1) Pumped out of the ground, usually is rather inhospitable and remote locations.

2) Shipped around the world by sea and land.

3) Refined into usable product.

4) Transported again.

Of course, the crude has to be found to begin with.

Clearly just a coincidence, just like it was in '06.

Supply/demand, speculators, etc...

We will never see gas below $2 a gallon ever again. Maybe not even $2.50

Im still conditioned to believe that $1.499 is too much to pay for gas.

1) Pumped out of the ground, usually is rather inhospitable and remote locations.

2) Shipped around the world by sea and land.

3) Refined into usable product.

4) Transported again.

5) THEN the cavemen pump it from the ground


Of course, the crude has to be found to begin with.[/QUOTE]

Sounds like a personal problem!

I thought Rascal Scooters ran off electricity?

ROFL

$2.50 would be nice on the budget....

I haven't read the thread, but I imagine this question hasn't come up yet...

Why hasn't my gas costs at the pump gone down in similar fashion????



:cuss:

This is when the retailers do their cash grab.

Your gas costs have gone down. When crude was $147, gasoline was $4.11.

Last week, crude was $118 and gasoline was $3.67.

Fixed your post for my area.

We haven't seen $4 gas yet.

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COME OOOOOOOOOOOOOON DOOOOOOOOOOOOOOOOOOOOWN!

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Until the PRICE IS RIGHT

National average, boys.

Actually, when oil was $147 a barrel here, gas was $3.99

Now that Crude is under $110 a barrel, gas is still $3.65


Our prices have gone down less than a penny per gallon/dollar per barrel. When the price per barrel was going up, gas prices were jumping close to a nickel per gallon/price per barrel locally.

Oddly, oil was at the $100-$110 a barrel price at the start of 2008 and you could buy gas at just under $3 a gallon locally. Now that oil prices are coming back to that, gas is still over $3.60 a gallon locally.


The price may have come down, but not in proportion to how it went up.

Actually out here, it was at $4.05 for a day or so then dropped back down to just under $4.

That's why the relationship between local retail pricing of gasoline and crude are not linear.

Retailers can charge whatever they want.

Where are you located, BTW?

That has been my question for several weeks now. Since the price of crude dropped by about 30%, why hasn't my price at the pump dropped accordingly? We absolutely should be under $3 a gallon if the speculation market is what drives the price I am paying.

Because retail prices drop more slowly than they increase. Think of it this way:

When gasoline prices are dropping in response to crude dropping, the retailer is still selling gasoline that he bought when crude was higher. So, in order to not lose too much money on the inventory he has in his tanks, he drops his prices as slowly as possible.

Make sense?

It would if the arguement for it going up as soon as the crude price goes up wasn't so that they can afford the next load. So the price goes up immediately to cover the next shipment but the price stays up to pay for what they have in the tank already. :shake:

Sure is funny that when prices are going up, it's about the replacement cost, and when it's going down it's about what he paid for what is in the tank. Why don't you just call it what it really is?

REP LMAO ROFL

paid 3.29 all lastweek. went up 20 c over the weekend, down 10 c this morning.

its funny, how in such a market speculators can make money BOTH when the prices spikes as well as when the bottom drops out :shake:

It has stayed 3.59 here in NE KS for 4 weeks straight, yet the price of crude continues to plummet. I think there's some gouging going on somewhere.

That's precisely what happens. If they see crude going up, they know that they have to raise prices immediately, because their next shipment is going to cost more.

It's the replacement cost.

And, the price isn't staying up. It has dropped.

I have explained it as best I can.

Greed?

This makes sense.....but it also solidifies my anger that when the gulf storm farts...the gas, already in those tanks goes up that night.....

Yes, because everyone knows that those Cstores are just skimping by from week to week. :rolleyes:

Well, in Donger's words, it's "maximizing profits".

But when the price is dropping they are not charging the replacement cost, they are charging the current cost. It definitely feels like they are working both ends of the situation.

Absolutely, it is both.

"What did I pay for what is in my tank now? What do you I need to charge in order to not lose money?"

and

"What is the price of crude doing now? What should I be charging in order to cover my next purchase?"

I have the same concern. Hopefully everyone will remember the $4 gas and stay on the elected officials to get some things done.

Yes, I see. If next week's gas is going to cost more than this week's gas I need to pay more for my gas this week so the station can pay for next week's shipment.......even though I don't want next week's gas and in fact just want to buy this week's gas. But if the price of crude drops then the price of next week's gas might go down, even though it's the same gas.

Do I have it right?

You're confusing next week's gas with last week's gas. How can they keep setting record profits if things aren't confused?

Why should I receive old, stale gas while paying the higher price of the nice, new, fresh gas? And is it fair that next week's customers will be able to pump the fresh gas only because I footed the bill? If it wasn't for me there wouldn't be any new gas cause the station wouldn't have been able to afford to buy it.

I feel like I'm being used here.

You'll never be able to set record profits month after month. You don't understand the system.

Greed Is Good!

And let's hope it stays there for quite some time. Hate to see that it goes below 3.00 and after the election is over, it spikes up to 3.60 or somewhere in the ball-park figure.

You have it partially right. Hopefully, my other following posts will help clear it up for you.

Of course, let's also hope that Hurricane Ike doesn't manage to crash the party....

Why? December 2003, gas was 1.25-1.30/gal. Crude was $31/barrel.

http://findarticles.com/p/articles/m...g=artBody;col1

3.53 here

.....and especially when it only costs these cavemen $2.00 stinkin' dollars to pump a 55 gallon barrel of crude (less than .04 cents a gallon).

And you're surprised? :eek:

It's still $4.40 a gallon here. It will not fall to $3 here by the election.

A barrel of oil is 42 gallons. And lifting costs are considerably more than $2. I was a partner in an oil venture and it cost $10,000 to drill each well. And they were only 600 ft deep. West Texas wells are 2 miles deep.

Eh, what difference does it make, y'all can't drive very far on that island anyway.

Get on the wagon fast ... There're switching to oxygen power soon ... Your air will never be free again .....

Best thread title ever.

Is it September or October when the government has their annual vote on the bill that bans ANWAR drilling? That's right, they make a decision on this every year. Quite a coincidence that oil prices are plummeting just in time to quiet the outraged masses on this issue.

I was quoting Fox news on what it costs Saudi Arabia to pump one barrel of oil. I guess I need to better educate myself on my barrel tables though.

OPEC will cut production next week, Sept 9th and they willd fend the $100 level. gas under $3 is a pipe dream right now.

They're really cutting production? Link?

Why wouldn't they want to raise production? That would lower the price and increase demand, right? More demand = more money. I just hope that we don't go back to using oil like water.

Hopefully, we have learned our lesson and figured out how vulnerable we are. This could have brought the USA to its knees, I suppose it still might in the long run.

Funny though...everyone is cheering this fall, but another .30 is $4.80 in savings for a 16 gallon tank. But better saving than spending.

DOnger, I understand the bullshit justification that you are trying to use. But it is flawed. It doesn't work that way any place else in the country. If Wal-Mart sells shirts for $10 a piece, and they find out that the next shipment will cost $1 more per shirt, they don't run out and mark up their shirts already on the shelf. Rather, they raise the price when the new shirts hit the shelves. Why? Because of competition. If they raise their prices before everyone else, people will just go some place else. The bullshit with gas prices happens because the prices are controlled. Phillips 66, Exxon, Texaco, they all raise their prices leaving the customer bent over a barrel. Don't give me your bullshit excuses. I for one, know better. It is GREED!!!