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Posted on 12/10/2014 9:15:08 AM PST by Chad_the_Impaler
On Wednesday, Brent crude broke $64 a barrel while WTI crude broke $61 for the first time since 2009.
Both benchmark oil indexes were down more than 4%.
Brent got as low as $63.72. WTI got as low as $60.55.
Read more: http://www.businessinsider.com/oil-prices-drop-december-10-2014-12#ixzz3LW4F7cMt
(Excerpt) Read more at businessinsider.com ...
At this rate gas will be below $2 a gallon soon.
RBOB - 163.93
Oil is getting crushed...until the next crisis in the world. The way things are going, the next event might not be that far off.
It's still around $2.89 in NY/CT. If it drops as low as you say, look for these money hungry state gvts to start jacking up the gasoline tax. Then when it goes back up ,and it will, watch out.
Not in CA. Starting Jan 1, we have new carbon penalties to discourage driving. Gas will go up anywhere from $.40 to $1+ per gallon. They call this our new hidden gas tax.
And for low oil prices we have to thank the brilliant, intellectual, really-really smart pro-drilling policies of the brilliant, intellectual, really-really smart Progressives of the Democrat party.
/S/
IMHO
CL must be one hell of a fun trade. You could make 100k in 2 days on just a 20k account
How much oil is traded on the futures market vs. how much actually delivered on contracts?
How big is the spot market?
How much oil is delivered under long term contracts? Contracts with a fixed price?
That makes the crude price per gallon only $1.442; add .53 I think (the fed excise) to bring it to $1.97/1.98, and applicable state sales / excise taxes...
The next time a lib utters the propaganda about drilling having no affect on oil prices they need to be openly mocked. If a media person does it they need to be fired. Elected officials need to be voted out.
Don’t neglect refining, marketing and transportation.
Most states, and the fed, tax on a per-gallon basis, so the tax on 10 gallons is the same, regardless of price. These states actually make out better when prices are low, as folks tend to drive more when it costs less. As an example, Idaho's fuel tax has been 25 cents/gallon for years for both gasoline and diesel.
Way back in 1998, fuel price for regular was around $1.10 in some areas (price wars). At that point, 22.7% of the price of that gasoline was Idaho tax. Today, around my hometown of Nampa, ID, the price is around $2.69/gallon. The same tax of $0.25/gallon is now only 9.3% of the purchase price. Where I live near Albuquerque, NM is seeing prices in the low $2 range (lowest near me is $2.129/gallon).
Only a few states (CA is one) include sales tax on top of the price.
It is under $2.00 in parts of Texas.
Gas stations in neighboring states will be doing a killer business.
CC
at this rate, my entire portfolio of energy stocks will be worth $2 as well.....
That was just the crude price; refining (chemical cracking) and distribution (and the small cost of driving one’s vehicle to the filling station) cut out a couple of gallons or more per bbl.
MI puts a 6% sales tax on top of their per gallon cut.
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