Price of oil < $0 per barrel

[Regiomontanus]

Premarket stocks: American oil crashes below $0 a barrel -- a record low - CNN

(but have rebounded a bit)

I am not an economist but...I think this is a bad sign?

 

[Twilight Hue]

Premarket stocks: American oil crashes below $0 a barrel -- a record low - CNN

(but have rebounded a bit)

I am not an economist but...I think this is a bad sign?

Like the local gas station will ever reflect that.

Good luck.

 

[shunyadragon]

Premarket stocks: American oil crashes below $0 a barrel -- a record low - CNN

(but have rebounded a bit)

I am not an economist but...I think this is a bad sign?

Capitalism rules the price of oil wil be back.

 

[Regiomontanus]

Like the local gas station will ever reflect that.

Good luck.

$1.70/gallon near me, and dropping...

 

[MNoBody]

well, to break even it needs to be $55- $60/barrel.....so buckle up, shift coming

 

[A Vestigial Mote]

It's down to $1.26 where I am at. I've been meaning to run to the local Tractor Supply and grab a couple large gas cans. Fill them up while it is low and suck off of those for a while once things jump back up.

 

[Revoltingest]

Like the local gas station will ever reflect that.

Good luck.

Gasoline prices have been falling....below $1/gallon in some places.
But bear in mind that it costs money to turn that oil into gasoline, to
deliver it to stations, & for them to sell it. So the lack of free gas
isn't a conspiracy or anything.

 

[exchemist]

$1.70/gallon near me, and dropping...

That is gasoline not crude, and there's a lot of processing, distribution and tax that goes into the cost to the owner of the gas station, not to mention the time lag to complete all the intermediate steps.

My understanding of the report is this is a short term effect due to storage tanks becoming full over the next few days. But certainly there is still a huge oversupply with so much of the world's economy shut down. It's going to be a hairy 6 months for people in the shale oil business.

 

[Twilight Hue]

Gasoline prices have been falling....below $1/gallon in some places.
But bear in mind that it costs money to turn that oil into gasoline, to
deliver it to stations, & for them to sell it. So the lack of free gas
isn't a conspiracy or anything.

In new York its at least 2.50 a gallon in my immediate area.

 

[Nakosis]

Premarket stocks: American oil crashes below $0 a barrel -- a record low - CNN

(but have rebounded a bit)

I am not an economist but...I think this is a bad sign?

Ought to stop producing oil? Folks are going to be out of work but at some point aren't you just spinning your wheels?

Isn't this what the Green party people want anyway? Business is just going to have to adjust. A chance to invest in alternative forms of energy.

Maybe if we are lucky, gasoline power engines will become obsolete.

 

[Revoltingest]

In new York its at least 2.50 a gallon in my immediate area.

Everyone knows that NY sux.
It's spendy to do business there, & you have high gas taxes.

 

[Regiomontanus]

well, to break even it needs to be $55- $60/barrel.....so buckle up, shift coming

Imagine what is happening to the economies that really depend on oil, like Russia and the already-a-basket-case Venezuela...

 

[Regiomontanus]

That is gasoline not crude, and there's a lot of processing, distribution and tax that goes into the cost to the owner of the gas station, not to mention the time lag to complete all the intermediate steps.

My understanding of the report is this is a short term effect due to storage tanks becoming full over the next few days. But certainly there is still a huge oversupply with so much of the world's economy shut down. It's going to be a hairy 6 months for people in the shale oil business.

Well if nothing else I hope this kills off the fracking industry in my state.

 

[sun rise]

This varies by state etc but I think is a good, general guide:

 

[exchemist]

This varies by state etc but I think is a good, general guide:

View attachment 39143

It's interesting to compare with Europe, where the cost of crude instead of being 50% is, from memory, about 20%.

 

[Mindmaster]

Gasoline prices have been falling....below $1/gallon in some places.
But bear in mind that it costs money to turn that oil into gasoline, to
deliver it to stations, & for them to sell it. So the lack of free gas
isn't a conspiracy or anything.

Gas stations never make money on the gas, it's a loss leader so it doesn't matter to them if it's 50 cents.

They've always made all their money on all the garbage that you buy in the store.

 

[Revoltingest]

Gas stations never make money on the gas, it's a loss leader so it doesn't matter to them if it's 50 cents.

They've always made all their money on all the garbage that you buy in the store.

They must lose money on me.
I rarely buy anything in the store.

 

[exchemist]

Gas stations never make money on the gas, it's a loss leader so it doesn't matter to them if it's 50 cents.

They've always made all their money on all the garbage that you buy in the store.

You're right about the profitability of gasoline sales. But that doesn't make the operator indifferent to the price. Losing 5c on each gallon can easily be made up in the store but losing 50c not so easily.

 

[Mindmaster]

They must lose money on me.
I rarely buy anything in the store.

They make a little bit on the gas regardless, but they make most of the money on the cookie/soda/whatever odds and ends you buy. They get about 10% of the gas, and about 50-100% of the other items.

 

[Revoltingest]

They make a little bit on the gas regardless, but they make most of the money on the cookie/soda/whatever odds and ends you buy. They get about 10% of the gas, and about 50-100% of the other items.

I'll bet that Costco makes less than nothing on gas.
They're typically over $0.20/gal cheaper than the
next cheapest station.