Fuel Costs

[SEraider]

What's scary for me here is gas prices are $2.90/gl for an economy that has "bottomed" out.  What happens when the economy recovers? $4-$5?

I would suppose if the economy would recover fuel costs would have to stay where they are or ever lower a bit to make it feasible to increase trafficing unit goods.

Is there anybody in the inside of this industry that could tell us what the reality is concerning future fuel costs?  I saw in a article that $$ barrel of oil could crash to $10 and another article that would have it permanently to $70-$80/brl. 

[Nilsen]

Its impossible to tell really. There are different reports comming on an almost daily basis. Stability is more important than low cost though so im hoping for a stable price between 55 and 60.

[SEraider]

Its impossible to tell really. There are different reports comming on an almost daily basis. Stability is more important than low cost though so im hoping for a stable price between 55 and 60.

Kinda makes me wonder if $140/brl scared us into accepting $55-60 as the norm instead of $25-30.  That still 100% in 3 years time.

I could understand $30-$40 (25%-40%) increase due to world usage.

[oakranger]

Personally, before the Bush administration ended, i have said that the prices of oil will drop by the time he is out of office.  Looks like i am right about that.  However, it could the timing of everything has happen at the right time for the oil price to go down.

Who knows how these prices are set these days.  You would think it is supply and demand but that doesn't even look like the case. 

[Nilsen]

Kinda makes me wonder if $140/brl scared us into accepting $55-60 as the norm instead of $25-30.  That still 100% in 3 years time.

I could understand $30-$40 (25%-40%) increase due to world usage.

Too expencive and people panic, and when its too cheap people really wont bother looking into alternatives. Both are equally bad in the short and long run. 55-60 really isnt that much, and over time every barrel made will cost more to pull out of the earth anyway. Stability at a level somwhere in between the two extremes is best for businesses and individuals.

[ghi]

This week ,i payed here in Windsor,ON aprox  0.90CAD/L x 3.7 L/gal=3.33cad/gal / 1.1 exchange rate===>3.02 USD/gal, more than you pay in California, and the unemployment in town is 15.2% ,the highest in Canada.

[DaveJ]

Imagine what fuel prices will hit IF Cap and Trade goes into effect.

[John Curnutte]

 I saw a interview from Donald Trump about the prices of oil and gasoline and how OPEC just is really the worlds largest price fixing scam . I'm lucky I get fuel thru my job and it is in my bennys package but I pay tax on it . But I wonder how long I'll get that if prices go thru the roof .
              Nutte

[AWwrgwy]

It's not OPEC controlling the price any more.  It's the resellers that hold it off the market.  Speculation is king now.


wrongway

[Nilsen]

Correct WW. Opec "only" controls something like 40% of the market and they operate at max or close to max capacity most of the time. Its the market and speculators that sets the prices.

[gunnss]

Recently I have spent a little time considering the real price of fuel.

By real price I mean what it costs as related to the amount of work it takes to buy a gallon of fuel.

While not scientific or statistically correct, my method is to compare the price per gallon to the minimum wage. Currently our minimum wage is close to $7.00 an hour and (Here) a gallon of gas costs $2.55. That puts the cost of a gallon at close to 21 minutes of work.

When I started driving the minimum wage was $1.60 and a gallon of gas ran about $.25 a gallon. Giving a "cost" per gallon of just under 10 minutes.

By this measure the price of fuel has roughly doubled in the past 36 years. while this is entirely subjective, it does provide a reference to how much it really costs.
Regards,
Kevin

[Nilsen]

That is true for many countries gunnss. Cant remember where i found it, but there is a list on the web with gas prices vs income. It was an interesting read. We have very expensive gas, but compared to income its cheap. The list also had an historical graph and in most places gas prices vs income has gone down alot since ww2 with the exceptions of a few events that were fairly short in duration. Ill see if i can find it.

[nipper]

At my local gas station, here in the UK, currently gas works out to around the equivalent of $7 a galllon. You guys have it easy.

[batch]

At my local gas station, here in the UK, currently gas works out to around the equivalent of $7 a galllon. You guys have it easy.

Which is about what $2.00 for a gallon and $5.00 for corrupt politicians? Isnt it about 71% tax over there?

[RTHolmes]

iirc that gallon costs about 5p to produce, refine and ship, the other 16p goes into the Saudi treasury...