Gas under $2.00???????? I can't remember the last time I saw this....

Went to get gas this morning in Atlanta and it was $1.99. Now I can remember back in the 90's when I lived in MS that gas was below a dollar, but in the last 10 years I can't remember gas ever being this low.

a reply to: Vasa Croe

You actually saw it before President Obama was elected in 2008. It was $1.83 at that time.

If I only had a newer more reliable truck I'd say time for road trip @ these prices. Even here in Newyorkistan it was down a lot last time I filled up a few days ago.

a reply to: Vasa Croe

Just wait a few more months. It will drop down to $1.50.

Might even see $1.45
but so far that is as low as it will go.
The price of oil stopped dropping and has been steady between 46 and 50 a barrel this week.
Price of oil per barrel
Use this converter to see what a barrel equals in gallons of gas at the pump:
Barrel of oil to Gallon of Gas converter

I am keeping an eye on it as I make a 2015 prediction about gas prices,
and those links help me to watch.

Funny thing is that $1.99/gallon is still high based on the current price per barrel of oil. Should actually be around $1.60 with taxes figured in. When you consider that about $.50/gallon of that price is taxes and that really makes the gas cheap compared to the recent past.

a reply to: SpaDe_

It takes 3 to 6 months for the prices to hit the pumps from oil barrel costs.

It takes 3-6 months for crude oil to make its way through the refining process and make it into gasoline that you buy at the pump. Due to this delay, you may not see an immediate jump in pump prices.

That is quoted from the price converter link I gave.

Here in the UK too the price is dropping...

I think it's a political tactic and has something to do with Russia....

Korg.

a reply to: Korg Trinity

yeah, also Saudi oil is cheap.
They dropped the price to try to stop the fracking oil businesses.

They made it so it is not cost effective to frack.

It's $1.87 here in St. Paul, and I haven't seen gas for this price since just after 9/11.

It's down to $1.70 to $1.75 here where I live.

Love it. Filled up the gas tank for under 20 dollars for the first time in a very, very long time.

Notice that food costs have not gone down though (nor do I expect them to. They never do, they always go up with fuel, but never come down with it).

a reply to: Darkblade71

If that were accurate we would still be in the upper to mid $2 range. 3 months ago we were still over $80/bbl which would be around $2.80/gallon. Not saying that it isn't true, but there doesn't seem to be the lag in price at the pump with this recent drop in oil price.

Oil price chart

The even funnier part is there is pretty much a 0 day lag if the price of oil spikes. The price at the pump with reflect it sometimes the same day.

originally posted by: Darkblade71
a reply to: Korg Trinity

They made it so it is not cost effective to frack.

I suppose that depends on which street corner you drive by lol

All joking aside, I never liked the idea of fracking, We just do not know what the long term ecological and geological effects it will have,

I'm thinking that it perhaps has something to do with the Russian petro dollar manipulation tactics, as in stealing the wind from the sail, so to speak.

Peace,

Korg.

originally posted by: Darkblade71
a reply to: Korg Trinity

yeah, also Saudi oil is cheap.
They dropped the price to try to stop the fracking oil businesses.

They made it so it is not cost effective to frack.

They are all ready laying people off, a lot of the big western companies are.

What I find worrisome is the swiss national bank just dropped its interest rate to a NEGATIVE 0.75%

However, in an effort to ensure investors don't get too excited about swapping euros or dollars for francs, the central bank also slashed interest rates to -0.75%, down from -0.25%.

Negative interest rates.
Coming to America.
Now I will hear 'that could NEVER happen in the US'.....
money.cnn.com... rland-euro-currency-ceiling/index.html?iid=HP_LN

a reply to: SpaDe_

Right on, thanks for the link!
Yeah, I am not sure why prices are reflecting faster than they should,
maybe it is to attempt some sort of economic growth spurt in industries.

Gas prices are weird when things start going bad.

The gas station yesterday when I went to walmart said it was at 1.91 here.
I certainly love the cheaper gas.

When I was living in Alaska, it got up to $5.25 a gallon.

a reply to: stosh64

I WISH the Fed would give us a negative interest rate.

Oh man, nothing elicits change faster than people losing faith in the banking system.

a reply to: eriktheawful

I was thinking along the same lines about food prices. Much depends on the transportation contracts.

Many have fuel surcharges on top of the basic rate. The rate is steady and the fuel surcharge goes up or down, depending on the market, on top of the normal shipping rate. Others have flat contracts at a steady price and only change when those contracts expire and re-negotiated.

There's a bunch of people in between that are benefitting from the price drop who haven't lowered their prices or only partially. (that includes the trucking industry, brokers, farmers, and gas retailers)

These will drop the prices down the road, though. Most food was produced when the prices where much higher. Next season should show a drop in food prices, hopefully...if the fuel doesn't go back up too soon.

One thing we can bank on. This will NOT last long...

originally posted by: nwtrucker
a reply to: eriktheawful

I was thinking along the same lines about food prices. Much depends on the transportation contracts.

Many have fuel surcharges on top of the basic rate. The rate is steady and the fuel surcharge goes up or down, depending on the market, on top of the normal shipping rate. Others have flat contracts at a steady price and only change when those contracts expire and re-negotiated.

There's a bunch of people in between that are benefitting from the price drop who haven't lowered their prices or only partially. (that includes the trucking industry, brokers, farmers, and gas retailers)

These will drop the prices down the road, though. Most food was produced when the prices where much higher. Next season should show a drop in food prices, hopefully...if the fuel doesn't go back up too soon.

One thing we can bank on. This will NOT last long...

I think it will last longer than you think. Maybe not at this low of a price, but will stay lower than it has been for a while.

Source

Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.

originally posted by: jlatchkey
a reply to: Vasa Croe

You actually saw it before President Obama was elected in 2008. It was $1.83 at that time.

Yes.
Back then we used to be told that the prices were SO HIGH..... and it was blamed on GW Bush because he was on 'oil man from Texas'.

a reply to: Darkblade71

On Thursday morning came the news that Apache Corp. will lay off about 250 people, or 5% of its workforce. Later in the day a bigger shoe dropped: oil services giant Schlumberger said it was in the process of slashing 9,000 workers worldwide. These are only the latest blows to land on an oil industry already staggering under $50 oil. So far there’s been at least 24,000 cuts announced in North America alone by the likes of Shell, Pemex, Halliburton 

Oil patch layoffs


And the Saudi's plan is working.

a reply to: Vasa Croe

You guys are getting ripped off.

I just paid $1.64 to put gas in the truck yesterday.

North texas gas prices have been below $2 for over a month now.