Neal
Administrator
- Joined
- Jul 27, 2019
- Messages
- 14,136
- Location
- Midlothian, VA
- RV Year
- 2017
- RV Make
- Newmar
- RV Model
- Ventana 4037
- RV Length
- 40' 10"
- Chassis
- Freightliner XCR
- Engine
- Cummins 400 HP
- TOW/TOAD
- 2017 Chevy Colorado
- Fulltimer
- No
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The US is a net exporter of diesel. The US imports ~10% of it's total imported crude from the ME and less than that via the Strait of Hormuz. The other 90% of imports are Canada and Mexico and some from S. America. Diesel is refined from crude oil and if it were brought in by tanker wouldn't be coming in from the Hormuz area.Diesel prices spiked over 50% in Florida last week. The reason is that Florida gets much of its diesel through its sea ports and is highly vulnerable to geopolitical shocks. I paid $3.49 a week ago and $5.89 this week.
I did still manage to get DEF at Walmart for $8.88 for a 21/2 gallon jug, but, given that 60% of the world's urea comes through the Strait of Hormuz, i expect the hoarding to begin soon.
It doesn't have to be coming from the Straits of Hormuz to impact Florida prices. Once the diesel is loaded on a ship, that ship could just as well sail to Europe where they will get a much higher price. There is, in effect, a bidding war going on.The US is a net exporter of diesel. The US imports ~10% of it's total imported crude from the ME and less than that via the Strait of Hormuz. The other 90% of imports are Canada and Mexico and some from S. America. Diesel is refined from crude oil and if it were brought in by tanker wouldn't be coming in from the Hormuz area.
Largely, the only geo-political shock in our oil markets here is the vibration from all that money falling into the bank accounts of big oil.
This is an exercise in simple math. If the demand curve is unchanged, but prices rise in direct correlation to the rise in the price of the commodity, then the margins are unchanged. If on the other hand windfall profits are being realized, which they are, then prices are rising not in direct correlation with a rise in costs, but in direct correlation to the perception of rising costs. Perception adds $0.00 to the cost of a commodity.
The price of a car for example is up ~30% since they spiked as a result of the semi-conductor shortage 5 years ago. There are plenty of semi-conductors now, but a car costs 30% more regardless.
It's basically money for nothing.
Where were you paying $3.49 for diesel a week ago in FL? It has been over $4.70 since this war began. I have used open roads and check all of FL daily.Diesel prices spiked over 50% in Florida last week. The reason is that Florida gets much of its diesel through its sea ports and is highly vulnerable to geopolitical shocks. I paid $3.49 a week ago and $5.89 this week.
I did still manage to get DEF at Walmart for $8.88 for a 21/2 gallon jug, but, given that 60% of the world's urea comes through the Strait of Hormuz, i expect the hoarding to begin soon.