DawgTalkers.net Forums DawgTalk Tailgate Forum Holy Crap! Sub- $3 gas!

High oil prices (and ultimately gasoline, heating oil & natural gas) are not due to shortages.

The US as a whole is consuming less Oil now than it did a year or two ago. The US demand for Oil has gone down, as the supply has stayed consistent. At the same time, the price of Oil against the gold standard has stayed rather consistent as well. The demand of Oil in countries such as China and India has gone up, but not enough to create a shortage when compared to the drop in demand from the US.

So what happened?

The dollar sucks. It sucks hard core. Our economy has been stricken by gross mis-management, and run away spending abroad by Washington. Fighting two wars that have lasted longer than WW2 hasn't helped improve the situation. We've borrowed and spent more in the last 8 years than we could have afforded. Now, we are increasing out deficit by 1 trillion dollars just to bail out the wealthiest 1% of america...

So, it isn't really so much that less Oil exists (although that is technically true...), or the supply/demand ratio...It's that the economic value (The dollar) is worth less today than it has in the last few years. Thus, we need to spend more dollars to get the same amount of Oil today that we got a few years ago. And the bad part is...the dollar probably hasn't even bottomed out yet.

If you can get your employer to pay you in gold...I'd really suggest taking them up on it.
The price per ounce of gold today is roughly $910.00 US, the price per gold in January 2001 was $250.00 US. Conversely, the price of gold in 1996 was roughly $400.00 US. As the dollar strengthened between 1996 and 2001, gold and Oil was cheap and getting cheaper by the day. Remember less than a dollar per gallon of gas? The dollar was VERY strong then. But, from 2001 to today the dollar weakened, and the price of oil and gold skyrocketed.

So basically what your saying is get my employer to pay me in gold, at 910/oz which is inflated itself, which you have shown yourself to be true.

Quote:

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price per gold in January 2001 was $250.00 US. Conversely, the price of gold in 1996 was roughly $400.00 US.

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Tells me that gold is overpriced and will come down in the next couple years.

As a basis in bartering and value though, a gold standard has never been a bad thing, has it ?

My instinct tells me you could find some stocks on the Exchange that increased this much (%-wise) in "value" over the same period. Or even worse, some home values,....

Yes.. When gold was the standard it was a universal currency. It's value remained the same whether you were buying silk in England, or incense in Italy. Similar to what the EU has done with the Euro.

$3.39 here in Athens. Hopefully it drops another 10 cents or so. I have 30 cents off per gallon at Kroger that I want to use, I'll feel much better going home next weekend (homecoming) for $3/gallon.

Blech, never thought I'd say that.

10 cents a gallon for a standard 15 gallon tank is a whopping $1.50.
A 15 gallon tank, at a modest 20 mpg, is 300 miles of driving.

If you had to drive 2000 miles to California, that 10 cents would only cost you an extra $10.50.



You'll be Ok

Exactly. People get worked up over 10 cents a gallon when in essence, even if they use 20 gallons of gas a week, you're looking at $2. Per week.

Yet most of these people will be drinking lattes from starbucks each morning, driving 30 miles to go somewhere just for fun, and eating out.......even poor college kids need to eat at Chipotle, right?

Ooops, my bad. People are entitled to cheap energy, since that's what they grew up with......it should be at their fingertips.

I'm ok with the price coming down right before my road trip to Cleve Monday night

Hopefully it will get back under 3 dollars here, in my neck of the woods its still $3.08.

Here it is still $3.99 as of yesterday.

one would think that y'all would build a refinery up there and send a little that way before pumping the rest out ... y'all didn't plan that one too well, did ya?

Probably Palin's fault.

Well, pony up some of that $1650 you alaskan citizens get free of charge, from taxpayers, and buy some gas.

$2.99 here in Roanoke, Virginia.

$2.97 west side of columbus, georgesville road.

j/c

I saw 2.85 a gallon at W. 150th and Puritas. I'm not joking.
Most of the downtown Cleveland area is 2.99 to 3.09. In Chesterland, where I live most of the time, it is 3.39. In Russell, one suburb to the south, the gas is 3.59 at the corner of 306 and 87. It's just the demographics of the area. Gotta love Geauga County. Our gas prices are higher than nearby Mayfield, which is 2.99 or 3.09 last I checked. Garbage.

I drive a Cavalier, which is a POS compact, and I've toyed with the idea of selling it. Not so much at this point. I'm gonna run it until it dies, even if there's some maintenance that needs to be done here and there. It would take me 20 years to recoup the cost savings in fuel if I bought a Prius or a Volt.

Down to 3.25 here as of last night.

I paid 3.75 for premium last night at Shell.

I DID spend my PFD on gas! lol, yah we should have more refineries.......we have two and for some reason they make jet fuel, not car fuel. They COULD make enough gas for alaska, but don't. At the same time we are trying to be an artic hub for air transport so what can you do?

Also Anarchy.........we don't have many roads do we don't drive much. lol. In winter the farthest I drive is about 15 miles usually. And in a way I do blame Palin, and Les Gara, and all the other politico's on Alaska. You have an idea I hate Palin.........I don't. I just happen to think she's not ready to be VP or even POTUS.

$2.99 at the Clark in Delaware this morning.

Who do we blame for this ??

This is an (R) administration, so it's their fault, right ??

2.92 in Sandusky this morning all along rt 250.

nordawg

I guess Cincy is just too close to Kentucky or something, because the stations that I've passed driving around down here all say $3.17.

I see its $1.99 in...oh wait...that's my 401K value...

$2.68 in Mentor US-20 near Heisley Rd.

Oil plunges to 13-month low on global slowdown
web page
By STEVENSON JACOBS, AP Business Writer
3 minutes ago

The stunning collapse in oil markets accelerated Friday, with a barrel plunging below $78 as investors grow more pessimistic about a mushrooming global economic crisis.

A barrel of oil hasn't been this cheap in 13 months — a rare silver lining for consumers amid a rapidly imploding financial landscape.

Crude's steep losses came as Wall Street headed for its worst weekly drop ever. The Dow Jones industrial average fell as much as 700 points earlier in the day but swung in and out of positive territory as investors grappled with whether the market has finally hit a bottom.

"There's so much fear out there and that's really gripping the oil market. People are just afraid to hold a position so they're closing out and selling off," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.

Light, sweet crude for November delivery fell $8.63 to settle at $77.99 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month crude contract since Sept. 10, 2007.

Crude has now lost 47 percent of its value since hitting a record $147.27 on July 11 as a deepening credit crisis sparked by the subprime mortgage fiasco wreaks havoc around the globe and drives down energy demand.

Investors have shrugged off an array of market-stabilizing efforts by world governments, including a $700 billion U.S. financial rescue plan, several bank bailouts and a coordinated interest rate cut by the Federal Reserve and central banks around the globe.

Underscoring Americans' waning appetite for fuel, a gallon of regular gasoline dropped 5.3 cents overnight to a new national average of $3.35 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express.

Prices dipped below $3 a gallon on average in Kansas, Missouri and Oklahoma. If crude keeps falling, the rest of country should see sub-$3 gasoline in the next few weeks if not sooner, experts say.

Oil market traders got more proof that energy demand is falling away across the globe.

The International Energy Agency on Friday cut its global oil demand forecasts for this year and 2009, pointing to the worsening economic conditions and the tight credit supply.

The Paris-based energy watchdog cut its forecast for oil demand this year by 240,000 barrels per day, and slashed its 2009 forecast by 440,000 barrels per day. The IEA now expects global oil demand to total 86.5 million barrels per day this year and 87.2 million barrels per day next year.

"The fundamental game for oil has changed. In the last decade, oil went up because of strong global economic growth. That story for the near term is over, so everybody has to re-evaluate," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago.

OPEC signaled it may tighten output to put a floor under falling prices, but it didn't seem to matter.

The Organization of the Petroleum Exporting Countries said Thursday it will hold a special meeting Nov. 18 to discuss how the economic crisis is affecting oil prices. The head of Libya's national oil company, Shukri Ghanem, called on oil producing nations to cut output.

Many doubt that an OPEC cut would reverse the extreme downward momentum on oil. OPEC's decision last month to cut production by 520,000 barrels a day did little to stop the losses.

Flynn said another output cut "may actually accelerate the slide."

"What's driving this market right now is fear of demand destruction and lack of credit," he said. "If you can't borrow money to buy crude, then demand falls more and so do prices."

Holy hell, and we're still at roughly $3.29 per gallon in Erie, PA.

As of tomorrow morning the station I work at is going to 2.99 a gallon.

Hopefully it gets even lower for my trip the first week of November. (and even cheaper when I have a UHaul full of my house in December)

2.80 here in bellevue now...i love it..keep on falling

Actually you have it completely backwards. When the dollar is weak and we are consuming more...oil is high. However, the dollar is actually stronger now (even with the DOW tanking) because other would markets are crashing it is causing deflation. The reason oil is cheap is beacuase the economy is in a recession and business is not moving forward. Therefore, oil demand is low, thus decreasing prices. OPEC will meet in order to decrease production in order to increase demand/cost.

And that's exactly why we need to drill our own,....ALL of it and sell it off cheap to the rest of the world, put OPEC on its ass, and buy our way out of whatever debt we "actually" have,...(I don't believe much in this BS we call the "National Debt.")

Of course in the meantime, continue to pursue alternative sources of energy -- the human race HAS to do THAT anyway -- and move on to doing the right things,...rather than count on whoever it is is really in charge to do so.

You got it!!!

Drill, Drill, and Drill some more. In the meantime, let's take Iraq's. They currently have an enormous surplus.

The BP at SR 2 and 44 in Mentor is selling fuel for $2.86 I hate BP gas though and won't buy there but thats the lowest I have seen.

Taking Iraq's would be a small price in retribution for the Americans lost there in freeing their country from that dorkweed.

Well, still haven't seen sub $3 here in Youngstown. Close, though, as it's $3.01 down the street from me.

Get it to sub $1 like it was around '98 and I'll be dancing!

Before I left yesterday I saw gas at $2.77 at the BP at I-77 and 18. They're usually the first to adjust their price so I bet the other stations there are down to there by now.

But here in Boise it doesn't seem like prices haven't changed at all. Most stations are at $3.59 with the lowest I've seen being $3.49.

Hopefully prices stay down until the end of the month. I have more college visits in the coming weeks and Darien Lake next weekend.

Guys Don not go running out just to topp off your cars with 3-4 gallons of gas.

Gasoline will fall to between $2.50-2.20 before it levels off.

Still 3.25 here