Diesel Prices Are Going Up Really Fast

[Texas Clodhopper]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

What about adding a steerable tag as a rudder? That may make tacking a little easier.

 

[sanda]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

You have to go around the underpasses also, What about the power lines>

 

["EZ"]

$6.80 here yesterday in lovely Ca. Among other things this precludes travel, and thus tourism, in this state for me. I have enough in the tank to get to Nevada where it doesn't have the extra $1.80 Ca tax grab.

An effort to repeal or lower gas taxes here, even temporarily, was quickly defeated in favor some trivial rebate that wouldn't buy me 1/2 a tank and I will never see anyway.

So no worries - tank up in Nevada or Oregon on my way home so I can get back out of state on my next trip, and reject Ca tourism. At least any other fuel taxes and my travel related sales tax will go elsewhere.

Our Republican Governor took the $.30 State gas tax off for a few months to help hard working Georgians when it comes time to fill up at the pump. (CA adds $1.80????!!!!! ) I just voted in the State Primary election. Guess who I voted for?? You got it. Our current Governor Brian Kemp!!!! Long may he reign.

 

["EZ"]

Again though, the oil companies are setting the price. It doesn’t seem in their or their shareholders interest to force people to electric.

I think you misunderstand how oil (and gas) pricing works. The MARKET sets the price not the oil companies. Otherwise the price of a barrel of oil would have never gotten back down to less than $20 a barrel a few years ago. Right? Oil companies were losing money like crazy at those prices. Why didn't they just raise the price? Here's why............quoted from Commodities.com.

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

 

[Rich W.]

always appreciate an economics lesson.

 

[Voyageurs]

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

Good write up. Thank you.

 

[FL-JOE]

I would use caution getting all excited when your State decides to drop or suspend their gas/fuel tax. We are heading up to Illinois for a visit with family. So far I will be able purchase my diesel about as cheap as anywhere in the U.S. while there. This is mainly due to them suspending their fuel taxes.

The issue is that Illinois has some of the roughest roads plus thousands of bridges that need replacing. Cutting off that revenue stream for 6 months or a year is just going to make matters worse.

Of course they are about the same as California. If you compare those two states budgets to how someone would run a household budget, it would be like using a 20% interest charge card to pay for groceries every month and then always making the minimum payment and bragging about it.

 

[Dona40]

I think you misunderstand how oil (and gas) pricing works. The MARKET sets the price not the oil companies. Otherwise the price of a barrel of oil would have never gotten back down to less than $20 a barrel a few years ago. Right? Oil companies were losing money like crazy at those prices. Why didn't they just raise the price? Here's why............quoted from Commodities.com.

"What Drives the Price of Oil? Crude oil is extracted from underground oil reserves. In Brent crude oil’s instance, these reserves are under the seafloor, while WTI crude oil is extracted from reserves located under dry land. That’s the first component of oil prices — the extraction process and machinery required. Aside from the physical groundwork of gathering and processing oil, market regulations are the true price-determinants of crude oil spot prices.

Crude oil market regulations control supply and dynamics, thus price, based on factors like:

Politics: Oil availability and the necessary means to access that oil may result in political conflict between domestic and international jurisdictions.

Social & Environmental: Increasing awareness of human behavior’s influence on the environment, resulting in stricter benchmarks to justify the use of long-life-cycle fossil fuels like crude oil. OPEC is an example of an influential organization in the crude oil space.

Economical: Depending on the influence of powerful individuals behind oil supply chains, market regulations may be subject to seemingly unwarranted change, causing violent price swings.

The other main factors that affect oil prices include: Supply and Demand As with all commodities, oil prices are driven by supply and demand. However, the global pool of oil and the ease with which oil moves around the world levels some of these price pressures. The global oil monopoly somewhat limits the influence of any one particular oil producer to completely dominate the world market. New Resources From time to time new oil resources come online — like Canadian oil sands or US shale oil — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. Extraction costs are typically higher for new resources, meaning these oils are only competitive in lower-supply, high-price environments.

Consumption Patterns The International Energy Agency (IEA) predicted increasing global demand for crude oil back in 2019, due to: An increasing world population Increased energy consumption in developing countries Growth in transportation, petrochemical, and aviation industries. Even though Organisation for Economic Cooperation and Development (OECD) countries are reducing their road transportation oil consumption on a per-vehicle basis, the growing automobile fleet in developing countries far outpaces such reductions.

Global Events Many unforeseen events can also impact the price of crude oil, driving it up for down. For example: After the Iranian revolution in the late 1970s, the price of oil rose sharply. The 2020 outbreak of the COVID-19 pandemic saw crude oil plummet to a negative price per barrel. The IEA expects crude oil consumption to be much lower in 2020. The Russia-Ukraine war has impacted oil prices dramatically in 2022. Russia is a major global oil producer (12 % market share in 2020) & the EU’s main supplier of crude oil.

Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices. The increased focus on renewable energy is already accelerating such changes.

Read more at: Live Crude Oil Spot Prices (Brent & WTI) + Historical Charts - Commodity.com

Sounds to me like we need another pandemic. Come on Fauci, make it happen!

 

[Fish]

I would use caution getting all excited when your State decides to drop or suspend their gas/fuel tax. We are heading up to Illinois for a visit with family. So far I will be able purchase my diesel about as cheap as anywhere in the U.S. while there. This is mainly due to them suspending their fuel taxes.

The issue is that Illinois has some of the roughest roads plus thousands of bridges that need replacing. Cutting off that revenue stream for 6 months or a year is just going to make matters worse.

Of course they are about the same as California. If you compare those two states budgets to how someone would run a household budget, it would be like using a 20% interest charge card to pay for groceries every month and then always making the minimum payment and bragging about it.

I live in IL, got back end of April. I read about the tax being suspended.

Not seeing it at the pump. I think all they did was forgo the automatic increase if they even did that.
Since my pusher is still in Sarasota I haven't had to buy any diesel but gasoline is just as high as every state I came through to get home.

 

[Fish]

I live in IL, got back end of April. I read about the tax being suspended.

Not seeing it at the pump. I think all they did was forgo the automatic increase if they even did that.
Since my pusher is still in Sarasota I haven't had to buy any diesel but gasoline is just as high as every state I came through to get home.

Looked into it, I was correct and no gas taxes have been abated. The "ruling party" passed a law a few years ago to automatically increase the gas tax tied to inflation every year so they wouldn't have to make any more unpopular votes on increasing it.
This budget simply eliminates this year's increase. All the existing fuel taxes remain the same.

Yet this administration is promoting it as a tax cut and ordering the notice of "suspended fuel tax" to be put on every pump, or the station owner faces fines, in an election year.
Several lawsuits filed over this.

Only in IL could they simply not increase taxes and then advertise it as a tax cut.

 

[Scooterfan]

We are all going through the same thing...and thanks for the truth about high fuel prices at the pump. With that said, many (most) of us will have fuel in our tanks longer than in the past. Having owned boats all my life I'm familiar with "old" fuel. This post is simply a reminder to "treat" your fuel with a stabilizer if allowed to sit in the tanks for any length of time. There are many different types for either gas or diesel...but choose one and use it. IMHO

 

[Rich W.]

View attachment 12256
Here's my hybrid. 1,000 miles to the gallon. Tacking is a bitch though.

my question is whether the aft mast is abaft the rudderpost?

 

[sanda]

Looked into it, I was correct and no gas taxes have been abated. The "ruling party" passed a law a few years ago to automatically increase the gas tax tied to inflation every year so they wouldn't have to make any more unpopular votes on increasing it.
This budget simply eliminates this year's increase. All the existing fuel taxes remain the same.

Yet this administration is promoting it as a tax cut and ordering the notice of "suspended fuel tax" to be put on every pump, or the station owner faces fines, in an election year.
Several lawsuits filed over this.

Only in IL could they simply not increase taxes and then advertise it as a tax cut.

It isnt only in Il. Many governments from local to national play the same games.

 

[Dona40]

my question is whether the aft mast is abaft the rudderpost?

It's a work in progress...

 

[AbdRahim]

It isnt only in Il. Many governments from local to national play the same games.

It is called propaganda. We are supposed to drink the Koolaid and be happy.

 

[sheridany]

In the WSJ tonight.

One of the US’s largest truck stops, Love’s, said Wednesday it is closely watching its diesel fuel supplies in the Northeast amid growing concerns of industry-wide shortages, but said it has no plans to limit purchases.

“Love’s is monitoring the fluid situation on the East Coast, we have experienced minimal outages during low traffic hours,” Oklahoma-based Love’s Travel Stops said in an emailed statement. “The company has no plans to restrict purchases of diesel.”

Inventories of diesel fuel, which in the US is mostly used by truckers, have been on the decline since the pandemic began, but those declines have accelerated since the start of this year. Analysts attribute the declines to reduced refining capacity, robust demand for the trucker fuel during the pandemic, and a recent rise in diesel exports.

Earlier on Wednesday, the US government’s Energy Information Administration said total inventories of distillates, which is mainly diesel fuel but also heating oil, fell last week to a 17-year low of 104 million barrels, which is 23% below normal.

On the East Coast, the situation is even worse. The EIA said distillate fuel oil inventories in the so-called PADD 1 district that covers the Northeastern states fell by 1.1 million barrels last week to just 21 million barrels, the lowest ever recorded in data going back to 1990.

Love’s truck stops, with some 550 locations across 41 states, also seemed to confirm reports on social media Wednesday that said Love’s and other truck stops such as Pilot were informing their fleet operators that shortages of diesel fuel on the East Coast may happen in the coming week at some stores.

“The Love’s Fleet Sales Team proactively alerted the company’s fleet customer base to maintain their consistent, straight forward approach to evolving market fluctuations,” it said in response to the social media posts. “Love’s is committed to keeping our customers well-informed of market developments ahead of the trends to help mitigate impact to their business.”

Representatives from Pilot truck stops weren’t immediately available for comment.

The falling inventories of diesel could cause prices for the fuel to keep eclipsing record highs. AAA said the average price for a gallon of diesel fuel in the US hit another all-time high on Wednesday, at $5.55 compared to $3.13 a year ago. Gasoline prices also hit an all-time high Wednesday, at $4.40 a gallon versus $2.99 a year ago.

Another reason for the drop in US diesel fuel inventories is that exports of the fuel have risen sharply in recent months despite the low stockpiles. For the week ending April 8, US distillates exports hit a four-year high of 1.7 million barrels a day, according to the EIA.

Some analysts have speculated that the rising exports are being sent to Europe following Russia’s invasion of Ukraine.

But Matt Smith, lead oil analyst at commodity tanker-tracking firm Kpler, said that doesn’t appear to be the case.

“The drop in distillate inventories is because of lower refining over the pandemic (due to lower gasoline demand) while distillate demand held up much better (given trucking of goods, Amazon, online shopping, etc),” Mr. Smith said. “Middle distillate exports are also playing a small part, returning to pre-pandemic levels — but that’s not a pull to Europe, it’s to LatAm, their leading destination.”

US refinery runs now are at 15.7 million barrels a day compared to the 2015-19 average of 16.4 million, Mr. Smith said. “Refiners have just not been producing as much and have not rebounded to pre-pandemic levels.”

 

[AbdRahim]

And this too shall pass. Hopefully!

 

[JRS]

Read an article today written by an Economist who's familiar with following the diesel market. Supplies are tight and he wouldn't be surprised if it hits $10/gallon by end of summer. Ouch! IMHO, our economy will tank at those prices.

 

[Jim]

IMHO, our economy will tank at those prices.

Not to be the bearer of gloom and doom, but if current trends continue, I don't see anyway around it.

I sold my MH because prices were high, thinking I would buy a newer/better one when the demand returned to normal. I expect that glut to come sooner than later now. Problem is, doubt I'll be wanting one when that time comes.

No fun having a MH that I can't afford to go drive anywhere.

 

[skychs]

Not to be the bearer of gloom and doom, but if current trends continue, I don't see anyway around it.

I sold my MH because prices were high, thinking I would buy a newer/better one when the demand returned to normal. I expect that glut to come sooner than later now. Problem is, doubt I'll be wanting one when that time comes.

No fun having a MH that I can't afford to go drive anywhere.

We did the same thing. I cant imagine the difference in cost if I took the same trip this year that we took last year. (VA to Montana and back) We miss our MH but we are following the new owners on their current adventure out to Yellowstone and back.