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View Full Version : Poll: Oil Prices in 6 months


6ballsisall
09-19-2008, 02:10 PM
Poll on what you speculate (oh wait, thats a bad word now 8p) Oil prices will be per barrel in 6 months. (No Harold, not Teak Oil...... )

LakePirate
09-19-2008, 02:12 PM
$1 .

Monte
09-19-2008, 02:24 PM
I'll say $1 too if you think we can shift the average downward.

LakePirate
09-19-2008, 02:28 PM
I'll say $1 too if you think we can shift the average downward.

Stranger things have happened.

I mean this is a well respected site in the eyes of wall street and on Pennsylvania Ave.

6ballsisall
09-19-2008, 02:33 PM
Stranger things have happened.

I mean this is a well respected site in the eyes of wall street and on Pennsylvania Ave.

LOL!!!!!!!!

No you got it wrong Lakey. We aren't discrete enough on here. If we all learned Sporty language, than yes, we would have some real influence there

Monte
09-19-2008, 02:34 PM
I mean this is a well respected site in the eyes of wall street and on Pennsylvania Ave.

I think that Cumberland Coors has given you brain damage, but hey I guess if that means UMP sets the prices we may see 0.25 again:rolleyes:

LakePirate
09-19-2008, 02:34 PM
LOL!!!!!!!!

No you got it wrong Lakey. We aren't discrete enough on here. If we all learned Sporty language, than yes, we would have some real influence there


May I?


TRU DAT

6ballsisall
09-19-2008, 02:35 PM
May I?


TRU DAT

:headbang::headbang::headbang:

TMCNo1
09-19-2008, 03:00 PM
Poll on what you speculate (oh wait, thats a bad word now 8p) Oil prices will be per barrel in 6 months. (No Harold, not Teak Oil...... )

:uglyhammeI'll give you a quart of my gas for free!http://smileys.smileycentral.com/cat/36/36_11_12.gif







http://www.smileycentral.com/sig.jsp?pc=[object Object]&pp=ZSYYYYYYYYUS (http://smiley.smileycentral.com/download/index.jhtml?partner=ZSzeb097_ZSYYYYYYYYUS&utm_id=7925)

trickskier
09-19-2008, 04:02 PM
I can't say here what I said on the DS..................:mad:

6ballsisall
09-19-2008, 04:21 PM
I can't say here what I said on the DS..................:mad:

Let me see if I can assist you with this communication. I'll use Sporty language:

I, among others would like to do some things with inserting a barrel in certain places to those individuals in that country in which we have some of our men and women over there doing certain things and to protect our oil consumption concerns. Said certain things would be done to let those individuals know that we dont approve of the way they are attempting to insert barrels in certain places to us. Of course this will involve traveling to certain places and doing certain things along the way, and we'll be meeting up with other people and discussing certain things too.

trickskier
09-19-2008, 05:01 PM
Let me see if I can assist you with this communication. I'll use Sporty language:

I, among others would like to do some things with inserting a barrel in certain places to those individuals in that country in which we have some of our men and women over there doing certain things and to protect our oil consumption concerns. Said certain things would be done to let those individuals know that we dont approve of the way they are attempting to insert barrels in certain places to us. Of course this will involve traveling to certain places and doing certain things along the way, and we'll be meeting up with other people and discussing certain things too.

I believe that about covers it................:D

flipper
09-19-2008, 05:03 PM
I thought this place was back to normal.....where the HE!! is the UMP option?

UMP option- we won't need oil any more as we will all have electric MC's and cars.

6ballsisall
09-19-2008, 05:05 PM
I thought this place was back to normal.....where the HE!! is the UMP option?

UMP option- we won't need oil any more as we will all have electric MC's and cars.

I should have added this as the UMP Option: It doesn't matter, everyone should have diesel trucks and we could all run biodiesel because 3/4 & 1 ton diesel trucks are a must for everyone

flipper
09-19-2008, 05:06 PM
I should have added this as the UMP Option: It doesn't matter, everyone should have diesel trucks and we could all run biodiesel because 3/4 & 1 ton diesel trucks are a must for everyone

Unless you like to eat:D

flipper
09-19-2008, 05:07 PM
Don't forget...2WD diesels, and 4WD is a waste

6ballsisall
09-19-2008, 09:00 PM
Bumpity Bump

TMCNo1
09-19-2008, 09:23 PM
I thought this place was back to normal.....where the HE!! is the UMP option?

UMP option- we won't need oil any more as we will all have electric MC's and cars.


Your right, it's gonna be a looooooong winter!:rolleyes::D

6ballsisall
09-19-2008, 09:28 PM
Your right, it's gonna be a looooooong winter!:rolleyes::D

Id take the old TT over the "new" TT anyday of the week

88 PS190
09-20-2008, 01:59 AM
Are we factoring in environmental damage from converting all the available farmland to corn to produce ethanol?

Or what about the cost of our interests in the middle east?

Soy biodiesel... and one of them diesel MC's Now that's green.

6ballsisall
09-20-2008, 04:44 PM
Are we factoring in environmental damage from converting all the available farmland to corn to produce ethanol?

Or what about the cost of our interests in the middle east?

Soy biodiesel... and one of them diesel MC's Now that's green.

The question was pretty straight forward. Speculate what oil will be per barrel in 6 months. We each will have our own speculation based on what theory we think will pan out in the time frame specified. At the end of the day it's all speculation

Maristar210
09-20-2008, 04:51 PM
Are we factoring in environmental damage from converting all the available farmland to corn to produce ethanol?

Or what about the cost of our interests in the middle east?

Soy biodiesel... and one of them diesel MC's Now that's green.

Dude he's just asking about the price of oil. What the hell do your comments have to do with that?

(Inhale)

Jorski
09-21-2008, 08:00 PM
Supply has not improved..in fact supply has been impaired by Ike etc...demand has only slightly abated due to the weak economy. Condition of the capital markets has all but assured that aggressive drilling (think about crowds chanting "drill, baby, drill) will NOT take place - it costs money you know.

Oil will be significantly higher in 6 months no matter who takes office.:(

TX.X-30 fan
09-21-2008, 10:29 PM
You sir are a complete ****-off, and as predictable as a morning sh!t

Jorski
09-22-2008, 01:44 PM
Sorry about letting the facts get in the way TX-X30....October contract currently in short squeeze.....and trading over $116

LakePirate
09-22-2008, 02:05 PM
I would buy some gas if Sissal would quit buying it all up.

wakeX2wake
09-22-2008, 02:20 PM
i think everyone should take my approach... eat lots of mexican and italian that way you can fart in your gas tank so you can gain back in your mpgs the added cost to move your fat #$$ from place to place in your vehicle

Jorski
09-22-2008, 02:26 PM
Oil now 125...

6ballsisall
09-22-2008, 02:41 PM
I would buy some gas if Sissal would quit buying it all up.

I'm trying to buy as little as possible brutha!

Sodar
09-22-2008, 02:44 PM
Oil now 125...

Going back down. Now at $119.

BrianM
09-22-2008, 02:45 PM
Buy gas on the way home from work because it is going to be more expensive at the pump by tomorrow morning I am sure.

Sodar
09-22-2008, 02:48 PM
No question about that. I though everything was looking a little more promising last week at ~$90 a barrel. I guess we are not out of this, yet. :(

6ballsisall
09-22-2008, 02:49 PM
I believe it's time to be on the pitching end of this madness vs. the catching end.......:rolleyes:

Skipper
09-22-2008, 02:52 PM
When did they stop grading gasoline? I mean, used to be when you spent more than $3.00 a gallon for gas, it was premium, not the cheap stuff.

lanier92prostar
09-22-2008, 03:09 PM
Buy gas on the way home from work because it is going to be more expensive at the pump by tomorrow morning I am sure.

I would, but there is none to be found:mad:

Workin' 4 Toys
09-24-2008, 10:28 PM
It should be $50.00 a barrel.

03 35th Anniversary
09-24-2008, 10:29 PM
It should be $50.00 a barrel.


Puff Puff Give.... Pass That Joint!!!!!!! :mad:

6ballsisall
09-24-2008, 11:01 PM
It should be $50.00 a barrel.

Puff Puff Give.... Pass That Joint!!!!!!! :mad:

^^^^ Ah, Tru Dat! Ain't gonna happen

lanier92prostar
09-24-2008, 11:32 PM
It should be $50.00 a barrel.

It should be, but there is no way, probably not again in a long time.

Jorski
09-25-2008, 01:46 PM
You may want it to be $50/barrel; but most studies about the marginal cost per barrel (that is the cost of finding new reserves) is about $70/barrel.

Lest you think that offshore or Alaskan oil will change this, it will, but higher. Those are two of the three most expensive ways to get oil on the planet...oil sands being the other.

nuckinfutz
09-27-2008, 12:06 PM
61.48 Euro
9475.20 Yen
699.60 Hong Kong Dollar
$300.00 US

$150 in monopoly money (Monopoly money should be worth more than US dollar since there is less printed and neither are backed by anything)

6ballsisall
09-27-2008, 12:14 PM
61.48 Euro
9475.20 Yen
699.60 Hong Kong Dollar
$300.00 US

$150 in monopoly money (Monopoly money should be worth more than US dollar since there is less printed and neither are backed by anything)

:uglyhamme:uglyhamme:uglyhamme:uglyhamme

Workin' 4 Toys
09-27-2008, 10:19 PM
Puff Puff Give.... Pass That Joint!!!!!!! :mad:
I said should....I'll leave it at that.

Workin' 4 Toys
11-13-2008, 09:47 PM
It should be $50.00 a barrel.
Puff Puff Give.... Pass That Joint!!!!!!! :mad:
^^^^ Ah, Tru Dat! Ain't gonna happen
It should be, but there is no way, probably not again in a long time.

Ya'lls a bunch a haters....

11/13/08

Crude oil (per barrel)


$58.24

uncleboo
11-14-2008, 01:21 AM
Under $60 a barrel, we should be less than $1.65 at the pump.

sdesmond
11-14-2008, 07:26 AM
Under $60 a barrel, we should be less than $1.65 at the pump.

I saw $1.99 today here in NW Indiana. We are normally behind everybody else is dropping the price so other parts of the country should be around $1.65 or so.

Gonzo
11-14-2008, 07:55 AM
Ya'lls a bunch a haters....

11/13/08

Crude oil (per barrel)


$58.24

dont break that elbow yet, dow was up yesterday and you have 8 bucks to go... :D but even if we dont get there, good call!

Maristar210
11-14-2008, 08:20 AM
Ya'lls a bunch a haters....

11/13/08

Crude oil (per barrel)


$58.24

Good call WFT

Workin' 4 Toys
11-16-2008, 11:01 PM
dont break that elbow yet, dow was up yesterday and you have 8 bucks to go... :D but even if we dont get there, good call!
When the DOW hits 6000 next year ..... oil will be ........... Oh Nevermind.........:(


(Please feel free to disregard this post regarding the DOW, I could be wrong.......)

Workin' 4 Toys
11-16-2008, 11:04 PM
Good call WFT

If only I had these mad skills in other areas.....;)


On a similar note, Wondering here if its a good time to buy some GM stock, or sell......:rolleyes:

h2oskifreak
11-16-2008, 11:22 PM
Nobody enjoyed $4.00 a gallon gas this last summer but.. oil needs to be at $90+/- for our economy to get the boost it needs. Production will fall if prices are too low. Exploration funds dry up when prices are below about $75.00. I'll pay a fair price per gallon if we have jobs, buyers for homes, and a heathy economy.

Gonzo
11-16-2008, 11:26 PM
90 + and Iran keeps making the bomb....

TMCNo1
11-20-2008, 03:00 PM
Oil touches 3-1/2 year low under $50 as demand weighs
NEW YORK (Reuters) Oil dropped more than 3 percent on Thursday, touching the lowest level since May 2005 as record U.S. job losses intensified concerns of a long and deep global recession and further crushed demand expectations.
The U.S. government reported the number of workers making new claims for jobless benefits last week surged to the highest in 16 years, helping to push down global equity markets.
U.S. crude fell $1.81 to $51.81 a barrel by 1251 p.m. EST after earlier touching $49.75, marking the lowest level since May 25, 2005, when prices hit $49.58.
London Brent crude shed $1.39 to $50.33 a barrel.
"The unemployment data was yet another ugly data point in a seemingly never ending stream of poor economic numbers," said Michael Wittner, global head of oil research at Societe Generale.
"What makes it hard to call a bottom is that even when oil fundamentals firm up, if we're still having these waves of deleveraging, it can overwhelm even the oil fundamentals."
Oil has tumbled nearly $100 from record highs over $147 a barrel struck in July, as the economic crisis strangles demand growth in large consuming nations such as the United States.
U.S. stocks advanced on Thursday after a Senate Democratic aide said senators reached a bipartisan agreement on aid for automakers.
Citigroup Inc's shares tumbled another 25 percent as investors questioned the bank's ability to withstand what are expected to be billions in additional loan losses in 2009.
As demand slumps, oil companies plan to store millions of barrels of crude in the hope economics will improve.
Shipping brokers on Thursday said U.S. oil trader Koch and Royal Dutch Shell had booked supertankers capable of storing 10 million barrels of crude, more than top exporter Saudi Arabia produces in a day.
Libya's top oil official said on Thursday OPEC may decide to reduce supply further at its meeting in Cairo next week if it finds members have implemented a previous decision to lower output.
The comments follow remarks from other OPEC members including Kuwait, Iran and Venezuela raising the possibility of a further cut in supply to prop up oil prices.
Since early September, OPEC has said it will remove around 2 million barrels per day from international markets, but the market has taken the view that falling demand is a bigger factor than tightening supply.
(Reporting by Matthew Robinson, Robert Gibbons and Gene Ramos in New York; Chris Baldwin in London; Editing by Marguerita Choy

TMCNo1
11-20-2008, 04:46 PM
Oil closed today @ $49.62/barrel

03 35th Anniversary
11-20-2008, 06:14 PM
Oil closed today @ $49.62/barrel

Just remember......


For every action there is a reaction waiting...........

TMCNo1
12-03-2008, 08:15 PM
Oil closed @ $46.59/barrel today!

snakeoil
12-03-2008, 10:29 PM
I see oil at 6.00 a barrel but we will not care.

ProTour X9
12-04-2008, 03:32 PM
I see oil at 6.00 a barrel but we will not care.

I'm going to comment on that because I know thats what you want someone to do.:)

snakeoil
12-04-2008, 07:29 PM
I'm going to comment on that because I know thats what you want someone to do.:)




By not commenting you did comment right. Could be you just are afraid to hear the answer.

TMCNo1
12-04-2008, 07:58 PM
Oil @ $43.69/barrel +- on CNBC!

6ballsisall you may have hit on something !

snakeoil
12-04-2008, 08:02 PM
Nobody enjoyed $4.00 a gallon gas this last summer but.. oil needs to be at $90+/- for our economy to get the boost it needs. Production will fall if prices are too low. Exploration funds dry up when prices are below about $75.00. I'll pay a fair price per gallon if we have jobs, buyers for homes, and a heathy economy.




Funny how 2 short years ago the # was 35???? Where do you hear 90 is the #??


Only silver lining here is they can't eat oil. I vote for wheat to be 90 dollars a barrel before oil.

TMCNo1
12-06-2008, 10:15 AM
Gas prices are a long way off from that magic number of $1 or less, last seen in March 1999 when prices were at 97 cents a gallon, according to motor club AAA. In less than five months, oil has fallen 72 percent. Just this week, in which the National Bureau of Economic Research determined that the U.S. is in recession, oil has fallen 25 percent.
On Friday, light, sweet crude for January delivery settled at $40.81 a barrel on the New York Mercantile Exchange, down by nearly $3 per barrel. Prices fell as low at $40.50, levels last seen in December 2004.
Gasoline futures for January delivery tumbled to 90 cents.

sdesmond
12-06-2008, 10:39 AM
ALGIERS, Algeria - The head of OPEC says financial markets should brace for a "surprise" decision on oil output cuts by the cartel during its summit later this month.

Chakib Khelil, who is also Algeria's energy minister, has told The Associated Press that "a consensus has formed for a significant reduction of production levels" by the 14-member Organization of Petroleum Exporting Countries.

OPEC members are to announce their decision during a summit in Oran, Algeria, on Dec. 17.

Markets are expecting an output reduction but Khelil suggested in an interview Saturday that it could be deeper than expected.

Khelil said the best way to boost oil rates is to "surprise" markets

Workin' 4 Toys
12-06-2008, 10:25 PM
Geez, I think I started a trend up until just 3 weeks ago I had the only vote for my $ guess, now there is a whole bunch jumping on the bandwagon....LOL

Gonzo
12-06-2008, 10:29 PM
Geez, I think I started a trend up until just 3 weeks ago I had the only vote for my $ guess, now there is a whole bunch jumping on the bandwagon....LOL

and so you should start the new, oil prices in 6 month poll.

JohnnyB
12-06-2008, 11:44 PM
OPEC want the price to be $75/barrel and feels that is a fair price

I think they've realized that that translates to $2-$3/gal range us which is the peak of their ability to make money. They found out this last year that $3-$4/gal will cause people to change their driving habits which impacts them financially. I think we'll see gas stabilize at this price

my :twocents:

TMCNo1
12-07-2008, 12:56 PM
and so you should start the new, oil prices in 6 month poll.

But make it,
The New Official Oil Prices in 6 month poll.
42753

Workin' 4 Toys
12-09-2008, 12:28 AM
I'm going to continue to ride my bicycle regardless of the price per barrel of oil. There, I said it, I thought I should get that off my chest.


Now, I'm still trying to figure out if diesel will ever be less than gasoline again.

JohnE
12-09-2008, 05:44 AM
Um, don't we need to see what the price is in March to see who is right? The poll didn't ask what will the price of oil be in 3 months.:D

Still a good call, WFT.:cool:

TMCNo1
12-09-2008, 09:00 AM
Um, don't we need to see what the price is in March to see who is right? The poll didn't ask what will the price of oil be in 3 months.:D

Still a good call, WFT.:cool:


Man, your up aweful early.
I bet by the time CSM'09 gets here the price will be up, but that's alright, everything is filled up now with $1.62/gallon Super Unleaded and ready for Spring consumption.

Workin' 4 Toys
12-18-2008, 12:22 AM
Um, don't we need to see what the price is in March to see who is right? The poll didn't ask what will the price of oil be in 3 months.:D
Oh sure, burst my bubble.....8p
With daily production cuts, I'm hesitant to say, but 7 more people have jumped on my bandwagon...


Regardless...
I'm going to continue to use my 100mpg commuter until I can put in my order for my new Chevy "Volt". Looking forward to it. I hope it offsets my fossil fuel consumption of things laying around that get 5mpg or less....lol

TMCNo1
12-18-2008, 08:55 PM
Today's Price of Crude Oil (http://www.upi.com/finance/?Page=Quote&Ticker=%24OIL)
Nymex Crude Oil (http://www.upi.com/finance/?Page=Quote&Ticker=%24OIL)
$36.25 -$4.07 (-10.09% )

Workin' 4 Toys
12-18-2008, 10:57 PM
Opec- "We are cutting 4.4million barrels of oil per day", Investors-"good news"....

Opec- "No wait, we mean 4.4million including the 2 million we cut months ago"....investors-"nevermind, bad news"

TMCNo1
12-19-2008, 05:03 PM
WOW!!!!!!!
Today's Price of Crude Oil
Nymex Crude Oil (http://www.upi.com/finance/?Page=Quote&Ticker=%24OIL)
$33.17 -$1.33 (-3.86% )

TMCNo1
01-15-2009, 04:48 PM
Crude oil prices tumble below $35
[/URL] (javascript://)[URL="http://www.poconorecord.com/apps/pbcs.dll/misc?url=/static/forms/newsletter.htm"] (javascript:win=window.open('http://my.textcaster.com/ServePopup.aspx?id=620','TextCaster','menubar=yes, toolbar=no,status=yes,scrollbars=yes,resizable=yes ,width=650,height=525');win.focus();)
(http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20090115/NEWS/90115015#respond)
January 15, 2009
NEW YORK (AP) Oil prices are trading below $35 a barrel with rising crude inventories and falling retail sales in the U.S. suggesting a drastic decline in energy consumption.
Light, sweet crude for February delivery fell $2.52 to $34.65 a barrel Thursday on the New York Mercantile Exchange.
Prices have sunk 27 percent since last week and analysts say they may test a five-year low reached last month of $33.87 a barrel.

Sodar
01-15-2009, 05:15 PM
Just wait for summer. I am certain that oil will be back at $100/per barrel or more.

For the time being though, the lower gas prices sure are nice!

magnum
01-15-2009, 05:20 PM
Something don't seem right , the Price for a barrel of Oil is falling but the price at the pump is going back up , $1.75 in Central AR today

sdesmond
01-16-2009, 08:40 AM
$1.99 in NW Indiana this morning.

6ballsisall
01-16-2009, 08:42 AM
1.67 yesterday in ATL

Ric
01-16-2009, 09:53 AM
Are we factoring in environmental damage from converting all the available farmland to corn to produce ethanol?

Or what about the cost of our interests in the middle east?

Soy biodiesel... and one of them diesel MC's Now that's green.
You should have said economic damage from converting all the available farmland to produce ethanol... That's what you meant, right?

Ric
01-16-2009, 09:54 AM
I'm going to continue to ride my bicycle regardless of the price per barrel of oil. There, I said it, I thought I should get that off my chest.


Now, I'm still trying to figure out if diesel will ever be less than gasoline again.
I read somewhere that two major refineries were adding diesel refining capacity ??

TMCNo1
02-17-2009, 01:13 PM
Nearly one month away,

Oil slips below $35 as global markets slump.
HOUSTON A new batch of lousy economic news dragged oil prices down nearly 8 percent Tuesday, as signs from across the globe pointed to a prolonged and painful recession.
Light, sweet crude for March delivery fell $2.87 to $34.64 a barrel on the New York Mercantile Exchange after settling at $37.51 on Friday. Nymex was closed for the Presidents Day holiday on Monday.

Sodar
02-17-2009, 01:15 PM
Then why am I paying $2.50/gallon when I was paying $1.60/gallon at the same price per barrel back in November/December...

Gas prices have gone up about 30 cents since this month's start.

TMCNo1
02-17-2009, 01:34 PM
Then why am I paying $2.50/gallon when I was paying $1.60/gallon at the same price per barrel back in November/December...

Gas prices have gone up about 30 cents since this month's start.


This is one of many BS answers!

Crude oil is getting cheaper so why isn't gas?
NEW YORK Crude oil prices have fallen to new lows for this year. So you'd think gas prices would sink right along with them.
Not so.
On Thursday, for example, crude oil closed just under $34 a barrel, its lowest point for 2009. But the national average price of a gallon of gas rose to $1.95 on the same day, its peak for the year. On Friday gas went a penny higher.
To drivers once again grimacing as they tank up, it sounds like a conspiracy. But it has more to do with an energy market turned upside-down that has left gas cut off from its usual economic moorings.
The price of gas is indeed tied to oil. It's just a matter of which oil.
The benchmark for crude oil prices is West Texas Intermediate, drilled exactly where you would imagine. That's the price, set at the New York Mercantile Exchange, that you see quoted on business channels and in the morning paper.
Right now, in an unusual market trend, West Texas crude is selling for much less than inferior grades of crude from other places around the world. A severe economic downturn has left U.S. storage facilities brimming with it, sending prices for the premium crude to five-year lows.
But it is the overseas crude that goes into most of the gas made in the United States. So prices at the pump will probably keep going up no matter what happens to the benchmark price of crude oil.
"We're going definitely over $2, and I bet we'll hit $2.50 before spring," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. "This is going to be an unusual year."
On the last day of 2008, gas went for $1.62 on average, according to the auto club AAA, the Oil Price Information Service and Wright Express, a company that tracks transportation data.
The recession in America has dramatically cut demand for crude oil, and inventories are piling up. So prices for West Texas crude have fallen well below what oil costs from places like the North Sea, Saudi Arabia and South America.
That foreign oil sells in some cases for $10 more per barrel and that doesn't even include shipping.
Brent North Sea crude, which feeds some East Coast refineries and therefore winds up at many gas pumps around America now costs about $7 more per barrel than the West Texas crude. Deutsche Bank analysts say the trend should continue.
Historically, West Texas International crude has cost more. So nobody bothered building the necessary pipelines to carry it beyond the nearby refineries in the Midwest, parts of Texas and a handful of other places.
Now that the premium oil is suddenly very inexpensive, refiners elsewhere can't get their hands on it.
"It's so cheap," said Lynn Westphall, the senior VP of external affairs at San Antonio-based Tesoro, which owns a half dozen refineries on the West Coast and Hawaii. "But you can't just build a pipeline to everywhere. We know we can't get it."
Tesoro's refineries in North Dakota and Utah use locally drilled oil and Canadian oil, which also has been running about $10 more per barrel than West Texas crude.
So why not build more pipelines? Because investing billions of dollars over several years makes no sense when the prices could just flip a year from now to where they were before.
"How long is WTI going to be cheaper than Venezuelan oil? Than Canadian?" asked Charles T. Drevna, president of the National Petrochemical and Refiners Association. "You just don't build a pipeline like that."
At the same time, refiners have seen the same headlines as everyone else about job losses and consumer spending. They've slashed production just to avoid taking losses on gasoline no one will buy. Result: Higher gas prices.
"Why should a refiner produce more gasoline when the stuff we produce is not being used?" Drevna said.
Of course, complex explanations of the diverging price paths of West Texas crude and gas are unlikely to placate frustrated drivers. Memories of last summer's $4-plus gas have not receded.
"Drivers are being ripped off even more now than before," said Stuart Pollok, who was filling up recently at a Chevron station in downtown Los Angeles. He pointed out Exxon Mobil Corp. reeled in billions in profits last year when oil prices neared $150.
Others see the conspiracy reaching higher.
"It got really low during the elections and now it's going back up," said Christel Sayegh, a 23-year-old graphic designer in Los Angeles. "They do that every election, though, right?"
___
AP Energy Writer John Porretto reported this story from Houston. Associated Press Writers Jennifer Malloy and Ryan Nakashima in Los Angeles contributed to this story.

kycat2007
02-17-2009, 02:42 PM
That is bull. I live outside of Louisville and gas is $1.90 and in Hodgenville gas was $1.65. Transport cost or not something smells foul. Yes Louisville is on a different formulation but I live in Bullitt County. $.25 cents is a bit much for reformulated gas I think. Gas back on December 15th was closing up at $1.35 and nobody was taling about Texas oil then and a barrell was at $34. I call BS on this.

kycat2007
02-17-2009, 02:46 PM
By Paul Davidson, USA TODAY
The economy is in tatters. Oil prices are plunging. So why are gasoline prices closing in on $2 a gallon again?
The national average price for a gallon of regular gasoline was $1.97 Sunday, according to the Oil Price Information Service (OPIS) and AAA. That's up 22% since pump prices hit a five-year low of $1.61 on Dec. 30.

Oil prices, despite a Friday rally, have fallen about 16% over the same period.

A big reason for the disparity: refiners. Beset by weak consumer demand and losses on gasoline sales, oil refiners have scaled back production since late December. The average utilization rate at U.S. refineries was 81.5% as of Feb. 6, the lowest in 17 years, not including hurricane-related slowdowns, according to the Energy Information Administration. As recently as early December, refineries were running at 87.4% of capacity.

Refineries typically shut some units for maintenance this time of year. But many are trimming output because demand is anemic. That tends to rile consumers who view low gas prices as a small silver lining in a dismal economy. But go easy on the poor refiner, analysts say.

FIND MORE STORIES IN: Nymex | Oil Price Information Service | Energy Information Administration | Brent | Tom Kloza | Maya | Valero | Bill Day | Phil Flynn of Alaron Trading
"If you're losing money on something and you're producing at 90%, you're going to cut back," says OPIS chief oil analyst Tom Kloza.

"If there's no demand, there's really not a whole lot of point to making extra gasoline," says Bill Day, spokesman for Valero, the largest independent U.S. refiner.

Such cutbacks are common in other industries, Day says. Still, Kloza says, "They probably overtweaked it a bit."

But, Kloza says, that's likely because refiners didn't slash production enough the last quarter of 2008. Back then, while the global energy market which sets crude prices was weak, U.S. demand for gasoline was even more feeble. Wholesale gasoline cost several dollars less a barrel than crude oil, and refiners lost money on every gallon they sold. They offset their losses with profits on diesel fuel. Now, refiners are earning about $17 a barrel, says analyst Phil Flynn of Alaron Trading.

Another reason for the apparent disparity: While the nation focuses on benchmark oil prices, such as Nymex, other types of crude, such as Brent or Maya, trade about $10-a-barrel higher, Kloza says.

Don't worry yet about $4 gasoline. If high profit margins persist, refiners will ratchet up production, Day says. Kloza says gas prices likely will head toward $2.50 a gallon through March. But they'll soon stabilize and drift down again, Flynn says.