the price of diesel fuel

[nativewolf]

I think that it will be months yet.  Saudi wants to drive frackers out of business and that means low low prices, they are dumping enough to do so.  WHen it gets back to $45 the frackers will be back.

[BargeMonkey]

If oil went to 100.00+ a bbl overnight, 4.-5.00 fuel prices, I think either the country would go nuts or a serious depression, I dont know about other places but I know ALOT of people who are "essential" if you want to call it that who have been laid off, things aren't good and that might be the final spark. Couple business here let 12-20 people go and I doubt these places come back.
Dont believe for a second right now that the fuel places aren't putting it in dry, especially in the northeast. You see prices falling a little bit but today 2.10 was the average I saw around, on 9800gal of 87gas that's 7056.00 gross profit on Saturdays price, 9408.00 if you bought it on thursday, that's BANK profit margins, 2x what I've ever seen before. On-roads below 1.50 now, I saw it for 2.69 a couple places by the mass pike today. 

[Al_Smith]

I for one certainly am not going to shed a tear for the oil industry .Don't get concerned they are going to belly up because they won't .If they have less profits for a short period of time ,in a given amount of time they will get it all back and then some .

[nativewolf]

@Al_Smith agreed, no tears and no bailout needed.  

[Sedgehammer]

By what pretty boy Rick Perry said, they don't want a bail out. Only thing he said was to maybe limit imports. Best thing for the economy is about $55/$70 barrel oil. Cheap enough that people can pretty much do what ever and profitable enough fir the oil companies to keep full employment. 
Buck 50 here

[Al_Smith]

I think the deal is you can't just throttle up or throttle down a refinery as if it was an automobile .You've got miles and miles of pipe lines involved,wells pumping etc .Once you get it out of the ground it has to go some place .

I'm not real certain what this so called oil glut is about but I suspect there's a bigger fish to fry somewhere .Big oil has played us like a fiddle for at least 50 years why would it be any different today ?

If this keeps up for a while and this pandemic gets solved Ford will be building Lincolns again and GM will bring back the big Cadillacs .Then 4 years later start another oil shortage again .---Well how many times have they done it so far ?

[sawguy21]

The oil glut is partially the Saudis and Russians fighting like kids in the sand box, they are dumping it to punish each other. The other issue is lack of demand, storage has reached capacity and with the pandemic there is no place to move it. I wish I had the money to buy stock and sit on it for a few years.

[nativewolf]

I think the best price of oil is $0 :D.  Seriously though the lower the better and if it stays low enough it drives Russia and Saudi's crazy and that is good for us.  Obviously the oil industry is screaming for help otherwise you would not see so much effort to prop up prices.  Crazy that they want to keep the prices high.

[nativewolf]

I think the deal is you can't just throttle up or throttle down a refinery as if it was an automobile .You've got miles and miles of pipe lines involved,wells pumping etc .Once you get it out of the ground it has to go some place .

I'm not real certain what this so called oil glut is about but I suspect there's a bigger fish to fry somewhere .Big oil has played us like a fiddle for at least 50 years why would it be any different today ?

If this keeps up for a while and this pandemic gets solved Ford will be building Lincolns again and GM will bring back the big Cadillacs .Then 4 years later start another oil shortage again .---Well how many times have they done it so far ?

I personally think that EVs are going to run the big oil companies into the ground.  Just with Tesla they are losing 500k drivers this year and in 10 years almost none have returned to ICE vehicles.  Next year 1million, 2022 probably 3million.  I don't think big oil comes back and I won't miss it for a second.  They have a million pre orders on the EV pickup alone.  That's a lot of gas. They are thinking of bringing the 5th factory to the midwest and TX, OK, and Missouri are dueling it out.  

[billporterfield]

Northeast Wisconsin, off-road diesel is $.71 a gallon
bill

[nativewolf]

NICE!

[sawguy21]

  Bill, I'm paying that per liter when I factor in the exchange rate!! I gotta get me a tanker and make a road trip.

[Southside]

Well, there are probably some oil guys out there saying they think the price of timber should be $0 too.  Like anyone else I enjoy the low price, but knowing it's artificial and the potential price we all will pay for it is going to hurt I would rather see it stay where the folks in this part of the world can keep it moving.  Drillers, pipeliners, tanker drivers, refinery workers all spend their paychecks and if they are not getting one then I am paying for their unemployment out of todays work, so that cheap fuel really isn't so cheap after all.  

[BargeMonkey]

 When we where in the GOM working they said 70.00 a barrel was the magic # at that time for anything offshore, not sure on land. The average person at the pump doesnt grasp the trickle down economy involved, how many jobs are affected when oil production slows down. Yeah sure I've got a bunch of cheap fuel but right now logs aren't moving and dirtwork is slow so it's a wash. 

[Al_Smith]

One portion or sector of the economy certainly affects the entire thing .That's a given .Things like the housing market crash in California caused the panic a few years ago which was just a case of history repeating itself because it had happened before and most likely will again .
When gasoline jumped to 2 bucks a gallon,that was a test because it backed off shortly after .Then it headed for the sky and hung at a tad under 4 bucks .When it  finally hit 4 bucks  that locked it up the economy headed  for  the drain  .When it came down the economy picked up again .Just a fact .
Oil prices cheap or no it's going to take more than a day or two before the economy is booming again with this recent event .Save your money ,buy cheap gas .

[Al_Smith]

I've got a collection of military fuel cans .Some with screw lids and some with bail clamp type .I never was too concerned before if they sealed or not because I only used them for diesel fuel for the old Cat D4 bulldozer So I've been making gaskets for them  from buna -n-sheeting which is a bit of a nuisance .I certainly don't want leaky cans full of gasoline .You can buy the gaskets for the screw lids but I can't find them for the clamp lids .It takes about 20 minutes to make the dang things but they are better than the old cork gaskets from Korean war days . 

[Ed_K]

 Al Smith, put an ounce of marine staybil in 5gal it'll keep that gas good for 6 months.
 Yrs ago I worked for a dozer service in Tx. I got sent out to drill sites to work for them they have a number system for the grades can't remember which way, 38 was bunker an 42 was cream. They would drill a hole an if it came up 42 they dumped some mud down the hole an declare it a dry hole an the gov paid some for the drilling of a dry hole. I asked a worker why an he said well the price ain't right when it is they will come back an drill the mud out an set up a pumper.
 Bloomberg Mag this week claims the bear market is already subsiding, so if you are into stocks check your mkt picks.

[Magicman]

The average person at the pump doesnt grasp the trickle down economy involved, how many jobs are affected when oil production slows down.

Very true.  I have a Grandson whose next 2 week trick will be his last for probably a long time.  


 
124 of his company's drilling rigs will be stacked in West Texas.  He hasn't made big money on the platform, but he was making a living.

[farmfromkansas]

Had my 500 gallon tank filled right before the cheap fuel happened, and waited a while and contracted 1000 gallons with the coop for 1.69 about a month ago.  Probably way too soon.

[Al_Smith]

My brother worked for Western hydra frac out of Gillette Wy for a while during the so called shortage in the 80's .He told of drilling crews intentionally sinking dry holes because the gov paid them for it .I personally think that whole entire thing was a scam .The area I live in was the hottest field of the time until they hit the boom in Oklahoma  and most of the oil is still down there and they know it .It's sour crude high sulfur not nearly as profitable .
Fact the miraculous find near Cleveland is exactly where Rockefeller found the oil ,he just didn't get it all at the time .

[snowstorm]

i dont see $ 70 oil being good for anyone except the wallstreet investors. with oil being cheap now is the time to pave roads. many small towns cant pave rds when the price of oil is high

[nativewolf]

@snowstorm That's a great point, road paving work should be much easier.  In wyoming they are giving away asphalt grade oil from a field there.  

Oil profits accumulate in small pockets and economists used to have a metric for economic growth tied to the drop in oil prices.  It would not hold true today to the same extent as cars and trucks are more efficient but a 40% drop in gasoline prices will do wonders for a poor persons budgets...if they still have a job.  

I am much more worried about overall employment, the oil and gas sector might lose 100k workers and that is a drop in the bucket of the 25million that just filed unemployment.  I am just waiting for the end of june before ordering my diesel.  I may just buy onroad ...we'll see where the price is in a month.  

[pineywoods]

Filled my off-road diesel barrel yesterday. $1.35 a gallon. Non ethanol gas under $2

[Southside]

Called in for 400 gallons tomorrow, will see what the price is now.  

[breederman]

On road has not moved here at all. Still 2.89