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Thu Aug 4, 2022, 06:34 PM

Oil slides under $90 to fresh six-month lows on demand worries

Source: CNN Business

New York (CNN)The selloff in the oil market gathered momentum Thursday on growing concerns about weakening demand for gasoline. US oil dropped 2.3% to $88.54 a barrel, the weakest settle since February 2. Brent crude, the world benchmark, fell around 3%. A government report released Wednesday unnerved oil traders by revealing an unexpected build in both crude oil and gasoline stockpiles, suggesting demand is cooling off.

Robert Yawger, vice president of energy futures at Mizuho Securities, noted that the weekly Energy Information Administration report showed a decline in refinery usage, rising gasoline inventories and a shrinking amount of gasoline supplied. "I can't stress enough those three things are not supposed to happen in summer," Yawger said. "It implies there is a bad demand situation out there."

The EIA report indicates that Americans are using less gasoline than they were during not just last summer (when prices were lower), but even during the summer of 2020 when Covid-19 was still restraining travel. The four-week moving average of gasoline supplied for the week ending July 29 stood at 8.6 million barrels per day, down about 9% from the same period of 2021 and slightly below the same period of 2020.

the EIA said. Some people stopped driving as much when gasoline surged above $5 a gallon in mid-June. Since then, the national average for regular gas has declined 51 days in a row, dropping to $4.14 a gallon on Thursday, according to AAA. That is down 14 cents in the past week and 67 cents in the past month. Oil prices have tumbled by 28% since their recent closing high of $123.70 on March 8 in the wake of Russia's invasion of Ukraine.

Read more: https://www.cnn.com/2022/08/04/business/oil-prices-selloff/index.html



Short article.

This is the kind of problem we are dealing with - they complain when the oil prices are high and then when they start dropping, they complain that the prices are dropping and calling what should be no more than maybe $50/bbl, "weak".

Since then, the national average for regular gas has declined 51 days in a row


Almost every damn news story for months has been "with food and gas prices prices rising, 'Americans' are worried about inflation!!1!1!!!".

The purported "fundamentals" are supposed to point to "supply and demand", where high demand and/or low supply = "higher prices". But in this corporate profits world, we have had high prices with plenty of supply (although yes I know we also have a refinery problem).

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Reply Oil slides under $90 to fresh six-month lows on demand worries (Original post)
BumRushDaShow Thursday OP
Brainfodder Thursday #1
elleng Thursday #2
3825-87867 Thursday #3
Marthe48 Thursday #4
IronLionZion Thursday #5
LudwigPastorius Thursday #6
oldsoftie Thursday #7
Rebl2 Thursday #9
Karma13612 Friday #23
oldsoftie Friday #24
Karma13612 Friday #25
oldsoftie Friday #26
Karma13612 Friday #33
JohnSJ Thursday #8
TigressDem Saturday #38
JohnSJ Saturday #41
TigressDem Thursday #10
inthewind21 Friday #30
TigressDem Saturday #35
Crowman2009 Thursday #11
BumRushDaShow Thursday #12
oldsoftie Friday #27
BumRushDaShow Friday #28
TigressDem Saturday #39
TigressDem Saturday #36
C Moon Thursday #13
BumRushDaShow Thursday #14
LudwigPastorius Thursday #15
C Moon Thursday #16
LudwigPastorius Thursday #17
C Moon Friday #19
CountAllVotes Thursday #18
TigressDem Saturday #37
CountAllVotes Saturday #40
durablend Friday #20
Karma13612 Friday #34
Demobrat Friday #21
BumRushDaShow Friday #22
inthewind21 Friday #31
Deminpenn Friday #29
BumRushDaShow Friday #32

Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 06:38 PM

1. Until $2 they can cont. to FTHO, we are using bare minimum.

Needs govt take over.



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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 06:38 PM

2. 'growing concerns about weakening demand for gasoline' ???

OH NO, someones may stop needing gasoline, whatever will we do???

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 06:42 PM

3. And from the MSM?

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 07:00 PM

4. gfy oil gougers

I hope they go so broke they can't afford fast food.

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 07:17 PM

5. I drive less now than years ago

so I'm sure others are doing the same. COVID has encouraged more things to be done remotely, and I can save money on parking too.

A big user of fuel is airlines, and people may have cut back on flying.

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 08:12 PM

6. "the weakest settle (price) since February 2"

Oh, good. That means that gas prices will be $3.61 a gallon, like they were in February, right?

Riiiiiiiight...

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Response to LudwigPastorius (Reply #6)

Thu Aug 4, 2022, 08:38 PM

7. I filled up for 3.26 today!

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Response to oldsoftie (Reply #7)

Thu Aug 4, 2022, 09:01 PM

9. Saw gas

for 3.56 in my area of lower Midwest today.

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Response to oldsoftie (Reply #7)

Fri Aug 5, 2022, 09:33 AM

23. Still at $4.50 a gallon in

St Lawrence County, NY (NY-2) near the Canadian border.

Why isn’t Stefanik defending her constituents against these ridiculous gas prices in her district??

JFC

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Response to Karma13612 (Reply #23)

Fri Aug 5, 2022, 10:39 AM

24. She's too busy raising CASH! Its now 3.15 today. But our tax is suspended too.

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Response to oldsoftie (Reply #24)

Fri Aug 5, 2022, 11:44 AM

25. Oh, I know. I feel soooo lucky

That she is my US Rep. Lovely personality, and so responsive to her constituents……



Without being too personal, what state do you live in?? If our gas was that cheap, I might actually leave the house once in awhile and experience human interaction again. Slight exaggeration but still. I go food shopping once a week. And other than that, I weigh-n-consider every trip I take anywhere.

Anyway, life could be much much worse. I could be a real prisoner somewhere with no rights at all.

Have a good weekend!!

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Response to Karma13612 (Reply #25)

Fri Aug 5, 2022, 12:58 PM

26. I'm in GA & also have a GOP Rep. But at least no one has ever heard of mine.

Its sad thats a GOOD thing but thank GOD its not MTG.

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Response to oldsoftie (Reply #26)

Fri Aug 5, 2022, 06:14 PM

33. Haha!! Yes, you are right

MTG is pure evil.

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 08:42 PM

8. Gas here in Northern California has dropped over a buck from its high, and nothing from our

illustrious press

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Response to JohnSJ (Reply #8)

Sat Aug 6, 2022, 01:29 PM

38. So here is the state by state list of gas prices.

I actually use this app to find the best price on gas, especially E85 because sometimes various stations will go lower or higher.

https://www.gasbuddy.com/usa

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Response to TigressDem (Reply #38)

Sat Aug 6, 2022, 01:52 PM

41. Thanks

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 09:17 PM

10. E85 is selling more... THEY have demand.

People are still buying gas, but many staunch TRUCK owners also have motorcycles that get 45 miles to the gallon....

So they use THE BIKE in summer. What's wrong with that? It's a manly choice.

IF YOU PRICE AVERAGE PEOPLE OUT OF BUYING GAS ON THE REGULAR, they develop options.

Take the bus. Car pool. Buy a motorcycle.

FREEDOM of choice means, stuff your high priced gas where the sun doesn't shine and light a match and see if we care.


The oil companies will be FINE. They are probably just not wanting to have to pay the Windfall Taxes proposed with the temporary gas tax relief bill. IF they drop the prices on their own.... no need to get throttled at tax time.




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Response to TigressDem (Reply #10)

Fri Aug 5, 2022, 03:36 PM

30. It's not

just a "manly" choice. I ride way more than I drive my car. Even when it's 20 degrees.

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Response to inthewind21 (Reply #30)

Sat Aug 6, 2022, 01:02 PM

35. Well, if you are on DU, you already are more manly than a lot of the Reich Wing....

BUT, those who worship the Big Oil and drive huge trucks that only get 15-20 MPG might also have the excuse to take out the motorcycle to enjoy the good weather... yada yada.


NOT because it gets 45 MPG.




I DID actually hear a guy who is usually a bit of a MAGA brag about using his Harley and liking the gas mileage. Still complaining about having to, but still moving the market.


AND personally, since my car is flex fuel, I've been using E-85 more. It brings MPG down from 29 to 26 but that still isn't bad when it's $1 less than regular unleaded.

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 09:26 PM

11. Electric cars are another factor in lower demand for gas.

Now only if we had a decent national mass-transit infrastructure, we could curb this demand further downward.

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Response to Crowman2009 (Reply #11)

Thu Aug 4, 2022, 09:37 PM

12. Doesn't even have to be all-electric

Even the hybrids make a difference. One of my BILs bought one this past year (it's either a Prius or Camry - meant to ask him which but I know it's a Toyota - he bought Nissans before that).

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Response to BumRushDaShow (Reply #12)

Fri Aug 5, 2022, 01:01 PM

27. I wish they'd focus MORE on Elec hybrids instead of gas hybrid

Todays hybrids use electric SOMETIMES but the main engine is gas. Imagine if the main engine was electric and the gas engine was just large enough to recharge the MAIN motor. Probably get 200mpg. And NO range anxiety.

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Response to oldsoftie (Reply #27)

Fri Aug 5, 2022, 01:33 PM

28. DWas just looking at DOE's website of the different vehicles

and this was what they had for the "plug-in hybrid electric" - https://afdc.energy.gov/vehicles/how-do-plug-in-hybrid-electric-cars-work



DOE also estimated these types getting over 100 mpg and even able to get up to 133 mpg depending on the model.

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Response to BumRushDaShow (Reply #28)

Sat Aug 6, 2022, 01:37 PM

39. Man, if I had the money already, this looks really good.

And if we did a "jobs program" to build solar for EVERY THING....


You could put solar on the highways. Run out of charge? Pull over to a roadside charging station and recharge. It could be like they run air compressors, pay up front for X amount and then go. Or like the little electric scooters, bring up the app, pay for the charge and go.


Put them in parking lots. Plug and charge spots could be the new thing.


Anything that needs power could be built with it's own "off grid source" - might still be plugged into the grid, but maybe use up the extra solar to offset costs or during peak energy hours.

Lots of possibilities.


Capitalistic and altruistic options.

HOW ABOUT THAT TYPE OF HYBRID? Make money AND help the planet, your country, your neighbor?

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Response to oldsoftie (Reply #27)

Sat Aug 6, 2022, 01:06 PM

36. OOOH, I like the way you think. 200MPG wow, wouldn't THAT be a kick in the pants?

I'd have a bit more for the gas motor though as a safety measure.

Don't they also have ways to use the energy from braking to also charge the battery?

AND solar panels are getting flexible enough they can be used on the roof and charge up while a person is at work. 8 hours of free energy for the ride home.

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 09:45 PM

13. "Oil Slides..." that's a crude joke.

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Response to C Moon (Reply #13)

Thu Aug 4, 2022, 09:50 PM

14. They're slick, aren't they???

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Response to C Moon (Reply #13)

Thu Aug 4, 2022, 10:04 PM

15. Record profits for oil companies in the last quarter...

show that blaming the war in Ukraine for record gas prices is a viscous lie.

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Response to LudwigPastorius (Reply #15)

Thu Aug 4, 2022, 10:06 PM

16. Agreed. I was just making a dumb pun.

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Response to C Moon (Reply #16)

Thu Aug 4, 2022, 10:09 PM

17. Aww, c'mon...

A "viscous lie" is pretty dumb too! Ain't it?

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Response to LudwigPastorius (Reply #17)

Fri Aug 5, 2022, 12:08 AM

19. Oh crap!!!:D :D :D

I totally misread it.
Winner!!!!

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Response to BumRushDaShow (Original post)

Thu Aug 4, 2022, 11:41 PM

18. Really?

I paid $5.99 a gallon yesterday.

What a deal!



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Response to CountAllVotes (Reply #18)

Sat Aug 6, 2022, 01:20 PM

37. Are you in Cali by any chance? It's always higher there.

But it should come down after almost a month of lower cost on oil. Even if stations buy in advance, they should be ready to replace the higher cost gas they got soon and get a better deal that they can pass on to customers. Especially since it's being put out there, showing they are playing the game.


https://fred.stlouisfed.org/series/GASREGCOVW



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Response to TigressDem (Reply #37)

Sat Aug 6, 2022, 01:41 PM

40. Yes, it costs more here than anywhere else in the state

I'm way up north in the redwoods.

Its very isolated here and the prices are so high because it costs so much to ship it up here from Richmond, Calif. where the refinery is.

The Teamsters Union has their rules.

It was close to $7.00 for awhile so it is down about $1.00 from its record high. I don't drive much luckily but , my god!





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Response to BumRushDaShow (Original post)

Fri Aug 5, 2022, 01:13 AM

20. Whatever you're going to save on gas prices

The stores are going to shake you down for. Even Walmart is to the point of being ridiculous.

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Response to durablend (Reply #20)

Fri Aug 5, 2022, 06:17 PM

34. I know.

I’ve decided I’ll start eating every other day.

And it solves 2 problems. I eat less (so save on food) and use the bathroom less often (saving on toilet paper- I am aghast at the price of toilet paper. Even generic stuff at WalMart. It is obscene. We are paying $1 per ROLL).

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Response to BumRushDaShow (Original post)

Fri Aug 5, 2022, 01:49 AM

21. So people are deciding to cancel the summer road trips

they were looking forward to after two years of lockdowns. The oil companies probably thought people were so desperate to get out they would pay anything.

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Response to Demobrat (Reply #21)

Fri Aug 5, 2022, 05:35 AM

22. But then I literally just heard the OPPOSITE on the radio business report this morning

Expedia Quarterly Revenue Tops Estimates in Strong Start to Summer

Michael Tobin
Thu, August 4, 2022 at 5:15 PM

(Bloomberg) -- Expedia Group Inc. reported second-quarter revenue that topped analysts’ estimates, suggesting a solid start to the busiest travel season as voyagers shake off two years of Covid-19 restrictions. The shares jumped about 6% in extended trading after the report.

Sales rose 51% from a year ago to $3.2 billion, beating the average analyst estimate of $2.99 billion. Gross bookings, which represent the total value of transactions booked, adjusted for cancellations and refunds, rose 26% to $26.1 billion, in line with analysts’ estimate.

“Despite the disruptions during the summer travel season and an uncertain macroeconomic backdrop, travel demand has remained strong,” Chief Executive Officer Peter Kern said in a statement.

(snip)

https://finance.yahoo.com/news/expedia-quarterly-revenue-tops-estimates-201413333.html


The main issue was with the flight cancellations by airlines.

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Response to Demobrat (Reply #21)

Fri Aug 5, 2022, 03:37 PM

31. Summer

Vacation is over for the most part. Schools about to start again.

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Response to BumRushDaShow (Original post)

Fri Aug 5, 2022, 03:23 PM

29. Still 4.45 or so in western PA,

but 3.89 in nearby Ohio and probably lower now.

The gas stations aren't lowering prices very quickly because they are trying to make up for the money they lost when their selling price was lower than their wholesale price.

The other thing is that most economists have always assumed demand gas was inelastic, that is stayed the same regardless of how high the price went, but that turns out not to be true. It seems that at $5/gal, consumer demand did drop.

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Response to Deminpenn (Reply #29)

Fri Aug 5, 2022, 03:49 PM

32. KYW reported this afternoon that Delaware was the first over in this area

to go below $4/gal - with the average running about $3.99. I think they said Philly's average was something like $4.46.

Delaware’s average gas price drops below $4 a gallon

By Delaware Business Now - August 5, 2022


Gas prices continue to fall after breaking records across the country earlier this spring that sent the national average and many state averages above the $5 a gallon mark for the first time in history.

After setting a record high of $4.99 per gallon on June 14, Delaware’s gas price average dropped below $4 a gallon for the first time since March on Friday.

Today the average price for regular grade, self-service gasoline in Delaware dropped to $3.99 per gallon, down 12 cents in the last week, down 69 cents from a month ago, down $1 since hitting a record-high in June ($4.99), yet remains 94 cents higher than this time last year.

“It’s been five months since the gas price average was below $4.00 per gallon in Delaware,” said Jana Tidwell, Manager of Public and Government Affairs for AAA Mid-Atlantic. “After peaking in mid-June at $4.99 per gallon, prices in the First State, as well as around the country, have fallen consistently as crude oil prices have moved below $100 per barrel and gasoline demand has fallen off as motorists adjust their driving behaviors.”

(snip)

https://delawarebusinessnow.com/2022/08/delawares-average-gas-price-drops-below-4-a-gallon/

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