River Road Valero dropped again to $3.29! When will the Madness end! Long live Madness!
On Sat, Dec 13, 2014 at 11:25 PM, G Mann via Mercedes <mercedes@okiebenz.com > wrote: > > More than one station here has ULSD at $2.76 .... With supermarket fuel > discount points card, I'm paying $2.46 at the pump... > > Projections for the crude oil futures market are looking at further drop in > price possible. > > It appears that the increase in domestic oil production in USA has broken > [for now] OPEC strangle hold on pricing.. [OK.. it's not that simple.. a > number of international economic factors come to play.] > > Bottom line.. I will wear out my Mercedes with more miles driven and buy > more parts at cheaper fuel prices.. > > > On Sat, Dec 13, 2014 at 8:07 PM, Meade Dillon via Mercedes < > mercedes@okiebenz.com> wrote: > > > > Passed an Exxon station with #2 ULSD for $2.99 earlier tonight. > > > > Let's hope that trend continues and spreads! > > > > Max Dillon, > > Charleston SC > > On Dec 13, 2014 3:14 PM, "OK Don via Mercedes" <mercedes@okiebenz.com> > > wrote: > > > > > 1) > > > > > > So you think you are finally getting one over on the gas stations as > you > > > pay well under $3 a gallon for the first time in four years? Guess > again. > > > > > > Gas stations love low prices too — and not just because customers are > > nicer > > > when they are paying less. > > > > > > "We're in the same shoes as the consumer, the cost of fuel is less for > > us," > > > says Kevin Beyer, who owns Performance Fuels, a filling station and > > > convenience store in Smithtown, NY. > > > > > > That means profits for Beyer and the nation's 127,000 filling stations > > are > > > rising. > > > > > > Before they sell gas to you, station owners buy gas on the wholesale > > > market. When the wholesale price of gasoline falls quickly the > difference > > > between the cost of wholesale gasoline (including taxes) and the price > at > > > the pump gets wider, boosting profits for stations. The steeper the > drop, > > > the better. > > > > > > "It's completely antithetical to what people believe," says Tom Kloza, > > > chief oil analyst at the Oil Price Information Service. > > > > > > That difference has stretched to 21.7 cents per gallon this year, the > > > highest ever, according to an OPIS analysis of 16,000 U.S. stations. > That > > > compares to an average of 17.1 cents over the last five years. On a > > > percentage basis, station profitability is at its highest since 2005. > And > > > profits on diesel sales are even higher. "They are off the charts," > Kloza > > > says. > > > > > > Yes, that means you could be paying even less for gasoline than you > are. > > > > > > But before you cry foul, you should know that after all the ups and > downs > > > in a year, gas stations do not make much money from selling gasoline. > > After > > > credit card fees and other operating costs, net profit for gasoline > sales > > > averages 3 cents a gallon, according the National Association of > > > Convenience Stores. > > > > > > When gas prices soar, and drivers think they're being gouged, stations > > are > > > barely scraping by or even losing money. When the wholesale price is > > > soaring, like it did in 2008, 2011 and 2012, station owners can't > > increase > > > the price at the pump as fast as their costs are going up or they risk > > > losing customers to competitors. > > > > > > When the wholesale price is going down, like now, there isn't the same > > > pressure to lower the price. > > > > > > Drivers are so happy to see lower prices they don't search all over > town > > > for the lowest one. And then when they put gas in the tank, they fill > 'er > > > up instead of just putting in a few dollars' worth. > > > > > > And drivers have some money left over to spend on what's really > > profitable > > > for station owners: The drinks and snacks inside. > > > > > > "As the pricing goes down, I don't see people shopping (for the > cheapest > > > price) as much as they do when it's going up," says Beyer. "They are > > still > > > feeling a relief at the pump." > > > > > > As a result, he adds, "People are more friendly." > > > > > > The national average price of gasoline has fallen 78 days in a row to > > $2.60 > > > a gallon. That's 65 cents less than last year at this time and $1.10 > > below > > > its peak for this year of $3.70, reached in April. > > > > > > Gas has fallen because the global price of crude oil has dropped 45 > > percent > > > since this summer. The U.S., Canada and other countries are producing > > more > > > oil at time when world demand is weak because of sluggish economic > > growth. > > > > > > This has drained profits and knocked down the share prices of oil > > producers > > > — the exploration and production divisions of the big oil companies > such > > as > > > Exxon Mobil and Chevron, and companies such as ConocoPhillips and > > Marathon > > > Oil. > > > > > > Refiners, including refining divisions of the big oil companies and > > > refining-only companies such as Phillips 66 and Valero, have held up > > > better. They benefit from lower crude costs, although they are also > > > grappling with high fuel inventories. > > > > > > Gas station owners, though, are thrilled. The vast majority of stations > > are > > > owned by small independent operators, even if the sign out front says > > > Exxon, BP or Shell. But shares of CST Brands, which owns Valero and > > Corner > > > Store filling stations are up 25 percent since mid-October. > > > > > > "The big inning (for gas stations), which started after Labor Day, is > > going > > > to extend through Christmas," Kloza says. > > > > > > > > > > > > http://www.msn.com/en-us/money/smallbusiness/like-low-gas-prices-so-does-the-station-owner/ar-BBgHZop > > > > > > > > > 2) What Really Caused Oil Prices to Plunge So Far -- So Quickly > > > > > > The 35% drop in oil prices > > > < > > > > > > http://www.thestreet.com/story/12983324/1/low-oil-prices-hits-some-countries-worse-than-others-moodys-finds.html > > > > > > > this fall has been breathtaking. No one -- not even energy experts -- > > > expected prices to fall this far, this quickly. And the slide doesn't > > seem > > > to be over. > > > > > > What happened? True, the U.S. has nearly doubled its oil production > over > > > the past five years, while OPEC > > > < > > > > > > http://www.thestreet.com/story/12969239/1/how-opecs-plan-to-undercut-us-oil-production-may-have-backfired.html > > > >and > > > other suppliers have been unwilling to cut back on production. Demand > has > > > also been softening. But that still doesn't explain why prices suddenly > > > fell off a cliff. > > > > > > The answer seems to have less to do with supply and demand and more to > do > > > with how oil is traded. In short, the slide in oil prices appears to be > > > mainly *investor-related, *not based on fundamentals. For that reason, > > oil > > > prices could rebound just as quickly and violently as they fell. > > > > > > Here's what may have happened. As oil prices began falling this summer, > > an > > > increased number of traders and other big investors appears to have bet > > > that prices would bottom, especially in October as evidenced by record > > > energy options contracts traded on the CME, the large options and > futures > > > exchange. When that didn't happen -- in part because of the > strengthening > > > dollar > > > < > > > > > > http://www.thestreet.com/story/12926877/1/the-blessing-and-burden-of-a-strong-dollar.html > > > > > > > -- these investors found themselves on the wrong side of a very > dangerous > > > trade. > > > > > > Exposed to even bigger losses, they had to get out quickly. It's what > is > > > known in investing as trying to catch a falling knife. This rush to the > > > exits only exaggerated the selloff in oil prices, which quickly spread > > > to energy > > > stocks > > > < > > > > > > http://www.thestreet.com/story/12981554/1/crude-oil-takes-no-prisoners-as-energy-selloff-tanks-sp-500.html > > > > > > > such as *ConocoPhillips* and *BP* and other related investments. We are > > > still feeling the fallout. > > > > > > When will the carnage end? No one knows. But there are plenty of > reasons > > > why fundamentals may return soon and oil could start climbing again. > > > > > > For starters, 70% of all crude oil is used for transportation. Despite > > the > > > viability of *Tesla* and the electric car > > > < > > > > > > http://www.thestreet.com/story/10661761/1/electric-cars-that-speed-ahead-of-gas-guzzlers.html > > > >, > > > that industry is not yet challenging combustion engine vehicles as many > > had > > > hoped. So Americans are likely to keep driving gas-guzzling cars, which > > > will help oil prices find support. > > > > > > Another reason is that the U.S. still gets more than 7 million > > > < > > http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_a.htm > > > > > barrels from overseas. There is still no clear substitute for crude oil > > > despite efforts to begin tapping natural gas to power vehicles. > Although > > > natural gas is still a good idea, like electric vehicles, it still > > largely > > > lacks the widespread infrastructure needed to really challenge domestic > > oil > > > consumption. > > > > > > Then there's OPEC. The Saudis are no doubt indirectly trying to > influence > > > long-term U.S. demand for its oil. With that said, clearly they are > > risking > > > short-term price weakness for long-term gain. That suggests the > downside > > in > > > crude oil is a buying opportunity for patient investors. Additionally, > as > > > mentioned here > > > < > > > > > > http://www.thestreet.com/story/12969203/1/heres-why-oil-prices-arent-likely-to-remain-low-for-long.html > > > > > > > last week, Iraq, Iran, Angola and Venezuela all wanted a cut at the > last > > > OPEC meeting. Therefore, compliance with production quotas should > already > > > be a concern for those looking to short oil. > > > > > > At the end of the day, the U.S. will still be using fossil fuels for > the > > > next 20 years. Sure, demand will likely weaken thanks to an increased > > > appetite for alternative energy > > > < > > > > > > http://www.thestreet.com/story/11423844/1/top-10-alternative-energy-etfs.html > > > >. > > > But fossil fuels will continue to play a critical role in meeting our > > > energy needs. So the recent collapse of oil prices is not likely to > last > > > long. > > > > > > > > > > > > http://www.msn.com/en-us/money/markets/what-really-caused-oil-prices-to-plunge-so-far-so-quickly/ar-BBgHLLg > > > > > > -- > > > OK Don > > > > > > NSA: The only branch of government that actually listens to US > citizens! > > > > > > "There are three kinds of men: The ones that learns by reading. The few > > who > > > learn by observation. The rest of them have to pee on the electric > fence > > > for themselves." > > > > > > WILL ROGERS, *The Manly Wisdom of Will Rogers* > > > 2013 F150, 18 mpg > > > 2012 Passat TDI DSG, 44 mpg > > > 1957 C182A, 12 mpg - but at 150 mph! > > > _______________________________________ > > > http://www.okiebenz.com > > > > > > To search list archives http://www.okiebenz.com/archive/ > > > > > > To Unsubscribe or change delivery options go to: > > > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > > > > All posts are the result of individual contributors and as such, those > > > individuals are responsible for the content of the post. The list > owner > > > has no control over the content of the messages of each contributor. > > > > > _______________________________________ > > http://www.okiebenz.com > > > > To search list archives http://www.okiebenz.com/archive/ > > > > To Unsubscribe or change delivery options go to: > > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > > All posts are the result of individual contributors and as such, those > > individuals are responsible for the content of the post. The list owner > > has no control over the content of the messages of each contributor. > > > _______________________________________ > http://www.okiebenz.com > > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > All posts are the result of individual contributors and as such, those > individuals are responsible for the content of the post. The list owner > has no control over the content of the messages of each contributor. > _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com All posts are the result of individual contributors and as such, those individuals are responsible for the content of the post. The list owner has no control over the content of the messages of each contributor.
