Diesel Fuel in Venezuela .06 per gallon

[buzzgun]

If you spend about 5 minutes searching, you will find that the average price for crude oil in 2004 was $36.98 per barrel..........crude closed today at over $101 per barrel.......crude costs 2.7 times more today than it did in 2004......and refining cost, transportation cost and the cost to actually sell the fuel at the pump have all increased......do you understand now????

 

[edge]

edge, buzzgun,

Why has gas/diesel prices DOUBLED in four years?

buzz already gave an answer, but there is more too.

One must also remember that Refined Gasoline is not all that is in there.
Most gasoline's are blended with ethanol which costs a lot more than the gas, generally about $4/gallon but it fluctuates wildly. ACTUALLY THIS IS NO LONGER CORRECT, THE PRICE IS CURRENTLY VERY CLOSE TO THE PRICE OF GAS! However with the price of Corn I believe that this will change soon or the Ethanol folks will be out of business.

To make matters worse, ethanol absorbs water so the blended gasoline can't be sent through the pipelines like it used to when they used MTBE or TE lead. Now, the gas gets piped to the local distribution terminal and the ethanol gets there by TRUCK which is expensive, then it is blended and sent to the filling stations by truck.

As a side note, the big oil companies refine the oil to maximize OUR needs even if it is less efficient. Starting in mid Winter they start increasing the ratio of Gasoline and reducing Heating Oil to build up stocks for the Summer driving season. Most refineries have a shutdown in mid-Summer for repairs and general PM. In late Summer they start heavy on Heating Oil and reducing the Gasoline. If they did not do this for OUR benefit, then there would be shortages and prices would skyrocket as they did right after Katrina.

edge.

PS if you bookmark this link, you can track the prices yourself and if you want to try your hand at predicting energy prices you can speculate in the Futures market too!

Quote.com U.S. Markets - Futures Quotes and Charts

PPS the contracts are multiples of 1,000 barrels ( although some trade as 42,000 gallons, which is really the same thing )

 

[adam32]

If you spend about 5 minutes searching, you will find that the average price for crude oil in 2004 was $36.98 per barrel..........crude closed today at over $101 per barrel.......crude costs 2.7 times more today than it did in 2004......and refining cost, transportation cost and the cost to actually sell the fuel at the pump have all increased......do you understand now????

Um, no. Because refining costs haven't increased (they haven't built a refinery since the late 70's) so thats not it. Transportation costs have gone up only because the price of oil went up. Cost to actually sell the fuel, are you serious? Like advertising and stuff?

So what is actually driving the price of crude up? Whats the "real" reason?

Why did I pay $4.14 for diesel a half hour ago?

 

[Timberbeast7]

So what is actually driving the price of crude up? Whats the "real" reason?

Why did I pay $4.14 for diesel a half hour ago?

We live in a free market system. Diesel is worth $4.14 per gallon because you are willing to pay $4.14 per gallon.

The devaluation of the dollar, portions of our oil supplies being controlled by a middle eastern cartel, and not being allowed to explore domestic sources may be small contributors as well.light bulb

 

[adam32]

We live in a free market system. Diesel is worth $4.14 per gallon because you are willing to pay $4.14 per gallon.

The devaluation of the dollar, portions of our oil supplies being controlled by a middle eastern cartel, and not being allowed to explore domestic sources may be small contributors as well.light bulb

Thats one that really makes me mad, screw the stupid caribou!!!

I'm not willing to pay it, I MUST pay it.

 

[buzzgun]

Um, no. Because refining costs haven't increased (they haven't built a refinery since the late 70's) so thats not it. Transportation costs have gone up only because the price of oil went up. Cost to actually sell the fuel, are you serious? Like advertising and stuff?

So what is actually driving the price of crude up? Whats the "real" reason?

Why did I pay $4.14 for diesel a half hour ago?

Refining costs haven't increased??? Hmmm.....something tells me you aren't thinking straight!

I suppose you think that all those folks working in the refinery are still working for 2004 wages??? You think the refineries are paying the same amount for electricity, water and other consumables as they were in 2004??? You think the cost of turnarounds and other maintainance has remained the same since 2004??? Just because they haven't built a NEW refinery since the 70s doesn't mean that they don't have to keep the existing refineries running!! The more they produce, the more work they require to just stay running, not to mention what it takes to meet federal regulations! You think that it costs the same to produce a gallon of ultra low sulphur diesel as it did to produce a gallon of diesel in 2004???

"Transportation costs have gone up only because the price of oil went up." Another Hmmm...

I suppose you think that crude is transported to the refinery in trucks??? And, I guess you think all the refined fuel is taken straight from the refinery to the gas station in trucks???

Cost of selling the fuel hasn't gone up??? One more time.....Hmmm.....

Again, are those folks working in the fuel stations working for the same wages as in 2004.....are the owners paying the same costs for insurance, electricity, taxes....etc???

Sorry, but you obviously don't have a clue!

What is driving the price of crude??? I'm not sure there is enough bandwidth allowance to mention every influence......but here are a few.....

China and India are rapidly increasing their consumption of petroleum products.....we all buy from the same global market......as demand rises, so does price. OPEC is doing a better job of regulating output, therefore limiting supply.....they aren't "cheating" output as much as they once did either......And, maybe the biggest factor......world unrest.....especially in the areas that produce oil.......in case you haven't noticed, Nigera, Iraq, Iran, Venezuela, etc aren't exactly shining examples of stability right now......when traders, who buy and sell based on speculation as to what prices will do next week, next month or next year, see anything that makes them think supply will be interrupted or lessened, the price goes up.....

Why did you pay $4.14/gallon of diesel a half hour ago???? I guess because you don't want to walk????

 

[edge]

adam32, you are absolutely right!

YOU make too much **** money and your boss should cut your pay so you can't pay for your fuel.

You sell your truck and buy a horse!

The cost of fuel JUST NOW past the price we paid in the first oil embargo of the seventies, on an inflation basis. Stop your whining, if you can't afford something then get another job or don't buy it!
What the heck is the matter with the younger generation? While I am close to retirement, my parents went through the Great Depression and they are the Greatest Generation without doubt!

This is a Global economy! You need to know that when the US economy falters the WORLD prices are no longer going to fall. The US is no longer the manufacturing capital, that is now in the Orient.

Oil is pegged to the dollar so when the dollar falls, the price of oil TO US goes up, but stays level to the rest of the World.

IF you are so confident that the Big OIL companies are controlling everything and that the price will go up, just because they say so, then buy a contract of crude oil on the futures market and profit like Big Oil! Every dollar that it goes up you will make 1,000 dollars...and loose it if it goes down.

edge.

 

[adam32]

Refining costs haven't increased??? Hmmm.....something tells me you aren't thinking straight!

I suppose you think that all those folks working in the refinery are still working for 2004 wages??? You think the refineries are paying the same amount for electricity, water and other consumables as they were in 2004??? You think the cost of turnarounds and other maintainance has remained the same since 2004??? Just because they haven't built a NEW refinery since the 70s doesn't mean that they don't have to keep the existing refineries running!! The more they produce, the more work they require to just stay running, not to mention what it takes to meet federal regulations! You think that it costs the same to produce a gallon of ultra low sulphur diesel as it did to produce a gallon of diesel in 2004???

"Transportation costs have gone up only because the price of oil went up." Another Hmmm...

I suppose you think that crude is transported to the refinery in trucks??? And, I guess you think all the refined fuel is taken straight from the refinery to the gas station in trucks???

Cost of selling the fuel hasn't gone up??? One more time.....Hmmm.....

Again, are those folks working in the fuel stations working for the same wages as in 2004.....are the owners paying the same costs for insurance, electricity, taxes....etc???

Sorry, but you obviously don't have a clue!

What is driving the price of crude??? I'm not sure there is enough bandwidth allowance to mention every influence......but here are a few.....

China and India are rapidly increasing their consumption of petroleum products.....we all buy from the same global market......as demand rises, so does price. OPEC is doing a better job of regulating output, therefore limiting supply.....they aren't "cheating" output as much as they once did either......And, maybe the biggest factor......world unrest.....especially in the areas that produce oil.......in case you haven't noticed, Nigera, Iraq, Iran, Venezuela, etc aren't exactly shining examples of stability right now......when traders, who buy and sell based on speculation as to what prices will do next week, next month or next year, see anything that makes them think supply will be interrupted or lessened, the price goes up.....

Why did you pay $4.14/gallon of diesel a half hour ago???? I guess because you don't want to walk????

I'm pretty sure those people working in the refineries aren't making twice as much now as they were in 2004...

The people in the gas stations? Again, their wages haven't doubled, neither has their insurance, power or taxes....

Sorry, but YOU obviously don't have a clue!

Nigera, Iraq, Iran, Venezuela, yep, they aren't the most stable countries around, but our two biggest suppliers are pretty darn stable...

 

[buzzgun]

edge.....these guys got it right!


The trouble with people is not that they don't know......but that they know so much that ain't so. ~Josh Billings

You can swim all day in the Sea of Knowledge and still come out completely dry. Most people do. ~Norman Juster

If ignorance is bliss, why aren't there more happy people? ~Author Unknown

You can't fix stupid! ~Ron White

 

[adam32]

adam32, you are absolutely right!

YOU make too much **** money and your boss should cut your pay so you can't pay for your fuel.

You sell your truck and buy a horse!

The cost of fuel JUST NOW past the price we paid in the first oil embargo of the seventies, on an inflation basis. Stop your whining, if you can't afford something then get another job or don't buy it!
What the heck is the matter with the younger generation? While I am close to retirement, my parents went through the Great Depression and they are the Greatest Generation without doubt!

This is a Global economy! You need to know that when the US economy falters the WORLD prices are no longer going to fall. The US is no longer the manufacturing capital, that is now in the Orient.

Oil is pegged to the dollar so when the dollar falls, the price of oil TO US goes up, but stays level to the rest of the World.

IF you are so confident that the Big OIL companies are controlling everything and that the price will go up, just because they say so, then buy a contract of crude oil on the futures market and profit like Big Oil! Every dollar that it goes up you will make 1,000 dollars...and loose it if it goes down.

edge.

Hey Old Fart,

Let me guess you have some office job where you sit in a cubicle and drive a Prius? Well, some of us actually have to work for a living, and the price of fuel makes it that much harder. Oil prices go up, our bids go, no one hires us, no more job. Get it?

Good for you that your close to retirement, but who cares??

The dollar goes down, but oil companies continue to rack in record profits.

I'll find the graph about inflation, you are WAY off.

 

[adam32]

Here it is:

30 years of gas

 

[Timberbeast7]

I'll find the graph about inflation, you are WAY off.

Yep, he was wrong. According to your graph, when adjusted for inflation, we have not yet reached the prices paid in the late seventies.

 

[buzzgun]

I'm pretty sure those people working in the refineries aren't making twice as much now as they were in 2004...

The people in the gas stations? Again, their wages haven't doubled, neither has their insurance, power or taxes....

Yep, you are right......but I didn't say those costs had doubled!!

I said "refining cost, transportation cost and the cost to actually sell the fuel at the pump have all increased"

.......to which you replied:

"Um, no. Because refining costs haven't increased (they haven't built a refinery since the late 70's) so thats not it. Transportation costs have gone up only because the price of oil went up. Cost to actually sell the fuel, are you serious? Like advertising and stuff?"

So, if you are going to tell me I'm wrong.......at least try to get what I said right!

Nigera, Iraq, Iran, Venezuela, yep, they aren't the most stable countries around, but our two biggest suppliers are pretty darn stable...

Again, that is correct.......but the price of crude isn't determined only by our two biggest suppliers......it is determine by the global market......and, when any of the suppliers are unstable it raises the market price for everyone.

Keep looking......you still haven't found that clue......

 

[adam32]

Yep, you are right......but I didn't say those costs had doubled!!

I said "refining cost, transportation cost and the cost to actually sell the fuel at the pump have all increased"

.......to which you replied:

"Um, no. Because refining costs haven't increased (they haven't built a refinery since the late 70's) so thats not it. Transportation costs have gone up only because the price of oil went up. Cost to actually sell the fuel, are you serious? Like advertising and stuff?"

So, if you are going to tell me I'm wrong.......at least try to get what I said right!





Again, that is correct.......but the price of crude isn't determined only by our two biggest suppliers......it is determine by the global market......and, when any of the suppliers are unstable it raises the market price for everyone.

Keep looking......you still haven't found that clue......

So what is "the clue"? I started out with that question...

But, none of the answers actually answer it.

Blame it all you want on the weak dollar, but the dollar wasn't weak when diesel hit $3/gal and oil companies started making record profits...