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2020-03-10 Economy
US oil prices plunge 25% to close at $31.13/barrel
[PUBLISH.TWITTER]
Posted by Fred 2020-03-10 00:00|| || Front Page|| [11178 views ]  Top

#1 So when will we see lower prices at the pump? Never?
Posted by Seeking Cure For Ignorance 2020-03-10 05:26||   2020-03-10 05:26|| Front Page Top

#2 ..well, in CA, they'll just raise the taxes to make up the difference. No use teasing you with lower gas prices there.
Posted by Procopius2k 2020-03-10 06:55||   2020-03-10 06:55|| Front Page Top

#3 I expect lower gas prices by Friday. At least in most of the US. Places with low state taxes and fees will like have it for 1.85 or less.
Posted by Lord garth 2020-03-10 07:02||   2020-03-10 07:02|| Front Page Top

#4 Treasury secretary Steve Mnuchin quietly meets RUSSIA'S ambassador to talk about 'potential for trade and investment' while the markets plunge over Saudi's oil war with Moscow
Posted by Skidmark 2020-03-10 09:35||   2020-03-10 09:35|| Front Page Top

#5 ^ maybe a sign the strategic petroleum reserve will be tapped?
Posted by Lex 2020-03-10 09:56||   2020-03-10 09:56|| Front Page Top

#6 Well under $2 here already. And my oil company based retirement income is looking shaky...
Posted by Glenmore 2020-03-10 10:20||   2020-03-10 10:20|| Front Page Top

#7 Why is it that when oil prices fall, it takes a while for the prices at the pump to drop? The explanation is usually that those are the prices at the well, and it takes a while for the crude to be shipped, refined, and finally delivered to the pump.
On the other hand, if prices rise suddenly, prices at the pump go up immediately.
Posted by Rambler in Virginia  2020-03-10 10:24||   2020-03-10 10:24|| Front Page Top

#8 Prices at the pump are responsive to market forces on the upside and hence nimble, but slow on the downside as long as elasticity of the storage capacity for products has room.
The huge decline in demand currently will make even California see under $2 buck prices shortly.
Posted by NoMoreBS 2020-03-10 11:15||   2020-03-10 11:15|| Front Page Top

#9 For gas to go under $2 in California, I think the per barrel price would have to go to about $25 or so.

California has about a 50 cent per gallon tax and a sales tax and various fees on top of that and most of the counties have their own piggyback sales tax (and the federal tax is about 19 cents per gallon). Also the cost of doing business is high so gas stations get hit with high property taxes, etc.
Posted by lord garth 2020-03-10 11:59||   2020-03-10 11:59|| Front Page Top

#10 I remember seeing almost a $1/gal less in Pahrump, NV from the neighboring areas in sunny Cali.
Posted by Mullah Richard 2020-03-10 12:15||   2020-03-10 12:15|| Front Page Top

#11 Heck, I remember when regular gas was $0.25 a gallon...
Posted by Seeking Cure For Ignorance 2020-03-10 13:39||   2020-03-10 13:39|| Front Page Top

#12 $0.19/gal during the 'Gas Wars' between Oil companies of the late 60's to early 70's.
Posted by Mullah Richard 2020-03-10 14:55||   2020-03-10 14:55|| Front Page Top

#13 Gas in Anchorage is 2.77. Diesel is 2.65

In Skagit County, WA, where I am at this moment gas is about 2.99 and diesel 3.12

Shows you what Washington state taxes are. State and federal taxes total 0.678/gallon
Posted by Alaska Paul 2020-03-10 15:51||   2020-03-10 15:51|| Front Page Top

#14 When M'Lady and I drove down to Carson City from Issaquah WA a couple of years ago, we drove our diesel Ram 2500 down. Got south of Portland OR and filled up and topped off aux tank. Did not stop in CA for diesel. Saved $1 per gallon over California taxes.
Posted by Alaska Paul 2020-03-10 15:54||   2020-03-10 15:54|| Front Page Top

#15 Forgas to go under $2 in California, I think the per barrel price would have to go to about $25
Probably below $10 per barrel, due to higher refining costs in addition to higher taxes.
Posted by Glenmore 2020-03-10 16:06||   2020-03-10 16:06|| Front Page Top

#16 So when will we see lower prices at the pump? Never?
Most retail gas is not sold by producers or even refiners, but by independent marketers. They buy at $x per gallon, then resell to you - they can't lower prices until they recoup their cost or they are out of business (as it is, their profit is all from the retail market sales associated with the gas station - 50 cent mark-up on that bottle of coke or water, vs maybe 5 cents on that gallon of gas, at most.)
Posted by Glenmore 2020-03-10 16:11||   2020-03-10 16:11|| Front Page Top

#17 50 cent mark-up on that bottle of coke or water

Buy a 6 pack of the old style plastic bottle coke at Wally's for 2.50 or one for 1.90 at the station. Gas stations are right up there with movie theaters and airports for incredible markups.
Posted by Procopius2k 2020-03-10 18:53||   2020-03-10 18:53|| Front Page Top

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