Jump to content

Gas + - 67.9 per Liter


Clampet

Recommended Posts

I don't understand how come the cost of gas has plummeted so low!

Has the demand really subsided?

 

Demand is down, but that's not the only factor.

 

Speculators drove the price of a barrel of oil up for the past year or so, causing the raw materials for making gas more expensive. A barrel of crude has dropped from around $148 down to $41, so it doesn't cost as much to buy that raw material.

 

Since the world is in recession, the outlook for the demand isn't looking great, so speculators are shying away from investing, thus the price is low.

 

The retail price is reflective of those two reasons, but also the value of the Canadian dollar in relation to the US dollar. You may think that since gas was at it's peak over $1.30 per liter...the cost of oil has dropped around 70%, that gas should also drop by 70% as well. Since the price of oil is purchased on the world market in US$, when our dollar drops it still 'costs' more for us. Also, there are fixed costs in production that don't move no matter what the price of oil is at, or what the value of our dollar is.

 

I'm not an expert...this is just how I believe it works...if anyone else can clarify anything I've written, it would be appreciated.

Link to comment
Share on other sites

CCMT ya you seem to have it right, demand is way down and expected to drop more, prices could get to 1-1.25 a gallon here as predicted by the experts. OPEC is supposed to meet to lower supply, but if there is no demand prices still won`t rise much.

 

Prices should remain lower as long as the recession is continuing, maybe a rise for the summer driving season. Still not a time to buy a gas guzzler if you don`t need one, rising oil prices might be a marker the recession is ending, but I don`t look for that soon.

Link to comment
Share on other sites

Here in the Buffalo area there is a investigation going on because of price fixing among retailers. They are make more than twice the amount than everyone else makes per gallon. If weren't for one of the local TV stations getting everyone riled up I sure our crooked politicians would do anything like always. But anyways take a look at this article that is in today's Buffalo News.

 

http://www.buffalonews.com/cityregion/buff...ory/514946.html

Link to comment
Share on other sites

will it stay this low or like me and the wife have being thinking maybe time to go get a couple hundred worth for the holidays? we'll be going to sudbury from guelph and driving around alot in the silverado usually 2-3 tanks and when we get home its empty again...think this price will last till boxing day/new years?

Link to comment
Share on other sites

Terry, don`t quote me on this but diesel is a denser fuel, I think they can get more gasoline out of a barrel of oil that diesel fuel.

 

Home heating oil is closer to diesel fuel than gasoline, one of the reasons a lot of owners-operators here used to live in the country where they used home heating oil to heat their homes.

 

Some found it`s way into the fuel tanks of the truck to lose the 40+cents a gallon highway use tax. None in home heating oil.

 

They do check, diesel has a dye in it, home heating oil doesn`t, they don`t check often though. They also like to see receipts to match amounts of fuel purchased to amount of miles driven. Anything way out of line can raise a red flag.

 

Truck scale stations along the highways do more than just weigh the trucks to ensure legal limits are observed. They are a convenient place for enforcement officers to examine loads, check logs, inspect the safety of the vehicle.

Link to comment
Share on other sites

I was pretty impressed about a week or so ago when for $45 I topped off my boat gas,an extra gas can for the boat I bring for long days, and while I was out I topped off the car since that's what I drove to get the boat gas..I call that a pretty good day :clapping:

Link to comment
Share on other sites

will it stay this low or like me and the wife have being thinking maybe time to go get a couple hundred worth for the holidays? we'll be going to sudbury from guelph and driving around alot in the silverado usually 2-3 tanks and when we get home its empty again...think this price will last till boxing day/new years?

 

Oil is bought by speculators on the world markets. All current indications are pointing that the price for oil will remain low for a while. Until the world economy is out of recession, demand will remain lower around the world. In the past, when OPEC says they are going to restrict supply, the price always is driven up by those same speculators. When the US states it's oil and gas reserves, if they go down then the price of oil also rises. For the past few months, OPEC has tried to stabilize the price of oil by announcing cutback on production, but they've had no effect...it keeps dropping. Same with US reserves...nothing seems to be stopping this slide right now.

 

Gas prices will always be variable, but I think you are safe for the holidays....it may go up a little, but nothing like what we saw this past summer.

Link to comment
Share on other sites

Oil is bought by speculators on the world markets. All current indications are pointing that the price for oil will remain low for a while. Until the world economy is out of recession, demand will remain lower around the world. In the past, when OPEC says they are going to restrict supply, the price always is driven up by those same speculators. When the US states it's oil and gas reserves, if they go down then the price of oil also rises. For the past few months, OPEC has tried to stabilize the price of oil by announcing cutback on production, but they've had no effect...it keeps dropping. Same with US reserves...nothing seems to be stopping this slide right now.

 

Gas prices will always be variable, but I think you are safe for the holidays....it may go up a little, but nothing like what we saw this past summer.

thanks, if it stays till mid jan below 75cents ill be a happy camper, the cost is a huge portion of the trip's budget, i suppose ill just blow the money on boxing day sales anyway! ill have to hit romakos tackle up there

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recent Topics

    Popular Topics

    Upcoming Events

    No upcoming events found

×
×
  • Create New...