today Oil is up 0.25 per barrel while gas is up 0.08 per gallon.
considering there are 42 gallon of oil in a barrel the jump in gas makes no sense.
considering there are 42 gallon of oil in a barrel the jump in gas makes no sense.
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Here is a simple explanation of why you can't compare crude prices to what you're paying at the pump and expect to get an exact number each time.
What determines the cost of crude oil?
The cost of crude oil is the largest component of the retail price of gasoline, and the cost of crude oil as a share of the retail gasoline price varies over time and across regions of the country. Many factors affect crude oil prices; learn about seven major factors that influence crude oil prices in What Drives Crude Oil Prices? Increases in U.S. oil production in the past several years have helped reduce upward pressure on oil and gasoline prices.
Taxes add to the price of gasoline
Federal, state, and local government taxes also contribute to the retail price of gasoline. The federal gasoline excise tax is 18.30¢ per gallon and the federal Leaking Underground Storage Tank fee is 0.1¢ per gallon. As of July 1, 2019, total state taxes and fees on gasoline averaged 29.66¢ per gallon. Sales taxes along with taxes applied by local and municipal governments can have a significant impact on the price of gasoline in some locations.
Refining costs and profits
Refining costs and profits vary seasonally and by region in the United States, partly because of the different gasoline formulations required to reduce air pollution in different parts of the country. The characteristics of the gasoline produced depend on the type of crude oil that is used and the type of processing technology available at the refinery where it is produced. Gasoline prices are also affected by the cost of other ingredients that may be blended into the gasoline, including fuel ethanol. Gasoline demand usually increases in the summer, which generally results in higher prices.
Distribution and marketing
Distribution, marketing, and retail dealer costs and profits are also included in the retail price of gasoline. Most gasoline is shipped from refineries by pipeline to terminals near consuming areas, where it may be blended with other products —such as fuel ethanol—to meet local government and market specifications. Gasoline is delivered by tanker truck to individual gasoline stations.
Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline from refiners and marketers for resale to the public. The price at the pump also reflects local market conditions and factors, such as the fueling location and the marketing strategy of the owner.
The cost of doing business by individual gasoline retailers can vary greatly depending on where a gasoline fueling station is located. These costs include wages and salaries, benefits, equipment, lease or rent payments, insurance, overhead, and state and local fees. Even retail stations close to each other can have different traffic patterns, rent, and sources of supply that affect their prices. The number and location of local competitors can also affect prices.
I don't know what else to tell you. Gas prices are the lowest they've been in years right now. We've always seen random fluctuations from week to week or even day to day. There are so many moving parts involved that it's hard to give you an exact reason why they went up today.there is no demand for gas, as the demand has fallen off a cliff.
also gas on the spot market are before any taxes.
one more thing these price changes are on paper only as they are for the April CONTRACTS = paper only transactions.
Shell, Chevron and Exxon are probably great buys right now. If you're looking to hold for the long term I'd say they are excellent buys. I won't pretend to know what will happen with them over the next 2 years (worst case scenario is Russia holds out for 18-24 months I'm reading) but those companies could be good buys to flip for 2x what they're worth now anywhere from just a few months to 3-5 years.One of my golfing buddies just bought $5000 worth of Shell last week hoping it would go up and he could then sell. I thought about it but didn't pull the trigger.
Ido miss my teenage years.A spin-off game show of:
The gas here went down $.20 a gallon.lets put it another way gas is up 15.75 % today
Gas here is $1.04 per gallon...lets put it another way gas is up 15.75 % today
Yep. About 2o miles from here, its $1.04The gas here went down $.20 a gallon.
As they say in real estate. LOCATION! LOCATION! LOCATION! LOCATION!
It is 30 cents less than that in Smiths Grove.Yep. About 2o miles from here, its $1.04
Hopefully Russia and Saudi Arabia agree to end their price war and we all can go back to paying $1 more per gallon at the pumps.the surge because of the stimulus will last just so long. as the death toll and more cases that keep popping up the prices will go down.
nah closer to $5.00 per gallon that way the hedge fund managers can make more money and the rich collect bigger dividend checks.Hopefully Russia and Saudi Arabia agree to end their price war and we all can go back to paying $1 more per gallon at the pumps.
That’s what we really want.
not sure the point of this thread is the price of gas and how easy it is to manipulate.Am I missing the point of this thread?
$65 WTI is perfect for the American oil industry.nah closer to $5.00 per gallon that way the hedge fund managers can make more money and the rich collect bigger dividend checks.
why? is it because most of your stock is in oil companies and you aren't getting your outrages dividends?$65 WTI is perfect for the American oil industry.
No. It has nothing to do with stock. I actually live and work in the center (Midland, TX) of the American oil industry.why? is it because most of your stock is in oil companies and you aren't getting your outrages dividends?
then why are the number of drilling rigs increasing in the field,No. It has nothing to do with stock. I actually live and work in the center (Midland, TX) of the American oil industry.
At $65 oil everybody up and down across the board is able to stay profitable. People/companies aren’t being too risky yet they aren’t being too cautious.
When oil gets too low you see a cutback on rigs, wells become shut-in, people get laid off, companies go bankrupt, investments become worthless since a lot of what exploration is is put on a timeline (3 Year Terms to drill or else you lose the rights). There is a ripple effect across the entire economy when oil is down since the industry touches so many other things.
When oil gets too high people/companies begin to start making much more risky plays, they drill more, borrow more money, higher more unqualified people because they need bodies, etc. then the supply chain becomes overloaded, lawsuits happen, workplace accidents, etc. because everybody is trying to drill as much as they can to take advantage of selling at record high prices. Time and time again this has always lead to periods of very low price of oil. Historically the American oil man has always drilled themselves into a bust. The term “pigs get fat, hogs get slaughtered” applies to us here.
When oil is at $65, everybody in the industry stays happy, work is plentiful for the right people, wages remain high and there’s no real threat of losing job security.
I mean, there’s a ton of factors involved here. When the oil industry is doing well that helps with the ripple effect across the American economy. I won’t pretend like I know too much about it but what I’ve said above is a pretty loose understanding of why WTI in that range is something that’s good for us and America.
Also, **** Russia.
There are other companies than Exxon and the other majors like Chevron and Shell. You know that right?then why are the number of drilling rigs increasing in the field,
Exxon just showed that they are making 49% less money at less than $25 per barrel,
that means they are still making a 51% profit. again these companies are MAKING money at a 50% rate and are putting more rigs into drilling. right now the US is producing 13,000,000 bpd and is increasing the output.
don't see them suffering like you make it out to be.
most small businesses don't make a 50% profit on their products.
ooo poor oil companies are only making 7.5 Billion in pure profit per month vs the 15 Billion dollars per month.
His issues are not political, they are looking for simple answers to complicated and varied questions and incorrect reasoning.Dragon Hawk, I am not picking on you but your posts in this thread. Are you going to vote for Bernie Sanders, or the person left standing closest to the left of Bernie?
Why do you hate the American oil industry? Give us some basic reason, other than they make money for their stockholders. Then please explain why they should not make money for their stockholders.
Commie concepts are great for lazy folks, that way they don't have to work. Let someone produce the food at no profit and the commie bastards can eat for free.
I worked my ass off for a large U.S. corporation. I never saw them as evil. We got things done that aided the U.S. and its people to have a great life and along the way we made an EVIL PROFIT. Holy shit! What is wrong with making money?
I called on the American Oil industry in Houston, TX and they are fantastic citizens. Not only do they give us oil they give us the basic chemicals to make all sorts of stuff from glue to CD's and Blu-ray. I don't see them as evil; I see them as necessary.
I never saw a large U.S. corporation as evil. I see them as allies in making our lives good.
I simply don't understand why folks hate the companies that give us such a great standard of living. The reason the U.S. is exceptional is our people and industries.
Why hate folks who do us favors? Well the left sees them as the enemy. Common shared poverty is better than a great standard of living.
I hope that I have you figured wrong. Please correct me if that is so.
Go figure.There are other companies than Exxon and the other majors like Chevron and Shell. You know that right?
Here's an excerpt from an article just last month before the price crashed. Rig counts have been down leading up to this. I have no idea why you think it's going up;
"The combined North American rig count finished at 1,045, down from 1,275 at this time last year. Among plays, the Permian Basin saw the largest week/week change, picking up three rigs to increase its total to 408. That's off from 473 rigs a year ago."
Diamondback Energy dropped their active rigs by like 80%. Endeavor Energy is going from 10 active rigs to 2. Literally everybody is cutting back on drilling right now and dozens of others will go bankrupt this year.
I have no idea what your end game is here. You are complaining about the lowest gas prices in 15+ years while at the same time complaining that the largest companies in the world are profitable. What is your point in all of this?
Maybe, it is because their stock prices have almost been cut in half since December?why? is it because most of your stock is in oil companies and you aren't getting your outrages dividends?
His issues are not political, they are looking for simple answers to complicated and varied questions and incorrect reasoning.
1st The local gas station at where ever he lives in Iowa is not the epicenter for what is going on everywhere in the world on oil/gas. Gas prices fluctuate and a .05 cent change is not a 15% move.
2nd Exxon profits fell 49% last qtr, the oil price was $53-$63, so his statement about profits on $25/oil are unfounded.
3rd It takes 2.1 gal of oil to make 1 gal of gas. So, it is not 100% yield much less refining, transportation,tax ect.
4th The claim that Exxon and other Oil companies are making 10 bil a year is ridiculous.
5th Companies make decisions to expand drilling years in advance, they don't snap their finger and have them start digging one morning.
I don't follow the qtr reports, but I looked them up to support my position.you do not follow the quarterly reports do you, it was reported that they were making 15+ Billion DOLLAR PER MONTH,
talking about that avg worker does not compare to the CEO that makes 40-50 MILLION PER YEAR.
my guess is the avg worker makes 1600 per week for a avg of $40 per hour. compare that the the 7.50 per hour some people make.
making a living is not the problem. at the highest I made $17 per hour as a robotic transfer operator who had to program and fix if they broke down, also at that factory I was a CNC Operator, robotic welder operator, hydraulic or numatic press operator, depending on the press I ran on that particular night.
started out at $8.25 per hour and ended up at $17.00 per hour before they shut the factory and moved to a closer place to their costumers, this never did make any sense as they made parts for Toyota, Mistubishi, over in Japan, then they made parts for the big 4 in Detroit.
I don't know what else to tell you. Gas prices are the lowest they've been in years right now. We've always seen random fluctuations from week to week or even day to day. There are so many moving parts involved that it's hard to give you an exact reason why they went up today.