Posted on 03/03/2015 10:46:56 AM PST by Red Badger
The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.
For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country's main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week.
If this keeps up, storage tanks could approach their operational limits, known in the industry as "tank tops," by mid-April and send the price of crude — and probably gasoline, too — plummeting.
(Excerpt) Read more at news.yahoo.com ...
Frack baby frack.
Lower oil price >>> less money for towelheads to fund Islamic onslaught
Can you imagine how high they’re going to raise the gas tax if it hits $1?
I think it has more to do with the refinery strikes than the available and price of oil.
The strategic oil reserve is at 95%
My Mustang GT says, “Get into mah belly!”
I suspect that this condition will continue while refineries (those that aren’t on strike) switch to warm weather blends. Also, many aren’t doing much recreational traveling during continued wintry weather. Come late spring I expect more out on the roads as a cure for cabin fever.
What is it with people and static model fallacies?
They have no recognition of the adjustments being made right now that will change the supply picture over time.
Yes, the price may temporarily collapse. Has everyone already forgotten the drop from 147 a barrel to 35 that happened not that long ago? The bottom didn’t last very long and neither will this one.
I’m looking forward some great deals on energy stocks and etf’s. Bring on the “collapse”.
Only one of the 12 refineries on strike is shut down. The others continue to operate with non-union engineers, managers, contractors, etc.
“Oil should be trading at $30 a barrel or less. The price at the pump should be about $1.25 - $1.50 gal. based on market conditions.”
Really? What are your calculations that gave you these figures?
no kidding. Gas has been climbing like a scared monkey the last 30 days.
Now watch the oil industry apologists come in to educate us plebeians that you don’t put oil in you tank and that the oil industry makes razor thin profit margins.
there is always something.
My state makes 22.3 cents a gallon just by holding out its hand.
The fed govt makes 18 cents a gallon the same way.
Quick, what is the profit per gallon to an oil company after they lease, explore, drill, produce, transport and sell gasoline to retailers?
And what is their profit margin on the 25% of oil that is non-fuel in use, such as that computer you are typing on?
That's something to consider.
American's can't have a decently low, affordable price of gasoline without being gouged by their so called "representative governments" through avaricious, pointless punitive taxes.
[[I heard stories about this and speculators will lease/rent oil tankers and store the oil there off shore.]]
Hell, why not loan storage takes to home owners with property and PAY them to store the oil on their property? Win Win for the small guy
What volume of unused storage tanks do you think exists, just waiting to be moved to private home owners?
This concern is not going to be fixed with tiny portable tanks.
[[My gas price has gone up 33 percent - 60 cents per gallon - in the last five weeks. Just saying.]]
Yep- Ours now stands at 2.60 gal. nearly the highest in the nation- while the rest of the nation enjoyed $1.70 per gallon, we were still paying $2.30 per gallon- We never went below $2.00 a gallon- and it took FOREVER for the price to even drop to $2.30- yet ocne prices started going back up again- the price here immediately began rising- so we didn’t even get to ‘enjoy’ $2.30 for very logn at all
[[Oh no! It’s the Great Crumbling Cylindrical Storage Tank Infrastructure Crisis of 2015! We must throw money at it immediately, or else.]]
And the only way to do that is by raisign taxes on gasoline
Where will it come from at that price? Not from the US as at that cost exploration and production is not economical what with heavy costs including environmental regulations and drilling restrictions, transportation, waste disposal costs, etc. US crude stabilizing at $60-$70 per barrel would best equalize production and consumption.
Saxxon, I don’t care, really. Nothing you or I are going to do about the price of gas.
I’ve long moved on that we have a free market and all the defenders (who to a degree are right on some facts) bore me.
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