I think it's gonna make it

 

i paid $3.14 today...

i gotta fill the excursion and its 44 gallon tank up here soon better do it soon!

 

In West Lafayette Indiana gas was 1.96/gallon. That price needs to move north to Munster we are at 2.19/gallon. A couple a refineries in our area have been building new storage tanks. I wonder if they are stocking up or if there is a glut.

 

Just heard that apparently demand is down in China--their economy is slowing, and as has been noted above, our shale oil production is coming online in spades, so there is an upward trend in supply as well. That means lower oil prices. I heard it's been 5 years since oil was as low as $60/bbl. (I didn't remember it being that low that recently).

Jason

 

That's pretty much the story.

I got to wondering exactly what the pump prices were like the last time oil was under $60 a barrel and I found this article.

Gasoline vs. Oil Price Chart

Looks like oil at $60/bbl supports about $2.50/gal at the pump. (2006 prices). $40/bbl would support $2.00/gal. (2004 prices). Of course Canadian prices are higher due to different tax structures. Interesting thing in that chart is the turmoil after 1973. Anybody remember the OPEC oil embargo?

Still does not explain diesel vs gas pricing. I miss the simpler times.

 

Made it......will it go under $1.50

 

Would be nice, but I doubt it. Most are predicting that we're close to the floor. I suspect it will find equilibrium in the coming years somewhere between where we are now and where we were last summer. Hopefully around the $60-70/barrel range.

 

Late evening and early morning news programs are showing there are (so far) 27 states with $2 or lower gas.

I've been paying somewhere between $1.96 and $2.15 the last week or so---lovin' the reprieve for as long as it lasts.

I'm with Tom here---this is probably as low as it will or we can hope it'll go.

 

I think the upside of all of this is that the market has demonstrated that >$100 oil prices are unsustainable in the face of rapidly increasing global supply and stagnant demand growth. There's just too much oil that is economically produced at that price. In the coming year we can expect new investment and possibly our oil production to decline slightly and prices will move higher.

Hopefully this marks the end of the era of sky-high fuel prices.

 

I didn't think that it would happen in the suburbs of Cleveland, OH. I paid $2.07 before work at Sheets. Prices later at both Shell and Sunoco in my area was $1.999/gallon. It definitely makes me wonder what tomorrow will bring.

 

Haven't seen gas under $2.29 around here. But that might be do in part of the reformulated gas that is used around here. Diesel is anywhere from $3.01 to $3.49.

 

Glad we're not the only ones. Cheapest I've seen in Connecticut is $2.59. We fill up just over the MA line though, and that's down to $2.29.

 

I think the price of oil will collapse. Oil has always been a boom-bust business.

The Middle East is still sitting on huge reserves of cheap oil. When prices start to fall they will cut each others throats fighting for market share. Especially those countries that have no other source of revenue. The lower the price goes the more oil they will want to produce to keep their economies afloat.

 

In the 2.90s around here.

 

I am insanely jealous of all of you.