Another bad gas report

Discussion in 'The BS Topic' started by Rick WI, May 21, 2008.

  1. Rick WI

    Rick WI Veteran Member

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    Inventory reports came out this morning and things are really on fire with crude and related products. Inventory numbers were very bullish for pricing as imports of oil were off a ton and gasoline consumption shows very little change from the record demand last year.

    Prices are up, WAY up. Crude touched $132/bbl and gasoline and diesel are going to RIP up at the pump.

    Got some 5 gallon containers at home? Fill them up over the noon hour today and likely will save $0.30 to $0.50 by the weekend.

    A major issue currently is demand in China for diesel as well as Euro demand for ultra low sufur diesel. China is stocking up for the Olympics and the earthquake has also created a large need for additional supplies to fuel generation, or that's the thought at least.

    For the US, gasoline demand not falling in a measurable way is the issue. Jet fuel use though is down almost 6%. That's the decline we need on the gas side to temper pricing.
     
  2. Buickfunnycar

    Buickfunnycar Veteran Member Lifetime Gold Member

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    Honestly...I really don't want to hear about this crap anymore.

    I appreciate your honesty Rick...but it is what it is...and there ain't jacksh!t we can do about it.

    Figure $6/gallon by the end of summer and $8-$9 in the near future...and such is life.The sun will still come up tomorrow...
     
  3. AJ_72

    AJ_72 Veteran Member

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    I appreciate the news Rick. I'm unemployed right now, so the information does two things. It keeps me interested in something, and I'm certainly on a limited budget right now so it helps save me some money.

    Any inside info we can get about fueling up our vehicles is helpful. Thank you.
     
  4. Battmann

    Battmann Veteran Member

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    i couldn't agree more. i'm so sick of hearing how gas prices hit a new record high every single morning.
     
    Last edited: May 21, 2008
  5. Fawn

    Fawn Administrator Lifetime Gold Member

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    For the wealthy it is no big deal, you just revise your budget a little.

    For the working poor like me, still struggling to come out of various recent life crisis, it's entirely a different situation. I am unable to afford my commute to work. I am unable to sell my house for what I owe. My grocery costs have trippled in 6 months (as well as every other basic necessity expense.) If it keeps up, it's only a matter of time before the economy completely crashes.

    But I do agree, there's not really much I can do about it... except keep looking for a better paying job - which are becoming more and more scarce. :(
     
  6. Ztoy

    Ztoy Veteran Member Lifetime Gold Member

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    and the camaros sit in the garage.....have to remember these prices are reg unleaded and iinm most of us have to burn premium
     
  7. Buickfunnycar

    Buickfunnycar Veteran Member Lifetime Gold Member

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    Where does everyone just get off assuming I'm wealthy Joy...?:rolleyes:

    True,I might make more then the average median income...but if I make even half of what I made last year I'll be lucky.
    And besides...I have the same problems everyone else has,prices go up for me just like they do for everyone else and If you remember correctly,I didn't get jacksh!t in terms of a stimulus check so I got screwed there too.
    And my property tax runs around $7K/yr which I have to budget for.
    But I do not live above my means and I do not owe anyone anything except for my house and an interest-free DD '07 Focus which doesn't really make any sense to pay off early.

    I have a house that I'm upside down in as well since I bought at the absolute height of the market...but I bought it to live in long-term,not to flip it and I haven't taken an equity loan on it and never plan to.I'm worried and hope the market turns around somewhat in 3 yrs when I'll need to re-fi...but if not,I'll just try to pay it down further so I'll be hopefully in better shape.

    So yeah...I feel the pinch as much as everyone else...maybe more...but am I gonna just jump off a bridge?:rolleyes: I think not.

    I am just sick of hearing about prices going up daily.We should all just get used to $6/gallon fuel because that day is coming...and there's not a damn thing any of us can do about it.
     
  8. Twisted_Metal

    Twisted_Metal Administrator Staff Member Lifetime Gold Member

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    I'm putting the 305 back in my Camaro. Too bad I didn't save the V6.:(





    J/K

    I too appreciate the "Heads Up".
    :D
     
  9. MIDNIGHTBLUE

    MIDNIGHTBLUE Veteran Member

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    Financially I'm hurting, I had it coming. As far as the updates on the fuel/gas prices, I dont mind. I was telling my wife about the cascade effect about 6 months ago and she told me just today how she can see what I'm talking about.

    I told her how everything in this country is moved with a vehicle that uses some type of fuel/gas. This cost is passed to the lowest on the ladder the consumer. Cargo ship, tractor trailer, train, plain, trucks, cars each method passes the cost to the next, which eventually reaches me and you at the register.

    What confuses me is the attitude of so many people, what I mean is, they continue as normal and say, "Oh well." My neighbor drives his F150 to work everyday, yet has his Honda Accord in his driveway because his wife drives it to take the kids to school. :screwup:

    He bitches about gas prices, yet doesnt flip the cars by taking the Honda to work and having the wife drive the truck for the kids drop off/pick up. I just dont get it.

    My 02 Sequoia has been paid for since 05, we drive it once a month to get groceries just to keep it lubed up and running. It sits because it get 15mpg opposed to 30+in the Accord and Civic.

    Im worried, really worried. I can honestly see a depression type scenario if we stay the course. I guess the saying might be true, "It's a recession when your neighbor has his home foreclosed, it's a depression when you have your home foreclosed."
     
  10. Rick WI

    Rick WI Veteran Member

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    Although the genie may be out of the bottle and it may be true there might not be anything we can do about gas going to $6.00, it is that "oh well" attitude that has gotten us to this point. Myself included given my lifestyle.

    Wealthy is relative to a great extent but you have to admit, disposable income in your case is likely higher, and in some cases, MUCH higher than many on the board. For some of us that have incomes well over 100,000 it's not as much of a burden filling up with gas. For those that have a house payment, car payment and need to by food, that $50.00 to $100 spend is significant. Filling up a 20 gallon tank at $6.00 is $120 bucks. That's a world of hurt.

    The reason I post about this from time to time is when I see data hot off the press that I know is going to significantly affect the average member I post it. Maybe it will take some shell shock off when they visit the pump in the next couple of days.

    I'm sick of reading about it as well, BUT, if gas moves well above the $5.00 level and into the $6.00 range, we are fooked here in the US. We CAN NOT adapt, in my opinion, to those kinds of costs given the nature of how our society is built. Long commutes in a car, no viable public transport in many areas are just a couple of problems. This isn't like Europe where public transportation is THE NORM, as well as highly efficient.

    This has a profound importance in how you all will live over the coming years and needs to be taken seriously. I feel this will ripple throughout our economy with many loosers and a few winners. I doubt many of us on the board will be winners.

    This will likely become a major issue in the political world throughout the summer.

    Given supply and demand on a world basis there is nothing magical about $6.00 either. What happens if the forecasts for an active hurricane season come true and refineries are knocked out again for an extended period. Even a distruption of 10 days would be major.

    Would be give a sheet if gas went to $10.00 and think there was nothing we could do about it and simply shrug it off to "oh well"?

    Consider also those that heat with heating oil. How in the heck can they pay to heat their homes with heating oil if it moves into $6.00 to $8.00 per gallon range. Assuming a small home would burn 1000 gallons over the winter that's a considerable hit to the budget. What about a larger home that burns 1500 or so gallons. Absurd. LP will be another fuel that will/has gone through the roof. $2.50 to $3.00 per gallon LP for a home that consumes say 1500 gallons is $4500.00. Not a minor spend.

    You really do give a sheet as we all make money off of others. If those "others" are squeezed due to fuel pricing it all trickles down. Unless of course you are one of the truly wealthy folks.

    Now, given the high fuel costs consider the flow of monies out of this country to foreign soil. Now consider whose soil then end up on. Nigeria, Russia, Iran, all good folks that have our best interests at hand with stable and honest Govts.. Yes, we should give a sheet.

    From a market standpoint I used to be able to look at the total picture on a rally in pricing and somewhat forecast how a correction could, would take place. In the current marketplace there is no crystal ball that shows any correction in the horizon. Everything is bullish. Demand, present and future, lack of supply, robust growth in China and India, all is bullish. That is a material difference in this new oil price environment.

    Crude up almost $4.00 prior to the close of trade, nearly $134/bbl. Yes you do care.
     

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