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Current Events => Breaking News => Topic started by: Chris on October 12, 2008, 11:30:30 AM

Title: Oil falls below $78 on global slowdown
Post by: Chris on October 12, 2008, 11:30:30 AM
Oil falls below $78, a 13-month low, on global slowdown (http://www.usatoday.com/money/industries/energy/2008-10-10-oil-at-82_N.htm)

NEW YORK — The stunning collapse in oil markets accelerated Friday, with a barrel plunging below $78 as investors grow more pessimistic about a mushrooming global economic crisis.

Light, sweet crude for November delivery fell $8.63 to settle at $77.99 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month crude contract since Sept. 10, 2007.

Crude has now lost 47% of its value since hitting a record $147.27 on July 11 as a deepening credit crisis sparked by the subprime mortgage fiasco wreaks havoc around the globe and drives down energy demand.

Underscoring Americans' waning appetite for fuel, a gallon of regular gasoline dropped 5.3 cents overnight to a national average of $3.35 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express.

(more...) (http://www.usatoday.com/money/industries/energy/2008-10-10-oil-at-82_N.htm)


I'm going to ignore the panicky, Chicken Little headline.  This is good news.

I never expected it to drop that low.  I thought $90 by the end of summer would be a good deal.
Title: Re: Oil falls below $78 on global slowdown
Post by: Chris_ on October 12, 2008, 11:31:20 AM
Regular gas here in Richmond is between $2.85 and $2.99 a gallon.

Title: Re: Oil falls below $78 on global slowdown
Post by: Chris on October 12, 2008, 11:37:52 AM
I haven't been paying attention to gas prices because I live so close to work and a tank seems to last me forever.  I do work with dozens of small trucking companies and gas stations, and the price of diesel seems to have dropped below the $4 mark in most of the country, with the exception of a few places that are still selling for $4.01-4.03.

If if keeps up, it will be a huge relief.  Those companies are spedinging $300-700 on each truck, every day.  Some of them have more trucks than I can count, most are small operations with two, three, or half a dozen vehicles.
Title: Re: Oil falls below $78 on global slowdown
Post by: SilverOrchid on October 12, 2008, 12:48:09 PM
$3.40 here. AND we have a F150 Ford truck. So, yeah, this is good news!
Title: Re: Oil falls below $78 on global slowdown
Post by: Miss Mia on October 12, 2008, 01:39:20 PM
I haven't been paying attention to gas prices because I live so close to work and a tank seems to last me forever.  I do work with dozens of small trucking companies and gas stations, and the price of diesel seems to have dropped below the $4 mark in most of the country, with the exception of a few places that are still selling for $4.01-4.03.

If if keeps up, it will be a huge relief.  Those companies are spedinging $300-700 on each truck, every day.  Some of them have more trucks than I can count, most are small operations with two, three, or half a dozen vehicles.


I paid $3.69/gallon for diesel on Thursday. 
Title: Re: Oil falls below $78 on global slowdown
Post by: Chris on October 12, 2008, 03:40:39 PM
Quote
"If crude oil prices don't spike, we can expect further price cutting for two reasons," Lundberg said. "Gasoline demand will continue to shrink in our weak economic condition, and retailers, who have been receiving deep buying price cuts, will be anxious to pass through any further price cuts they receive quickly. They need the sales."

According to the Lundberg survey, drivers in Honolulu paid an average of $3.91 a gallon for unleaded gas, the highest price in the nation. The Wichita, Kansas, region had the lowest average price, at $2.79 a gallon.

The Lundberg survey evaluates prices at about 5,000 gas stations.

http://www.reuters.com/article/rbssEnergyNews/idUSN1247417020081012?sp=true

Title: Re: Oil falls below $78 on global slowdown
Post by: TheSarge on October 14, 2008, 05:57:49 AM
$3.27 here in NOVA.   After the way the MSM was hand wringing about the rising cost of gas you'd figure they'd be all over this.

Oh...wait...
Title: Re: Oil falls below $78 on global slowdown
Post by: jtyangel on October 14, 2008, 06:19:11 AM
http://www.reuters.com/article/rbssEnergyNews/idUSN1247417020081012?sp=true



I paid 2.78 a gallon for gas when I filled up yesterday in Columbus, oh
Title: Re: Oil falls below $78 on global slowdown
Post by: Atomic Lib Smasher on October 14, 2008, 06:39:06 AM
It's down to 2.72 here a gallon for regular and 2.92 for premium. Filled up my tank yesterday for less than 40 bucks for the first time in a few months. I can betcha Sheik Octane down at OPEC is throwing a bitchfit over the low price of gas we Americans are getting now.
Title: Re: Oil falls below $78 on global slowdown
Post by: NHSparky on October 14, 2008, 08:12:50 AM
$3.12 where I live, but some stations are at or just under $3 in Seabrook--closer to the delivery facilities, I suppose.

Does anyone have a graph/chart of where we were a year ago and how closely crude prices are matching gas prices?  IIRC, at the beginning of the year, gas was about this price, but oil was over $95/bbl.  So assuming we steady out at $75-80/bbl, does this mean we can reasonably expect around $2.40-2.50 a gallon soon?
Title: Re: Oil falls below $78 on global slowdown
Post by: jtyangel on October 14, 2008, 08:42:23 AM
$3.12 where I live, but some stations are at or just under $3 in Seabrook--closer to the delivery facilities, I suppose.

Does anyone have a graph/chart of where we were a year ago and how closely crude prices are matching gas prices?  IIRC, at the beginning of the year, gas was about this price, but oil was over $95/bbl.  So assuming we steady out at $75-80/bbl, does this mean we can reasonably expect around $2.40-2.50 a gallon soon?

I'm glad you pointed that out, NH. I was sure it was still over priced for the price per barrel as well.
Title: Re: Oil falls below $78 on global slowdown
Post by: Atomic Lib Smasher on October 14, 2008, 08:43:28 AM
$3.12 where I live, but some stations are at or just under $3 in Seabrook--closer to the delivery facilities, I suppose.

Does anyone have a graph/chart of where we were a year ago and how closely crude prices are matching gas prices?  IIRC, at the beginning of the year, gas was about this price, but oil was over $95/bbl.  So assuming we steady out at $75-80/bbl, does this mean we can reasonably expect around $2.40-2.50 a gallon soon?

http://www.wtrg.com/oil_graphs/oilprice1947.gif
Title: Re: Oil falls below $78 on global slowdown
Post by: Thor on October 14, 2008, 09:44:52 AM
Went up to Durant, OK last night to do some shopping. The Wal-Mart there is much nicer than our local ones. Gas was $2.499 at the Murphy Gas station by Wal-Mart. The surrounding stations were at $2.589 or higher. My local stations are at $2.559 or so, except Chevron, Shell, and Exxon.
Title: Re: Oil falls below $78 on global slowdown
Post by: Miss Mia on October 14, 2008, 04:23:50 PM
Diesel was $3.59/gallon today.  :wink:
Title: Re: Oil falls below $78 on global slowdown
Post by: Chris_ on October 14, 2008, 04:28:16 PM
Just saw regular today for $2.68 a gallon.
Title: Re: Oil falls below $78 on global slowdown
Post by: NHSparky on October 14, 2008, 04:36:31 PM
$2.77 at the generic place, $2.83 at Sunoco in Seabrook.  Still around $3.10 in Rochester, but Newmarket (off the highways, so more competitive) has it as low as $2.65.

Damn.  Here we are happy it's under $3 a gallon.  Never thought I'd see that day.
Title: Re: Oil falls below $78 on global slowdown
Post by: Chris_ on October 14, 2008, 04:47:25 PM
If this holds at around this price for more than a couple of weeks or so, watch for Russia and/or Iran to do something "de-stabilizing", just to kick the price back up to where they want it to belong.
Title: Re: Oil falls below $78 on global slowdown
Post by: Chris on October 14, 2008, 06:44:28 PM
This is where we were over the same period last year.  I can't find the chart that maps gas prices against crude oil prices, but I could probably cobble one together.

(http://img522.imageshack.us/img522/2856/2007ppg2006ab4.jpg)

http://tonto.eia.doe.gov/oog/info/twip/twip.asp