This is why I hate the fuel business.
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Thread: This is why I hate the fuel business.

  1. #1
    Senior Member NGF Addict! Stamps6's Avatar
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    Default This is why I hate the fuel business.

    We are now ďenergy independent ď but itís a global market. When thereís trouble in the middle east then the price at the pump goes up IMMEDIATELY! As things return to normal and prices drop, it takes much longer for the price to drop and usually itís a response to competition and not true pricing.
    Here in the northeast, we heat our homes with fuel oil. (Diesel without the road taxes) when itís real cold out 0-25* I use about 6.5 gallons a day for heat and hot water. That makes the price per gallon very important to me. During the OBama years my work was far and few between and Fuel oil went to $3.65 a gallon so with 2 kids in college at the same time, letís just say it was tough.

    We are going into this winter so I need to fill up with 450 gallons and that should make it to mid January before I need more. My father ordered oil on Friday at $2.18 a gallon. I ordered from the same company on Monday and was told it was $2.39 a gallon. .21x450=$94.50 increase!
    Why? The oil in the truck didnít change, the oil in the storage tanks didnít change, the oil in the tanker didnít change! They didnít get any that was being shipped over the weekend. It was the attack in the Saudi refinery. What does that have to do with the oil Iím buying? Itís an excuse to raise the price. Worse yet the price per barrel on the world market WENT DOWN!!! Grab your ankles and hope there some of the oil for lube.

  2. #2
    Aim true ! NGF Addict! Coalcracker's Avatar
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    They price it on ''future cost''. Gas jumped 10 cents here. I used to have oil heat. I now use natural gas.
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    Senior Member NGF Addict! Stamps6's Avatar
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    We have city water but no natural gas. It’s in the area but not my street. We don’t have sewers . Again in the area but not my street.

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    Senior Member NGF Addict! Sauer Heckler's Avatar
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    Crude oil is a fungible commodity. One barrel of oil has the same value anywhere in the world. It is why local production issues have global ramifications. Gold is a good example. An ounce of gold has the same value no matter the currency. Likewise a barrel of crude oil trades at the same price no matter what market.
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    Quote Originally Posted by Stamps6 View Post
    We are now ďenergy independent ď but itís a global market. When thereís trouble in the middle east then the price at the pump goes up IMMEDIATELY! As things return to normal and prices drop, it takes much longer for the price to drop and usually itís a response to competition and not true pricing.
    Here in the northeast, we heat our homes with fuel oil. (Diesel without the road taxes) when itís real cold out 0-25* I use about 6.5 gallons a day for heat and hot water. That makes the price per gallon very important to me. During the OBama years my work was far and few between and Fuel oil went to $3.65 a gallon so with 2 kids in college at the same time, letís just say it was tough.

    We are going into this winter so I need to fill up with 450 gallons and that should make it to mid January before I need more. My father ordered oil on Friday at $2.18 a gallon. I ordered from the same company on Monday and was told it was $2.39 a gallon. .21x450=$94.50 increase!
    Why? The oil in the truck didnít change, the oil in the storage tanks didnít change, the oil in the tanker didnít change! They didnít get any that was being shipped over the weekend. It was the attack in the Saudi refinery. What does that have to do with the oil Iím buying? Itís an excuse to raise the price. Worse yet the price per barrel on the world market WENT DOWN!!! Grab your ankles and hope there some of the oil for lube.
    We're not energy independent at all. That's a lie from the President and the press.

    We produce more energy, measured in Barrels of Oil Equivalent (BOE) than we consume. That doesn't at all mean or imply that the energy we produce is in the form that we consume. We consume far more oil than we produce but we produce far more gas than we consume. We're still importing nearly 300 million barrels of oil per month.

    Large heating oil providers trade int he commercial markets and they have to order futures based on speculation. When future prices go up they have two choices

    1) they can pay today's price for that future oil (not the price for delivery today but the price today for delivery in the future)
    2) they could take a chance that future prices go down and that they can get what they need at a lower price closer to delivery.

    If they pay today's price for that future oil then they can be sure of giving you oil in the winter but you might pay a higher price than a neighbor whose sources took a different approach.

    If they wait, it could be that the price for oil goes up even more and they have to buy it at an even higher price.

    Those are very simplified descriptions of the risks taken by your oil provider to get you the home heating oil you count on being there when you need it. You could find yourself with paying a much higher price if things get worse and your oil provider didn't lock in some slightly higher-cost oil today.
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    "Oil Prices Plunge As Saudi Arabia Says Oil Production Is Fully Restored" - MSN, Stephanie Kelly reporting.


    Oil prices dropped by about 6% on Tuesday after Saudi Arabia's energy minister said the kingdom has fully restored its oil production hit by an attack this weekend that shut 5% of global oil output.

    Saturday's attacks raised the specter of a major supply shock in a market that in recent months has been preoccupied with demand concerns and faltering global growth. Oil surged as much as 20% at one point Monday.

    During a news conference Tuesday, Saudi Arabia's energy minister also said it will keep its full oil supply to its customers this month.

    Production could be fully online within two to three weeks and the kingdom was close to restoring 70% of the 5.7 million barrels per day lost after the attacks, a top Saudi source briefed on the latest developments told Reuters.

    Brent crude futures fell $4.12, or 6%, to $64.90 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $3.52, or 5.6%, to $59.38 a barrel. Brent sank more than 7% during the news conference.

    In the immediate fallout from the attacks, state-owned producer Saudi Aramco told some Asian refiners it would meet its oil commitments, albeit with changes, sources said.

    The attacks on crude-processing facilities at Abqaiq and Khurais resulted in the largest single supply disruption in half a century, and threw into question Saudi Arabia's status as supplier of last resort.

    The prospect of releases from strategic oil reserves in the United States, and other industrialized countries that the International Energy Agency advises, such as Japan, have weighed on prices, but the geopolitical threat of retaliation is causing concerns.
    Last edited by Stevejet; 09-18-2019 at 12:42 PM.
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    Quote Originally Posted by Stevejet View Post
    "Oil Prices Plunge As Audi Arabia Says Oil Production Is Fully Restored" - MSN, Stephanie Kelly reporting.


    Oil prices dropped by about 6% on Tuesday after Saudi Arabia's energy minister said the kingdom has fully restored its oil production hit by an attack this weekend that shut 5% of global oil output.

    Saturday's attacks raised the specter of a major supply shock in a market that in recent months has been preoccupied with demand concerns and faltering global growth. Oil surged as much as 20% at one point Monday.

    During a news conference Tuesday, Saudi Arabia's energy minister also said it will keep its full oil supply to its customers this month.

    Production could be fully online within two to three weeks and the kingdom was close to restoring 70% of the 5.7 million barrels per day lost after the attacks, a top Saudi source briefed on the latest developments told Reuters.

    Brent crude futures fell $4.12, or 6%, to $64.90 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $3.52, or 5.6%, to $59.38 a barrel. Brent sank more than 7% during the news conference.

    In the immediate fallout from the attacks, state-owned producer Saudi Aramco told some Asian refiners it would meet its oil commitments, albeit with changes, sources said.

    The attacks on crude-processing facilities at Abqaiq and Khurais resulted in the largest single supply disruption in half a century, and threw into question Saudi Arabia's status as supplier of last resort.

    The prospect of releases from strategic oil reserves in the United States, and other industrialized countries that the International Energy Agency advises, such as Japan, have weighed on prices, but the geopolitical threat of retaliation is causing concerns.
    I hope that all of you you guys concur that this guy is essentially a liberal troll.
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    Quote Originally Posted by gvaldeg1 View Post
    I hope that all of you you guys concur that this guy is essentially a liberal troll.
    How did you get that out of the news he quoted/posted?
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    Ancient Gaseous Emanation Popeye's Avatar
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    Quote Originally Posted by gvaldeg1 View Post
    I hope that all of you you guys concur that this guy is essentially a liberal troll.
    The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

  10. #10
    Senior Member LRDGCO's Avatar
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    You may offer your thanks to President Obama. The $1.7 billion in tribute that he paid Iran for his sham nuclear "deal" is underwriting it's proxy war with Saudi Arabia in Yemen and paid for the drones that mountain tribesmen successfully launched against one of the largest refineries in the world.
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