Whats going on with gas prices?

[RockstarChris]

I live in Kansas City and gas has been $1.99 pretty much since i moved here. now it is like $2.40-$2.65.

Its not even summer vacay time yet. Why has gas gone up so much?

 

[Prefect]

Oil is up. Declining world storage, Venezuela falling apart, Iran having protest, and OPEC tighting up production. You have been spoiled with cheap gas.
Texas oil has messed a lot of things up for the past few years. Production needs to be reduced in west texas to bring the price back up but a lot of those small developers need revenue to stay afloat. A lot of countries in the middle east are so dependent on oil revenue that they feel a lot of pain when they reduce production. OPEC thought they could kill west texas oil by flooding the market and killing all the small developers who were leveraged. The problem with that is fracking oil is a by product of fracking natural gas. You are going to keep fracking and selling oil onto the market if natural gas is at a healthy price. This just pushes oil further down. The real answer would have been something like OPEC in west texas to get everyone to agree to reduce production but that would have violated antitrust laws.

 

[woodguyatl]

I live in Kansas City and gas has been $1.99 pretty much since i moved here. now it is like $2.40-$2.65.

Its not even summer vacay time yet. Why has gas gone up so much?

Oil around $70/barrel because:

- Dollar down 6 weeks in a row - about 3%

- OPEC and Russia continue to agree to lower output

- Increasing demand due to economic growth.

 

[Kitafuji]

Mayberry worthy thread.

 

[RockstarChris]

Mayberry worthy thread.

go hibernate child.

 

[RockstarChris]

Oil is up. Declining world storage, Venezuela falling apart, Iran having protest, and OPEC tighting up production. You have been spoiled with cheap gas.
Texas oil has messed a lot of things up for the past few years. Production needs to be reduced in west texas to bring the price back up but a lot of those small developers need revenue to stay afloat. A lot of countries in the middle east are so dependent on oil revenue that they feel a lot of pain when they reduce production. OPEC thought they could kill west texas oil by flooding the market and killing all the small developers who were leveraged. The problem with that is fracking oil is a by product of fracking natural gas. You are going to keep fracking and selling oil onto the market if natural gas is at a healthy price. This just pushes oil further down. The real answer would have been something like OPEC in west texas to get everyone to agree to reduce production but that would have violated antitrust laws.

so you are from west texas?

 

[Kitafuji]

go hibernate child.

Ok, let's make it war room worthy. It's Trumps policies that are making oil prices go up. No that can't be right because the left is not giving Trump credit for the great economy so how can they blame him for oil on the rise. Oh well, let's just argue about it.

 

[Gunny]

I live in Kansas City and gas has been $1.99 pretty much since i moved here. now it is like $2.40-$2.65.

Its not even summer vacay time yet. Why has gas gone up so much?

That may be a regional supply issue as much as anything. As others have said oil is up but gas prices near me in the Chicago area climbed but have then fallen in spite of the increase. They maybe touched 1.99 briefly a year or so ago but have largely been in the 2.50 range for years

 

[Prefect]

so you are from west texas?

Houston. You can feel it in the city when things are ramping back up. I am happy I bought a new house before oil started to recover.

I went to a talk a few weeks ago given by the guy who wrote The Prize, a book on the history of oil, i would recommend it if you are interested in the history of the industry. It was a small talk and I felt a little out of place due to how many CEOs and bigshots were there. It was the only talk i have been to that required you to pass through a metal detector.

 

[Scerpi]

Oil is up. Declining world storage, Venezuela falling apart, Iran having protest, and OPEC tighting up production. You have been spoiled with cheap gas.
Texas oil has messed a lot of things up for the past few years. Production needs to be reduced in west texas to bring the price back up but a lot of those small developers need revenue to stay afloat. A lot of countries in the middle east are so dependent on oil revenue that they feel a lot of pain when they reduce production. OPEC thought they could kill west texas oil by flooding the market and killing all the small developers who were leveraged. The problem with that is fracking oil is a by product of fracking natural gas. You are going to keep fracking and selling oil onto the market if natural gas is at a healthy price. This just pushes oil further down. The real answer would have been something like OPEC in west texas to get everyone to agree to reduce production but that would have violated antitrust laws.

Pretty good summation of the current situation.

Part of my company works in the oil industry. It's been practically dead for 2 years now... But it feels like the entire thing is ready explode. There's rumbling of potential work on the horizon.

There's been run down rigs being pulled from South America recently for rehab, just to be ready when needed. It's hilarious how stripped of their high dollar parts they are when they showed up.

If only ISIS had targeted Saudi's oil production... lol.

Though that would have been detrimental to their cause.

 

[Scerpi]

Houston. You can feel it in the city when things are ramping back up. I am happy I bought a new house before oil started to recover.

I went to a talk a few weeks ago given by the guy who wrote The Prize, a book on the history of oil, i would recommend it if you are interested in the history of the industry. It was a small talk and I felt a little out of place due to how many CEOs and bigshots were there. It was the only talk i have been to that required you to pass through a metal detector.

lol... I live here too.

 

[Scerpi]

EDIT - Double post

 

[luckyshot]

Ok, let's make it war room worthy. It's Trumps policies that are making oil prices go up. No that can't be right because the left is not giving Trump credit for the great economy so how can they blame him for oil on the rise. Oh well, let's just argue about it.

Prices going up because Republican's in control.

Is normal.

 

[44nutman]

Gas was much cheaper under Obama.
So basically,
Thanks Trump

 

[Scerpi]

Prices going up because Republican's in control.

Is normal.

Y'all are giving far too much credit to Gas Prices to the president. OPEC really runs the show...

You're leaving out Carter's Oil Crisis, which was far worse than anything you kids have experienced. It's not even close.

Also, when OPEC decided to flood the market in the 80's (while Reagan was president), gas went below $.50/gallon. I thought I remembered seeing it under $.40/gallon, but I can't find that documented anywhere.

It was great for me as a teenager, was able to fill my Honda for less than $5 and it would go almost 500 miles on a full tank. Too bad both my parents were laid off during that time.

 

[Prefect]

Prices going up because Republican's in control.

Is normal.

Carter would be the exception. He was pushing hard for energy independence to get out from underneath OPEC, though.

 

[Prefect]

Gas was much cheaper under Obama.
So basically,
Thanks Trump

No, the natural gas compressor stations needed for export were put into production. The cheap natural gas before was gas that was put onto the market with no where to go, trapped production. Those compressor projects were going to happen whoever came into office due to the price differential between u.s and world natural gas.

 

[machidafan99]

US companies are waiting for it to be financially worthwhile to frack again. Saudi's are trying to find a balance to keep them at bay.

 

[MicroBrew]

I live in Kansas City and gas has been $1.99 pretty much since i moved here. now it is like $2.40-$2.65.

Its not even summer vacay time yet. Why has gas gone up so much?

Crude oil price went up. It's at $70 a barrel right now. OPEC and Russia are expected to cut production.

 

[woodguyatl]

Ok, let's make it war room worthy. It's Trumps policies that are making oil prices go up. No that can't be right because the left is not giving Trump credit for the great economy so how can they blame him for oil on the rise. Oh well, let's just argue about it.

I'll try. In Davos Mnuchin said: “Obviously, a weaker dollar is good for us as it relates to trade and opportunities.” The dollar dropped and oil prices went up.