Crude oil is getting smoked (WTI bouncing below $43!)

Business Insider ^ | 8-11-2015 | Akin Oyedele

[tcrlaf]

There goes crude oil again.

On Tuesday morning, West Texas Intermediate crude futures in New York fell 4% to as low as $43.03 per barrel. Brent crude, the international benchmark, was also lower, near $50 per barrel, after on Monday having its biggest one-day jump in a month.

We got OPEC's latest monthly production numbers Tuesday morning, and they showed that production surged to a three-year high in July. The 12-member oil cartel has overshot its production target for at least a year in a bid to maintain its market share.

After what seemed like a recovery in prices around May, crude continued its plunge late in June and collapsed 20% from recent highs into a bear market last month.

[tcrlaf]

Meanwhile, Marathon is pushing through another .30c+ INCREASE in pump prices in Central Indiana today, to $2.55-2.60 a gal.

[NeoCaveman]

Prices fluctuate.

Sometimes you have a move (up) that goes against the trend (down). It will pass

[Attention Surplus Disorder]

“collapsed 20% from recent highs “

No, 30%. 62 >> 43

Damn those speculators!

[riverdawg]

Did the gasoline tax rise in Central Indiana? Otherwise, I don't see how one company can “push through” a price increase in the current oil-price environment. Here, the per gallon price at the pump has declined about 20 cents in the past three weeks.

[Bidimus1]

So fuel oil for this winter should be cheap... (bet the Dems move to make a new tax to fix that)

[Red Badger]

We are in the $2.40 -$2.50 range here............

http://www.floridastategasprices.com/Fort%20Walton%20Beach/index.aspx

[John W]

“Gas Buddy says refinery problems over the weekend at BP’s Whiting, Indiana refinery are likely to drive up gas prices.”-Various Indiana News Sources

[Kartographer]

"It will pass"

Like a 1 pound kidney stone.

[headstamp 2]

1.97 per gal. for #2 here in upstate NY.

[tcrlaf]

They push it up by 30 cents plus here about every two weeks. Marathon/Speedway controls 70+% of the market here, so they “Control” the pricing.

This morning it was 2.22 at the corner gas station, now it’s $2.59.

[Blue Highway]

Shouldn’t prices be at sub $2 for regular gas with oil @ $43/barrel? When gas was at $1.87 under the tail end of Bush, what was the oil price per barrel?

[Army Air Corps]

Petro Ping.

[SunkenCiv]

One of the consequences of retailing and wholesaling on thin margins is, when prices fall, the new projected retail price is greatly exceeded by the cost of inventory. Retailers (and wholesalers) don't print money; in the case of gasoline, the retail price is sticky downward.

[urbanpovertylawcenter]

$5 a gallon avgas, where is the outrage?

[RayChuang88]

The big problem is that with the USA now tremendously expanding oil and natural gas production using fracking and now China signing that gigantic US$400 billion deal with Russia to import natural gas (and eventually crude oil), OPEC is now facing the prospect of losing its two biggest customers. And that will result in a gigantic oil glut within ten years, made worse by increasing fuel economy standards for motor vehicles.

[riverdawg]

“Marathon/Speedway controls 70+% of the market here, ...”

How has that happened? Are Indiana politicians in the pocket of Marathon Oil? Here, there is robust competition at the pump between the majors and from the independents. At many stations, gasoline is almost a loss leader (technically illegal in the state), and they are tied to convenience stores where the profits are made. The few gas stations that don’t have an attached convenience store a run repair shop instead and their gas prices are always 10-15 cents higher.

[Attention Surplus Disorder]

Not conspiratorial, IMO. “Control of the market” relates more to the location of refineries and the concommittent cost of shipping refined product. If no new refineries can be built....then the most local guys have a pricing advantage. So the effort to kill refineries is as much at fault as evil oil co monopolists. /s

[thackney]

Oil prices dropped below $35 at that time. Spot prices hit ~$30 around that time.

[Marko413]

Shouldn’t prices be at sub $2 for regular gas with oil @ $43/barrel? When gas was at $1.87 under the tail end of Bush, what was the oil price per barrel?

Oil and gas trade separately on the market so oil isn't always a direct guide to what gas prices will be. Regardless, you are on the right idea though because unleaded gas is currently trading at $1.68 (Commodities). Take that value plus your state gas tax and that is what you should expect to be paying in 4 weeks (roughly).

[tcrlaf]

“Marathon/Speedway controls 70+% of the market here, ...”
How has that happened.

It’s taken a while.
Speedway (Owned by Marathon)has been buying out competitors for a decade, and they bought out the largest one, “Gas America” a family-owned chain based in Indiana, 3 years ago. They also had the “TA” branded Truckstops.

Most of the independents in Central Indiana are Marathon-Branded, as well.

They firmly control the cities, while CountryMark is making some inroads outside of the cities. (Owned by the Indiana Co-op) I’ll pay a couple of cents more and go to the Co-op stations.