Posted on 1/4/2007, 4:32:03 PM by thiscouldbemoreconfusing
LONDON (AP) -- Oil prices fell for a second day on Thursday as traders awaited the release of U.S. inventory data expected to show the first increase in crude-oil stocks in six weeks.
Light, sweet crude for February delivery was down $1.27 to $57.05 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Europe, after dipping as low as $56.86. On Wednesday, the contract plunged $2.73 to $58.32 a barrel, the biggest one-day drop since Aug. 17, 2005.
Brent crude for February delivery fell $1.27 to $56.69 a barrel on the ICE Futures exchange in London.
"The slide in crude oil prices has been accelerated by the release of comments from the U.S. Fed meeting on Dec. 12 which highlight concerns over the U.S. economy," said Peter Beutel, an analyst at Cameron Hanover.
A slowdown in the economy would tend to depress demand for oil, and thus leads to lower prices.
Unusually warm winter weather in the U.S. has held oil prices down in recent weeks. The U.S. National Weather Service said above-normal temperatures were likely to continue in the northeast at least through mid-January. ...
(Excerpt) Read more at breitbart.com ...
Didn't it used to be the other way around...diesel selling for less than regular gas?
Truckers, planes, trains, more people buying diesel cars and trucks? Supply down on diesel?
Don't know.
Yes. For years, N2 was $.05 or more less than gasoline. That was before all these diesel pickups were born...
See? There IS an upside to Global Warming after all!........
Yes, by 10% or more.
I have a good friend who is an engineer at a refinery. He told me that all the new environmental regulations affecting Diesel are the big factor. Increased government regulation always hurts the market.
Always.
There are more variables in the price of a gallon of fuel than just the price of crude. In fact, crude supply hasn't been a big factor for years.
Diesel is denser than gasoline. You can make fewer gallons of diesel than gasoline from a barrel of oil.
Because the supply/demand of diesel is at a different ratio than gasoline.
More detail: Diesel has a fairly non-flexible demand (largely industrial). It's infra-structure (in the US) is less well-developed, in ways, in that it is largely related to interstates --- and the trucks that travel them.
It pretty much stays at equillibrium -- while gasoline fluxuates more widely --- especially during the summer, where more people drive.
The crude that are used to make diesel is also more easily used in other fuels (e.g., heating oil, jet fuel) than the lighter stuff used to make gasoline, thus increasing pressure on the supply/demand ratio.
Winter is thus the worst period for diesel and the best time for gasoline.
Depends on the grade of crude, really.
Uhg. Someone else that thinks they're entitled to what someone else makes.
I'd like to know what kind of work YOU do just so I can complain about your prices.
Unless you're a charity, you do what the rest of us do -- try to sell what we make for the most we can.
The government mandated about three months ago that diesel have a sulfur content of no more the 15 parts per million, down from 500 parts per million. That's expensive to accomplish.
That, and add the seasonal demand for trucking for the holiday season, and diesel is not going to be cheap.
A couple reasons:
Energy companies realigned the price of diesel based on the amount of BTU's that it contains. It has more BTU's than gasoline, therefore it costs more than gasoline.
The switch to Ultra Low Sulfur Diesel requires the input oil to be sweet crude rather than sour crude which adds a further cost premium.
The trillions of $ spent on "environmental" concerns and regulations, 80% of it, the vast welfare system for the "righteous" who get to make our rules, have decreed that diesel was getting "too popular". Reducing sulphur in diesel fuel was the original excuse. Now, diesel combustion must be cleaner than ambient air, an impossible goal. Hence the doubling of prices in the last couple of years.
Oh and global warming too. The trillions about to be spent in that scam, is only now beginning to be discussed.
That's my perception.
But what do I know?
Be patient; you won't have to wait long. When the Democrats get done taxing the crap out of the oil companies, you will be paying a LOT more.
HOW DARE YOU INJECT COMMON SENSE INTO THE DISCUSSION? You are guilty of being TOTALLY Un-PC!
Net bottom line: between the capital costs of refining plant upgrades and a mildly lower yield/bbl of diesel, price rises. The differential between diesel and motor gasoline has also changed somewhat due to increased usage of ethanol and the mkt's anticipation of more to come, which has the net effect of stretching motor gasoline supplies.
That is a very interesting post. Thank you. BTW, great profile page!
Also, see post 14 regarding refinery input. Another key factor which I omitted (haste, waste, etc...).
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