Gasoline use falls 6.2% in ONE MONTH

[Sgt Beavis]

The beginning of the end?????


Oil falls more than $3 on weaker demand

NEW YORK — Oil prices fell more than $3 a barrel today as the market absorbed data showing demand is falling even as supplies are rising. Meanwhile, gas prices inched higher at the pump, continuing their record-breaking press toward $4 a gallon.

A monthly Energy Department report said demand for finished petroleum products dropped 8.5 percent in February from January, and demand for gasoline fell by 6.2 percent. Though some of that drop can be attributed to February's being a shorter month, it still suggests high prices are cutting American's appetite for fuel.

"That's a dramatic drop," said Linda Rafield, senior oil analyst at Platts, the energy research arm of McGraw-Hill Cos.

At the same time, a British refinery strike that raised concerns about supplies ended today, and analysts surveyed by Platts expect the Energy Department's weekly inventory report on Wednesday to show domestic crude supplies rose last week.

"The two combined (rising supplies and falling demand) do not bode well for $120 oil," Rafield said.

Light, sweet crude for June delivery fell $3.12 to settle at $115.63 a barrel on the New York Mercantile Exchange.

A stronger dollar gave investors another reason to sell crude today. Commodities such as oil are less effective hedges against inflation when the dollar is gaining ground, and a stronger greenback makes oil more expensive to investors overseas. Analysts believe oil's run from $65 a year ago to a record near $120 yesterday has been fueled in large part by the dollar's protracted decline.

Energy investors will be closely watching the Federal Reserve's decision on interest rates Wednesday; analysts believe a quarter percentage point rate cut is already factored into the oil market. A decision to hold rates steady could further strengthen the dollar, sending oil prices down. But because rate cuts tend to weaken the dollar, a larger than expected rate cut could send oil to new records over $120.

The market will also be keeping a close eye on Nigeria, a major U.S. supplier of oil, where a work slowdown and militant attacks have cut production.

"Nigeria's always a factor in oil prices, it's always had an ongoing issue with oil outages, but we're seeing a bit of an increased activity in militant attacks," said Mark Pervan, a senior commodity strategist at the ANZ Bank in Melbourne, Australia. "They'll keep a high floor on the price."

At the pump, the national average price of a gallon of unleaded gas rose 0.4 cent today to a record $3.607 a gallon Tuesday, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices rose 0.1 cent to a new record national average of $4.244 a gallon.

Many analysts expect gas prices to peak within the next month, and some say they could rise as high as $4 nationally. Many parts of the country, particularly in California and Hawaii, are already paying more than $4.

Gas prices have been following oil prices higher, but they have also responded to gasoline supply concerns. Platts' survey shows analysts predict the Energy Department report will show gasoline supplies fell last week.

Other energy futures followed oil lower today. In other Nymex trading, May gasoline futures fell 9.15 cents to settle at $2.9392 a gallon, and May heating oil futures fell 5.23 cents to settle at $3.2465 a gallon. Natural gas for June delivery fell 48.7 cents, or 4.3 percent, to settle at $10.842 per million British thermal units.

http://www.chron.com/disp/story.mpl/business/5739384.html

and more here: http://www.usatoday.com/money/industries/energy/2008-04-29-oil-tumbles-tue_N.htm?csp=34

[Vertnut]

I heard just yesterday, that our fuel consumption had not fallen from the same day last year...330 million gallons A DAY!

[mikeb]

Product has to begin backing up in the pipeline with no buyer before prices will start to decline. If the usage continues to drop I can see this happening at some point, although I believe that the refiners will simply cut production to keep supply of finished product artificially low and prices high. It could be good for refiners that oil might go down while prices for finished product remain high.

[Vertnut]

On a side-note: I looked at our auto classifieds a little earlier, and 7 out of the first 8 ads, were folks selling trucks...hmmm. You think we're feeling the bite?

[Badass2000gt]

When the fuck is diesel going down? :mad:

[Nestromo]

29 days vs 31 days is about a 6.5% drop by itsself so it is really about 2%, not 8.5% And some of that can be traced to the days of the week being different and people's weekly buying habbits. These figures don't mean much.

[Pro88LX]

On a side-note: I looked at our auto classifieds a little earlier, and 7 out of the first 8 ads, were folks selling trucks...hmmm. You think we're feeling the bite?

i can afford all the gas i need for mine listed, im just bored with it :D

[1carcrazyguy]

Wonder what March numbers will be? Hopefully with gas being ~$.30 higher in March, the demand dropped by another 8.5%. There was an article I read today that said "if the dollar gains a little value because of the actions of fed, supplies continue and demand continues its downward trend, oil could shed $40 a barrell in a hurry". We can only hope. I personally think gas prices have been high enough for long enough, that a lot of people that were already not in best shape, have now spent a lot of what little they had in savings. I would say that we are at (or at least getting close) to the "breaking point" of what people will pay for gas. I think as gas prices stay in the $3.40-3.60 range we will continue to see demand go down.

[Nestromo]

I think that there are to many people like me who will pay $20/gal if we have to.

[Vertnut]

i can afford all the gas i need for mine listed, im just bored with it :D
Well, that would be one of seven...I still think there's something to it.

[Sgt Beavis]

29 days vs 31 days is about a 6.5% drop by itsself so it is really about 2%, not 8.5% And some of that can be traced to the days of the week being different and people's weekly buying habbits. These figures don't mean much.

How do you figure that two days equates to over 2/3rds of that drop?

[HookEm]

Well, that would be one of seven...I still think there's something to it.


I think it's just because we live in Texas.....
:D

[Nestromo]

How do you figure that two days equates to over 2/3rds of that drop?

Because 29 days is only 93.55% of 31 days.

100/31=3.2258

3.2258*29=93.55

[exlude]

Because 29 days is only 93.55% of 31 days.

100/31=3.2258

3.2258*29=93.55

Ouch, bad logic.

What you need to be looking at is:

29/31 = x/6.2

So, about 5.8% adjusted.

[Nestromo]

Either way, 2 days is a bigass chunk, enough to make more than just a marginal impact on the figures.

[exlude]

Yeah, it had a .4% impact, but 5.8% decline is pretty substantial...especially if it maintains.

[kc50lx]

it doesn't matter if demand falls. OPEC has already stated many times that they will cut production to keep oil prices artificially high, greedy bastards.

i think the solution to the problem is for the US to build more refineries and take advantage of the resources we have. this way we can flood the market with US oil thus taking our demand away from foreign oil. without the US buying up the huge bulk of foreign oil, the prices would start dropping over night b/c there would be no demand (well a lot less demand). since we are the #1 importer of oil worldwide, our business (or lack of) has a huge influence on prices worldwide. we could in theory control the price of oil base on our demand.

the other upside to us tapping our own resources, would be that the job force would rapidly expand creating a demand for more oil workers (and other related fields). this would mean jobs and money into our somewhat suffering economy.

i say screw the rest of the world and what is PC. we need to start looking out for our country and our own people first. then we can take the time to babysit the rest of the world.

/rant off

[Geor!]

it doesn't matter if demand falls. OPEC has already stated many times that they will cut production to keep oil prices artificially high, greedy bastards.

i think the solution to the problem is for the US to build more refineries and take advantage of the resources we have. this way we can flood the market with US oil thus taking our demand away from foreign oil. without the US buying up the huge bulk of foreign oil, the prices would start dropping over night b/c there would be no demand (well a lot less demand). since we are the #1 importer of oil worldwide, our business (or lack of) has a huge influence on prices worldwide. we could in theory control the price of oil base on our demand.

the other upside to us tapping our own resources, would be that the job force would rapidly expand creating a demand for more oil workers (and other related fields). this would mean jobs and money into our somewhat suffering economy.

i say screw the rest of the world and what is PC. we need to start looking out for our country and our own people first. then we can take the time to babysit the rest of the world.

/rant off
That entity needs to be decapitated then. When I say "that entity," I mean every person in that organization needs to face the guillotine.

[mikeb]

it doesn't matter if demand falls. OPEC has already stated many times that they will cut production to keep oil prices artificially high, greedy bastards.

i think the solution to the problem is for the US to build more refineries and take advantage of the resources we have. this way we can flood the market with US oil thus taking our demand away from foreign oil. without the US buying up the huge bulk of foreign oil, the prices would start dropping over night b/c there would be no demand (well a lot less demand). since we are the #1 importer of oil worldwide, our business (or lack of) has a huge influence on prices worldwide. we could in theory control the price of oil base on our demand.

the other upside to us tapping our own resources, would be that the job force would rapidly expand creating a demand for more oil workers (and other related fields). this would mean jobs and money into our somewhat suffering economy.

i say screw the rest of the world and what is PC. we need to start looking out for our country and our own people first. then we can take the time to babysit the rest of the world.

/rant off

The problem with this is that the oil we might produce here would not necessarily be sold here; it might go to spain or wherever depending on best price. I'd like to see some incentives (somehow) that domestically produced oil is sold and used here on US soil.

[Vertnut]

I heard Kay Bailey Hutchison on the radio today, saying that the fell one vote short of drilling in Anwar, two years ago. Interesting...they think it's worth 1 million barrels a day, or about 15% of our daily consumption of fuel. That's the amount we bring in from the middle east. Theory is once they know we're drilling, they drop the price just to keep the business. Some fplks say if we started tomorrow, it's a good three years before it starts producing.

Did you know that Exxon paid $30 BILLION in corporate taxes last year?

[kc50lx]

Did you know that Exxon paid $30 BILLION in corporate taxes last year?

I'm glad they had a good year. Businesses are in operation for one reason.... MONEY! No one would ever start a business with the anticipation of not making any money.

Now am I concerned that they are record profits at a time when oil prices are at an all time high sure? Sure I am! I wonder sometimes if everything is on the up and up. I wonder if the oil companies aren't working together to gouge prices. It seems odd to me that they are making record profits at a time when supposedly its harder to get oil out of the ground and to the consumer. I hate to sound like a conspiracy theorist, but I feel like something unethical could be going on. I would like for someone with real power research this.

The oil business seems to be corrupt right now. We have an organization that single handedly controls the price of oil how they see fit and oil companies that are making all time high profits at a time when their expenses should all be sky rocketing out of control. Maybe someone with a better understand of the industry could explain it to me, but I don't necessarily understand what economic factors are driving prices up as fast as they are currently.

Again I think my theory from the first post is the best solution when combined with Mike's thought as well. Downside is, we can't really do anything about it short of a revolt. We are too civilized of a society (maybe not though) to do something like that. Instead we just sit back and pay artificially high prices. We need to realize that the oil prices will cause us to actually go into a recession and will cripple our already suffering economy.

The next topic I would like to discuss would be the use of ethanol as mandated and the effect that it is having on our economy/ gas prices.

[GhostTX]

On a side-note: I looked at our auto classifieds a little earlier, and 7 out of the first 8 ads, were folks selling trucks...hmmm. You think we're feeling the bite?
Well, GM shut down the plant in Arlington "temporarily" because SUV sales were down.

[Dacotua]

When the fuck is diesel going down? :mad:

As soon as China and India stops importing Diesel. 80% of all their vehicles are diesel powered. They USE A LOT.

[black50]

As soon as China and India stops importing Diesel. 80% of all their vehicles are diesel powered. They USE A LOT.
I thought the high price of diesel was because of the new low sulphur diesel and that it was more expensive to refine it now

[Vertnut]

I thought the high price of diesel was because of the new low sulphur diesel and that it was more expensive to refine it now
That is true. Refining costs' have gotten more expensive for diesel.

[black01gt]

That is true. Refining costs' have gotten more expensive for diesel.
Not that it is a burden to the major oil co's.

[Vertnut]

Not that it is a burden to the major oil co's.
It all adds up.

[black01gt]

It all adds up.
...to quarterly record setting profits. I'm so happy for them. :rolleyes:

[Vertnut]

...to quarterly record setting profits. I'm so happy for them. :rolleyes:
Exxon paid $30 BILLION in corporate tax in 2007...can you find that kind of scratch? That's more than the lower 50% pay in taxes all told. Gasoline made up about 15% of their business in this country.

[black01gt]

Exxon paid $30 BILLION in corporate tax in 2007....
So? We all pay taxes from our earnings. I'm not likely to muster any sympathy for em.

Anyway, it was fun while it lasted...
http://i28.photobucket.com/albums/c205/FeatMike/CadRanch59-1.jpg

[Vertnut]

Reminds me of the "Cadillac Ranch" in west Texas. Aw, hell, as soon as we can drill in Anwar, things will settle down. With Obama in office, gas will be back to $1 a gallon...

[HookEm]

Reminds me of the "Cadillac Ranch" in west Texas. Aw, hell, as soon as we can drill in Anwar, things will settle down. With Obama in office, gas will be back to $1 a gallon...

We'll all be drinking that free Bubble-Up
And eating that rainbow stew

Eating rainbow stew in a silver spoon
Underneath that sky of blue
We'll all be drinking that free Bubble-Up
And eating that rainbow stew

[Vertnut]

Damn...I'm scaring myself. :o

[black01gt]

Reminds me of the "Cadillac Ranch" in west Texas. Aw, hell, as soon as we can drill in Anwar, things will settle down. With Obama in office, gas will be back to $1 a gallon...
It is.
I sure hope something can bring it back down to earth. It's a life changing burden to the good ole common working American citizen. With healthcare, utilities, energy cost, etc etc, we don't deserve the crap we're being doled in every aspect of daily life.

[HookEm]

What exactly is it you feel entitled to? Don't like your health care plan? Change jobs. Don't like your utility company? Do the research. Be accountable to yourself, instead of expecting da guvmunt to dole out cheese.


It is.
I sure hope something can bring it back down to earth. It's a life changing burden to the good ole common working American citizen. With healthcare, utilities, energy cost, etc etc, we don't deserve the crap we're being doled in every aspect of daily life.

[black01gt]

What exactly is it you feel entitled to? Don't like your health care plan? Change jobs. Don't like your utility company? Do the research. Be accountable to yourself, instead of expecting da guvmunt to dole out cheese.
WTF does entitlement have to do with an affordable cost of living? Lad, I'll put my workday up against yours any day of the week. I'm not from the generation of entitlement like you. Corporate America needs more suck ass cheerleaders to take it up the ass like you. You're probably pissed off about my social security too.

"Change jobs..." :rolleyes: Yeah, that's what I'll do. Kiss my ass.

[HookEm]

Then quit whining about what you're entitled to. You are asking for the govmunt to FIX your poor insurance, and to fix this, and to fix that. Take the bull by the horns and quit waiting for a handout.

WTF does entitlement have to do with an affordable cost of living? Lad, I'll put my workday up against yours any day of the week. I'm not from the generation of entitlement like you. Corporate America needs more suck ass cheerleaders to take it up the ass like you. You're probably pissed off about my social security too.

"Change jobs..." :rolleyes: Yeah, that's what I'll do. Kiss my ass.

[black01gt]

Then quit whining about what you're entitled to. You are asking for the govmunt to FIX your poor insurance, and to fix this, and to fix that. Take the bull by the horns and quit waiting for a handout.
Aw put your "what a conservative is supposed to say" handbook down and think for yourself for once. If I want to complain about being ass raped by corporate America and CEOs from hell I'll do so. If you want to call it whining so what? I didn't say I was entitled to anything and I didn't mention the government. You did. I don't pay for my healthcare insurance. But I also don't see what's happening to the country and think it's all about me. And since when am I supposed to shape my career according to my health insurance? You like that plan? What is it about this mucho over-inflated cost of living that you think is so wonderful. You still smoking crack? Cause I know you ain't a major stock holder. :p

[HookEm]

I don't pay for my healthcare insurance
t's a life changing burden to the good ole common working American citizen. With healthcare, utilities, energy cost

:rolleyes:

http://users.chariot.net.au/~misterx/steve/images/cry_me_a_river.jpg

[black01gt]

Even God has a messege for you "Mr. Christian Tool"...

http://i28.photobucket.com/albums/c205/FeatMike/MotherNatureexpressesherself.jpg