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Gas prices UP 40cents more a gallon in 3 weeks...WHY?

JPaul

Well-Known Member
Messages
2,400
Location
Way up north, UT
Spring and summer fuel are a cleaner blend of fuels and cost more to produce, we get stuck with those costs.

Here it tends to be the winter formula's I think due to inversions. Summer gas is usually cheaper, except when you get into vacation months when everyone is driving. We're still dead in winter so I doubt they have changed the formulas just yet. Odds are it's market jitters.
 

MilamJR

Well-Known Member
Messages
805
Location
Alabama
They are such a big exporter they can move the market temporarily but other producers will adjust over time.


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scoreh3

Well-Known Member
Messages
1,024
Location
SoCal
Wait about another 8-10 years when the market it flooded with electric cars, trucks , m/c , utv’s etc... every time I turnaround there’s some new electric coming out on the market. This weekend I went to my friends ranch and he has bought new electric mountain bikes to ride around the property. They do a good 30mph up the dirt roads and trails. Soon gas is going to be in low demand and then wait to see what the prices do. Supply and very little demand. The old school off readers will be the only ones at the pumps.
 

Jeepwalker

Well-Known Member
Messages
857
Location
WI
Wait about another 8-10 years when the market it flooded with electric cars, trucks , m/c , utv’s etc... every time I turnaround there’s some new electric coming out on the market. This weekend I went to my friends ranch and he has bought new electric mountain bikes to ride around the property. They do a good 30mph up the dirt roads and trails. Soon gas is going to be in low demand and then wait to see what the prices do. Supply and very little demand. The old school off readers will be the only ones at the pumps.

Nobody knows where fuel prices are going to go. I made a bet 5 years ago with a buddy who argued with me vehemently we'd never see $2 gas again, EVER!! I claimed we would, it was supply/demand. 6-8 months later the price dropped. It's dipped below $2 several times since then. I send him an email each time and it pi$$es him off.

But, at some point in the future, you're right, logic would dictate lower demand is probably inevitable and prices could go way up. Could be 10 yrs, could be 30. I remember the same talk back in the 80's (we should all be buying $20/gal gas by now!!). I'm hoping by the time that day comes, Entrepreneurial spirit will see an opportunity and companies will sell nifty retrofit kits to either electric motors (in place of gas engines), or propane/diesel retrofits. Similar to how you can buy EFI kits for classic cars now. Even if gasoline becomes in short supply (and expensive), hard to believe Natural Gas or Propane will greatly diminish given that most houses are heated that way. In major cities all across the world, taxi's and gov't vehicles have been running on Propane 24/7 for years. A lot of owners toyed around with propane in the 80's when gas spiked back then.

A propane conversion is something that could probably happen fairly easily.

Heck, some word event could cause gasoline to spike to $5/gal next year. It's hard to say. That's why I keep a Jetta Diesel in the herd.
 
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Jeepwalker

Well-Known Member
Messages
857
Location
WI
..looks like fuel prices could continue to take a hike for a while due to recent fires and refinery issues.
 

f5moab

Mr. Beretta
Messages
1,986
Location
Hiding in a potato patch in Idaho
More to it than refinery fires and fuel blend change overs. Pipeline capacity is at full and we need more, but trying to get a pipeline permit anymore is like getting Pelosi to pass legislation on legalizing auto weapons.
 

Jeepwalker

Well-Known Member
Messages
857
Location
WI
Yep. Annual seasonal maintenance/fuel blend change plus it's time for more refinery fires so they can keep production capacity low.

Sometimes it makes ya wonder, doesn't it? About every year there's got to be a spring fire. Funny how the fires and refinery problems hardly happen in the winter. Sorry, that's the conspiracy theorist deep within me thinking out loud.

I *Expect* fuel prices could potentially rise a lot at just about any time. Nobody should become complacent given the world we live in. We've been fortunate the last 7 years. If in the event prices DO go way up, I'm buying another H3 (b/c prices will plummet).
 
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MilamJR

Well-Known Member
Messages
805
Location
Alabama
Sometimes it makes ya wonder, doesn't it? About every year there's got to be a spring fire. Funny how the fires and refinery problems hardly happen in the winter. Sorry, that's the conspiracy theorist deep within me thinking out loud.

I *Expect* fuel prices could potentially rise a lot at just about any time. Nobody should become complacent given the world we live in. We've been fortunate the last 7 years. If in the event prices DO go way up, I'm buying another H3 (b/c prices will plummet).

Good strategy. I bought my F250 diesel when price was $4.50/gallon. Dealer had about 25 of them about begged me to take one.

Also landed in Houston before daybreak this morning and you could see the plume of smoke stretching over the city. Could not see the lights on the ground through the smoke.


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rascole

Well-Known Member
Messages
2,580
Location
Bellflower, CA
No conspiracy on refinery fires. We don't want them anymore than you do. That's when people die and it aint worth it, my former co-workers at BP have paid the ultimate price in those fires, Texas City and Deep Water Horizon are just the recent ones.
Refineries make money when we are at full capacity, period. We have to shut down certain "units" for normal routine pit stops. This is when maintenance on equipment is done that can't be done on the run. Every unit has a different cycle or years of run time between outages. I am just starting our largest event ever, 10 weeks and why I can't go to Moab, on our FCC unit. The largest gasoline maker in our refinery at 110,000 barrels a day, 42 gallons in a barrel, so it adds up quick. Refineries are also required by law to have these outages for state inspections, they want their cut too. Stock market usually plays the biggest part on pump prices. Gasoline and crude oil are bought/sold commodities by brokers, not the board members. Either way I am mad when I have to pay as much or more for a gallon of milk or a 12 pack of beer.
 

ludevick

Well-Known Member
Messages
99
Location
Northern California
Good strategy. I bought my F250 diesel when price was $4.50/gallon. Dealer had about 25 of them about begged me to take one.

Also landed in Houston before daybreak this morning and you could see the plume of smoke stretching over the city. Could not see the lights on the ground through the smoke.


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Something similar happened to my dad where someone offered him an insanely low mile Excursion and a $1000 gas card for about 8k. Then he told me of the days when people were trading their corvettes for pintos.


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ludevick

Well-Known Member
Messages
99
Location
Northern California
Gasoline and crude oil are bought/sold commodities by brokers, not the board members. Either way I am mad when I have to pay as much or more for a gallon of milk or a 12 pack of beer.

Very true. Energy tends to be a defensive buy as it is considered counter-cyclical, as does some alcohol. Economy down? People will pay for their lights to be on, gas to be in their car, and booze to be in their fridge. Along with medications and insurance etc.. hierarchy of needs, utilities tend to be pretty high.


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