$1.99

[Long Mike]

$2.28 here in Tulsa yesterday, with my Walmart card.  Without it, it's $2.34.  I drive a gas hog Escalade.  I'm loving it.  I'm saving about $40 a fill-up, compared to the high the gas price reached.

[SirSnookalot]

There is more to the price of gas than the fluctuation of crude oil futures, unleaded gas futures too.  Being in the scrap business basically I was a commodity trader, not buying and selling futures and options but the physical commodities like copper for example.  These other commodities rise and fall just like oil does.  

 

There are other variables in operating a business that are either fixed costs or always rising.  Labor, insurance, property taxes to name a few are expenses that generally rise year by year.  These costs are driven by their own markets with no correlation to the commodity price.  There does come a point when it costs more to pull something out the ground than it can be sold for.  A case in point I remember well was 1974, the price of copper was so low that mines were laying off people some even shut down, the year prior to that copper was at at all time high.

 

When dealing with large oil companies, commodity speculators and many aspects so over my head to comprehend, I couldn't possibly compute the price of gas based on just the crude price.

 

Enjoy it now as it will rise again one day, it always does.  Just hoping our good fortune at the present time does not cause economic problems in the future.

[roadwarrior]

When wholesale prices rise they are almost immediately reflected at the pump.

On the other hand, when prices fall the suppliers drag their feet to work out the

cost of oil "in process". So, it takes a little time, but the trend is your friend!

 

 

 

 

[roadwarrior]

WTI $65.70 today.

[Lund Explorer]

I'd bet that the price will return to the ugly side by the time I'm ready to fill up the motorhome next spring!

[roadwarrior]

I'm thinkin' more like a range of $1.50-$1.75 by spring. What are your current prices compared to

the national average? In high tax states you are always going to pay more.

[Siebert Outdoors]

2.19 here.  I hope we see that 1.99

[*Hootie]

I'd bet that the price will return to the ugly side by the time I'm ready to fill up the motorhome next spring!

Let's hope not. Gas below $2.00 would be great for a change.

Hootie

[J Francho]

It's wash.  Senseless, gas consuming burnouts also consume tires, lol.

[Lund Explorer]

I'm thinkin' more like a range of $1.50-$1.75 by spring. What are your current prices compared to

the national average? In high tax states you are always going to pay more.

 

I have no ideas what current prices are right now as I haven't been out in a week.  I do know that we pay road/sales taxes on fuel of around $0.25 per/gallon now.  That's subject to change as the folks in Lansing are going through the gyrations needed to generate a few more billion to put into filling chuck holes.

[Lund Explorer]

Let's hope not. Gas below $2.00 would be great for a change.

Hootie

 

Sadly, I don't think it will last.

 

At some point, it will not be cost efficient for the oil companies to keep the pumps running, let alone continued drilling. 

[slonezp]

Sadly, I don't think it will last.

 

At some point, it will not be cost efficient for the oil companies to keep the pumps running, let alone continued drilling. 

I've heard this is OPEC's way of trying to force American exports to drop.

[deaknh03]

I've heard this is OPEC's way of trying to force American exports to drop.

thats exactly it..forcing american oil drillers to go out of business..enjoy the low prices..they come with a cost, lost american jobs.

[Lund Explorer]

I've heard this is OPEC's way of trying to force American exports to drop.

 

 

thats exactly it..forcing american oil drillers to go out of business..enjoy the low prices..they come with a cost, lost american jobs.

 

It's much more complicated than that.

 

Pricing?  The countries that make up OPEC are crucial to the pricing of crude oil if for no other reason than they are currently producing way more of the stuff than everyone else.  They can do so either by the volume of their production, or by banding together to sell at a specific price. 

 

Import/Export?  Crude oil bounces back and forth across borders everywhere.  Most Alaskan crude is loaded aboard ships bound for foreign countries, and much of the oil refined along the gulf coast comes from other countries. 

 

Jobs/Economy?  Yup, lower crude oil prices will slow down the incentive for oil companies (mostly internationally owned) to explore, drill for, or pump from, reserves in this country.  This has a negative impact on those workers in those fields, as well as cuts down the royalty income paid to the people who own the land above those reserves.  However, these people are in the minority.  The vast majority of people in this country will see big savings in the driving and home heating costs.  Those savings will most likely be spent on other things and those segments of the economy will thrive because of it.

 

The Bottom Line?  In my opinion, we will eventually see an increase in crude oil prices which will lead to more expensive fuel costs.  Most of the countries in OPEC rely on the revenues generated from the export of oil.  When their cash flow dries up, they will once again cut production and drive the price back to a level where they can afford to operate their own economies.  In the meantime, be happy with the extra cash in your wallet, and know that some of the governments that don't really like us are the ones really feeling the pinch.

[deaknh03]

http://www.economist.com/news/leaders/21635472-economics-oil-have-changed-some-businesses-will-go-bust-market-will-be

[Bankbeater]

$2.21 on the way to work this morning.

[*Hootie]

Still $2.53 in Cincinnati.

Hootie

[J Francho]

Bread was still $4 a loaf last time I checked.

[roadwarrior]

WTI hit a five year low this morning. The January futures contract is $63.83.

 

The trend is your friend...lower prices going into the new year!

 

 

 

 

[roadwarrior]

Today's close was $63.11, down 4.15% from Friday.

[*Hootie]

Bread was still $4 a loaf last time I checked.

Are you serious??

What part of the country are you in.

Nah, you can't be serious.

Hootie

[J Francho]

Are you serious??

What part of the country are you in.

Nah, you can't be serious.

Hootie

 

Yes, I'm serious.  Arnold's bread is $3.99/loaf.  Apparently that's a lot less than the suggested retail of $6.99/loaf.  Crappy Wonderbread and like is around $2.99.loaf.

[clayton86]

John I seen gas for $2.99 on the 90 coming home from Ft drum on Sunday. Once we got into geneseo it was $3.20.

Milk and bread is expensive out here I pay 2.89 for a small quart of milk every morning on my lunch break.

[*Hootie]

Yes, I'm serious. Arnold's bread is $3.99/loaf. Apparently that's a lot less than the suggested retail of $6.99/loaf. Crappy Wonderbread and like is around $2.99.loaf.

Just bought bread at Kroger here in Cincy, $1.00 a loaf. This is their usual price. Brand name breads run $1.60- $2.39. I honestly thought you were joking.

Hootie

[deaknh03]

Just bought bread at Kroger here in Cincy, $1.00 a loaf. This is their usual price. Brand name breads run $1.60- $2.39. I honestly thought you were joking.

Hootie

must be nothin but nutritious for $1