January 21, 201610 yr By the way, I read yesterday that if the cost of crude was $0/barrel the price of gas would still be over $1.00/gallon. Presumably even if they pulled it out of the ground at a loss, it would still have to be sent to a refinery, refined, and then shipped to consumers, right? Is that what the article suggested? That the base line of what all those things come to is about a dollar?
January 21, 201610 yr Presumably even if they pulled it out of the ground at a loss' date=' it would still have to be sent to a refinery, refined, and then shipped to consumers, right? Is that what the article suggested? That the base line of what all those things come to is about a dollar?[/quote'] Also taxed.
January 21, 201610 yr Presumably even if they pulled it out of the ground at a loss, it would still have to be sent to a refinery, refined, and then shipped to consumers, right? Is that what the article suggested? That the base line of what all those things come to is about a dollar? Corect. It was actually over a dollar but I can't remember the number.
January 21, 201610 yr Author By the way, I read yesterday that if the cost of crude was $0/barrel the price of gas would still be over $1.00/gallon. Sure, I believe that. I have spent more than a few days in Cattletsburg at the Marathon plant, I know a little about how much it costs to process the crude into a useable product and the crazy costs associated with the infrastructure.
January 21, 201610 yr I think the figure I saw was without tax. You're a wise investor, why can't Wall Street see we have a heavy supply now, why are they letting that crash the market, essentially punishing us?
January 21, 201610 yr Auto manufacturers must be happy. Can't seem to keep trucks or large SUV's on the lot with fuel prices low.
January 21, 201610 yr $1.57 here today. I blame Obama. Obama has nothing to do with getting oil prices low. However, all those jobs lost in the oil and fracking industry are 100% Obama's fault.
January 21, 201610 yr Obama has nothing to do with getting oil prices low. However, all those jobs lost in the oil and fracking industry are 100% Obama's fault. How so?
January 21, 201610 yr With transportation prices down, one of my customers still wants to raise their direct import freight rate and wants us to hold the ELC!! We have held the FOB but they cannot justify the higher rate other than it being a profit center for them. The ocean freight companies were able to increase container rates end of 2014/early 2015 with the west cost port issues and they aren't quick to give back those increases.
January 21, 201610 yr I don't think you can make a direct link between price of oil being good or bad for the overall economy. It MAY be a sign of the economy vs it influencing the economy. I would say like any other product their is an equilibrium . The same product can be to low or to high and hurt the economy. There will be winners and losers on each end.
January 21, 201610 yr How so? Sarcasm ... haven't figured out how to get those emojis into a post when using my phone.
January 21, 201610 yr You're a wise investor, why can't Wall Street see we have a heavy supply now, why are they letting that crash the market, essentially punishing us? I'm not trying to come off as a jerk. But I don't think you understand how the market works. There are different markets at play such as futures , stock in a whole hosts of companies affected by this price drop., and much more. Large investors who influence the market aren't about punishing anyone , it's about making money. Period. A lot of blue chip companies on S&P and Dow are impacted in a negative fashion by low oil pricing. Obviously the drop in oil is good on the average joe in the short term. But like I said every product has its equilibrium and right now this products equilibrium it out of sorts and causing strain on the economy. The same thing happened on the opposite end a few years ago.
January 21, 201610 yr I'm not trying to come off as a jerk. But I don't think you understand how the market works. There are different markets at play such as futures ' date=' stock in a whole hosts of companies affected by this price drop., and much more. Large investors who influence the market aren't about punishing anyone , it's about making money. Period. A lot of blue chip companies on S&P and Dow are impacted in a negative fashion by low oil pricing. Obviously the drop in oil is good on the average joe in the short term. But like I said every product has its equilibrium and right now this products equilibrium it out of sorts and causing strain on the economy. The same thing happened on the opposite end a few years ago.[/quote'] Oil has been the leading cause of the stock crash with China. When it got to $100 a barrel we started fracking and we are now a major oil power. Factor that with Irans production coming on board and you have a TON of oil. But inventors instead want to play the waning demand card? You can't have it both ways, no supply and $100 oil and too much supply and $30 oil. Supply and demand is still real.
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