5 dollar gas...are we ready?

[St. Clown]

Re: 5 dollar gas...are we ready?

Last week, riding the train in the morning, I saw my local "bellweather" gas station with prices posted at $3.99 for unleaded. That very same evening, the same station had unleaded at $4.09!

We had a big jump earlier this week, ten or twelve cents, putting the price to $3.999. I'm pretty sure it was in response to the riots in Arab Spring countries, and especially the targeting of our ambassador. The prices today are down some 15 cents at some stations in my area from that $3.999 price as worry of another war settles down.

 

[aparch]

Re: 5 dollar gas...are we ready?

Chicagoland jumped to 4.25 ~ 4.29 in the Western Burbs before Labor Day and have stayed there since.

 

[FlagDUDE08]

Re: 5 dollar gas...are we ready?

We had a big jump earlier this week, ten or twelve cents, putting the price to $3.999. I'm pretty sure it was in response to the riots in Arab Spring countries, and especially the targeting of our ambassador. The prices today are down some 15 cents at some stations in my area from that $3.999 price as worry of another war settles down.

Something is telling me that, perhaps, your station does not get its fuel from Brent crude, but rather WTI crude. Do you know which refinery supplies your gasoline?

 

[St. Clown]

Re: 5 dollar gas...are we ready?

Something is telling me that, perhaps, your station does not get its fuel from Brent crude, but rather WTI crude. Do you know which refinery supplies your gasoline?

I don't know who supplies each of the gas stations around here anymore, as there are two refineries - one the old Ashland refinery in St. Paul Park, MN (whatever name/owner it has now, I don't know) and the old Koch Refinery (Koch Bros sold it and now it's named Flint Hills Resources, located in Rosemount, MN). The prices at all the local stations here followed that general trend, within a penny or two. The two main gas stations I use around here are Holiday Station Stores and Kwik Trip, both used to be supplied by the old Koch refinery.

 

[FlagDUDE08]

Re: 5 dollar gas...are we ready?

I don't know who supplies each of the gas stations around here anymore, as there are two refineries - one the old Ashland refinery in St. Paul Park, MN (whatever name/owner it has now, I don't know) and the old Koch Refinery (Koch Bros sold it and now it's named Flint Hills Resources, located in Rosemount, MN). The prices at all the local stations here followed that general trend, within a penny or two. The two main gas stations I use around here are Holiday Station Stores and Kwik Trip, both used to be supplied by the old Koch refinery.

OK. Given their location, they probably are receiving Western Canadian crude, which would be the WTI price. However, there are other concerns, such as the delivery of that crude. I don't know if either your refinery or city are near a pipeline or not. WTI typically isn't as susceptible to international affairs as Brent, although there is some impact because other countries would make more of a purchase on the oil we export if tensions are tight, thereby giving reason to drive up the price.

Here in my area, we have negligible delivery costs. Our petrol is refined in Philadelphia at the station Delta owns, and then there is a pipeline that goes directly to this city. Why is our price still higher than yours? Two reasons: One, the Philly refinery uses Brent crude, so we pay the higher price. Two, New York State taxes on petrol are the highest in the country, and are responsible for a large majority of the cost.

 

[unh_hockey]

Re: 5 dollar gas...are we ready?

with more money printing, we will be marching closer towards 5 dollar gas.

 

[Kepler]

Re: 5 dollar gas...are we ready?

with more money printing, we will be marching closer towards 5 dollar gas.

Since it was expected, aren't those increases probably priced in?

 

[FlagDUDE08]

Re: 5 dollar gas...are we ready?

Since it was expected, aren't those increases probably priced in?

Given the recent volatility of market prices, the answer to that would be no.

 

[joecct]

Fairly normal nowadays. There was one station still at 3.999 so I decided to go completely full. I still have never paid more than 4.069 per gallon. Not bad for New York State, eh?

IIRC the North Country was more than that. I know Lake Placid was 4.01l last March.

 

[FlagDUDE08]

Re: 5 dollar gas...are we ready?

IIRC the North Country was more than that. I know Lake Placid was 4.01l last March.

I haven't lived in the North Country for over 4 years. Even then, I'd just shoot over to Vermont, while of course making sure I had something else to do along the way.

 

[Greyeagle]

Re: 5 dollar gas...are we ready?

I haven't lived in the North Country for over 4 years. Even then, I'd just shoot over to Vermont, while of course making sure I had something else to do along the way.

Was just in Lake Placid this week, holy crap gas is expensive there, $4.10-$4.15 was the norm. Strategic error not filling up in Burlington before taking the ferry across to NY....didn't know there would be such an obscene jump.

 

[unh_hockey]

Re: 5 dollar gas...are we ready?

Since it was expected, aren't those increases probably priced in?

Yes this could be the case. The same case can be made for the S&P, DJIA and others as well. I am not certain though and its safe to say that this indefinite QE means that commodity prices as a whole will probably not decline on the long term..

 

[5mn_Major]

Re: 5 dollar gas...are we ready?

Was just remarking how living in the city, I have no idea what the gas price is. Don't shop by price and don't even think about it.

 

[walrus]

Re: 5 dollar gas...are we ready?

Was just remarking how living in the city, I have no idea what the gas price is. Don't shop by price and don't even think about it.

Isn't that nice, too bad your survival in the city depends on oil and its cost affects you every day

 

[dxmnkd316]

Re: 5 dollar gas...are we ready?

Don't shop by price and don't even think about it.

This is how I approach it as well. I don't try and play the gas price game. You're going to wind up winning and losing unless you really know how to game the system. But then again, you'd be spending so much time on it that the cost savings just wouldn't be worth it.

 

[LynahFan]

Re: 5 dollar gas...are we ready?

Isn't that nice, too bad your survival in the city depends on oil and its cost affects you every day

Yeah, and you know what drives up oil prices? All those soccer moms out in the 'burbs driving their Escalades through 18 stoplights to get to the grocery store and back...

 

[walrus]

Re: 5 dollar gas...are we ready?

Yeah, and you know what drives up oil prices? All those soccer moms out in the 'burbs driving their Escalades through 18 stoplights to get to the grocery store and back...

Yeah, its got nothing to do with the present day world market

 

[FlagDUDE08]

Re: 5 dollar gas...are we ready?

Yeah, and you know what drives up oil prices? All those soccer moms out in the 'burbs driving their Escalades through 18 stoplights to get to the grocery store and back...

That's exactly what Europe thought, and look how much they're paying. Heck, you lived in Switzerland for a while, you probably remember.

 

[5mn_Major]

Re: 5 dollar gas...are we ready?

This is how I approach it as well. I don't try and play the gas price game. You're going to wind up winning and losing unless you really know how to game the system. But then again, you'd be spending so much time on it that the cost savings just wouldn't be worth it.

If I was going to drive out of my way to save a couple of cents a gallon...I'd probably clip coupons instead and save even more that way. I've never done either and mentally earmark several hundred for 'waste' so I do not have to worry about it and live a more carefree life. For me its worth it.

 

[LynahFan]

Re: 5 dollar gas...are we ready?

Yeah, its got nothing to do with the present day world market

Why do you think that frivolous usage of oil by US consumers does not affect the world market? The US uses 22% of the world's oil production (despite having 4% of the world's population), and 70% of our usage is in transportation, so the single largest user of oil in the world (by far) is the US automobile driver.