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Oil prices lowest since May 2005

I heard it announced on the radio this morning that the price of crude oil is the lowest it has been since May 2005... mainly due to the unusually warm weather we are having in the northeast (or so they say-who are "they" anyway?). Opec has announced it will cut back on production to counter the glut of oil stocks around the world.

Gasoline prices are not the lowest they have been since may 2005. Keep in mind that one of the rationales for higher fuel prices is Hurricane Katrina which hit in August 2005... Yet oil companies have enjoyed record profits in the past 2 years (was it due to the Energy Bills and tax cuts designed to encourage infrastructure development?).

How do people feel about this?
Do you think energy prices will rebalance back to May, 2005 prices?
Do you feel current prices reflect actual market values?
Does anyone think current problems for car manufacturers like Ford have anything to do with energy costs?


grim

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You have to realize

In reply to: Oil prices lowest since May 2005

oil companies don't follow lifo or fifo. They follow hifo - highest in first out.

Diana

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I have no idea.

In reply to: Oil prices lowest since May 2005

As I understand it, besides the price per barrel set by OPEC, it's the speculators in the futures market that also influence what we pay.

As for the car companies like Ford, I think their troubles started long ago. They didn't anticipate what many consumers wanted like, say, Japan did. During the oil shortages in the '70s, there was a good selection of their fuel efficient autos already in the market. And they took a long time to start improving the quality and reliability of their cars. I recall them screaming bloody murder when they had to start put in catalytic converters, saying it would make the price of their cars too high.

Angeline
Speakeasy Moderator
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Energy and other essentials do not follow

In reply to: Oil prices lowest since May 2005

the supply/demand rules....whatever those are. If you don't use enough product and profits are down, the cost per unit for what is consumed will go up even with the supply is abundant. If the demand is really high, the cost to consumers will go up as well. No way to win this one. It's not just the company execs that reap the benefits. It's the stockholders. There's enormous pressure to keep a company's stock price high and pay out good dividends. Otherwise folks yank their money out and buy something they think will be more profitable.

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it goes like this: we supply and demand more of your money

In reply to: Energy and other essentials do not follow

you are correct. the oil companies are an example of the 'un-monopoly', where the collusion cartels competitive nature is focused on acquiring and maintaining a steady flow of investments. the price of fuel is the same within pennies at every street corner. the major difference in pump price across the nation is the amount of taxes included by different localities.

they do not have to compete for your dollar. they know you can not make gasoline in your garage. of course if you save your money and buy a comparable amount of gasoline, as a walmart does, your price per gal will be less. besides nobody is forcing you to drive or heat your family. that freedom is a true benefit of the risk-taking entrepreneurial economy. common knowledge at country clubs everywhere.

it does seem that supply and demand principles apply to things you do not need. pet rocks are very cheap, of course there is not a concerted marketing campaign at the moment for their revival.

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You might remember when oil companies did compete

In reply to: it goes like this: we supply and demand more of your money

They ran ads and sponsored TV programs. Their commercials touted their products as being better then the competition....that you and your car would know and feel the difference if you switched to their brand. Madison Ave. was the driver and not Wall St. in that competition. If you see an ad for a gasoline station...and Speedway comes to mind...it's not for their auto fuel but for their people fuel...coffee that is. Happy

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sure do

In reply to: You might remember when oil companies did compete

and remember when you saw the same fuel truck deliver the same fuel to mobil, texaco, amoco, exxon, gulf, sinclair etc. that ended brand loyalty for me. before all pre-merge competition was whittled away, guess everybody got a tiger in their tank even if they didn't want one.

street corner competition has gone the way of the sinclair dinosaur

repairs are gone from so many now. air??? 50cents(hope it works, hope your quick)

re: people fuel, yep most gas stations that open now use gas sales to lure you in for all the non-fuel items. a throwback to the days small town stores added gas to attract more customers. 'what goes around...........'

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I must wonder...

In reply to: sure do

I must wonder, did you follow that truck around and see it deliver to several stations of different major oil company ownership? Company drivers have been fired for pulling shenanigans with deliveries, that's why they put a numbered seal on each compartment of the tank truck. One truck can carry more than one product in different compartments.
Note: Independent stations get their product from various sources, but they sell under their own company name.

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sometimes when I wonder, I realize

In reply to: I must wonder...

that I do not know everything that has occurred since I was born. then if I still care about the issue I kidnap the purveyor of tales I have not witnessed. after several years without food and water they will admit to what I wonder. give it a whirl.

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No need to kidnap...

In reply to: sometimes when I wonder, I realize

No need to kidnap, just get a job on the fill rack at the bulk plant of an oil company. You'll learn about the trucks, seals, and shenanigans that drivers sometimes try to pull. Give it a whirl.

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before I get dizzy

In reply to: No need to kidnap...

I wonder if you were in illinois in the late 60's. I wonder if bribes are a way of doing business. I wonder if organized crime is involved with trucking. I saw what I saw and mentioned same.

you know,only what you know.

if you had not made the initial "wonder" comment and said 'from my experience that is unlikely, etc' instead; we would not be doing this highland fling.

"anything is possible" but continue to keep me under surveillance.

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Organized (and disorganized) crime in Illinois

In reply to: before I get dizzy

Teamsters? Jimmy Hoffa's strange departure from planet earth? Chicago politics? Not a chance. Wink

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Right, but the white rabbit...

In reply to: before I get dizzy

makes the other things you "saw" suspect.

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"And if you go chasing rabbits

In reply to: Right, but the white rabbit...

And you know you're going to fall
Tell 'em a hookah smoking caterpillar
Has given you the call

Go ask Alice
I think she'll know

When logic and proportion
Have fallen sloppy dead
And the White Knight is talking backwards
And the Red Queen's "off with her head!"

Remember what the dormouse said:
"Feed your head
Feed your head
Feed your head"


good knight, gracie '67 summer of love

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Of course they do...

In reply to: Energy and other essentials do not follow

that's like saying certain objects do not obey the law of gravity.

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