Diesel on the Rise

POSTON WIDEHEAD · March 30, 2018, 09:09:48 PM

I called and had them fill up my mill tank today.
Bought 200 gallons for $500.

The guy said glad you got it when you did. Its gonna keep going up.

Peter Drouin · March 30, 2018, 09:33:10 PM

Do you use off road, no tax stuff??

PA_Walnut · March 30, 2018, 09:43:27 PM

sawguy21 · March 30, 2018, 09:52:47 PM

Onroad diesel is staying constant at least for the moment. Gasoline is all over the map, I think the execs get wired on espresso and throw darts at the morning meeting.

POSTON WIDEHEAD · March 30, 2018, 10:06:55 PM

Quote from: Peter Drouin on March 30, 2018, 09:33:10 PM
Do you use off road, no tax stuff??

Yes

Ron Wenrich · March 31, 2018, 06:30:00 AM

Crude is up about 50% since last June. The boys from the Middle East turn back the taps to raise the price of crude and better their bottom line. The price fell when ISIS took over some of the oil fields and was using crude to fund their army. The Saudis opened the taps to bring down the price. In addition, a lot of US crude came onto the market, which swelled supply. The ISIS factor has changed.

In recent months, the value of the dollar has dropped about 5% since November. That adds a bit more to the price of crude. Currently, the Chinese are going to add crude to their commodity trading. They're trying to bust the petro-dollar cycle and deal directly with oil producers by using the yuan. That might also add a bit to the price by driving down the dollar.

According to the local gas station, diesel is just home heating oil with tax. The usual trend is for diesel to go up in the winter as more homes are using heat than AC. That causes more demand for diesel, and that sends the price up. Winter is hanging on a little longer than normal this year, so the price hasn't gone back down yet.

Peter Drouin · March 31, 2018, 06:51:07 AM

Yes, all the same, off road has no tax and is red.

snowstorm · March 31, 2018, 07:40:59 AM

its not all the same. on and off road is uls. heating oil is not according to my fuel supplier. there was talk of it. dont think its happened yet. thats why off road is higher priced than heating oil. the cheapest way to get off road is to buy on rd and apply for the tax refund from the state and fed

Banjo picker · March 31, 2018, 07:57:02 AM

Oil producing countries that sell to the US try to walk the fine line where they can get a premium for their crude and still keep the price per barrel just under where its not quite profitable enough to cause extensive new drilling or extracting to get underway. Banjo

Matt601 · March 31, 2018, 08:01:38 AM

Quote from: Ron Wenrich on March 31, 2018, 06:30:00 AM
Crude is up about 50% since last June. The boys from the Middle East turn back the taps to raise the price of crude and better their bottom line. The price fell when ISIS took over some of the oil fields and was using crude to fund their army. The Saudis opened the taps to bring down the price. In addition, a lot of US crude came onto the market, which swelled supply. The ISIS factor has changed.

In recent months, the value of the dollar has dropped about 5% since November. That adds a bit more to the price of crude. Currently, the Chinese are going to add crude to their commodity trading. They're trying to bust the petro-dollar cycle and deal directly with oil producers by using the yuan. That might also add a bit to the price by driving down the dollar.

According to the local gas station, diesel is just home heating oil with tax. The usual trend is for diesel to go up in the winter as more homes are using heat than AC. That causes more demand for diesel, and that sends the price up. Winter is hanging on a little longer than normal this year, so the price hasn't gone back down yet.

Oil dropped because of rising in US oil out put and Iran trade was lifted. That put 1.5 million bbls on to the open market which drove prices down. Iran has more oil than anyone in the middle east. There just so far behind the rest of the world they cant produce that much.

chevytaHOE5674 · March 31, 2018, 08:28:01 AM

Quote from: snowstorm on March 31, 2018, 07:40:59 AM
its not all the same. on and off road is uls. heating oil is not according to my fuel supplier.

Guess it all depends who you believe and who the supplier is. My supplier, off road and heating oil is all the same. When he delivers to the farm he fills my bulk tank and heating oil tank with the same stuff.

petefrom bearswamp · March 31, 2018, 09:58:14 AM

My off rd was $2.09.9 last July with a $.10 per gallon discount for cash and home heating oil about $.50 more due to taxes.
I'm sure I'll pay substantially more this yr.
My 150 gal tank usually lasts me the year between the mill, tractor and RTV.
I use very little at the house.

Peter Drouin · March 31, 2018, 12:34:50 PM

The load I just got 4 weeks ago came off the boat, [Portsmith NH] 2/3 Diesel 1/3 kerosene, Winter blend. ;D

bodagocreek2 · March 31, 2018, 01:23:27 PM

when they would fill our locomotive switch engine it was just #2 off the truck. He would leave a gallon of red dye to dump in the tank, now it was off road.

snowstorm · March 31, 2018, 05:16:27 PM

look on the epa website. it says off road must be uls. fuel truck comes every 2 weeks when the law went into effect the driver said it was a 10k fine for putting heating oil in the off rd tank

chevytaHOE5674 · March 31, 2018, 07:13:54 PM

My fuel guy has told me numerous times that it is the same stuff and there is no difference from his distributor thus no difference from him... said it makes his life easier as he has one less product to worry about seperating.

gspren · April 01, 2018, 07:56:01 AM

I'll add to the confusion between off-road and heating. My oil supplier can sometimes get the older style low sulfur heating oil but often has to get the ultra low sulfur so if you ask him if it is the same he says "sometimes".

PAmizerman · April 01, 2018, 11:56:52 AM

Quote from: Peter Drouin on March 31, 2018, 06:51:07 AM
Yes, all the same, off road has no tax and is red.

Tell that to PA. The state now taxes off road. I think I need to move

Texas Ranger · April 01, 2018, 12:22:55 PM

no dog in this, but, fuel oil sees to have a lower ignition point than diesel, only a time or two that I experience it making back fire fuel.

barbender · April 01, 2018, 01:31:31 PM

Up here it is all the same, except off road and home heating get the dye.

Ken · April 01, 2018, 02:50:54 PM

The price of diesel is making a substantial dent in the bottom line. What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70 I'm not very smart but the math doesn't add up :

Banjo picker · April 01, 2018, 07:07:35 PM

Exactly Ken. I try to stay informed as to whats happening on the world scene, and I have not heard any real reason why diesel is making the jump. Gas too for that matter. We do have one gas burner car and a wielder. Banjo

coxy · April 01, 2018, 08:16:59 PM

Quote from: petefrom bearswamp on March 31, 2018, 09:58:14 AM
My off rd was $2.09.9 last July with a $.10 per gallon discount for cash and home heating oil about $.50 more due to taxes.
I'm sure I'll pay substantially more this yr.
My 150 gal tank usually lasts me the year between the mill, tractor and RTV.
I use very little at the house.

pete there should be NO tax on heating oil but there is a tax on off road

Southside · April 01, 2018, 09:22:59 PM

Quote from: Ken on April 01, 2018, 02:50:54 PM
The price of diesel is making a substantial dent in the bottom line. What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70 I'm not very smart but the math doesn't add up :

Supply and demand, the refineries are taking profits and pushing prices as they know the economy is strong and folks are going to pay, basically it is inflation, only for some odd reason here in the US we don't include energy costs into the inflation equation, so the official story is we don't have any inflation.

Matt601 · April 02, 2018, 01:44:06 AM

Quote from: Southside logger on April 01, 2018, 09:22:59 PM
Quote from: Ken on April 01, 2018, 02:50:54 PM
The price of diesel is making a substantial dent in the bottom line. What I can't figure out is that when fuel took a large jump in 2013-14 the price of a barrel of oil was north of $125 as opposed to todays price which is less than 70 I'm not very smart but the math doesn't add up :
Supply and demand, the refineries are taking profits and pushing prices as they know the economy is strong and folks are going to pay, basically it is inflation, only for some odd reason here in the US we don't include energy costs into the inflation equation, so the official story is we don't have any inflation.

In 2014 we was building a stock pile of oil at the rate of 2.5 million bbls a day. Oil prices crashed because the supply was way over what the world needed per day. OPEC and Russia cut out put 1.5 million a day That with the other natural decline of wells in the last 3 years has used up a lot of our stock pile. When Oil prices crashed from $120 bbl to $30 bbl oil company's stopped drilling new wells. Now we are getting balance oil prices are coming up. What it looks like in the oil world by the end of the year prices will be near $80 bbl if OPEC and Russia keeps the cuts. OPEC has another meeting in Nov if they remove the cuts and open everything back up oil will fall to $30 bbl. USA shale drilling has a lot to do with prices. If they produce too much OPEC will make prices crash to hurt them again. USA shale production need $70 to $80 bbl oil to keep drilling because those well dont produce good but a few years if not months. They have to keep drilling to keep the out put which has a big over head. In Saudi I have seen wells that was Drilled in 1975 still producing 5,000 bbls a day. Low over head. Saudi price per bbl is around $10 break even where in USA its $50 to $70.