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OT: Gas/Diesel prices...what really causes the fluctuations?

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Old 02-13-2003, 02:34 PM
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Ok, I just got off of the phone. As for right now there is no imidiate threat for oil shortage, the terminals are producing just as much gas ans diesel as they ever have. They are jacking their prices just because they can Saying that there is a shortage or (could be) I supposedly we have plenty of stock but everyone is scared, so oil companies are trying to hang on to as much product as they can The U.S. did a study of oil production during the last gulf war and there was never any more or less oil in our possesion just higher prices

So the government fines oil companies millions of dollars for (price gouging) after they have already made billions from doing it. So the fines are no big deal. As for Venezuela they are producing very little crude right now. Also I guess that a lot of the crude that we buy comes from Iraq via another country so we are actually buying iraqi oil from a different nation other that Iraq.....go figure. If anyone has any other info on this please chime in.
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Old 02-13-2003, 03:56 PM
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The Department of Energy reported Wednesday that crude oil stocks declined
by 4.5 million barrels to 269.8 million barrels last week. It was the lowest
level for crude oil inventories since 1975 and below what the agency terms the
"lower operational level," under which supply constraints could begin to
affect refinery operations.
On the New York Mercantile Exchange, nearby March crude oil futures settled
at $36.36 a barrel, the highest settlement since Sept. 20, 2000. Just before
the market closed, March crude hit a high of $36.40 a barrel.
"It's a combination of tight stocks and the threat of war," said Phil Flynn,
an analyst at Alaron Trading Corp in Chicago. "We're very close to going to
war, and if Blix comes down hard on Iraq, the chances for war are greatly
enhanced."
from dow jones wire service 2/13/2003

The fluctuation of the price of gasoline does involve the current price of oil as well as the refining cost which are affected by the price of other products made out of a barrell of oil. The major oil companies are reporting earnings below expectations and their price per share is sitting at a five year low for most. With $36.00 oil you are getting a bargin for any gas below $2.00.

As far as natural gas is concerned, the producers have drilled very few wells over the last two to three years and supplies have dwindled as consumption has increased. This winter has been 30% colder than the year before and we have depleated all the excess gas we had in storage. It takes some time for the producers to vamp up drilling to bring the supply back up to the demand level so expect to have high natural gas prices for some time.

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Old 02-13-2003, 05:08 PM
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Well I try to look for the best here. So oil gets really expensive, to the point the enviro wack jobs feel the hurt , then they let us drill on US/Alaska.
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