Oil Prices

oldman

oldman

Well-known Member
Location
PA
I am sure that all of us have noticed that the price of gas has been creeping up. If you look at the chart for oil prices, you will see that since the first of the year when oil prices were in their low $40's, it has now risen to the mid $60's price per barrel. China announced overnight (4/17) that their economy grew at a faster rate in the first quarter than analysts had expected to 6.4%. Leading the way was retail sales followed by industry production.

Based on this news, I would expect to see oil prices to continue its climb.
 

Yes its a lot higher now in Houston. Lucky me gassed up right befire the rise. Of course I do not drive much any more so it will not effect me much.
 
oldman said:
....... China announced overnight (4/17) that their economy grew at a faster rate in the first quarter than analysts had expected to 6.4%. Leading the way was retail sales followed by industry production. Based on this news, I would expect to see oil prices to continue its climb.
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Yup. I notice the increases, but just 'grin and bear it'. The new dynamic in oil is the massive oil production the U.S. has. We were all led to believe, 20 years ago, that oil would peter out and we'd be locked in to the whims of other oil producing countries. Below is the 'fun' part:

".....By the end of 2019, the United States will become a net energy exporter, exporting 1.1 million barrels more than it imports. It had been a net energy importer since 1953. Oil production will rise until 2027 when it levels off at around 30 million b/d.....".


 

The US is leading the world in oil production. The Permian Basin (Midland Tx) is about a third of the total.

https://knoema.com/atlas/topics/Energy/Oil/Production-of-crude-oil

The United States of America is the top country by production of crude oil in the world. As of January 2019, production of crude oil in the United States of America was 11,880.65 thousand barrels per day. The top 5 countries also includes Russian Federation, Saudi Arabia, Iraq, and Canada.
 
CeeCee that’s terrible. We are around $2.89 and nowhere near the lowest.

I heard on NPR just a few months ago that the U.S. has an oil glut. The announcer even made the old familiar statement that there are barges in the harbors loaded with oil and no place to store it.

I was always led to believe that consumer prices were based on supply and demand. That doesn’t seem to hold true in this situation. But, there is good news. As oil prices go up, on average, so do the markets.
 
Around here gas is averaging about $2.50 a gallon. Adjusted for inflation that works out to the same 30 cents a gallon that it was when I first started driving in 1963.

Truth of the matter we should be paying about 10 bucks a gallon to offset all the damage we are doing to the environment by driving these cars and trucks.
 
oldman said:
.....I heard on NPR just a few months ago that the U.S. has an oil glut. The announcer even made the old familiar statement that there are barges in the harbors loaded with oil and no place to store it......
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My understanding from what I read is that the excess has been slowly going down. But, as I assume you know, the oil supply is dependent on so many countries either pumping or not pumping. And that changes all the time.
 
I paid 2.909/gallon this morning but it still seems inexpensive after the last couple of spikes.

I suppose that's part of the psychology involved in pricing anything.
 
Tommy said:
I paid 2.599 yesterday at Mobil. Much of the difference in what we pay depends the tax our respective states levy on gasoline.
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You are 100% correct with that statement. Here in PA, our former Governor placed a 25 cents per gallon tax on gas to help with repairing the bridges and roads here in the state. I am OK with that because they do need improved or, in some cases, the bridges need replaced. We can see that the extra tax money is being spent as intended, which for any government to raise a tax for a purpose is not always spent as anticipated.
 
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I live in an urban area where everything I need is within a few miles from my house. And now that I am retired and don't need to drive to and from work... one tank of gas lasts a month.

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