Oil prices nosedive

[jsmith948]

Here in central CA the price of diesel is 2.799 at Costco and Pemex

[gearhead]

Agreement reached by OPEC+ to cut production. Sounds like President Trump brokered the compromise this weekend.
https://www.bloomberg.com/news/artic...cut-production

[GHen]

Washington state lowest prices
Diesel $2.19
Regular $1.33

It will be interesting how fast it goes back up.

[CrazyCain]

AT this moment, the corner gas station price is .96(nine) per gallon

[LHaven]

Originally Posted by gearhead

Agreement reached by OPEC+ to cut production. Sounds like President Trump brokered the compromise this weekend.
https://www.bloomberg.com/news/artic...cut-production

"Historic OPEC deal to cut production?"

What a knee-slapper for those of us who remember why OPEC formed!

[GHen]

It will take awhile before the price comes up enough to cover the us oil production losses. There’s going to be a glut of oil in reserves for a couple months.

[chuckster57]

Originally Posted by GHen

It will take awhile before the price comes up enough to cover the us oil production losses. There’s going to be a glut of oil in reserves for a couple months.

I’d like to think so. It takes forever for the price to drop here in Ca but only hours for it to go up.

[Fuzion 369]

Interesting! Still taking forever to drop.

[dutchmensport]

I haven't heard an airplane fly over my house in weeks now! The farmers are out in force preparing their fields right now though. I guess someone has to put pollution in the air. Maybe someone will design an electric farm tractor that is capable of plowing 500 acre fields with a 7 bottom plow on a single charge!

Where one part of the economy takes a hit, another area benefits. With fuel prices lowering right now, this is good for the farmers who are now working fast and furious to get their crops planted. And farmers = food for us. Think about that!

Regardless of all the yuppies and the guppies and tree huggers, America still depends on oil. How do you think those organic green beans and tomatoes were delivered to the store you purchased them from?

[Fuzion 369]

Yep yep! Go farmers!

[sourdough]

Originally Posted by dutchmensport

I haven't heard an airplane fly over my house in weeks now! The farmers are out in force preparing their fields right now though. I guess someone has to put pollution in the air. Maybe someone will design an electric farm tractor that is capable of plowing 500 acre fields with a 7 bottom plow on a single charge!

Where one part of the economy takes a hit, another area benefits. With fuel prices lowering right now, this is good for the farmers who are now working fast and furious to get their crops planted. And farmers = food for us. Think about that!

Regardless of all the yuppies and the guppies and tree huggers, America still depends on oil. How do you think those organic green beans and tomatoes were delivered to the store you purchased them from?

Now, do you really think those things showed up in the store via oil? I thought they were all moonbeamed in by these gigantic, ugly, destructive solar arrays going in around us! Destroy the ground, landscape, wildlife and require tons of taxpayer "assistance" so they can "sort of" produce electricity at the same cost as fossil fuels....oh, but wait, there is no infrastructure out in that pasture and....WE have to pay for that too.

Our farmers are running too. I live in the middle of it and nearly everyone I know owns farms. Thankfully this year they are doing a MUCH better job running the sandfighters to keep down erosion as they prepare to plant....maybe the lower fuel costs?

[gearhead]

Modern agriculture has similar issues as oil, they are too good at production. Last year the dairy farmers were crying for government help, I don't remember how that over production issue was resolved. Now the pork producers are begging the FDA to buy product.
Heaven forbid we help those nasty oil companies. Buying crude oil at these cheap prices to fill our strategic reserves makes too much sense.

[gearhead]

Danny....what's a sandfighter?

[notanlines]

It is a piece of equipment used mainly in very windy parts of the country to keep the wind from blowing away the recent planting before they emerge.

[gearhead]

^^^Interesting...thanks.

[GHen]

Oil prices really took a dump this morning, down to $11 a barrel. Wish I could prepay for 500 gallons of diesel if the pump prices follow...

[notanlines]

Just posted: Dropped below $2.00 for some Texas oil about an hour ago. This is NOT good!

[flybouy]

Oil closed at NEGATIVE $37.63 a barrel. First time in history oil traded below zero dollars, down over 300%. That means oil producers paid refiners not to take delivery because every storage facility is full.

Don't look for fuel stations to pay you to fill up but it will be interesting to see where the pump prices go.

[JRTJH]

Originally Posted by flybouy

Oil closed at NEGATIVE $37.63 a barrel. First time in history oil traded below zero dollars, down over 300%. That means oil producers paid refiners not to take delivery because every storage facility is full.

Don't look for fuel stations to pay you to fill up but it will be interesting to see where the pump prices go.

Pump prices probably will not drop below the "average market price" in a given area, sort of like the gas wars of years gone by that were "usually driven by pricing on the stations in visible range (if the guy across the street lowered his gas a penny, we will too). Most "fuel stations" (at least around here) are private businesses, not owned by the "national chains". As such, most of them are already on "reduced hours, closed or near closing with skeleton staff". So, rather than "pay someone to take it out of our tanks" most of them will "just lock the door and go home" and you (we) can find our diesel or gas down the road.... Currently, regular unleaded is around $1.10/gal and diesel is around $2.05/gal. I'd guess with the current "economic slowdown and shelter in place" we won't see much of a fall in prices, station owners will just stop pumping before losing even more money per gallon.

Now, in the long run, if the economy opens up again, it will be "supply and demand at the local level" until things 'normalize' again. That might take 2 weeks or might take 2 years, depending on not only our economy, but the world economy to boot.

Scary times ahead for all of us....

[flybouy]

Here in "The People's Republic of Maryland" the gasoline tax is $0.3670 and diesel is $0.3745. Then add $0.184 fed tax on gas for $0.55.1 /gal and diesel fed tax is $0.244 for a total $0.611/gal. So I can guarantee the tax + what the payed for that load currently in their tanks, and the "overhead" costs (labor, rent, property taxes,utilities, etc.) will be the "lowest pump price".