About the same here. It’s been up since before the weekend so maybe it was time to come down. I live in a rural area and can drive a town over and it’s usually cheaper.
Why haven't gas prices gone down?
- Thread starter grampi
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4wd
$50 site donor 2026
Gasoline is there so you also buy the high profit stuff they sell …
Not much different than Costco …
Record lows.
In theory it shouldn't affect the US much as we don't buy much from the Middle East anymore. If it does affect anyone it would be the West Coast.
However they will use every excuse.
Having said that, I paid $2.53 this AM. Not much changed over the weekend surprisingly.
4wd
$50 site donor 2026
Think LNG is being suspended - seems too darn volatile for sending past the mess …
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That's not quite how it works. Oil is a global commodity and pricing is based on global supply and demand. The U.S. produces a lot of crude, but it's a lighter variety that many of our refineries are not setup to process. They're designed to use higher sulfur inputs, like the Venezuelan stuff. If Middle Eastern flows are disrupted and Asian countries can't get oil from there, they're going source it elsewhere, which will drive up the price everywhere.
Transportation is part of the equation. Shipping contracts don't change for short term events. Its been clear so far no one is attempting to affect oil producing infrastructure.
In theory the heavy crude price will go up, but you also have to factor in the price of shipping it from somewhere like Venezuela / Canada vs shipping it around Africa to places like India and China. So Venezualan and Canadian heavy sour may not change much, and so far have not.
And as we have seen here the majority of price is added at retail anyway. Crude is less than half the price at the pump. So Arabian Heavy is up 7%, in theory that could add 3.5% to the pump price and that is assuming its all based on Heavy sour crude which you already pointed out its mostly blended at refining.
We shall see - like I said any excuse.
As has been mentioned, gas is already pretty low when adjusted for inflation. My parents always respond with..."the good ol' days when gas was 50 cents a gallon in 1974". Well adjusting for inflation, 50 cents for a gallon of gas in 1974 is the same as $3.49 for a gallon today.
We are approaching the historically cheap sub $3 per gallon territory, adjusted for inflation.
We are approaching the historically cheap sub $3 per gallon territory, adjusted for inflation.
Iraq, Afghanistan, Iran, ....where is the oil and .50 cent per gallon prices? It is B.S. completely
Chevron was cheaper in Fort Bragg than Sacramento this weekend. Filled up at $4.99 before leaving & the cheapest around me is $5.09 with most in the $5.35 range. Passing through Petaluma & Sonoma was even higher
Response would have bordered on (actually dove head on into) a political response beyond the yep. Mods no likey when we do that
.My earlier comment was deleted so I'll try again. If ME is unable to sell (As it is now) then the buyer from the ME will start buying from elsewhere pushing up the price.
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The Straight of Hormuz closure removes about 8-10mb/d of global supply. That pressures Brent futures up and Brent will hit $80-90 very shortly and probably surge past $120 in the next few weeks.
Since the US produces about 13mb/d and uses 9mb/d, it it an exporter. This means if it’s more profitable to sell oil on the global market, suppliers will do so. This arbitrage will drive up costs for domestically produced barrels. WTI will slightly lag Brent, and while it’s gains might be somewhat more muted, it will still go up.
Since the US produces about 13mb/d and uses 9mb/d, it it an exporter. This means if it’s more profitable to sell oil on the global market, suppliers will do so. This arbitrage will drive up costs for domestically produced barrels. WTI will slightly lag Brent, and while it’s gains might be somewhat more muted, it will still go up.
The price will go up because those refineries that are set up to take specific types of ME crude will bid it up given reduced supply. There are over 100 distinct types of crude. There not interchangeable like most people believe. https://oilprice.com/oil-price-charts/
Even if you could ship it you could not replace Arab heavy with WTI for example. You may be able to replace Arab Heavy with Western Canadian Select or Columbian whatever its called - if you can find shipping.
There is no reason for Light sweet shale to go up - yet it is. Its pure speculation. Just like when this Houti's were disrupting shipping a couple years ago, because its momentum trading not supply. You cannot convert a refinery from one blend to another - it takes months or a year.
It depends on how long it goes on for, but its mostly emotion.
