gas prices

$3.35 in Kankakee area. Pretty typical for gas prices to rise this weekend.

same gas station, thortons by state fair grounds.

wednesday-3.04
thursday-3.25
friday-3.09

While I was out today I saw that the Shell on W Washington had bumped up its price to $3.89. Later going by the Shell on Chatham road it was $3.65. There’s some buzz out there that some oil from the strategic reserve will be released to help keep prices from increasing too much. Honestly I don’t think it will make much difference.

OSUBucks wrote:While I was out today I saw that the Shell on W Washington had bumped up its price to $3.89.  Later going by the Shell on Chatham road it was $3.65.  There’s some buzz out there that some oil from the strategic reserve will be released to help keep prices from increasing too much. Honestly I don’t think it will make much difference.

$3.89 this morning at Thorntons on West Wabash in Springfield

$3.89. Like COVID, I think this will be the new normal until September/October of 2024.

dusty7 wrote:$3.89.  Like COVID, I think this will be the new normal until September/October of 2024.  

What do you mean "like covid"?

Ghengis Khan wrote:

dusty7 wrote:$3.89.  Like COVID, I think this will be the new normal until September/October of 2024.  

What do you mean "like covid"?

Just saying like COVID being around forever, its just a new normal we will have to get used to.

I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

Teetime wrote:I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

I tend to agree. In 2008, the last year of the Bush Presidency, gas was up to $4.06 in Springfield. Adjusted for inflation that would be around $5.25 today. A year later it was back down to close to $3.00 a gallon. President’s get blamed for a lot of things that occur while they’re President. Their administration has very little to do with the price of gas though.

Last week it was $3.79 in Salem...had been for quite some time. After Ukraine invasion, went up to $3.99 for several days. Monday / Tuesday was back down to $3.79...this morning, $4.04. I don't understand any of it at this point. All I do know is I'm shopping for a car right now (which is a whole different animal) and all I care about is getting one that's somewhat fuel efficient.

Teetime wrote:I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

True, lots of oil will be produced but the companies can still decide to hold on to it and not release it to market in the hopes of more profit.

For the prices to decrease to where people want them it will take a combination of an increase in supply and a decrease in demand. I honestly don't see that happening in the near future. Oil companies will use the opportunity to make as much money as they can off of this situation and will restrict supply to continue to drive the price up until it becomes unreasonable.

Is $4.00 gas the new norm, I sure hope not but I can definitely see gas not dropping below $3.00 for a very long time if ever.

dusty7 wrote:

Teetime wrote:I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

True, lots of oil will be produced but the companies can still decide to hold on to it and not release it to market in the hopes of more profit.

For the prices to decrease to where people want them it will take a combination of an increase in supply and a decrease in demand.  I honestly don't see that happening in the near future.  Oil companies will use the opportunity to make as much money as they can off of this situation and will restrict supply to continue to drive the price up until it becomes unreasonable.  

Is $4.00 gas the new norm, I sure hope not but I can definitely see gas not dropping below $3.00 for a very long time if ever.  

This morning it was$4.06 at the Shell station on West Washington in Springfield

dusty7 wrote:

Teetime wrote:I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

True, lots of oil will be produced but the companies can still decide to hold on to it and not release it to market in the hopes of more profit. 

So you think there are businesses that would incur all the cost of producing a product and then rather than sell their product at historically high prices…they would hoard it until the price went even higher? For a hundred years they have been producing and selling oil at the current market price, but now, because the record profits they will have this year are not enough, they will change their business strategy because of greed?

Teetime wrote:

dusty7 wrote:

Teetime wrote:I don’t think it’s the new normal. Lots of oil will be produced at these prices per barrel. Supply will come back into alignment with demand.

True, lots of oil will be produced but the companies can still decide to hold on to it and not release it to market in the hopes of more profit. 

So you think there are businesses that would incur all the cost of producing a product and then rather than sell their product at historically high prices…they would hoard it until the price went even higher? For a hundred years they have been producing and selling oil at the current market price, but now, because the record profits they will have this year are not enough, they will change their business strategy because of greed?

Yeah they can sell it now but the situation isn’t going to be getting better anytime soon.  Why not hold on to it and let the market increase a a little bit more?  

The Law of Supply, which applies to most products, yes, you would produce more but that only works for products that are elastic, or easy to adjust production.  Oil is an inelastic product where it is more difficult and takes a lot of capital to increase production and a large loss of capital to stop production. So the price of crude doesn't really change the production of oil in the short run. In the long run they can increase or decrease production but it doesn't happen immediately.  Like farmers, oil companies have a large capacity to store their product in hopes of a higher price in the future.

Crude prices are largely based on speculation and that can often lead to a rise in price on oil traded in the market along with various other factors.  With all of the issues in the world right now, you can’t tell me these companies aren’t holding out releasing/selling crude in anticipation of the price rising until the uncertainty subsides? It may not happen with millions of barrels at once but I would bet it is on the tens of thousands of barrels right now and that is a nice increase in profit day to day for these companies and helps drive the price up even higher.

The sure fire way to get gas prices to decrease is for consumers to change their habits, drive less, use alternatives to plastics in production, etc. to lower the demand in order to drive the price down.  This change in behavior takes a long time to impact the market thus $3.50 + gas may be the new norm for a while.

$4.14 in Kankakee area.

in Sterling:

$3.69 on Monday
$3.89 on Tuesday
$3.99 on Wednesday
$4.09 on Thursday
$4.19 today

I hope I’m wrong but we might hit $5.00 by Summer.

OSUBucks wrote:I hope I’m wrong but we might hit $5.00 by Summer.

At this rate we may hit $5.00 by Easter. Up $.50 in 5 days.

dusty7 wrote:

OSUBucks wrote:I hope I’m wrong but we might hit $5.00 by Summer.

At this rate we may hit $5.00 by Easter. Up $.50 in 5 days.  

It has been a crazy last 10 days. I don’t want us buying any of Putin’s oil regardless.

OSUBucks wrote:

dusty7 wrote:

OSUBucks wrote:I hope I’m wrong but we might hit $5.00 by Summer.

At this rate we may hit $5.00 by Easter. Up $.50 in 5 days.  

It has been a crazy last 10 days. I don’t want us buying any of Putin’s oil regardless.

Well Biden's admin has made the decision to continue to buy Russian oil.

Russian oil filled the void left by Venezuela and Iran when they were sanctioned. I bet we see an Iran Nuclear deal that gives the US some Iranian Crude and at that point we will shut off oil trade with Russia.

The Biden administration doesn't buy oil. When will that sink in?

If the Congress were to pass an act or if the administration were to make a regulation barring the import of oil originating in Russia, then the businesses that buy oil will shift to whomever is selling oil at the next lowest price (rather than the lowest) and other buyers across the globe will buy the oil originating in Russia.

In theory, that would not raise the global demand for, nor the global supply of, oil. There would be American buyers that would pay more for oil and buyers in other countries that would pay less.

Does that make sense? The outcome would be that Russia would still sell all the oil they wanted at market prices, but American oil buyers would pay more than market price while other countries would pay less. How does that help anything?

The biden regime created a US market environment that is pro green energy. He issued executive orders that are anti-oil. US companies are reluctant to invest capital in drilling for oil in America because of the environment creation by the biden clown show. That means US companies have to import more oil. It also means there is less oil in the market. That's why biden begged opec to increase output.  They said no.

The biden regime issued 'tough' sanctions again russia. Those 'tough' sanctions did not include banning purchases of Russian oil by US companies.

The green-new-deal loons LOVE high oil prices. They are laughing about this.

Tee, I think we all know the administration doesn't directly buy oil but their rules and regulations have a direct impact on long term supply.  We import 7% of our crude from Russia and Biden doesn't want to cut off trade for that 7%. I think it would be doable for the US to ramp up oil production fairly quickly to make up for they 7% in the next few months but that won't make the left very happy and Biden doesn't like breaking with his party. 

I saw on CNN that Russia has put a lot of money behind Green Energy propaganda to influence US and European countries to stop using traditional energy (oil) so that they have to use Russian oil as a supplement.  It has been happening across Europe for a decade.

Putin wants to prove the world needs Russia and without cutting off the oil trade because certain nations have cut down production, he is correct.  All western nations need Russian oil and are too scared of the impact on the economy to cut them off.  


https://thefederalist.com/2022/03/01/stop-letting-environmental-groups-funded-by-russia-dictate-americas-energy-policy/

Price today $4.39

tps wrote:The biden regime created a US market environment that is pro green energy. He issued executive orders that are anti-oil. US companies are reluctant to invest capital in drilling for oil in America because of the environment creation by the biden clown show. That means US companies have to import more oil. It also means there is less oil in the market.

You have been getting some really bad information.

US oil production dropped way off in May of 2020 and has been edging up since then. I don't know which Trump policy caused that big drop in oil production, but maybe you can ask your source.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M

During the Biden administration drilling permits have been flying out the door. Environmentalists are not happy about it, but it's a fact.

https://biologicaldiversity.org/w/news/press-releases/new-data-biden-slays-trumps-first-year-drilling-permitting-by-34-2022-01-21/

From that eia.gov information you might note that from January of 2009 to January 2017 US oil production rose from 5.239 million barrels a day to 8.873 million or an increase of 69% during the Obama years. From January 2017 to January 2021 the increase was 24% to 11.056 million barrels per day during the Trump years.

Currently 11.567 million barrels a day are being produced.

Teetime wrote:

tps wrote:The biden regime created a US market environment that is pro green energy. He issued executive orders that are anti-oil. US companies are reluctant to invest capital in drilling for oil in America because of the environment creation by the biden clown show. That means US companies have to import more oil. It also means there is less oil in the market.

You have been getting some really bad information.

US oil production dropped way off in May of 2020 and has been edging up since then. I don't know which Trump policy caused that big drop in oil production, but maybe you can ask your source.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M

During the Biden administration drilling permits have been flying out the door. Environmentalists are not happy about it, but it's a fact.

https://biologicaldiversity.org/w/news/press-releases/new-data-biden-slays-trumps-first-year-drilling-permitting-by-34-2022-01-21/

From that eia.gov information you might note that from January of 2009 to January 2017 US oil production rose from 5.239 million barrels a day to 8.873 million or an increase of 69% during the Obama years. From January 2017 to January 2021 the increase was 24% to 11.056 million barrels per day during the Trump years.

Currently 11.567 million barrels a day are being produced.  

If we are doing so well in oil production why can't Biden just cut off our trade with Russia? Seems like it would be an easy thing to do since we are doing such a great job at producing oil. Everybody is calling on Biden to stop trading with Russia be he is reluctant, wonder why. Maybe you can enlighten us.