Keeping the price of gas low

[Deleted User 14896]

I think Red Green can help here: https://www.youtube.com/watch?v=RLd6174bz2k

He should of made that toilet flush with the hood.
If it was me, I'd take that car to the dump. Guess it would do good in a pinch.
Or use it to drop a load somewhere.

Find the Red Green episode where he connects two K-cars together. One of my favorites.

[kc8yqq]

Find the Red Green episode where he connects two K-cars together. One of my favorites.

Here it is: https://www.youtube.com/watch?v=9-JhnIcZ6UQ

My favorite is making ice cream (starts at 7:00): https://www.youtube.com/watch?v=u9KixzsLLJw

[kager]

4 weeks since the start of this thread; take a look at gas prices (even before this week's record cold in the south).

As predicted.

[Rate This]

4 weeks since the start of this thread; take a look at gas prices (even before this week's record cold in the south).

As predicted.

Demand is rebounding. It’s really that simple. No actions have been taken that would cause an immediate price spike. None.

[MWmetalhead]

Even the slightest reduction in gas consumption will make the price of gas fall.

Not necessarily. If OPEC decides to curtail production in response and/or North American producers decide to curtail production in response, those decisions can potentially more than offset any reduction in consumer demand.

A key determinant in determining the price is petroleum inventories. Another key determinant is refinery capacity.

Everyone just doing the speed limit would make the price of gas fall.

See my prior remarks above.

This person (don't know if it was a guy or a gal) says even a slight drop in consumption will cause a big backup in the supply chain. Freighters would be sitting full waiting to unload. Refineries would have nowhere to put the product because their tanks aren't getting emptied. Excess capacity would make the price drop.

Temporarily - yes, these things could happen. Ultimately, such circumstances would lead to a sharp reduction in the crude oil price (the "upstream" part of the supply chain), which would lead to temporary well shut-ins, which would lead to less crude oil making its way to the refinery. Over time, inventory levels would reset and prices would return to "normal."

Remember, what we saw last March and April was a cataclysmic drop in demand: say a 30%+ reduction compared to just 60 days' earlier. That is what caused prices to crash. That type of demand destruction is unprecedented in modern history. That's why tankers in the Gulf and just about everywhere else were being filled to the brim with petroleum products as were rail cars. There were no buyers for that stuff.

When the WTI spot contract fell into negative territory for a time in April, that was the signal oil producers needed to send their rig crews home and to turn off a large number of well heads.

[Rate This]

Even the slightest reduction in gas consumption will make the price of gas fall.

Not necessarily. If OPEC decides to curtail production in response and/or North American producers decide to curtail production in response, those decisions can potentially more than offset any reduction in consumer demand.

A key determinant in determining the price is petroleum inventories. Another key determinant is refinery capacity.

Everyone just doing the speed limit would make the price of gas fall.

See my prior remarks above.

This person (don't know if it was a guy or a gal) says even a slight drop in consumption will cause a big backup in the supply chain. Freighters would be sitting full waiting to unload. Refineries would have nowhere to put the product because their tanks aren't getting emptied. Excess capacity would make the price drop.

Temporarily - yes, these things could happen. Ultimately, such circumstances would lead to a sharp reduction in the crude oil price (the "upstream" part of the supply chain), which would lead to temporary well shut-ins, which would lead to less crude oil making its way to the refinery. Over time, inventory levels would reset and prices would return to "normal."

Remember, what we saw last March and April was a cataclysmic drop in demand: say a 30%+ reduction compared to just 60 days' earlier. That is what caused prices to crash. That type of demand destruction is unprecedented in modern history. That's why tankers in the Gulf and just about everywhere else were being filled to the brim with petroleum products as were rail cars. There were no buyers for that stuff.

When the WTI spot contract fell into negative territory for a time in April, that was the signal oil producers needed to send their rig crews home and to turn off a large number of well heads.

And the flip side is demand is now beginning to outstrip supply and prices are going up... is that right?

[MotorCityRadioFreak]

Even the slightest reduction in gas consumption will make the price of gas fall.

Not necessarily. If OPEC decides to curtail production in response and/or North American producers decide to curtail production in response, those decisions can potentially more than offset any reduction in consumer demand.

A key determinant in determining the price is petroleum inventories. Another key determinant is refinery capacity.

Everyone just doing the speed limit would make the price of gas fall.

See my prior remarks above.

This person (don't know if it was a guy or a gal) says even a slight drop in consumption will cause a big backup in the supply chain. Freighters would be sitting full waiting to unload. Refineries would have nowhere to put the product because their tanks aren't getting emptied. Excess capacity would make the price drop.

Temporarily - yes, these things could happen. Ultimately, such circumstances would lead to a sharp reduction in the crude oil price (the "upstream" part of the supply chain), which would lead to temporary well shut-ins, which would lead to less crude oil making its way to the refinery. Over time, inventory levels would reset and prices would return to "normal."

Remember, what we saw last March and April was a cataclysmic drop in demand: say a 30%+ reduction compared to just 60 days' earlier. That is what caused prices to crash. That type of demand destruction is unprecedented in modern history. That's why tankers in the Gulf and just about everywhere else were being filled to the brim with petroleum products as were rail cars. There were no buyers for that stuff.

When the WTI spot contract fell into negative territory for a time in April, that was the signal oil producers needed to send their rig crews home and to turn off a large number of well heads.

And the flip side is demand is now beginning to outstrip supply and prices are going up... is that right?

I will answer that it is correct.

[MWmetalhead]

That's not the whole story. Refinery capacity in the south has been constrained due to weather and pipeline transmittal capacity has also been constrained.

The Saudis just announced they are bumping oil production back up to 11 million barrels per day, a 1 million bpd increase, so that should help temper the recent rise in prices to a degree.


https://www.cnbc.com/2021/02/19/jpmorga ... arrel.html

[TC Talks]

The Saudis don't want to see the Texas oil industry rebound completely. I was talking to my friend in Snyder Texas, he told me his plant still isn't to 50% capacity.

[Bryce]

[Rate This]

No and he had as much to do with the low gas prices last year as Biden does with them rising. That’s nothing for those of you keeping score at home.

[TC Talks]

If you're suggesting Trump is responsible for low gas prices, I wish you'd let Texas know. They basically are in love with their enemy.

[kager]

If you're suggesting Trump is responsible for low gas prices, I [blah blah blah]

It was just coincidence that fuel prices were low during the previous administration.

It's just coincidence that fuel prices are way up and continue in that direction during Obiden's administration.

You cannot blame those who don't know what they're doing for predictable fluctuations in the price of fuel.

It's all just a coincidental pattern.

[Bryce]

If you're suggesting Trump is responsible for low gas prices, I [blah blah blah]

It was just coincidence that fuel prices were low during the previous administration.

It's just coincidence that fuel prices are way up and continue in that direction during Obiden's administration.

You cannot blame those who don't know what they're doing for predictable fluctuations in the price of fuel.

It's all just a coincidental pattern.

You don't think Biden's anti oil stance, policy changes, shutting down Keystone XL and restrictions on drilling on federal land have had any effect on oil prices?

[Bryce]

Liquor coming soon. Soon, it will be less expensive than gas!